Ashely Jackson, Head of Housing and Planning
introduced the report and made the following comments:
- In March 2023, it was announced that
the Local Authority Housing Fund would be expanded by £250m
for a second round of funding (LAHF R2);
- Thanet has been identified as
eligible for capital grant funding with an indicative allocation of
£694,000 in funding to purchase four homes for the
resettlement element and 1 home for the Temporary Accommodation
element;
- In order to utilise the grant, it
was necessary to match fund the acquisitions with £788,860 of
borrowing within the HRA capital programme and these proposals
would be presented to Cabinet on 16th November. The properties had
been identified and had to be purchased by 31st March 2024;
- Business plan modelling showed that
the scheme generated a surplus from year one due to the grant
subsidy. This surplus could be used to subsidise other parts of the
Affordable Homes Programme;
- Officers were proposing that the
homes were let at an affordable rent level, in line with the
Council’s approved Tenancy Strategy;
- Discussions had taken place with a
local developer who was currently developing the Westwood Cross
site to purchase five x three bed units. The units would be an
‘off the shelf’ purchase with no refurbishments or
adaptations needed. They were nearing completion and would be ready
soon;
- The developer had accepted a
provisional offer, subject to approval of £1.4m and this was
80% of the market value;
- The proposed offer had been run
through the Council’s business plan modelling and the results
indicated that the scheme generated a surplus for the HRA business
plan from year one due to the grant subsidy;
- This proposal would be presented to
Cabinet on 16 November 2023. The report would recommend that
Cabinet approve the use of £694,000 of grant funding and
£788,860 HRA match funding from the already approved HRA
capital programme, to purchase five units for the LAHF R2.
Councillor Whitehead also made comments as
follows:
- Members were being asked to consider
and respond to the proposals going forward to Cabinet regarding the
purchase of five properties using the Local Government Housing
Grant;
- This was a grant that had been
presented to Members before. The Council applied for and were
granted £1.19 million in the first tranche of this Grant to
provide homes for those who arrived in the country via the
following approaches:
?
The Afghan Citizen Resettlement Scheme (including eligible British
Nationals under this scheme) (ACRS);
?
Afghan Relocations and Assistance Policy (ARAP);
?
Ukraine Family Scheme (UFS);
? Homes for Ukraine (HFU);
? Ukraine Extension Scheme (UES).
- In this tranche of funding the
Council had been granted £694,000. Through this the Council
intended to provide five homes. Four had to have at least three
bedrooms and one was required to be used for temporary
accommodation;
- As with the previous tranche of
funding, the timescales around this funding were extraordinarily
tight. Therefore, in order to deliver the homes required in the
period given, direct purchase was the only realistic way forward.
This aspect of funding limited the Council’s creativity with
how it could better provide housing using this grant;
- However, the net result remained the
same which was that the grant enabled the Council to support
households who needed support at an incredibly difficult time, for
the allotted time that they were allowed to remain in the UK by
central government;
- The funding also enabled the Council
to grow its general portfolio as well as supporting the growth of
its housing overall;
- These homes were significant not
just in what they could achieve in supporting those who had
experienced war and displacement, but also in what they could do to
support other vulnerable residents;
- Due to the scale of this grant and
its provision of 46% of the overall cost, the rental of these
properties produced a surplus from year one, as demonstrated by the
provided graph;
- This was especially significant as
part of the Council’s strategy, as it provided a revenue
stream to not only offset borrowing to produce the 400 plus
properties planned for general usage, but also to support further
housing acquisition and production;
- It was rare that both moral and
financial benefits to align and this was one of those rare
cases;
- Life often calls on society to do
the right thing for others. This moral imperative ran through every
decision that was made by the Council and was especially pertinent
in this case. To be able to provide for even more residents,
specifically through fulfilling the moral duty was a circumstance
that rarely appeared in local government. This strategy provided
such an opportunity;
- The Portfolio Holder thanked Ashley
Jackson and her team for all the work in putting together these
proposals that were before the Panel.
Members asked questions and made comments as
follows:
- Members thanked officers and Members
who had managed to put these proposals together and secured the
funding for housing development for Thanet;
- Another Member asked whether the
dwellings were in one location or scattered across the district as
this had implications for the community integration of residents to
occupy these new homes;
- Did the Council have a liaison
officer to assist the new families coming into the district to
settle in their new homes?
- Members welcomed this project and
were particularly full of praise for the approach to get the homes
grouped together to enable the new residents to live as a community
that would settle in well with the local residents.
Ashley Jackson responded to Member comments
and questions as follows:
- The new residents would occupy new
homes that were all grouped together and that way they would make a
community;
- There was a funded post for a
Ukrainian Liaison Officer working with the incoming families.
Members noted the report.