Agenda item - Use of Right to Buy receipts for appropriation of properties to the HRA and grant to Homes for Brighton & Hove Limited Liability Partnership (LLP)

Report of the Executive Director of Neighbourhoods, Communities & Housing

9.7      RESOLVED: That the Housing & New Homes Committee:

9.8      That the Housing & New Homes Committee notes that the following decisions have been taken by the Executive Director Neighbourhoods, Communities & Housing:

9.8.1   to appropriate Flat 1 Greenleas, Hangleton Valley Drive and The Bungalow, Drove Road Portslade from the General Fund to the HRA;

9.8.2   to make a transfer from the HRA of £0.548m to the General Fund in consideration for the appropriation referred to at 9.8 above;

9.8.3   to make a grant of £0.223m to the LLP.

9.9      That the Housing & New Homes Committee recommends to Policy, Resources & Growth that it agrees that the general fund will receive £0.112m less RTB receipts in 2019/20, therefore increasing the receipts available for use by the HRA.

9.1     The Committee considered a report of the Executive Director, Neighbourhoods, Communities & Housing forecasting an under spend of the use of Right to Buy (RTB) receipts for the final quarter of 2018/19. The report would also be presented to the Policy, Resources & Growth Committee.

9.2     In answer to questions Councillor Hugh-Jones was informed that the joint venture may use receipts via the Limited Liability Partnership Board, which is a partnership between Brighton and Hove City Council (BHCC) and Hyde Housing, and not by Hyde Housing alone. It was also noted that the receipts cannot be given to a company wholly owned by BHCC.

9.3     Councillor Knight was informed that the National Government were consulting local authorities on the use of only 30% of the fund to be used to supply affordable housing across the city. It was noted that the authority is lobbying the government to change the percentage and there is not mechanism in place at the moment to help. Councillors were informed that changes may be possible in the future.

9.4     Councillor Mears was informed that new builds constructed with funds can be placed into general housing stock and not just for social rented housing. It was noted that temporary accommodation can be placed eventually into the general housing stock. Temporary accommodation income would be returned to Housing Revenue Account (HRA) and it was clarified that the item would also be going before The Policy, Resources & Growth Committee.

9.5     Councillor Gibson was informed that the delay in buying properties related to asbestos issues arising during the buying process which in turn delayed works to the building. The buying of two further properties fell through as a result of onsite asbestos issues. It was noted that 5.5 full time employees (FTE) had been achieved from funding and this had increased the productivity.

9.6     The Committee voted on the recommendations and these were agreed by all Members. The recommendations in the report were carried.

9.7      RESOLVED: That the Housing & New Homes Committee:

9.8      That the Housing & New Homes Committee notes that the following decisions have been taken by the Executive Director Neighbourhoods, Communities & Housing:

9.8.1   to appropriate Flat 1 Greenleas, Hangleton Valley Drive and The Bungalow, Drove Road Portslade from the General Fund to the HRA;

9.8.2   to make a transfer from the HRA of £0.548m to the General Fund in consideration for the appropriation referred to at 9.8 above;

9.8.3   to make a grant of £0.223m to the LLP.

9.9     That the Housing & New Homes Committee recommends to Policy, Resources & Growth that it agrees that the general fund will receive £0.112m less RTB receipts in 2019/20, therefore increasing the receipts available for use by the HRA.