Agenda item

To approve the allocation of funding for for the refurbishment of 3 low rise blocks at Hallam Close, West Bromwich for the provision of 54 one-bedroom affordable rented apartments for young people.      

Resolved:

1.1 That, subject to negotiation of a suitable agreement in accordance with below on terms to be agreed by the Director of Housing, approval be given to allocate £666,734 from the commuted sum pot of money (derived from Section 106 Agreements), as a contribution towards the refurbishment of 3 low rise blocks at Hallam Close, West Bromwich for the provision of 54 one-bedroom affordable rented apartments for young

people. The project is conditional on planning consent being secured.

1.2 That the Director of Housing be authorised to negotiate a suitable agreement with St Basils, a registered provider of social housing, for the management and maintenance of these apartments by St Basils, to include 100% nomination rights for Sandwell Council.

1.3 That the Director of Law & Governance be authorised to execute (under seal if necessary) the agreement negotiated by the Director of Housing, and any ancillary documentation to secure the Council’s contribution to, and rights in respect of the development.

                  Approval was sought for the Director of Housing to be authorised to negotiate a suitable agreement with St Basils for the management and maintenance of apartments, to include 100% nomination rights for Sandwell Council and allocate £666,734 from the commuted sum pot of money (derived from Section 106 Agreements), as a contribution towards the refurbishment of 3 low rise blocks at Hallam Close, West Bromwich for the provision of 54 one-bedroom affordable rented apartments for young people.

                  Approval was also sought for the Director of Law and Governance to be authorised to execute (under seal if necessary) the agreement negotiated by the Director of Housing, and any ancillary documentation to secure the Council’s contribution to, and rights in respect of the development.

                  The Chair of the Children Services and Education Scrutiny Board  enquired whether young people could apply directly for this housing provision or whether it was based on recommendations.

                  In response, the Cabinet Member for Housing stated that Sandwell Council would have 100% nomination rights to the flats and could therefore  assess the young person’s needs and prioritise referrals to the scheme. Where young people approached St Basils directly, the Council would work with St Basils to assess the young person’s housing needs and, if appropriate, put them through the nomination process. The details of the nominations agreement were yet to be worked out.

                  The Chair of Children Services and Education Scrutiny Board asked further questions regarding the criteria moving on from the provision.

                  In response, the Cabinet Member for Housing stated the accommodation was designed and reserved for young people up to the age of 24. There was no fixed time limit on how long the young person could stay up until this age. However, experience from phase 1 had shown  that young people’s circumstances changed, and most young people moved on of their own volition. The Council and St Basils would support young people with future housing options well before they reach the upper age limit.

                  The Chair of Children’s Services and Education Scrutiny Board enquired whether care leavers in the provision would continue to be supported by the Council. The Cabinet Member for Housing stated that the Council’s corporate parenting responsibilities would apply, and any care leaver would still have access to support.

Reason for Decision

The report sought agreement to the allocation of £666,734 of commuted sum monies (derived from Affordable Housing Section 106 Agreements) as a capital contribution towards the refurbishment of 3 existing but unused residential apartment blocks near the site of Sandwell General Hospital in West Bromwich. The refurbished buildings would provide 54 self-contained affordable apartments to help prevent and relieve homelessness affecting young people in Sandwell.

The Council would act as the catalyst for bringing 54 additional affordable homes in to use and could secure 100% nomination rights to these properties for an investment contribution of only £12,347 per home.

The intended recipient of this investment, St Basils (a Registered Provider, Number H3994), would be required to enter into a suitable agreement with the Council to ensure that the allocation of the funding was in accordance with the specified purpose of the Section 106 Agreements and would meet the relevant legal requirements. The scheme would be phase 2 of the development of the project, phase 1 having opened in 2015 with 32 shared apartments.

Alternative Options Considered

There were no other alternative options contained within the report.

Agreed:-

(1)     that, subject to planning consent and negotiation of a suitable agreement in accordance with Resolution (2) below on terms to be agreed by the Director of Housing, approval be given to allocate £666,734 from the commuted sum pot of money (derived from Section 106 Agreements), as a contribution towards the refurbishment of 3 low rise blocks at Hallam Close, West Bromwich for the provision of 54 one-bedroom affordable rented apartments for young people;

(2)     that the Director of Housing be authorised to negotiate a suitable agreement with St Basils, a registered provider of social housing, for the management and maintenance of these apartments by St Basils, to include 100% nomination rights for Sandwell Council;

(3)     that the Director of Law & Governance be authorised to execute (under seal if necessary) the agreement negotiated by the Director of Housing, and any ancillary documentation to secure the Council’s contribution to, and rights in respect of the development.