Agenda item
Arms Length Management Organisation New Build Programme
The Select Committee requested a briefing note on this item providing details of the implications of mixed tenures and the costs involved of disposing of properties, including in-house disposals.
The Lead Member and lead officer have also been invited to the meeting to respond to Members’ questions.
Minutes:
Councillor Thomas (Lead Member for Housing and Customer Services) introduced the briefing note and advised that the Homes and Communities Agency (HCA) had indicated that they would consider funding the development of affordable homes on Ander Close, Mead Court and Coppermead Close garage sites providing the Council disposed of the sites to Brent Housing Partnership (BHP) at nil cost. It was anticipated that HCA would make a decision in respect of funding in late August 2010.
During discussion, the Chair enquired on the possibility of providing mixed housing on the sites which he believed would help increase life chances for all in the area, as opposed to restricting it to social housing only. He acknowledged that the site area was small, but commented that some organisations specialised in developing mixed housing in such areas and he asked if such an option had been explored. He also sought comments with regard to a best value option. Councillors Lorber enquired about BHP’s capacity to develop such schemes and whether capital receipts could be generated through disposal of Housing Revenue Account (HRA) owned land. Councillor Van Kalwala also enquired about BHP’s capacity and he also asked about development options for St Raphael’s Estate.
In reply, Councillor Thomas advised that the sites would be under a registered social landlord and that there would be some mixed housing. Priority would be given to those on the housing waiting list. He acknowledged the benefits of mixed housing but felt the sites too small to accommodate such a use, although mixed tenure would certainly be considered for larger sites. He confirmed that BHP had provided proposals for a scheme in respect of the sites and it was felt that the scheme put forward was workable. No other organisations had approached, nor been approached by, the Council. Councillor Thomas suggested that other organisations may be considered for schemes in other locations.
Manjul Shah (Head of Affordable Housing Development, Housing and Community Care) advised that HCA had indicated that they would consider part funding the sites under a shared ownership basis. He stated that larger sites would be considered for mixed tenure where this was more appropriate. With regard to BHP, Manjul Shah advised that they do have some financial reserves and were putting £400,000 towards the scheme and would consider other developments on a scheme by scheme basis. Development on St Raphael’s Estate would be through disposal of sites to either BHP or other suitable housing associations and it was possible that BHP could be given responsibility for contract management. Members noted that investment could not be generated through prudential borrowing at this time. Manjul Shah advised that on HRA owned land more housing, especially social housing, was wanted. He stated that on the sites in question, it was difficult to provide any more housing than that which was proposed because of planning considerations, however BHP would develop HRA land where there was potential to develop in-fills. Manjul Shah advised that Secretary of State consent was required to obtain capital receipts for disposal of HRA land, and the Council would only be entitled to 50% of the capital received. Therefore careful consideration would need to given as to the benefits of disposing of such land.
RESOLVED:-
that the briefing note on Arms Length Management Organisation New Build Programme be noted.
Supporting documents: