To seek approval for the allocation of the Strategic Housing Capital Programme, which incorporates the Affordable Housing Development Programme and the Private Sector Housing Programme for 2008/09, and to inform Cabinet of external funding contributions, including National Affordable Housing Programme and Specified Capital Grant contributions.

THAT

(a)   the Strategic Housing capital programme be approved for 2008/09 as detailed in Table 2 of the report.

1.         The development of affordable housing is a Corporate priority and Local Area Agreement Priority for Herefordshire.  The approval of the Capital Programme outlined in this report should enable the provision of a range of additional affordable housing throughout the County to meet local housing needs and promote independence.

2.         The approval of the Capital budgets for Private Sector Renewal will assist vulnerable people to remain living independently in their own homes through the provision of a range of grants and minor adaptation services which provide for decent homes, improved security, safety and accessibility.

3.         The approval of Capital funding to support the provision of Disabled Facilities Grants will enable the provision of improved access to the home and access within the home for people with disabilities.

1.         The level of grant available through the NAHP both regionally and nationally is insufficient to meet the known demand for affordable housing.  Furthermore, the anticipated level of affordable housing to be delivered through the UDP, particularly in light of the current housing climate, is insufficient to meet affordable housing needs within the County.  It is therefore important that the provision of additional housing to meet local priorities is funded through the use of available housing capital reserves.

2.         Cabinet could determine to cut the amount of funding applied to grants for major works and smaller schemes aimed at promoting independence and energy efficiency. Whilst this would increase the level of remaining reserves for 2008/09 it would impact negatively on vulnerable households and threaten the sustainability of the Home Improvement Agency. However, consideration will need to be given to reducing the amount of Housing Capital Reserves applied to supplement Regional Housing Pot funding in 2009/10.