Decision details

Local Authority Housing Fund Round Two Application

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Decision Maker: Chief Executive & Head of Paid Service - Giles Hughes

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: No

Purpose:

To determine whether to support a second round application to the Local Authority Housing Fund (LAHF) and sign the associated Memorandum of Understanding (‘MoU’).

Decision:

The Chief Executive Resolved to:

1. Approve the signature of the Memorandum of Understanding (‘MoU’) with government in respect of round two of the Local Authority Housing Fund (‘ LAHF’);

2. Agree to accept the further proposal from Cottsway Housing to fulfil the requirements of the LAHF on behalf of the Council in respect of the delivery of a further 4 additional affordable homes;

3. Agree to continue to pursue additional government funding for a further three units of affordable housing and if offered approves the subsequent amendment to the MoU;

4. Agree to passport the funding received by the Council to Cottsway Housing underpinned by a funding agreement setting out the relevant grant terms;

5. Agree to provide funding (if necessary) from relevant refugee budget to fit out properties to an appropriate standard for affordable provision as set out in paragraph 4.2 of the report;

6. Agree to bring a report back to the Executive to consider an allocation of S106 funding if the LAHF funding for an additional three units does not come forward from government.

Reasons for the decision:

In February and April 2023 the Executive considered reports which set out the new LAHF aimed at providing housing initially for Afghan and Ukraine families which would then subsequently be recycled into the general affordable housing stock or emergency housing provision.

The Executive resolved to approve an application to the LAHF and the signing of a MoU with the Department of Levelling Up, Housing and Communities to provide a total of thirteen affordable housing units under the scheme and receive funding of £1.813m for this purpose. This was subsequently increased to sixteen units through further discussion with government and further government grant making a total of £2.346m.

The Executive determined, after an options appraisal, that delivery via Cottsway Housing would provide the best value for money for local taxpayers requiring no additional support to be provided by the Council for the acquisition of the houses.

Officers continue to work with Cottsway Housing to source the sixteen units of accommodation in line with the grant conditions set out by Government. Despite current housing market conditions this has proven difficult with house builders reluctant to release homes at an appropriate discount to market value for a bulk acquisition at affordable housing rates.

Progress has recently been made which suggests not only can this now be achieved (albeit at higher values than originally intended) but that a small number of additional units could also be procured.

This recent progress is timely as on 7^th June 2023 the Government announced a further round of funding to support the Ukraine and Afghan resettlement programmes and ease wider homelessness pressures.

West Oxfordshire was offered a further allocation of £672,000 of funding to deliver a further four units of property and is currently negotiating the potential for a further three units with associated funding. If the additional funding is not forthcoming the Council could determine to utilise other s.106 funding to acquire the units but this would be funding at a level not normally associated for such units via s.106 funds.

If this transaction is successful, as currently indicated, the Council, in partnership with Cottsway, will see the delivery of 20 or 23 additional affordable homes which will become available for general housing needs when the refugee scheme ends.

As mentioned in 2.1 the cost of acquisition of the units has been higher than initially anticipated and consequently fit out of the properties with carpets and ‘white goods’ is proving problematic within the grant funding.

Whilst Officers continue to work with Cottsway on delivering the ‘fit out’ within the funding envelope they are also exploring whether the fit out costs can be delivered through previous refugee funding allocated to the Council which is no longer required for its original refugee purpose. Alternatively Officers can explore with other agencies whether voluntary or other funding is available.

At this stage the government cannot confirm if funding is available for the full 23 units until September. Should this funding not come forward the Council and Cottsway still have the potential to access the additional three units via Homes England and s 106 funding. It is proposed that a report be brought back to the Executive setting out the business case for using Section 106 funding to support the acquisition of a further three homes with Cottsway, if necessary.

Alternative options considered:

The Council could choose not to seek the funding for a further four/seven units.

Urgent item?: Yes

Publication date: 14/08/2023

Date of decision: 11/08/2023

Accompanying Documents: