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RESOLVED: Cabinet;

1.    
Recommend to Full Council to agree an additional
Capital Programme budget of £5.488m to deliver the LAHF
R3.

2.    
Recommended to Full Council an increase in the total
Capital Programme budget of £9.578m, that is funded by
£4.089m of LAHF R3 Grant and £5.488m of the additional
budget required to deliver the programme.

3.    
Approved the Council to enter into a Memorandum of
Understanding with MHCLG to participate in LAHF R3.
 
REASONS RESOLVED:
 
1.    
The funding on offer through the LAHF R3 programme
offers a good level of external funding towards property
acquisitions (between £52,000 and £145,000 per property
depending on size, and an additional £21,000 per property for
refurbishment. There will also be resource funding and a ten
percent uplift in grant for new builds delivered). The LAHF grant
will provide immediate support to the Temporary Accommodation (TA)
pressures faced by the Council whereby a larger percentage of the
grant is allocated for the acquisition of TA and a smaller
percentage allocated to support the Afghan Citizen Resettlement
Scheme (ACRS). The properties acquired from the LAHF programme will
form part of the general needs housing stock in the medium/long
term once its conditions have been satisfied. These properties will
support the Council’s housing and homelessness
responsibilities for the remainder of their lifetime.
2.    
An increase to the capital programme is being
requested to enable completion of the LAHF R3 programme within the
required timeframes. To achieve the LAHF R3 programme targets it
will be necessary for the Council to continue and undertake some
direct purchases from the open market but to also work with
Registered Providers (RP) and developers to secure new
homes.
3.    
The Finance Team have completed modelling within the
HRA and set parameters for ceiling purchase prices within the LAHF
R3 programme to ensure that the scheme ‘breakeven’ or
payback within the expected timeframes agreed in the HRA and are
therefore capable of paying off borrowing over the 40-year business
planning period.
4.    
The timescales for West Northamptonshire Council for
LAHF R3, are to confirm its intention to deliver LAHF 3 and its
allocation by the 16th August 2024. Once received by MHCLG, the
Council will be expected to sign a Memorandum of Understanding
(MoU) by the 16th September 2024 to be formally awarded the
funding. We will be seeking an extension of the deadline until
after the 17th September (date of Cabinet) whereby the turnaround
of the MoU was delayed by the temporary halt of the LAHF R3
programme due to the General Elections.
 
ALTERNATIVE OPTIONS:
WNC could choose to not draw
down the LAHF R3 monies, but this would lead to additional revenue
spend and pressure on budgets in relation to procurement of
temporary accommodation to house those who may arrive in the area
through resettlement programmes and are threatened with or have
become homeless. This would also mean WNC would be declining funds
being made available to help relieve the significant pressures in
TA costs that the Council are presently experiencing, and the
opportunity to increase Council stock to support local housing
needs in the medium/longer term once LAHF conditions have been
satisfied