Content

Decision
 
RESOLVED that:
 
1.1) Cabinet recommended to
Council that the funding be approved.
1.2) That subject to the
approval of the funding by Council, Cabinet:-
a) Approved the acquisition
of the 3 residential properties identified in, and at the prices
set out, in Schedule A of the Part 2 of the report, later on the
agenda.
b) Authorised officers to
undertake modernisation works to the properties at the estimated
cost set out in Schedule B of the Part 2 of the report.
c) Approved the application
of Local Authority Housing Fund (LAHF3) grant funding towards the
purchase costs, and in accordance with the grant terms.
1.3) Authorised the Head of
Asset Management & Engineering Services and the Chief Finance
Officer, in consultation with the Portfolio Holder for Asset
Management, to agree the detailed purchase terms and the
improvement works as set out in the Part 2 report.
 
Reasons for
decision
 
The proposed acquisitions directly supports the
council to effectively manage the demand for larger temporary
accommodation properties to support the relief of homelessness in
the borough.
 
The use of Local Authority Housing Fund (LAHF3)
grant funding materially reduces the Council’s net capital
exposure and improves the affordability and overall value for money
of the investment.
 
The agreed purchase prices are supported by
independent valuations and are considered reasonable and prudent,
providing assurance that the Council is not paying above market
value.
 
The South Mimms and Bushey properties, while
structurally sound, require internal modernisation to achieve
lettable standards. The scope and estimated cost of these works
have been assessed and are reflected in the purchase prices, with
appropriate allowances included within the approved capital
budget.
 
The Borehamwood property is well maintained and
presents a comparatively low refurbishment and delivery risk. A
proportionate contingency has been included to cover minor cosmetic
works.
 
The proposal is affordable with the use of LAHF
funding and capital receipts, and has been assessed for ongoing
revenue implications, including management and maintenance, all of
which are considered manageable within existing budgetary
provision.
 
A requirement of LAHF is that the funds have to
be utilised by 31st March 2026, or the unspent monies have to be
returned.
 
The proposal supports the Council’s Asset
Management Plan and wider corporate priorities by making prudent
use of capital resources and external grant funding to deliver
long-term community benefit, while maintaining appropriate
financial governance and risk management.
 
Alternative Options
Considered
 
Do Nothing:
Not proceeding with the acquisitions would
result in the loss of an opportunity to secure two three-bedroom
houses and one three-bedroom flat at prices considered reasonable
when assessed against independent valuation evidence. This would
limit the Council’s ability to increase its stock of
family-sized temporary accommodation.
In addition, failure to proceed would place at
risk the use of Local Authority Housing Fund (LAHF3) grant funding
within the required timescales, potentially resulting in the loss
of external funding and reducing overall value for money. This
would have a negative impact on the Council’s housing
delivery targets and the efficient use of capital
resources.
 
Do Something Else
The Council could seek to identify and acquire
alternative residential properties within the Borough to meet
temporary accommodation needs. However, there is no certainty that
suitable properties of the required size, condition and value for
money would be available within the Local Authority Housing Fund
(LAHF3) funding criteria or within the required delivery
timescales.
Pursuing alternative options would be likely to
delay delivery, increase acquisition costs due to market
conditions, and risk the loss of LAHF3 grant funding. This option
would therefore introduce additional financial and delivery risk,
with no guarantee of achieving improved outcomes compared to the
recommended approach.