Content

RESOLVED:
 
1. 
That the scheme for Climate, Homes & Economy
Directorate as set out in section 11 was approved as
follows:

 
Local
Implementation Plan (LIP) 2024/25 and Mayor’s Air Quality
Fund (MAQF) 2024/25 and 2025/26: Resource and spend approval of
£3,967k (£3,427k in 2024/25, £320k in
2025/26 and £220k in 2026/27) was requested to enable
Council Officers to proceed with the final year of the three year
LIP programme as well as the two year programme of works for the
Mayor of London Transport Strategy (Air Quality Fund).
 
2. 
That the s106 Capital schemes summarised below and set
out in section 12 was approved:
 

S106

2024/25
£'000

Capital

920

Total
S106 Capital for Approval

920

 
3. 
That the s106 Capital scheme summarised below and set
out in section 13 was noted:
 

S106

2024/25
£'000

Capital

7

Total
S106 Capital for Noting

7

 
 
4. 
That the capital adjustment summarised below was
noted:
 

Current
Directorate

Capital
Adjustments

£'000

Non Housing

304

Housing

0

Total

304

 
 
5. 
Delegated to the Interim Group Director, Finance the
authority to accept the additional Local Authority Housing Fund
Round 3 (LAHF3) of £15.7m grant funding in section 15 in
accordance with the agreement.  This
will enable the budget increase of the Council’s Temporary
Accommodation investment and Afghan Resettlement Scheme.

 
6. 
Approved an increase of £34.9m to the General
Fund Capital Programme and £2.5m to the HRA Capital Programme
to fulfil our LAHF3 commitments. This adjustment includes
£15.7m in grant funding and £21.7m in
borrowing.

 
7. 
Authorised the purchase (either freehold or leasehold)
of suitable dwellings within the administrative area of the Council
for the purposes of allocation of both Temporary Accommodation and
housing for on ACRS resettlement schemes and delegated authority to
the interim Group Director, Finance to agree all commercial terms
for these purchases.
 
8. 
Delegated authority to the Acting Director of Legal,
Democratic and Electoral Services to settle all necessary legal
documentation to enable these transactions.

 
9. 
Noted The Pedro Project information contained within
this report and progress to date. The Pedro Club, 175 Rushmore Rd,
E5 0HD and 3 Pedro Street, London, E5 OHD (shown for identification
purposes edged red on the plan at Appendix 1 and 2).
 
10.Noted that King’s Park Moving Together (KPMT) are
submitting funding proposals to Sport England for additional
funding to support the organisational 
development and the The Pedro capital
project.

 
11.Authorised the allocation of up to £1.5m of Council
capital funding from the Council’s Voluntary and Community
Sector capital budget towards The Pedro Project capital works,
subject to The Pedro Club having: 

 
· 
Secured a minimum match funding of £1m from Sport
England;
· 
Secured other sources of funding to ensure the project
is fully funded; and
· 
Satisfactory progress on organisational capacity
building and strengthening of its governance.

 
12.Subject to availability of capital funding, to continue work to
progress The Pedro Project through RIBA stages 3 and 4.

 
13.Approved the disposal of 6 small pieces of land as set out in
section 15 and in Appendix 3 and shown for identification purposes
edged red on the plans at Appendices 4-9.

 
14.Delegated authority to the Director of Strategic Property
Services, in consultation with the Interim Group Director, Finance
to agree the terms of the agreement for the disposals.

 
15.Authorised the Acting Director of Legal, Democratic and
Electoral Services to prepare, agree, settle and sign the necessary
legal documentation to effect the proposals contained in this
report and to enter into any other ancillary legal documentation as
required.
 
REASONS FOR DECISION
The decisions required are necessary in order
that the schemes within the Council’s approved Capital
programme can be delivered and necessary to approve the property
proposals as set out in this report.
 
In most cases, resources have already been
allocated to the capital schemes as part of the budget setting
exercise but spending approval is required in order for the scheme
to proceed.  However, where resources
have not previously been allocated, resource approval is requested
in this report.
 
To facilitate financial management and control
of the Council's finances.
 
Proposed Project of The Pedro
Club, 175 Rushmore Rd, E5 0HD and 3 Pedro Street, London, E5
OHD: This project will make a significant contribution to
delivering key corporate objectives and local priorities. The
project will support sustainable and enhanced community services in
a particularly deprived ward, delivered by a strengthened VCS
partner operating from improved and fit for purpose premises.
 
The Pedro Club is highly valued by the local
community, the Council and by other stakeholders such as local
schools, NHS providers and the Met. Police. It plays a key role
engaging with residents that statutory services struggle to serve,
and provides services to residents of all ages including; sports
and exercise, an amateur boxing club, youth club, a cycle hub,
mentoring, learning activities, and holiday schemes for
children.
 
The Project has developed with due regard to
the historic challenges and systemic disadvantages the Club has
faced and of their capacity today - they are still a small and
predominantly volunteer led organisation with limited financial
resources. In addressing the organisational development needs of
the Club the project has also ensured that the strengths of the
Club, and its impact within the local community are
acknowledged.
 
The project offers increased scope for
partnership working with Council services, other statutory agencies
(e.g. NHS, Police, DWP, Schools and Colleges), community partners
and those from boxing, sport and leisure sectors and sport. This is
important in a somewhat isolated neighbourhood with limited access
to support services in the area. 
 
The building is a key aspect of the
club’s business plans to enhance community services whilst
also generating sufficient income to cover operating costs. The
Club’s ability to maintain the premises will continue to be
challenging without intervention and support to improve the
premises.  If the Project is not
successful it will have a significant adverse impact on services,
the community and on the Club’s viability and sustainability.
In the worst case scenario there is a risk of the Club folding in
the future.
 
The Council has a time sensitive opportunity
to leverage Sport England funding for this project: Capital
investment of approximately £1m for the building project,
and; revenue funding of approximately £200k to support the
Club’s organisational development.
 
There is an expectation from Sport England
that the Council will match their level of capital investment.
Sport England funding decisions are due in Dec. 2024. If the
Council is not in a position to allocate capital funds this will
jeopardise the Sport England funds.
 
The capital investment will deliver improved,
modernised and more sustainable premises, for example capital
improvements will ensure that the premises meet minimum energy
efficiency standards (MEES). The Council as freeholder is obligated
to ensure that these properties achieve an EPC rating of B by
2030.
 
The ‘whole site’ approach
recommended for the project encompasses 175 Rushmore Road and 3
Pedro Street (see 5.2 below). This approach maximises the potential
for increased community impact, income generation and operation of
viable services. This view is endorsed by Sport England who are
reluctant to invest in a less impactful project.
 
If the project does not proceed, the premises
will still require Council capital investment:
 
· 
3 Pedro Street will require investment before any new letting.
Capital works estimates at £397k will be required over the
next 3 - 5 years. 
· 
175 Rushmore requires significant investment over the next 3 - 5
years to ensure the building is safe and in good repair so that the
Club (or any other occupier) could continue to operate from the
premises for the next 15 years or more.
· 
Both properties must achieve an energy performance rating (EPC) B
by 2030. As freeholder, the Council is responsible for works
required to achieve an EPC B rating.
 
A ‘do minimum’ option for capital
works (as described at 4.12 above) for both premises  would cost in excess of £1m. This level of
investment would deliver assets in adequate condition for
operations, health and safety compliance and meet energy efficiency
requirements.  However, this will not
leverage additional investment in the assets from Sport England and
other sources.
 
Local Authority Housing Fund: Round 3
(LAHF3)  Grant Award: This is a further
round of grant funding to support local authorities to acquire good
quality, and better value for money Temporary Accommodation (TA)
for families owed a homelessness duty by local authorities, all
properties acquired must be within the borough
boundary.  The grant programme is aimed
at reducing the usage of poor-quality B&B accommodation and to
enable local authorities to grow their asset base and help manage
local housing pressures on an ongoing basis.
 
Although LAHF3 is providing grant funding for
the acquisition of properties, the Council will need to provide
funding for the full purchase in the short term until the grant is
claimed. Therefore this will require £34.9m to be put into
the capital budget for 56 TA properties and £2.5m put into
the HRA for the purchase of 4 resettlement properties. The Council
will be borrowing £21.7m to match the grant and purchase
these much needed properties.
 
The resettlement properties purchased using
LAHF3 grant funding are specifically for housing families who are
on Afghan housing schemes. This is a very small number of
properties that are being taken forward due to the very generous
grant funding received.  This funding is
being provided to help ensure that those communities which had been
most generous in welcoming new arrivals were not
‘penalised’ with longer social housing waiting
lists.
 
DETAILS OF ALTERNATIVE OPTIONS CONSIDERED AND
REJECTED
 
Proposed Project of The Pedro
Club, 175 Rushmore Rd, E5 0HD and 3 Pedro Street, London, E5
OHD: Other options for this site are limited because 175
Rushmore Rd is leased to The Pedro Club until 2049. This rules out
a number of whole site options until after that date, unless the
Club were to cease operations at these premises. Other options
considered and rejected are summarised below.
 
Partnership Project not
continued: This option would still require a minimum capital
investment by the Council of circa £1m in order to fulfil its
property obligations, but would not leverage in excess of £1m
external funding and would not realise the enhanced community
services and impact. 
 
Alternative VCS letting:
Possible option for 3 Pedro Street if project does not proceed.
This would be a viable course of action but would require capital
investment of nearly £400k, and would not achieve the
leveraging of external investment and the impact of The Pedro Club
project above.
 
Enabling development: Option
to develop housing on the site, in order to create capital receipt
to fund a new build boxing/sports club and community
facilities.  This option has been
rejected because the timescales are long and uncertain given the
high level of community need now.  The
Council’s Asset Review notes that the cost of residential
development at this site would be high and outcomes delivered would
be lower in comparison to other sites. Furthermore this option
would require the support and agreement of the Club who have a
lease for 175 Rushmore Rd until 2049.
 
Local Authority Housing Fund Round
3 Grant Award: Building on the previous rounds of funding and
the number of homes being acquired for TA through LAHF3 we are
widening the scope for the purchase of properties beyond ex Right
to Buy properties on LBH estates to encompass properties within the
borough boundary.
 
LAHF3 funding is being provided to support
local authorities to acquire good quality, and better value for
money TA for families owed a homelessness duty by local
authorities, all properties acquired must be within the borough.
This is aimed at reducing the usage of poor-quality B&B
accommodation and to enable local authorities to grow their asset
base and help manage local housing pressures on an ongoing basis.
Hackney is forecasting a net spend on temporary accommodation
rental expenditure alone to exceed £28m in 24/25, in
comparison to £8m for 23/24 and £2.5m for 22/23.
Purchasing properties through the LAHF3 scheme will go some way to
alleviating this pressure and rising costs. If we chose not to
proceed, we would forgo a huge amount of grant funding which could
go some way in alleviating the financial pressures faced by the
Council both currently and in the long term.