Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: October 1, 2024

Purpose:

Content: Cabinet: (1)           agreed that the council enters into a Memorandum of Understanding with the  Minisitry of Housing, Communities & Local Government (formaly known as Department for Levelling Up, Housing & Communities), in respect of the £6.57m London Authority Housing Fund to fund the acquisition of a minimum of 28 homes, 23 to use for temporary accommodation and five for refugee resettlement, subject to the match funding contributions set out in paragraphs 2.1.3 and 2.1.4 of the report;   (2)           approved £1.62m of grant funding to be used towards major voids works costs for existing council-owned properties;   (3)           approved borrowing of £4.11m in the General Fund towards the purchase and refurbishment costs for the 23 properties to use as tempoary accommodation;   (4)           approved borrowing of £787,500 in the Housing Revenue Account towards the purchase and refurbishment costs for five properties to be used as permanent resettlement accommodation for refugees;   (5)           delegated authority for the final terms of the acquisitions to the Commercial Director, Property and Delivery, in consultation with the Corporate Director of Governance and Law;   (6)           delegated authority to the Strategic Director of Resources, in consultation with the Strategic Director of Place, to allocate the funding between acquisitions and refurbishment to fully utilise the funding and maximise the value to the council; and   (7)           delegated authority to the Corporate Director of Housing, in consultation with the Strategic Director of Resources. and Corporate Director of Governance and Law, the decision to determine the most appropriate method through which the council will provide the accommodation. This will be through the creation of a local lettings policy (if so advised) and amendments to housing policies, which govern the letting of properties by the council. This may include consideration of using fixed-term tenancies.   Options & Alternatives Considered The following options have been considered to provide new homes for temporary accommodation and refugee resettlement: ‘Do nothing’ – accommodate households in B&B or hotel accommodation, followed by Private Rented Sector Offers (PRSO) once secured. Hotel accommodation is a costly option and there is no certainty that suitable PRSOs can be secured given current challenges in the rental market.   ‘Do minimum’ – acquire a fewer number of properties and potentially return some of the grant. There will still be a need to house residents in hotel accommodation followed by PRSO. Preferred option – acquire a minimum 28 properties across the borough and improve our void properties. This will provide additional affordable homes and reduce the need for hotel and PRSO accommodation.