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Decision details

Acceptance of Grant-Funding From Homes England Housing Infrastructure Fund - Manor Cluster

Decision Maker: Cabinet Member for Transport and Development

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: Yes

Purpose:

To give approval for the Council to accept a grant from the Housing Infrastructure Fund in relation to the “Manor Cluster” sites, and enter into a funding agreement with Homes England.

 

Decision:

That the Cabinet Member:-

            (a) approves the Council’s acceptance of Homes England’s Housing Infrastructure Fund, Marginal Viability Fund Programme grant of £3,219,272;

 

            (b) approves the Council entering into the grant determination agreement with Homes England for those grant funds; and

 

            (c) notes that the Council cannot enter into the grant determination agreement unless it meets the pre-contract conditions, which includes a pre-contract condition that it has provided written evidence to Homes England that independent state aid advice has been sought and that there are no issues in this regard.

 

 

Reasons for the decision:

Accepting the grant funding will enable housing development on these 4 sites over the next 5 years. This will provide good quality family homes in an area where a wider mix of tenures is needed to ensure the future sustainability of the neighbourhood.

 

In order to maximise cost efficiencies on this scheme, it’s essential that the development follows on from the current Phase 2 work on Manor 10 & 11 sites. This can only happen if Sheffield Housing Company (SHC) are able to maintain the delivery programme submitted to Homes England and the funding is secured.

 

351 new homes over the next 5 years will make a significant contribution to the Council’s new housing targets as detailed in the New Homes Delivery Plan.

 

 

Alternative options considered:

SHC have considered phased delivery of these sites alongside more profitable developments in an attempt to produce a viable business case.  However, this has not been possible due to the size of the viability gap.

 

Lower cost specifications and increased density have been explored. This would result in lower overall quality of the housing development and wouldn’t meet the requirements the Council has set as landowner in the project briefs.

 

 

Publication date: 05/07/2019

Date of decision: 04/07/2019

Effective from: 12/07/2019

Accompanying Documents: