Agenda item - Acceptance of Local Authority Housing Fund (LAHF) Grant Funding

Report of the Corporate Director of Finance and Resources (S151 Officer). To be presented by the Cabinet Member for Housing

DECLARATIONS OF INTEREST MADE FOR THIS ITEM:

None

RESOLVED:

That Cabinet:

1. In accordance with Contract Standing Order CSO 21.01 and Contract Standing Order 9.07.1(d), approved the acceptance of capital funding (£21,771,000) and revenue funding (£124,575) from the Local Authority Housing Fund, third funding round (LAHF R3), to enable the Council to acquire 84 homes in the borough.

2. In accordance with Contract Standing Order CSO 21.01 and Contract Standing Order 9.07.1(d), approved the acceptance of capital funding (£38,448,000) and revenue funding (£259,604) from the Local Authority Housing Fund, fourth funding round (LAHF R4), to enable the Council to acquire 152 homes in the borough.

3. Delegated authority to the Director of Capital Projects and Property, following consultation with the Corporate Director of Finance and Resources and the Director of Legal and Corporate Governance (Monitoring Officer), to agree and enter into the final grant documentation and contracts, including the LAHF R4 Memorandum of Understanding (MoU) and any other necessary documentation.

4. Delegated authority to the Director of Capital Projects and Property, following consultation with the Corporate Director of Finance and Resources and the Director of Legal and Corporate Governance (Monitoring Officer), to accept subsequent rounds of LAHF funding from MHCLG.

Reasons for the Decision

The Council was committed to providing good-quality housing for residents of the borough. This decision represented an important step towards achieving that aim.

Acceptance of the grant provided an opportunity to leverage additional funding into the programme, enabling the Council to deliver a greater number of homes for rent overall.

The purchase of these homes also helped to meet housing needs in Haringey, reduced pressure on the Temporary Accommodation budget, and enabled the Council to use Right to Buy receipts to fund other stock replacement projects.

Alternative Options Considered

The alternative option was not to accept the grant funding. This would have meant that additional homes were not purchased in the borough, resulting in more people remaining in temporary accommodation at greater cost to Haringey.

The Cabinet Member for Housing introduced the report.

The Cabinet Member explained that secure, affordable and well-maintained housing was recognised as a key factor in supporting the health, wellbeing and stability of individuals and families. At the time of the report, Haringey had more than 2,758 families living in temporary accommodation, representing a total of 8,288 people, or approximately 3% of the borough's population.

It was explained that the report noted that reductions in the availability of council housing, combined with insufficient replacement provision, had contributed to increased pressure on housing services. As a result, local authorities had become increasingly reliant on temporary accommodation to meet their statutory homelessness duties. The Council was seeking opportunities to build and acquire homes to reduce reliance on temporary accommodation and provide more stable housing options for residents.

It was explained that, during the year, funding had been secured from several sources, including the Greater London Authority (GLA), developer contributions, Right to Buy receipts and the Local Authority Housing Fund (LAHF), to support the acquisition of additional homes.

GLA funding was expected to assist 362 residents in moving out of temporary accommodation. Funding from developer contributions was expected to support around 100 additional residents, while the Local Authority Housing Fund was anticipated to assist a further 600 residents. Collectively, the funding secured during the year was expected to help just over 1,000 people move from temporary accommodation into longer-term housing.

The Cabinet Member highlighted that the homes acquired through these programmes were intended to be provided at affordable rent levels for local residents. The report also highlighted the continuing financial pressures associated with temporary accommodation, with the Council spending close to £60 million per year on accommodation provided by private landlords for homeless households. The Council continued to pursue a programme of housing improvement, repair, acquisition and development across the borough, with the aim of increasing the supply and quality of housing available to residents.

Following questions from Councillors Powell the following information was shared:

It was asked why the previous allocation of grant funding was sought unlawfully through delegated approval. The Cabinet Member explained that they would provide an answer to the question in writing following the meeting.
It was explained that the Council was seeking good value for money through the grant funding, noting that the purchase of homes, rather than utilising temporary accommodation, would provide long term sustainability.