Issue - meetings

(a)       That the Committee notes Cabinet support for NEW Homes to develop 62 affordable properties on the Walks at Flint at a build cost of £7.397M and that its board has agreed to seek approval from the Council to provide capital finance to fund the development;

(b)       That the Committee supports the Cabinet decision to delegate responsibility to the Section 151 Officer and the Monitoring Officer:

·         Approval of the terms of the loan as described in paragraph 1.50 of this report

·         Approval of the terms of the loan agreement and any associated documents following satisfactory due diligence.

(c)       That the Committee supports the inclusion of the NEW Homes The Walks development costs in the Council’s Fund capital programme in 2016/17 to be funded by prudential borrowing;

(d)       That the Committee notes the Cabinet recommendation to Council changes to necessary strategies and policies including; Treasury Management Strategy, Prudential Indicators, Minimum Revenue Provision Policy and Accounting Policies;

(e)       That the Committee notes the Cabinet recommendation to dispose of HRA land at the Walks to NEW Homes (subject to Welsh Government consent) for c£187K, subject to final valuation of abnormal costs; and

(f)        That the Committee notes that NEW Homes will develop a joint Marketing and Estate Management Strategy (including a Local Lettings Policy) with the Council for The Walks.

The Chief Officer (Community & Enterprise) presented an update on the development of 62 new affordable homes on The Walks, Flint and the agreement for the Council to lend capital finance to New Homes to facilitate the development.  Following information shared at the previous meeting of the Committee, this report dealt with the affordable housing element of the development which aimed to broaden the housing offer to individuals and meet the needs of the Council’s housing market assessment.  Members were also reminded that the development supported one of the key strategic priorities in the Council’s Improvement Plan.

The Chief Officer spoke about the growth of NEW Homes and the cautious approach being taken to its first new build development.  Whilst detailing the funding options available to the company, she referred to a range of factors such as the scale of the development, the need for flexibility and the restrictions on private sector leasing.  The proposal for the Council to borrow from the market and lend to NEW Homes would benefit both parties and had been agreed in principle by Cabinet, subject to endorsement at full Council.  Advice on this approach to funding had been taken from authorities in England and if agreed for Flintshire, would be the first example in a Welsh authority.

Councillor Peter Curtis referred to future uncertainty, particularly in light of the efficiency targets to be met by the Council, but welcomed the steady approach being taken by NEW Homes.  The Chief Officer was confident that the proposal was the best arrangement for the Council, offering a new income stream and meeting the expectations of NEW Homes.  The Finance Manager explained that planning work had involved projected figures, acknowledging that any future changes to interest rates may have an impact on costs of the development, depending on the start date of the housing scheme.

In welcoming the scheme, Councillor David Roney raised concerns about the impact on progress with other proposed developments.  The Chief Officer gave a reminder that approval had been given to other developments as part of the Strategic Housing & Regeneration Programme which sought to deliver 500 new homes at a range of sites across the county.  In respect of some of the smaller sites, investigations had identified a number of issues which had stalled progress and the agreed approach moving forward was to establish cluster developments.  Following comments from Councillor Ron Davies on developing the Melrose Centre in Shotton, the Chief Officer agreed to provide all Members with a general update on all schemes.

In response to questions from Councillor Paul Shotton, the Finance Manager said that the business plan for NEW Homes included consideration of re-purchasing repossessed units and utilising gifted units.  In respect of affordable housing at The Walks, rent would be set at 90% of the market rent at the time of the scheme build, thereafter predicted in line with market growth.

Councillor Gareth Roberts questioned the 125 year lease period as opposed to 99 years, and was advised that that this  ...  view the full minutes text for item 6