Agenda item

To approve to design and develop 4 no. sites across Sandwell with new affordable rent council housing, subject to planning permission being obtained.

                  Approval was sought to design and develop 4 no. sites across Sandwell with new affordable rent council housing, subject to planning permission being obtained.

The project would design/deliver 50-60 new Council-owned affordable rented properties on a maximum of 4 no council-owned sites which would include houses, bungalows and apartments. The schemes would also include M(4)3 full wheelchair compliant standard for people with specific needs.

The development of the proposed council sites with new homes would result in the following benefits:

·      reducing the amount of vacant, under-utilised land within its ownership which is incurring maintenance costs;

·      increasing the numbers of authority owned stock which would ease pressure on our existing housing;

·      replacing housing stock lost through Right to Buy;

·      increasing income to the Housing Revenue Account;

·      Contributing positively to the financial position of the Council by generating New Homes Bonus and new Council Tax receipts;

·      developing fit for purpose accommodation;

·      increased good quality, energy efficient housing provision in the Borough;

·      increasing the levels of new build Council housing stock within the Borough contributing to target forecasts;

·      linking to the work of Think Local and Find-it-in-Sandwell approaches that would offer significant employment and training opportunities as well as additional community benefits to the local economy, including working with local supply chains and use of local labour;

·      producing positive outputs for community safety through the redevelopment of a vacant site.

Reasons for Decision

Following the introduction of greater flexibilities for local authorities the Council was able to develop future sites, subject to planning permission, as part of the new strategic approach to provide more and better housing in the borough.

Alternative Options

Option A - Deliver the schemes through the in-house design team and procure a development contractor through the traditional route.

Option B – Develop the sites utilising other funding sources

Agreed:-

(1)          that approval be given to design and develop 4 no sites across Sandwell with new affordable rent council housing, subject to planning permission being obtained;

(2)          that the Director of Finance be authorised to allocate adequate resources from the Council’s Housing Revenue Account to deliver the scheme designs and enable the agreed Homes England delivery programme to be met utilising grant funding offered under the extended Homes England Strategic Partnership 1 Programme 2016 to 2021;

(3)          that approval be given to authorise the steps necessary for the delivery of the proposed projects, including:

(a)          subject to Resolution (2) above, the Director of Regeneration and Growth in consultation with the Director of Finance and the Director of Housing, be authorised to prepare tendering documentation and subsequently procure, in accordance with any statutory regulations and the Council’s Procurement and Financial Regulations to use the Construction West Midlands framework (CWM2) procurement route to undertake the Design and development documents to RIBA (Royal Institute of British Architects) stage 4 level;

(b)          subject to a) above, the Director – law and Governance and Monitoring Officer be authorised to enter into or execute under seal any documentation in relation to award of the contract for the Design RIBA stage 4 of a maximum of four sites and/or development/partnership agreement, any consents or applications required for Planning or Highways appertaining to the delivery of the schemes and any other agreements with the procured contractor(s),as may be deemed necessary to facilitate development of the sites with housing schemes to RIBA stage 4;

(c)     that subject to receiving the necessary Strategic Investment Unit appraisal approval mark of 65 or above for each individual site, the Director of Regeneration and Growth, in consultation with the Director of Finance and the Director of Housing, be authorised to accept the Financial closure offer for the construction of Council new build properties, in accordance with any statutory regulations and the Council’s the Director – law and Governance and Monitoring Officer be authorised to enter into or execute under seal any documentation in relation to award of the contract for the development of each of the individual sites and/or development/partnership agreement, any consents or applications required for Planning or Highways appertaining to the delivery of the schemes and any other agreements with the procured contractor(s),as may be deemed necessary to facilitate development of the sites with housing schemes on terms and conditions to be agreed and implemented by the Director of Regeneration and Growth.