Meeting documents

SSDC District Executive
Thursday, 4th September, 2014 9.30 am

  • Meeting of District Executive, Thursday 4th September 2014 9.30 am (Item 45.)

Decision:

 

RESOLVED:

That the District Executive:

 

a.

Noted the outturn position of the Affordable Housing Development Programme for 2013/14 [ref section 6];

 

b.

Confirmed the de-allocation of funds from Raglan Housing Association, totalling £ 993,000, from the following schemes [ref paragraphs 9.3 & 9.4];

·         Great Western Road, Chard Phase 2 (£460,000)

·         Rosebank, Millfield, Chard (£390,000, but leaving £98,000 allocated)

·         Font Villas, West Coker (£143,000)

 

c.

Confirmed the de-allocation of £180,000 from Knightstone Housing’s scheme at Furnham Road (phase II) [ref paragraph 9.5];

 

d.

Confirmed the de-allocation of £80,000 from Yarlington’s purchase and repair scheme at Crewkerne, reducing the commitment to £89,000 [ref paragraph 9.6];

 

e.

Agreed the reduction of the remaining Bought not Built allocation for Jephson Housing from £401,000 to £200,000 [ref section10];

 

f.

Approved the allocation of £240,000 from the rural contingency fund to Yarlington Housing to underwrite Broadway Farm, Merriott, subject to appropriate planning permission [ref section11];

 

g.

Agreed the setting aside of £276,500 to create a mortgage rescue contingency fund [ref section12];

 

h.

Confirmed that individual allocations for mortgage rescues from this fund be delegated to the Portfolio Holder, subject to a formal report [ref section12];

 

i.

Confirmed the allocation of an additional £14,000 to Knightstone Housing in order to make the purchased property in Somerton available on a hybrid rent [ref paragraphs 13.2 & 13.3];

 

j.

Agreed the allocation of £65,000 to Yarlington Housing to enable the buying back of a shared ownership property and make it available as a property for rent [ref paragraph 13.4];

 

k.

Confirmed that the Housing Association selection review process be brought forward by one year to be undertaken broadly in the manner described in the report, if possible in collaboration with Sedgemoor and Mendip District Councils, or any other neighbouring local housing authority that may choose to join in [ref section 14];

 

l.

Agreed that authority to confirm the outcome of that review be delegated to the Portfolio Holder, subject to a formal report [ref section 14].

Reason:

To update the Executive on the final position of the Affordable Housing Development Programme for 2013/14 and future prospects in the light of recent confirmations of grant from the Homes and Communities Agency (HCA).

 

Minutes:

The Corporate Strategic Housing Manager introduced the report to Members and drew their attention to several details in the report.  He noted that the Government’s mortgage rescue scheme funding ended in March 2014 and it was proposed to create a contingency fund for SSDC to continue to offer the service as part of homeless prevention.

In response to questions from the Scrutiny Committee and members of the Executive, the Corporate Strategic Housing Manager advised that:

·         The Government’s mortgage rescue criteria would be refined for SSDC use rather than entirely new criteria written.

·         There was always a risk that Homes and Communities Agency (HCA) funding could be withdrawn if there was a change in government however, if that happened it was likely that allocated schemes would be honoured and only the unallocated element withdrawn.

·         Housing Associations were obliged to recycle their useable receipts into new housing schemes as part of their HCA funded programme in order to reduce the headline grant rate.

·         Yarlington Homes tenants had a preserved right to buy their home if they were originally council tenants at the point of transfer and had remained Yarlington Homes tenants since.

·         People in shared ownership properties tended not to use the mortgage rescue scheme.

·         There was a relationship between the amount of capital grant received to build a property for rent and the final rent charged to tenants as greater the grants received by a Housing Association to build a property, then the rent tended to be lower.  Inevitably this meant as the capital subsidy reduced, the revenue subsidy (via Housing Benefit) increased.

·         The Local Housing Allowance was originally set by reference to the prevailing private rents for housing benefit purposes but had since been frozen and effectively was a cap on the level of housing benefit that could received for each type of property.  Other caps also existed such as the overall benefits cap for a family and the spare room subsidy (so-called ‘Bedroom Tax’).

At the conclusion of the debate, Members were content to agree the recommendations of the report.

RESOLVED:

That the District Executive:

 

a.

Noted the outturn position of the Affordable Housing Development Programme for 2013/14 [ref section 6];

 

b.

Confirmed the de-allocation of funds from Raglan Housing Association, totalling £ 993,000, from the following schemes [ref paragraphs 9.3 & 9.4];

·         Great Western Road, Chard Phase 2 (£460,000)

·         Rosebank, Millfield, Chard (£390,000, but leaving £98,000 allocated)

·         Font Villas, West Coker (£143,000)

 

c.

Confirmed the de-allocation of £180,000 from Knightstone Housing’s scheme at Furnham Road (phase II) [ref paragraph 9.5];

 

d.

Confirmed the de-allocation of £80,000 from Yarlington’s purchase and repair scheme at Crewkerne, reducing the commitment to £89,000 [ref paragraph 9.6];

 

e.

Agreed the reduction of the remaining Bought not Built allocation for Jephson Housing from £401,000 to £200,000 [ref section10];

 

f.

Approved the allocation of £240,000 from the rural contingency fund to Yarlington Housing to underwrite Broadway Farm, Merriott, subject to appropriate planning permission [ref section11];

 

g.

Agreed the setting aside of £276,500 to create a mortgage rescue contingency fund [ref section12];

 

h.

Confirmed that individual allocations for mortgage rescues from this fund be delegated to the Portfolio Holder, subject to a formal report [ref section12];

 

i.

Confirmed the allocation of an additional £14,000 to Knightstone Housing in order to make the purchased property in Somerton available on a hybrid rent [ref paragraphs 13.2 & 13.3];

 

j.

Agreed the allocation of £65,000 to Yarlington Housing to enable the buying back of a shared ownership property and make it available as a property for rent [ref paragraph 13.4];

 

k.

Confirmed that the Housing Association selection review process be brought forward by one year to be undertaken broadly in the manner described in the report, if possible in collaboration with Sedgemoor and Mendip District Councils, or any other neighbouring local housing authority that may choose to join in [ref section 14];

 

l.

Agreed that authority to confirm the outcome of that review be delegated to the Portfolio Holder, subject to a formal report [ref section 14].

Reason:

To update the Executive on the final position of the Affordable Housing Development Programme for 2013/14 and future prospects in the light of recent confirmations of grant from the Homes and Communities Agency (HCA).

 

Supporting documents: