Issue - meetings

The Chair reminded the Committee that some of the appendices to the report were confidential and that if they were minded to discuss matter in those documents, it would be necessary to consider excluding the press and public.

 

The Committee resolved to discuss the report in open session.

 

Matter for Decision

 

The report examined the opportunities to invest General Fund monies in housing let at rents below market values to assist in meeting the needs of those who do not have priority for social housing but cannot afford market housing (known as the intermediate market). The report proposes a pilot project involving the acquisition of 24 new homes on the Aylesborough Close and Water Lane schemes currently being developed on Council land under the Housing Revenue Account. The pilot project would allow the Council to test the risks and opportunities of the proposition before consideration of any further investment.

 

Decision of Executive Councillor for Finance and Resources

 

The Executive Councillor:

 

     i.        Delegated authority to the Director of Customer and Community Services in consultation with the Head of Finance and Head of Legal Services:

·        to acquire 24 homes on the Aylesborough Close and Water Lane schemes (currently being developed on Council land by Keepmoat):

·        to set up a housing company (wholly owned by the Council) to borrow from the General Fund to acquire the housing

·        to let the homes at 80% of market rent on short-term tenancies ensuring all risks have been considered in the business case.

 

    ii.        Agreed to recommend to Council that a budget provision is made to allow the General fund to lend money to the Housing Company to acquire 24 properties at Aylesborough Close and Water Lane as detailed in the report.

 

Reason for the Decision

 

As set out in the Officer’s report.

 

Any Alternative Options Considered and Rejected

Not applicable.

 

Scrutiny Considerations

 

The Committee received a report from the Head of Strategic Housing regarding General Fund Investment in Housing.

 

The Committee made the following comments in response to the report:

 

     i.        Welcomed the move as a way to add to the supply of intermediate housing in Cambridge

 

    ii.        Expressed regret that it would not be increasing housing stock.

 

In response to Members’ questions the Head of Strategic Housing stated that the initial borrowing would be a very limited pot. However, it would be sufficient for lessons to be learnt for future ventures.

 

Councillor Price stated that the project would meet an identified need. It was intended to be a pilot scheme but would be income generating. The properties in the pilot had been selected as they would be available very soon and would bring the land back into council ownership.

 

The Committee resolved by unanimously to endorse the recommendations.

 

The Executive Councillor approved the recommendations.