Agenda item

(Report of the Interim Chief Operating Officer. To be introduced by the Cabinet Member for Housing and Regeneration). The report sets out the principles guiding the Preferred Partner Agreement and the use of Right to Buy money in order to provide grant funding for new developments.

Cabinet considered a report, introduced by the Cabinet Member for Housing and Regeneration, which set out the principles guiding the Preferred Partner Agreement (PPA) and the use of Right to Buy (RTB) money in order to provide grant funding for new developments.

In introducing the report Councillor Strickland noted that the proposals would see the Council develop a new relationship with a smaller number of registered providers whose work complimented the Council’s strategic objectives. The PPA would also set out guidelines around the use of RTB money in order to ensure that RTB receipts were used within the three year deadline set by the Government.

In response to a question from Councillor Bevan Councillor Strickland advised that wherever possible RTB receipts would be used for the provision of social housing and that the proposals set out in the report were intended to help facilitate this.   Cllr Bevan further expressed concern about RTB receipts being passed to third parties and suggested alternatives.

RESOLVED:

1. That the report be noted and that the six registered providers selected, as detailed in paragraph 6.4 of the report, as preferred partners, be approved; 

2. That officers be authorised to enter into a formal Preferred Partner Agreement;

3. That delegated authority be given to the Director of Regeneration, Planning and Development, after consultation  with the Cabinet Member for Housing and Regeneration, to agree the terms of the Preferred Partner Agreement;

4. That approval be given for the use of the retained right to buy receipts to part fund Council acquisition programme of former Council owned properties sold under the right to buy;

5. That delegated authority be given to the Director of Regeneration, Planning and Development,  after consultation with the Cabinet Member for Housing and Regeneration, to agree the details of a Council acquisition programme subject to confirmation from the Council’s Chief Finance Officer that the scheme represents value for money;

6. That approval be given to the principle of using the Council's retained right to buy receipts as grant funding for the preferred partners as one option to provide additional affordable housing for rent both through an acquisitions programme and new build programme;

7. That, subject to the Council's Financial Regulations, approval of grant funding to preferred partners would be delegated to the Director of Regeneration, Planning and Development up to the approved limit of £500,000; and

8. That it be noted that, where any proposed grant funding exceeds the Director’s approved delegated limit of £500,000, a separate report would be submitted to Cabinet for approval in accordance with the Council's Financial Regulations.

Alternative options considered

This report covers two distinct but related issues.  First, the introduction of a Preferred Partner Framework and Agreement, and second, the use of Right to Buy receipts to provide grant funding to our preferred partners to maximise the development of affordable housing in the borough.   

The Council already has a generic Partnership Agreement in place with all registered providers in the borough and could continue to rely on this as the mechanism through which to manage the relationship.  However, due to the large number of providers in the borough this will limit the opportunity to build constructive and proactive partnerships to make lasting improvements to housing across the borough. 

If the Council does not have a strategy in place to use its RTB receipts within three years of receiving them, it will have to return them to the Department of Communities and Local Government DCLG with interest. 

Reasons for decision

To improve relationships with registered providers in the borough and contribute to the delivery of the council’s current and emerging corporate plans.