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.

Cabinet Member for Environment and Strategic Housing introduced the report which sought approval for the allocation of the Strategic Housing Capital Programme which incorporated the Affordable Housing Development Programme and the Private Sector Housing Programme for 2008, and additionally informed Cabinet to external funding contributions, including National Affordable Housing Programme and Specified Capital Grant contributions.

The report outlined that the regional funding allocation for housing over three years would be £679m, of which £468m had been allocated to fund affordable housing development which would be administered through the Housing Corporation.  Members were reminded that Herefordshire was located within the West Housing Market Area, alongside Shropshire.  The allocation of funds had been provided by way of a ‘bidding’ process and whilst Herefordshire had been awarded the sum of £1,323,500 to provide 34 units in Hereford City, this sum was well below that which had been requested, which was due to the Housing Corporation seeking efficiency savings.  Whilst further opportunities to access funding had been sought, bids had been unsuccessful.  However as several schemes had been recognised as a priority for funding Cabinet had previously recommended that they should be funded from the Strategic Housing’s Housing Capital Reserve.  The proposed priorities for the funding were as outlined in Table 1 of the report (page 210) and were aligned towards affordable housing for 2008/09 in order to address the potential changes and challenges to the housing market, with an additional £2m proposed from the Housing Capital Reserves to deliver a further 38 units.

The Head of Strategic Housing Services advised Cabinet that other funding could be available from the region (e.g. a regional ‘pot’ £211m to support regeneration activities and renovations grants), however the current system of funding available was a drop from previous years.  Other activities such as providing funding to support home improvements, handy services etc provided individuals with more opportunities to remain independent in their own home.

With relation to Disabled Facilities Grants, the Head of Strategic Housing Services informed Members that Herefordshire Council had been awarded a grant of £315,000 to which the Council in addition provided a contribution of £210,000 to fund an overall budget of £525,000.  However as there had been an increased demand for grants it was proposed that an additional £200,000 be allocated from the Housing Capital Reserves towards the 2008/09 budget for Disabled Facilities Grant (this would be 100% supported by the Council as no additional subsidy would be available).  As a result of these proposals, Members were made aware that the current reserves held would be lower than in previous years.

A member in attendance referred specifically to the acute shortage of decent homes for three-generation families.  It was additionally stated that the Council was picking up the social cost, together with the PCT and Police.  The Member requested the exact date and details of the programmes by which these issues would be resolved i.e delivered on the ground.  Additionally, concerns were expressed that the Council was not receiving appropriate external funding, with  ...  view the full minutes text for item 25