Issue - meetings

The Cabinet considered a report on the proposed Development Programme of Bromsgrove District Housing Trust (BDHT) together with the Trust’s Strategic Asset Disposal Strategy to 2017. The report advised Members of the implications of both the Development Programme and the Disposal Strategy and the impact of these on the delivery of affordable housing within the District. 

It was noted that BDHT were seeking the Council’s support for the Strategy prior to submission to the Homes and Community Agency (HCA). The Strategy included the disposal of up to 30 units of accommodation which would be likely to result in a loss of stock from rural areas within the District.

It was reported that HCA would expect the bid from BDHT to include resource contributions from other public bodies, these contributions could include the retention by BDHT of the full capital return on the disposal of stock with the total capital sum to be reinvested by BDHT in affordable housing. This would be a significant contribution by the Council as under the Large Scale Voluntary Transfer Agreement dated 29th March 2004, the Council was entitled to “claw back” 50% of the price received from disposal of such stock.

Members considered the situation in detail, in particular the potential loss of social housing within rural areas which needed to be balanced with the Councils priority to enable the development of affordable homes within the District. In view of the likelihood of there being no further grant available from the HCA after 2015, in order for BDHT to develop their target of an additional 200 affordable housing units between now and 2017 they would need a contribution of a sum of £4,000,000 from the sale of existing stock.

It was noted that sections 3.17 and 3.18 of the report outlined the measures which would be taken to mitigate the disproportionate loss of stock within the rural areas. Members also took account the likely adverse impact on homelessness of the Welfare Reform proposals.

Following discussion it was

RECOMMENDED:

(a)       that the Business Plan/Development Programme which BDHT propose to submit to the HCA in which they seek the support of this Council for the delivery of an affordable homes programme to 2017 be noted; and

(b)       that the disposal of up to 30 units from BDHT’s property stock up to a value of £4,000,000 be approved on the basis that the sum is reinvested into an affordable homes programme in Bromsgrove District in support of the Strategy.