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 the example given that 7/8 homelessness monies originated from Council funds.

In response, the Head of Strategic Housing Services stated that whilst in past years it was usual to receive grants of up to 60/70% per unit, current funding from the Housing Corporation provided for 35% grant per unit.  It was acknowledged that whilst the sum received of £1,323,500 was well below Herefordshire Council’s bid, other neighbouring local authorities had not been as successful.   Mr Gabb emphasised the good work ongoing with the development of partnership arrangements with the Registered Social Landlords.  It was stated that whilst 850 homes would be made available in the next three years, (this figure had been recently endorsed through the Local Area Agreement) the national economic climate might impact this availability as 50% were due to be developed by partners.

Members were advised that during August, 91 units of extra care would become available in the County with other projects on course to deliver additional units, these would include 22 in Barton Yard and several in Leominster.  Cabinet was informed that the Housing Needs Development Team were in the process of reviewing all Council owned land holdings and their assessment would constitute a basis for further consideration by Joint Management Team and Members.  Members were assured that the Government Office for the West Midlands did understand rural housing issues and rural issues had been well represented in three recent reviews undertaken.  The Head of Strategic Housing Services additional advised Members that he had recently met with the Chief Executive elect of the Homes and Communities Agency and some schemes developed by Herefordshire Council had been identified as best practice e.g. Mortgage Rescue Scheme.

The Cabinet Member for Environment and Strategic Housing advised Members that identifying land use was difficult as some areas were not appropriate.  A number of issues would need to be considered and a commitment was made that a report would be available to Cabinet for September.  The climate currently was particularly difficult and to date 5,000 were on the housing needs list.  However is was emphasised that considered decisions needed to be made as it was important not to be building in inappropriate areas and that it was imperative that homes were built to an appropriate standard.  It was suggested that parish councils should be encouraged to identify sites.

Cabinet Member for Resources stated that Herefordshire had developed a strong reputation regarding housing issues over many years.  All the Council’s land had been looked at and work was being undertaken to look at certain potential sites. 

In response to a question regarding the level of support (£1m) being provided to supporting the Mortgage Rescue Scheme, the Head of Strategic Housing stated that whilst the Council was limited to how its money was applied, the scheme was considered to be successful with the DCLG stating an interest in forwarding the scheme as an example of best practice.  An Officer in attendance additionally stated that the scheme provided an opportunity for Housing Associations to buy the property, which was in mortgage difficulties, with the individual remaining in their current accommodation in a shared ownership arrangements.  Members were informed that call on this scheme had increased and work was being undertaken to closely align with the homelessness strategy.

The Chairman requested that a briefing note on the mortgage Rescue Scheme be made available to all Members.

A Member in attendance stated that the problem would not be solved solely through Herefordshire Council schemes, as the cost would be too great a burden.  However, it was stated that the Council needed to be proactive in its planning arrangements and function to assist others to deliver solutions.  The current climate, whilst challenging, could provide opportunities for sites to be developed competitively.

The Cabinet Member for Environment and Strategic Housing stated that the current Planning Services Scrutiny Review under the Chairmanship of Councillor RI Matthews would be in a position to consider issues highlighted in the discussion regarding the planning function.  The importance of the Council to be a proactive enabling authority as opposed to being restrictive was emphasised.

RESOLVED that

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

(b)            It be noted that a briefing note on the mortgage Rescue Scheme would be made available to all Members of the Council.