Agenda item

To consider proposals to appropriate the site for housing purposes and develop land at Beever Road, Tipton.

Resolved that:

1.1    Approval be given to make an application to the Secretary of State to appropriate the site for housing purposes and develop approximately 0.783 hectares of land at Beever Road, Tipton with new affordable rent council housing, as shown for identification purposes only at Appendix 1 and subject to the Secretary of State’s consent.

1.2    That the Director of Finance be authorised to allocate adequate resources from the Council’s Housing Revenue Account to deliver the scheme and to utilise grant funding offered by Homes England, under the extended Homes England Strategic Partnership 1 Programme 2016 to 2021, to assist with the delivery of the project.

1.3    That the Director of Regeneration and Growth in consultation with the Director of Finance and subject to confirmation of the funding rules applicable, be authorised to submit an application for funding to the West Midlands Combined Authority and in the event funding is successful, the Director of Regeneration and Growth in consultation with the Director of Finance and the Director of Housing be authorised to accept the funding and execute under seal any financial agreement in relation to the West Midlands Combined Authority grant on terms and conditions to be agreed by the Director of Finance;

1.4    Approval be given to authorise the steps necessary for the delivery of the proposed project, including:

a)       subject to 1.2 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 and if so chosen as a procurement route any appropriate requirements of the Homes England Delivery Partner Dynamic Purchasing System (DPS) framework, a contractor/contractors as described in g) below to develop, on behalf of the Council, the proposed housing scheme; to enter into or execute under seal any financial agreement in relation to the Homes England grant on terms and conditions to be agreed by the Director of Finance;

b)       subject to a) above, the Director of Law and Governance and Monitoring Officer be authorised to enter into or execute under seal any documentation in relation to award of the contract and/or development/partnership agreement, Homes England developer status, licence, undertaking, framework joining agreement, any consents or applications required for Planning or Highways appertaining to the delivery of the scheme and any other agreements with the procured contractor(s) and with the Homes England, as may be deemed necessary to facilitate development of the site with a housing scheme as described in below on terms and conditions to be agreed by the Director of Regeneration and Growth;

c)       subject to a) and b) above and following practical completion of each property the Director of Housing be authorised to manage and let the properties built in accordance with the Council’s housing allocation policy.

d)       The following action points identified within the financial appraisal of the funding application by Strategic Finance, be implemented to reduce the risk to the Council:

• That Cabinet consider the alternatives and are satisfied that the proposal to construct the new build homes will meet the Council’s objectives in the most appropriate manner.

• That a process be developed to prioritise the development of sites against pre-determined criteria and alternative options for achieving the Council’s housing objectives within each locality.

• That prior to submission of the external funding bid, review the planned use of Right to Buy receipts to ensure that HCA funding for the project would offer the most financially advantageous source of funding.

• That the Risk Register be reviewed to ensure all risks relating to grant funding and the use of Right to Buy receipts are identified and adequately mitigated.

• That approval be sought from the Secretary of State to reclassify the site for housing development.

• That the site be appropriated, where necessary, from the Council’s General Fund to the Housing Revenue Account.

Approval was sought to make an application to the Secretary of State to appropriate the site for housing purposes and to develop approximately 0.783 hectares of land at Beever Road, Tipton with new affordable rent council housing.

Reason for Decision

This project would deliver 18 new Council-owned affordable rented properties on a council-owned site including 10 bungalows and 8 apartments are 2 flats and 2 bungalows that were being built to M(4)3 full wheelchair compliant standard for people with specific needs. 

The development of this council site with new homes would result in additional benefits for the Council such as 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 existing housing; replacing housing stock lost through Right to Buy; increasing income to the Housing Revenue Account; and contributing positively to the financial position of the Council by generating New Homes Bonus and new Council Tax receipts.

Benefits to residents would include developing fit for purpose accommodation, increasing good quality, energy efficient housing provision in the Borough; 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; and producing positive outputs for community safety through the redevelopment of a vacant site.

Alternative Options Considered

The following options were considered as part of the appraisal process:

Option A – Dispose of the Site on the Open Market

Option B – Work in partnership with a Registered Provider Partner with the assistance of Homes England to build new affordable homes for rent

Option C – Leave the site undeveloped.

Agreed:-

(1)     that approval be given to make an application to the Secretary of State to appropriate the site for housing purposes and develop approximately 0.783 hectares of land at Beever Road, Tipton with new affordable rent council housing, as shown for identification purposes in the report now submitted and subject to the Secretary of State’s consent;

(2)     that the Director of Finance be authorised to allocate adequate resources from the Council’s Housing Revenue Account to deliver the scheme and to utilise grant funding offered by Homes England, under the extended Homes England Strategic Partnership 1 Programme 2016 to 2021, to assist with the delivery of the project;

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(3)     that the Director of Regeneration and Growth in consultation with the Director of Finance and subject to confirmation of the funding rules applicable, be authorised to submit an application for funding to the West Midlands Combined Authority and in the event funding is successful, the Director of Regeneration and Growth in consultation with the Director of Finance and the Director of Housing be authorised to accept the funding and execute under seal any financial agreement in relation to the West Midlands Combined Authority grant on terms and conditions to be agreed by the Director of Finance;

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

(a)     subject to (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 and if so chosen as a procurement route any appropriate requirements of the Homes England Delivery Partner Dynamic Purchasing System (DPS) framework, a contractor/contractors as described in g) below to develop, on behalf of the Council, the proposed housing scheme; to enter into or execute under seal any financial agreement in relation to the Homes England grant on terms and conditions to be agreed by the Director of Finance;

(b)     subject to (a) above, the Director of Law and Governance and Monitoring Officer be authorised to enter into or execute under seal any documentation in relation to award of the contract and/or development/partnership agreement, Homes England developer status, licence, undertaking, framework joining agreement, any consents or applications required for Planning or Highways appertaining to the delivery of the scheme and any other agreements with the procured contractor(s) and with the Homes England, as may be deemed necessary to facilitate development of the site with a housing scheme as described in below on terms and conditions to be agreed by the Director of Regeneration and Growth;

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(c)     subject to a) and b) above and following practical completion of each property the Director of Housing be authorised to manage and let the properties built in accordance with the Council’s housing allocation policy.

(d)     that the following action points identified within the financial appraisal of the funding application by Strategic Finance, be implemented to reduce the risk to the Council:

•  That Cabinet consider the alternatives and be satisfied that the proposal to construct the new build homes will meet the Council’s objectives in the most appropriate manner;

•  That a process be developed to prioritise the development of sites against pre-determined criteria and alternative options for achieving the Council’s housing objectives within each locality;

•  That prior to submission of the external funding bid, review the planned use of Right to Buy receipts to ensure that HCA funding for the project would offer the most financially advantageous source of funding;

•  That the Risk Register be reviewed to ensure all risks relating to grant funding and the use of Right to Buy receipts are identified and adequately mitigated;

•  That approval be sought from the Secretary of State to reclassify the site for housing development;

•  That the site be appropriated, where necessary, from the Council’s General Fund to the Housing Revenue Account.