Hounslow Council


Agenda item

CHAS 530 - Housing Revenue Account (HRA) 30 Year Business Plan

Report by Councillor Katherine Dunne, Cabinet Member for Housing.

 

Please note that Appendix 1 – The HRA 30 Year Business Plan- has been published electronically only because of its size.

 

Hard copies are available on request and a reference copy for members will be on deposit in the Members’ Area.

 

Decision:

Resolved:

 

That Cabinet agreed the recommendations of the report as follows:

 

1.     Cabinet approved Capital expenditure of £97 million to fully fund the new 5-year Housing Revenue Account (HRA) Capital Works Programme (2017/18 to 2021/22).

2.     Cabinet agreed the revised HRA 30- Year Business Plan, attached as Appendix 1 of the report, which had been updated to take into account recent and proposed national policy and financial changes, and the resulting reductions in HRA income and investment capacity.

3.     Cabinet agreed the allocation of £8 million of S106 housing contributions to the HRA new build programme, in particular, to enable the delivery of Brentford High Street Block D scheme.

4.     Cabinet agreed flexibility to borrow the remaining £8 million of the HRA headroom in order to meet the development of Brentford Block D and fund the purchase of the new housing fleet.

5.     Cabinet agreed a review of Phase 2 of the HRA council housing building programme, with a view to maintaining current levels of new social rented homes, by scaling back the Council’s own house building, whilst seeking delivery partnerships with Registered Social Landlords (RSLs) for building new social rent homes post 2018.

6.     Cabinet agreed a review of current HRA assets to identify those that are suited for disposal to support the payment of the ‘higher value sales’ levy.

7.     Cabinet agreed capital expenditure and borrowing of £3.3 million to finance the renewal of the housing vehicle fleet.

 

Minutes:

See the report by Councillor Katherine Dunne, Cabinet Member for Housing – Agenda Item 7.

 

Councillor Katherine Dunne, Cabinet Member for Housing, introduced the report which sought approval of the updated Housing Revenue Account (HRA) Business Plan, of Capital expenditure for the Capital Works Programme, allocation to bring forward the development of Brentford Block D and proposals to progress Phase 2 of the council housing programme through partnership with Housing Associations. Any such partnerships would negotiate 100% nominations from the Housing Register. The recommendations also sought review of the HRA assets in respect of supporting the ‘higher value sales’ levy. The exact requirements of this levy were not yet known but it was likely that the authority would need to sell some properties to fund the levy. The final recommendation concerned financing the housing fleet. Councillor Dunne moved the recommendations. These were seconded by the Chair.

 

Councillor Theo Dennison advised that Hounslow rated 16th in the country for the delivery of affordable homes. The Chair noted that this was positive and thanked Councillor Dunne, Peter Matthew, Director of Housing and his team for their hard work. He advised that there had been an interesting presentation by the Housing team during the Peer Review which he would circulate to all councillors to see to demonstrate the amount of work undertaken by the team. There was much happening with changes in legislation and they would need to monitor the position to ensure that it was acceptable to the borough.

 

The recommendations of the report had been moved and seconded. Members considered the report and all the issues and options contained therein and in conclusion the recommendations were agreed unanimously.

 

Resolved:

 

That Cabinet agreed the recommendations of the report as follows:

 

1.     Cabinet approved Capital expenditure of £97 million to fully fund the new 5-year Housing Revenue Account (HRA) Capital Works Programme (2017/18 to 2021/22).

2.     Cabinet agreed the revised HRA 30- Year Business Plan, attached as Appendix 1 of the report, which had been updated to take into account recent and proposed national policy and financial changes, and the resulting reductions in HRA income and investment capacity.

3.     Cabinet agreed the allocation of £8 million of S106 housing contributions to the HRA new build programme, in particular, to enable the delivery of Brentford High Street Block D scheme.

4.     Cabinet agreed flexibility to borrow the remaining £8 million of the HRA headroom in order to meet the development of Brentford Block D and fund the purchase of the new housing fleet.

5.     Cabinet agreed a review of Phase 2 of the HRA council housing building programme, with a view to maintaining current levels of new social rented homes, by scaling back the Council’s own house building, whilst seeking delivery partnerships with Registered Social Landlords (RSLs) for building new social rent homes post 2018.

6.     Cabinet agreed a review of current HRA assets to identify those that are suited for disposal to support the payment of the ‘higher value sales’ levy.

7.     Cabinet agreed capital expenditure and borrowing of £3.3 million to finance the renewal of the housing vehicle fleet.

 

Supporting documents: