Decision details

Approval to purchase - subject to contract - a building from a developer to provide a minimum of 20 affordable homes

Exempt report of the Corporate Director (Housing and Communities) on proposals for the purchase of this development to provide new affordable homes.

(1)        The Decision Taken

RESOLVED:

(1)     That the Cabinet agrees to the purchase of the development at Swallowfields for £3.7M as supported by an Independent ‘Red Book’ valuation; subject to legal agreement.

(2)     That the Cabinet agrees to make available up to £3.9M of funds from the Affordable Housing Programme to the project for the acquisition, stamp duty and fees. 

(3)     That, if it was possible to include sprinklers in the development, then authority to approve the additional costs would be delegated to the Corporate Directors (Housing and Communities) and (Resources, Environment and Cultural Services), in consultation with the Executive Member (Resources).

(4)     That the Cabinet notes that before completion a recommendation might be returned to the Cabinet to sell the development or part of the development on to Now Housing Limited at an appropriate value.

(2)        Reasons for the Decision

As part of the Council’s Affordable Housing Programme, a range of methods had previously been agreed by the Cabinet to provide new affordable homes and the Council had agreed a plan to deliver 500 homes over five years.

A local developer had planning permission to create 20 apartments, 6 studios and 14 x 1 bed flats.

The development included some new build and some redevelopment of a derelict office block.