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£500M LOCAL AUTHORITY HOUSING FUND REFUGEE SCHEME – APPROVAL TO DELIVER
LONGER TERM HUMANITARIAN SCHEME ACCOMMODATION THROUGH THE 22-32 NEW BUILD
HOUSING PROGRAMME, PARTLY FUNDED BY CENTRAL GOVERNMENT
Decision of: Councillor Bird, Executive Councillor for
Housing
Reference: 23/URGENCY/HSC/2
Date of decision: 3/2/2023 Date
Published on website: 8/2/23
Decision Type: Key Decision
Matter for Decision: Urgent approval to deliver longer term
humanitarian scheme accommodation through the existing 2022-32 new build
housing programme, partly funded by the Department for Levelling Up, Housing
and Communities
Why the Decision had to be made (and any alternative
options): The date for formalising the agreement and entering into an Memorandum of Understanding with DLUHC falls between
Committee Cycles, and cannot wait for the next Housing Scrutiny Committee date
in March 2023. As detailed further in Appendix A.
The Executive Councillor’s decision: The Executive
Councillor agreed to:
2.1. Delegate
Authority to the Section 151 Officer to enter into a
Memorandum of Understanding with the Department for Levelling Up, Housing and
Communities to allow for the payment of allocated funding to the Council.
2.2. Approve that the
delivery of longer term accommodation to cater for
recent humanitarian schemes be delivered as part of the Councils 2022-2032 New
Build Housing Programme.
2.3. Approve that an
indicative budget of £11,367,366 be drawn down and re-phased from the sum
already ear-marked and approved for investment in new homes in future years, to
cover the costs associated with delivering 30(Thirty) homes to serve as longer
term accommodation catering for the eligible cohort as defined in 3.2 and to
recognise grant funding of £4,968,683 towards this expenditure. Following the
meeting of this need the properties delivered will revert to General Needs
Housing held within council stock.
2.4. Authorise the
Strategic Director to approve the purchase of open market properties into
Council Stock to serve as housing for the eligible cohort as defined in 3.2.,
subject to consultation with the Executive Councillor for Housing, the Head of
Housing, and the Head of Finance.
2.5. Delegate
authority to the Strategic Director to reallocate current pipeline housing
delivery and / or acquisitions to serve as housing for the eligible cohort as
defined in 3.2., subject to consultation with the Executive Councillor for
Housing, the Head of Housing, and the Head of Finance.
2.6. Approve that the
property at 8 St Thomas Road which is under purchase negotiations by the
Council be allocated to cater for the eligible cohort as indicated in 3.2.,
with this property to become available to support wider local authority general
housing and homelessness responsibilities after the immediate needs of the
eligible cohort have been addressed.
2.7. Delegate
authority to the Strategic Director in consultation with the Executive
Councillor for Housing to approve use of Council land as sites for modular PODs
on an individual basis to deliver homes to cater for the eligible cohort as
indicated in 3.2.
Reason for the decision: As detailed in Appendix A.
Scrutiny Consideration: The Chair and spokes of the Housing
Scrutiny Committee was consulted prior to the action being authorised.
Report: See Appendix A
Conflict of interest: None.
Comments: Part 4C section 6.1 of the Councils Constitution,
permits decisions to be taken which are outside of the budget framework if the
decision is:
a matter of urgency (this is correct)
it is not practical to convene a quorate meeting of the
Council, (this is correct); and
the Chair of the Housing Scrutiny Committee agrees the
matter is of urgency (the Chair agreed).
The next available ordinary Full Council meeting is 23
February 2023 which is too late.
The decision will be reported back to the Housing Scrutiny
Committee at the next meeting in March 2023.
With regard to purchase of homes from the open market, focus
was requested to ensure that
EPC standards across council stock are still met. Officers
confirm that this is being taken into account.
In response to concerns about modular (pod) homes officers
have confirmed that the discrepancy between deliverable size and current
National Space standards is marginal, and while not met these homes make highly
efficient use of available space.
In response to concern noted due to very tight deadlines for
delivery, officers responded that there are some risks, but targets are deemed
achievable.
In response to concerns about the impact on households
currently on the housing register, officers confirm that, refugee families
would be entering the register through existing processes anyway, with a large
majority eligible for high banding and associated priority for housing
allocations.
Officers have confirmed that assurance on future use of
modular homes will be agreed within the planning process with officer inputs.
Any reassurances which are put in place in line with planning approvals for
these homes will be required to met in perpetuity.
Officers have confirmed that properties delivered under this
funding scheme will provided as permanent tenancies for qualifying households.
Officers have confirmed that the properties to be provided
will be eligible for Right to Buy, as all of our
existing new build programme is currently.
Officers have confirmed that currently rent tenure is being
modelled at affordable rents, subject to clarity awaited from DLUHC. This is at
60% of market rent, in line with the new build housing delivery.
Officers have confirmed that a revision of the HRA Budget
Setting Report will be presented to Council to reflect this decision.
Appendix A
Executive Summary
1.2. Cambridge
has provisionally been identified as eligible for capital grant funding (under
section 31 of the Local Government Act 2003), with the following indicative
allocation:
1.2.1. A main
element of £4,640,000 in funding to be used to provide a minimum of 29 homes.
1.2.2. Bridging
element: £328,683 in additional funding to allow the provision of at minimum 1
larger 4+ bed home to be allocated to households currently residing in bridging
accommodation.
1.3. Delivery
is required to be part funded/financed by local authorities, amounting to 60%
of costs to be met by the Council. This would require council top up funding of
£6,090,000 in respect of the main element and £308,683 in respect of the
bridging element.
1.4. A budget is requested to be drawn down from
the sum already ear-marked and approved for investment in new homes. The cost
is to cover the costs associated with delivering a minimum of 30 (thirty) homes
to serve as longer term accommodation catering for recent humanitarian schemes
(Afghan and Ukrainian refugees), with this stock to become available to support
wider local authority general housing and homelessness need after the immediate
needs of the eligible cohort have been addressed.
1.6. DLUHC
funding pre-allocated under this scheme is significant and could allow the
potential to increase the overall new build housing delivery across the 10-year
programme in the long term.
1.6 Delivery is requested by a target date of 30
November 2023,
Recommendations
The Executive
Councillor is recommended to:
1.7.
Delegate
Authority to the Section 151 Officer to enter into a
Memorandum of Understanding with the Department for Levelling Up, Housing and
Communities to allow for the payment of allocated funding to the Council.
1.8.
Approve
that the delivery of longer term accommodation to
cater for recent humanitarian schemes be delivered as part of the Councils
2022-2032 New Build Housing Programme.
1.9.
Approve
that an indicative budget of £11,367,366 be drawn down, and re-phased, from the sum already ear-marked and approved for investment in
new homes in future years, to cover the costs associated with delivering
30(Thirty) homes to serve as longer term accommodation catering for the eligible
cohort as defined in 3.2 and to recognise grant funding of £4,968,683
towards this expenditure. Following the meeting of this need the properties
delivered will revert to General Needs Housing held within council stock.
1.10.
Authorise
the Strategic Director to approve the purchase of open market properties into
Council Stock to serve as housing for the eligible cohort as defined in 3.2.,
subject to consultation with the Executive Councillor for Housing, the Head of
Housing, and the Head of Finance.
1.11.
Delegate
authority to the Strategic Director to reallocate current pipeline housing
delivery and / or acquisitions to serve as housing for the eligible cohort as
defined in 3.2., subject to consultation with the Executive Councillor for
Housing, the Head of Housing, and the Head of Finance.
1.12.
Approve
that the property at 8 St Thomas Road which is under purchase negotiations by
the Council be allocated to cater for the eligible cohort as indicated in 3.2.,
with this property to become available to support wider local authority general
housing and homelessness responsibilities after the immediate needs of the
eligible cohort have been addressed.
1.13.
Delegate
authority to the Strategic Director in consultation with the Executive
Councillor for Housing to approve use of Council land as sites for modular PODs
on an individual basis to deliver homes to cater for the eligible cohort as
indicated in 3.2.
Background
1.14.
Funding
1.14.1. DLUHC have
introduced a £500 million capital fund to support local authorities who have
been assessed as facing the greatest challenges in providing move on and
settled accommodation for recent humanitarian schemes (Afghan and Ukrainian
refugees).
1.14.2. Cambridge
has provisionally been identified as eligible for capital grant funding (under
section 31 of the Local Government Act 2003), with the following indicative
allocation:
• main
element of £4,640,000 in funding to be used to provide a minimum of 29 homes.
•
Bridging
element: £328,683 in additional funding to allow the provision of at minimum 1
larger 4+ bed home to be allocated to households currently residing in bridging
accommodation.
1.14.3. For ‘main
element’ housing, government funding equates to 40% of total capital costs
(Calculated by DLUHC as averaging £140,000 grant per property) plus £20,000 per
property. For ‘bridging element’ housing, government funding is calculated as
equating to 50% of total capital costs plus £20,000 per property.
1.14.4. 30% of the
funding provided by DLUHC will be paid in Q4 2022/23 and 70% in 2023/24 (the
2023/24 funding is paid once the LA has spent 60% of their 2022/23 funding.
1.14.5. Delivery
is required to be part funded/financed by local authorities, amounting to the
sum £6,398,683 to
be incurred by the Council.
1.15.
Eligible
Cohort
1.15.1. Given the
objectives of the fund, those eligible for the housing are those who are
homeless, at risk of homelessness or who live in unsuitable Temporary
Accommodation (including bridging accommodation) and who also meet the below
definition.
Those on the:
•
Afghan
Citizen Resettlement Scheme (including eligible British Nationals under this
scheme) (ACRS),
•
Afghan
Relocations and Assistance Policy (ARAP)
•
Ukraine
Family Scheme (UFS),
•
Homes
for Ukraine (HFU),
•
Ukraine
Extension Scheme (UES)
1.15.2. For those
in bridging accommodation, there are multiple routes to move people on from
temporary accommodation. These include support from the Home Office and the
Find Your Own Accommodation pathway.
1.15.3. For those
not in bridging accommodation, the local authority does not have to have
accepted a Housing Act 1996 Part 7 homelessness duty in respect of the
household for the household to be eligible, but the local authority should
satisfy themselves that the household is already or would otherwise be homeless
or at risk of homelessness if this accommodation was not available.
Identified Housing Need
1.16.
Currently
138 households within the City are accommodated by
hosts under the Homes for Ukraine scheme, with a further 5 households in
temporary accommodation. 16 household under the Afghan Citizen Resettlement
Scheme and Afghan Relocations and Assistance Policy have been supported by
Cambridge City Council to resettle in Cambridgeshire.
1.17.
The
Currently indicated housing mix is set out below:
|
Size |
Households |
Percentage |
|
1bed |
86 |
54% |
|
2bed |
43 |
27% |
|
3bed |
17 |
11% |
|
2 or 3 TBD |
8 |
5% |
|
4bed |
5 |
3% |
1.18.
The Funding
identified by the DLUHC Scheme is identified for delivery of 2,3, and 4+
bedroom Homes. Clarity has however been
sought on the meeting of an identified 1-bedroom need as evidenced above. DLUHC
have indicated that “a limited provision of 1 bed homes may be considered by
LAs because these better suit the needs of the
eligible cohort in the area”. While this need is clearly defined in the above
analysis, delivery of 1 bedroom homes is indicated to
kept to a minority component of the housing delivery under this programme, with
the ambition being to deliver primarily larger homes in line with the key
funding objectives.
1.19.
As
matters stand, by far the largest component of demand is likely to come from
Ukrainian refugee households presently in Cambridge under one of the two
schemes. Significant work is being put
into maintaining existing sponsorship arrangements and, before these
sponsorship arrangements inevitably end, finding households privately-rented
accommodation. Funding has been gained
by the Council from the County which is being used to encourage landlords to
let to these refugee households and also cover the
entry costs into the sector. We have
also committed up to 20 City Homes properties as refugee-specific accommodation
and housing associations have agreed to make additional offers on top.. These offers have focused only on those households who
the Council owes a statutory homelessness duty to and would need to rehouse in
any event.
1.20.
It is
felt, however, that the efforts described above will not by themselves meet the
scale of demand. The supply of private
sector homes in Cambridge is uncertain, and it is in the nature of the sector
that lettings are usually of relatively short duration. Financial support to help households meet the
gap between benefits or low earnings cannot prudently continue indefinitely,
leading to rents being unaffordable when support stops. Additionally, we have already seen instances
of Ukrainian households form other parts of the country wishing to join family
members in Cambridge, attracted by its good schools, facilities, international
reputation and well-establish support groups.
Considerations
1.21. Care need to be taken to ensure that any allocated housing
facilitate integration into the local areas and so a number of factors need to
be considered:
1.21.1. Property
distribution – While on face value a scattered housing distribution may seem
preferable, thought needs to be given to the opportunities for refugee families
to support one another, and so consideration has been given to distribution of
allocated housing across housing estates, where integration can be influenced
together with a sense of community. Likewise the use
of smaller clusters of housing is considered where modular homes may be
delivered as a rapid delivery solution.
1.21.2. Access to
infrastructure – Access to good transport connections across the city has been
considered. Likewise access to community facilities which can be used as
meeting areas/support hubs.
1.22. While open
market purchase of properties into council stock may provide the required
housing delivery there are a number of complicating
factors in adopting solely this route:
1.22.1. Competitive
housing market in parallel with budgetary constraints will limit the ability of
the council to acquire properties which meet required Value for Money criteria
while delivering the target number of 30 homes required.
1.22.2. Properties
purchased on the open market may require significant refurbishments works to
bring them up to use standard. While there is an allowance in the funding for
refurbishment works, this workload will lead to a maintenance backlog.
Refurbishment works and pilot EPC-Raising schemes are already underway through
E&F and staffing capacity to undertake this additional work timeously may
be under strain if a bulk purchase route was relied upon.
1.22.3. Allowance
has been indicated to provide for purchasing of housing stock within the other
LA boundaries. This, however, poses significant long term
maintenance and management considerations for the council given increased
distances from central facilities. Additionally it is
noted that surrounding LAs have been allocated similar funding and so
competition for like properties would be inevitable.
1.23.
Traditional
new build delivery will not meet the required delivery timelines. In order to be able to meet the additional housing required
to serve the eligible cohort two sub-routes have been identified:
1.23.1. Modular
(pod) homes
·
These homes have already been delivered across 3
sites by the city, with their use to date being targeted to move-on
accommodation for rough sleepers. Hill who provided these 16 solohaus modules are able to
deliver larger units, which may serve to accommodate families. Modular homes
offer two substantial benefits which may allow us to meet the delivery targets
set by DLUHC:
1) Speed of delivery – These are volumetric modular units which require minimal
site preparation works and can be delivered by the Nov 2023 Deadline.
2) Price – Open market purchases
are likely to exceed the indicative DLUHC Guidance figures. Delivery of modular
homes on council owned property will allow a reduction of overall delivery
costs, offsetting potential market purchase expenditure.
·
Two potential modular home clusters have been
preliminarily identified which may individually meet the 6-unit identified
target for delivery. These homes will however be below current space standards,
as would any potential open market acquisition of ex-council stock as well as
many existing council stock homes.
·
There would need to be further investigations into
the sites identified and discussion with ward Cllrs.
1.23.2. Rerouting
of existing housing delivery
· DLUHC have indicated that the proposed
approach of looking at what is already in programme to meet this need is
acceptable, as delivery by the time frames is key.
· DLUHC funding pre-allocated under this scheme
is significant and allows potential to increase the overall new build housing
delivery across the 10-year programme in the long term.
· Furthermore the larger family-size homes identified to
be the largest component of this programme currently impose a significant
burden on constrained finances within the general new build programme and this
priority funding allows significant progress toward meeting the new homes unit
mix targets.
Delivery
The DLUHC funding is
defined in focus on 2, 3 and 4 bed properties, with indication given that some
1-bed properties can be included based on identified need, clearly
evident in Cambridge. The level of funding however provides an
opportunity to increase current delivery of larger family homes and this
opportunity needs to be used to best effect. In line with DLUHC guidance the
below sets out a recommended approach:
1.24.
Delivery
Routes identified
|
Possible eligibility - Refugee housing funding |
|||
|
Scheme |
Completion date |
Note/issues |
Proposed Homes delivered |
|
St Thomas Rd 4-bed acquisition |
Feb/ Mar '23 |
Required buyback of 4bed property to allow redevelopment
site access. Property may be retained in stock as either a 3bed or (if
remodel feasible) 4bed |
1 |
|
Campkin Road or the Haven |
Apr-23 |
The Campkin Road development has 25 homes eligible for this
funding out of the 75 being delivered. The site Sits within a much wider estate, and allows distribution as well as split
allocation between Afghans and Ukrainians. The Haven is a
purchase currently being completed by the council, providing 8-flats into
council stock. While currently designated for Sheltered / Supported use there
is scope to consider reallocating this housing block for refugee housing |
16-17 |
|
Market acquisitions |
varied |
Likely to exceed £350k/unit indicated in grant
calculation. Needs to be considered along with pod homes and reallocation of
existing delivery stream to ensure target can be met within budget
constraints. |
7-10 |
|
Pod /Mobile homes |
varied c8-12month completion timeline |
2-3 bed models offer cost effective
delivery. Can play role in lowering overall costs. |
6 |
Unit size Mix
|
Scheme |
1Bed |
2Bed |
3Bed |
4Bed |
|
St Thomas /4-bed acquisition |
|
|
|
1 |
|
Campkin Road and/or the Haven |
7/8 |
9 |
|
|
|
Market acquisitions |
|
|
6/7 |
1/3 |
|
Pod /Mobile homes |
|
6 |
|
|
|
Total % |
26% |
49% |
19% |
6% |
|
Need % |
59% |
30% |
10% |
1% |
1.25.
Programme
and comment.
The indicative
programme for the project is as follows:
|
Tasks |
dates |
|
|
Approval to enter into funding agreement |
January/February 2023 |
|
|
Signing of funding agreement |
February/March 2023 |
|
|
First tranche payment |
February/March 2023 |
Contingent on completion of funding agreement by either 15/02 or 15/03 |
|
Acquisition of 4-bed property |
March 2023 |
Contingent on vacant Possession |
|
Delivery of reallocated pipeline housing, with replacement additional
housing to be delivered across housing programme |
April 2023 |
|
|
2nd tranche payment |
March/April 2023 |
Contingent on spend of 60% of tranche 1 |
|
Completion date for overall delivery targets |
30 November 2023 |
|
1.25.1.
Using homes
under construction at Campkin Road and the Haven
acquisition together with the in process purchase of a
purchase at St Thomas Road will allow the council to exceed the target
expenditure of the 1st Tranche funding, allowing full drawdown of
the 2nd Tranche Payment by March/April 2023 and mitigating
significant delivery risk
1.25.2.
Utilisation
of the Haven may be reliant on a change of Use Application to the Planning
Authority. If this is not achieved by 31st March 2022 alternative option of 7-8
further homes at Campkin Road will need to be
considered
1.25.3.
Risk
primarily lies with the Modular home component and open market acquisitions.
These are subject to factors outside of immediate council control, but the
reallocation of existing pipeline allows for limiting reliance on these
additional components and risk is therefore reduced to a manageable level.
Risks are outlined in Section 9.
1.25.4.
The
minimum target delivery to serve the funding is 30 homes. Financial modelling
has indicated that the above delivery route Should allow the council to meet
this target, with potential to exceed the required delivery by an additional
1-3 homes, dependant on actual costs to be incurred.
1.25.5.
The
varied approach to delivery outlined is a guidance indication for feasibility.
Actual delivery to meet DLUHC targets will vary within this programme framework
as opportunities develop.
Implications
a)
Financial Implications
Assuming that the
Council’s top up funding is drawn down for this project from existing schemes
with budget approval and from the existing funds ear-marked for new homes in
the 10 Year New Homes Programme, there will not be any increase in gross
expenditure. A gross budget of £11,367,366 will be re-allocated from existing
approved resources for this specific project. The relevant budgets will be
identified once the properties to be included for this purpose have been
confirmed. The Council will however, also need to
recognise the additional grant income associated with the project, which is at
a higher grant rate than that already built into financial assumptions of grant
from Homes England. Subject to this urgent decision, a revised version of the
HRA Budget Setting report 2023/24 would be presented to Council in February
2023.
b)
Staffing Implications
This project would be managed by existing staff complement of the
Council. Given the rapid delivery times to meet there is a requirement for
funding of a further project management position to lead this work. This
requirement is included in the budget allocation outlined.
c)
Equality and Poverty Implications
A focused EQIA will be undertaken for this scheme.
d)
Environmental Implications
A specific Climate
Change Rating Tool will be completed. New Developments will be delivered in
line with the Sustainable Housing Design Guide. Market purchases will be added
to the works programme for sustainability improvements being delivered by
Estates and Facilities.
e)
Procurement Implications
None. Delivery will
be in line with OJEU compliant procurement regulations.
f)
Community Safety Implications
New Development housing will be built in accordance with Secure by Design
Guidelines.
Consultation and communication considerations
There will be early engagement with Ward Councillors to
identify site opportunities and potential issues. There will also be formal
consultation through the planning process once the application has been
submitted.
Risks
Below is a table setting out key risks associated with the
project:
|
Risk |
Likelihood |
Impact |
Mitigation |
|
Delivery failure The funding required best endeavours from the council. DLUHC is committed to funding any contract
LAs enter into, even if completion occurs after the
Nov-23 deadline date. |
Medium |
Reputational risk to the council. Repayment of allocated funds. |
Early identification of opportunities to mitigate delivery failure
risk. Open discussion with DLUHC regarding proposed approach and inherent
risk. |
|
Planning risk –
modular homes The funding required best endeavours from the council. DLUHC is committed to funding any contract
LAs enter into, even if completion occurs after the
Nov-23 deadline date. |
Low |
Delays to a planning approval process not allowing meeting of the 30
Nov 2023 Deadline. |
Early discussions with Planning Officers will be required to ensure
timelines are met. |
|
Failure to
complete on Market purchases Significant
competitive pressure on market acquisitions. |
Medium |
Delivery Failure |
Non-reliance on high levels of purchase – varied portfolio for delivery Early progression of purchase opportunities |
|
Public opposition
/Member buy-in Significant local
housing pressure may lead to negative public opinion of prioritising foreign
nationals |
Low |
Reputational Risk. Delivery Failure |
It will be important to engage with the local ward Cllrs early on to
identify opportunities and issues. A consultation strategy will need to be
agreed. The full buy-in by national government needs to be relied upon. |
|
Exceeding proposed
budget Due to unexpected
reliance on additional market acquisitions or required increased purchase
value for market homes |
Low |
Additional HRA funding required |
Non-reliance on single delivery route. |
Background papers used in the preparation of this report
·
20/35/HSC New Council Housing Programme
- i. Approved the bringing forward of a development
programme to provide new housing in 2022-32 by the
Council
Appendices
None.
Inspection of papers
To inspect the
background papers or if you have a query on the report
please contact Jaques van der Vyver, Housing Development Agency Programme Manager,
tel: 01223 - 457928, email: jaques.vandervyver@cambridge.gov.uk.
