Decision details

That the Executive Director of Finance and Corporate Services:

1.     Agrees that appendix 1 is not for publication on the basis that it contains information relating to the financial or business affairs of any particular person (including the authority holding that information) as set out in paragraph 3 of Schedule 12A of the Local Government Act 1972 (as amended).

2.     Approves the decision to acquire the property and the associated expenditure outlined in exempt appendix one and authorise the entering into necessary contracts to enable the acquisition.

1.     The reason for the decision is to grant authority to acquire the property. The Council is in need of additional family?sized homes, and this acquisition will contribute to increasing the supply of suitable accommodation within the borough.

2.     The Executive Director of Finance and Corporate Services is the appropriate decision maker on the grounds described in the report.

Option A – Do nothing (not recommended)

1.     Option A constitutes a decision to reject the recommendations within this report and to not pursue the proposed acquisition.

2.     This option is not recommended on the basis that it fails to utilise developer contributions and external subsidy held explicitly for the purpose of delivering affordable housing and fails to grow the council’s housing supply at a time of acute housing need.

3.     This option also results in the council failing to capitalise on an opportunity to acquire a 3-bed home in a desirable part of the borough for 50% of its determined open market value.

Option B – Alternative financing of the acquisition (not recommended)

4.     Option B constitutes a decision to proceed with the acquisition but to explore other financing options such as HRA borrowing.

5.     This option is not recommended on the basis that the internal subsidy exists to deliver the acquisition without HRA borrowing. In order to safeguard the existing direct delivery programme and capital investment programme additional HRA borrowing beyond what is committed is not recommended.

Option C – Approve the recommendations within this report (recommended)

6.     Option C constitutes a decision to proceed with the acquisition as per the recommendations within this report.

7.     It is the recommended option for the reasons described above, namely that it enables the council to purchase a family-sized home for 50% of its determined open market value without the need to incur additional HRA borrowing.