Further to Minute 138 (16 March 2010), received a report from the Corporate Director of Resources on the delivery of and funding implications for the Council’s new build housing programme together with specific proposals to enable Phase 3 of the programme to be progressed.
The Council has been successful with its bid for additional National Affordable Housing Programme (NAHP) grant from the Homes and Communities Agency (HCA) which allows a larger new build programme to be delivered than that previously envisaged. The report set out the detailed new build programme across the three phases and the new approach to the financing of the project which will enable the previously agreed Capital Programme funding of £7.073m to be redirected to the Council estate renewal programme.
Discussed issues relating to the achievability of the Phase 3 construction programme by July 2011 (November 2011 for the Goresbrook Compound element) and the robustness of the rent assumptions and projected building costs. The Divisional Director of Strategic Asset Management and Capital Delivery confirmed both aspects and added that officers will continue to push for optimum value for money.
Agreed, to assist the Council in achieving the Community Priority “Prosperous” through increasing the supply and range of family sized social rented housing in the Borough, to:
(i) The procurement of construction services, in accordance with national and EU procurement legislation and the Council’s Contract Rules, for the construction of the Phase 3 Council Housing at Roycraft Avenue, Alderman Avenue, Thornhill Gardens and Alfred Gardens, Barking, and Goresbrook Compound and Maplestead Road, Dagenham, as detailed in the report;
(ii) Delegate authority to the Corporate Director of Resources to appoint the successful contractor for the construction phase of the above works;
(iii) The allocation of £26.623m of capital resources to the Housing Revenue Account (HRA) to fund the construction costs of the new build programme, following receipt of £14.886m NAHP grant; with the expectation that these resources will be funded through prudential borrowing with the costs of the borrowing met from the rental income from the new properties constructed and that £12.439m of the capital resources is allocated to fund the remaining new build programme under Phase 3; and
(iv) The previous allocation of £7.073m within the Capital Programme being reallocated to support the estate regeneration proposals referred to in Minute 21 below.