Bracknell Forest Council
Record of Decision
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Work Programme Reference
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I102920 |
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1. |
TITLE: |
Approval to Spend S106 Commuted Sum Monies to Acquire Move-On Properties for Single Homeless Households
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2. |
SERVICE AREA: |
People
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3. |
PURPOSE OF DECISION
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This report seeks spend approval of up to £1,177,200 to purchase 6 x 1 bed/bedsit properties off the open market funded by £450,000 of the unallocated S106 affordable housing commuted sums and borrowing of £727,200, the cost of which will be met by net rental income. These properties will be council owned affordable rented temporary housing to meet the needs of rough sleepers and other single homeless households.
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IS KEY DECISION |
Yes
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5. |
DECISION MADE BY: |
Executive Member for Adult Services, Health and Housing
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6. |
DECISION:
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RECOMMENDED that the Executive Member for Adult Services, Health and Housing RECOMMEND to Council that they:
i. Approve the total capital spend commencing in the 2021-22 financial year, in order to purchase 6 properties to ensure that Council has suitable temporary emergency affordable housing.
ii. Approve that a proportion of this total to be funded through S106 affordable
iii. Approve borrowing to fund the remaining balance. The cost of borrowing and MRP (minimum revenue provision) will be met by net rental income so will be cost neutral.
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7. |
REASON FOR DECISION
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The Council has a small stock of temporary accommodation to meet the needs of homeless households. These are predominantly 2- and 3-bedroom properties. Currently there is a lack of one-bedroom units for temporary placement of single homeless households. This increases reliance on more costly nightly paid accommodation. The proposal is revenue cost neutral as the residual borrowing required after the application of Section 106 funding will be met through net rental income (that is, rental less housing management costs).
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8. |
ALTERNATIVE OPTIONS CONSIDERED
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i. Securing accommodation through the private rented sector is challenging as the sector is proportionately smaller in Bracknell than the South East or England and property is in high demand. Private Sector Leasing is an option but this incurs a cost to the authority. The option proposed is cost neutral and confers the benefit that the council owns the assets which will appreciate in value over time.
ii. The council is simultaneously exploring other options to bring forward an additional supply of one bed accommodation for those in housing need including potential to support new build accommodation and launching a new incentive scheme to encourage landlords and agents to let to council nominated households.
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9. |
DOCUMENT CONSIDERED: |
Report of the Executive Director: People
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10. |
DECLARED CONFLICTS OF INTEREST: |
No
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Date Decision Made |
Final Day of Call-in Period |
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16 November 2021 |
23 November 2021 |
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