Decision details

Purpose: to recommend Council to purchase of accommodation for refugees using the Local Authority Housing Fund

(1)       Local Authority Housing Fund 

Cabinet considered the report of the deputy chief executive – transformation and operations on work being undertaken to provide homes under government’s Local Authority Housing Fund scheme. 

The report set out the proposed framework to deliver a target of 23 homes that met the eligibility criteria outlined within the Local Authority Housing Fund prospectus.  This was in accordance with the signed Memorandum of Understanding with the Department of Levelling Up, Housing and Communities, which set out the basis for the use of the funding.  The report sought approval to progress to the delivery phase. 

The report outlined the work undertaken to date, including the Community Hub support.  The report also set out the projected capital and revenue implications and potential risks and benefits of proceeding with the scheme.  Given the capital funding and potential borrowing requirement, Cabinet would need to make a recommendation to full Council so that financial allocations could be made to allow the scheme to proceed. 

The Cabinet member reported that the government scheme offered grants to councils to provide housing for Afghans and Ukrainians in the district that were at risk of homelessness.  The council would receive grant funding of approximately 40 per cent of the cost of purchasing properties but would have to fund the remainder.  Thereafter the homes would belong to the council.  The council would need to temporarily outsource repairs and maintenance of these homes before a resource was available in-house. 

Cabinet supported progressing with the Local Authority Housing Fund scheme as a matter of urgency to support those most in need.  If the council did not take part in this scheme and families became homeless the council would still have a duty to house them.  This scheme also supported the council’s housing strategy and would provide secure accommodation at lower revenue costs than alternative housing provision. 

Cabinet recognised that this was a significant undertaking for the council and thanked officers for their work in progressing the schemes in such a short timescale.  Cabinet also thanked the local residents that had hosted refugee families. 

RESOLVED: to

(a)    note the approach proposed for the delivery and management of the properties under the Local Authority Housing Fund scheme, noting the risks, and approve officers to proceed;

(b)    note the proposed phase one staffing structure for the delivery and management of these properties alongside those purchased or managed under other arrangements;

(c)    approve a virement from Contingency of up to £100,000 to cover potential unbudgeted revenue expenditure;

(d)    authorise the head of development and corporate landlord, in consultation with the heads of finance, legal and democratic, and housing and environment, to approve the freehold or leasehold acquisition of property under the Local Authority Housing Fund scheme following appropriate due diligence; and

(e)    note the financial and other risks presented by the decisions above, as set out in the report of the deputy chief executive – transformation and operations to Cabinet on 3 July 2023.

RECOMMENDED to Council:

(f)     to proceed the allocation of a capital budget envelope of £4.6 million, being the council’s share of the purchase costs of properties bought under the Local Authority Housing Fund scheme. 

(2)       Local Authority Housing Fund 2

Cabinet then considered the supplementary report of the deputy chief executive - transformation and operations.  This sought an additional decision to accept government grant funding made available under Local Authority Housing Fund 2, a second phase of the initial scheme.  The report had been published after the Cabinet agenda as the details had only emerged from government in the preceding days.  Cabinet noted that the second phase of this scheme would further support the provision of housing for the council’s refugee accommodation programme. 

Unlike the first phase, the Local Authority Housing Fund 2 also allowed the council to utilise the accommodation for general homelessness use and would deliver a further four homes.  This would bring in government funding of £768,000 and require a recommendation to Council to add £1.92 million to the capital programme. 

For the same reasons as the first phase above, Cabinet supported the proposal to accept the government funding and authorise officers to sign a Memorandum of Understanding.  Doing so would allow the council to provide additional homes to support those most in need. 

RESOLVED: to

(a)       accept the Department for Levelling Up, Housing and Communities’ grant of £768,000 (indicative Local Authority Housing Fund 2 allocation) to deliver four homes that meet the eligibility criteria outlined within the Local Authority Housing Fund 2 prospectus, and to authorise the deputy chief executive – transformation and operations to sign the Memorandum of Understanding with the Department for Levelling Up, Housing and Communities, which sets out the understanding between both parties for the use of funding. 

RECOMMENDED to Council to:

(b)       add £1.92 million to the approved capital programme, part funded by Local Authority Housing Fund 2 funding of £768,000 to purchase four homes under this scheme.