Decision details

8.1

The Executive Director, Place submitted a report recommending the disposal of a number of sites for affordable housing.

8.2

RESOLVED: That:-

(a)

the land shown at Appendix A to the report be declared surplus to the requirements of the City Council and disposed to Arches Housing Limited at nil consideration for use as social housing;

(b)

the land shown as appendices B and C to the report be declared surplus to the requirements of the City Council and disposed to South Yorkshire Housing Association at nil consideration for use as social housing;

(c)

the decision made by Cabinet on 11 July 2007 to dispose of the land now shown as Appendix D to Places for People be rescinded and that the land shown as Appendix D to the report be disposed to Great Places Housing Group at nil consideration for use as social housing provided that there are no objections to the disposal of open space;

(d)

the land shown as Appendix E to the report be declared surplus to the requirements of the City Council and disposed to Great Places Housing Group at nil consideration for use as social housing provided that there were no objections to the disposal of open space;

(e)

the land shown as Appendix F to the report be declared surplus to the requirements of the City Council and disposed to Great Places Housing Group at nil consideration for use as social housing;

(f)

the land shown as Appendix G to the report be declared surplus to the requirements of the City Council and disposed to Pennine Housing 2000 at nil consideration for use as social housing;

(g)

the Director of Capital and Major Projects be authorised to negotiate and agree terms for the disposal of the sites for the purposes set out in the report including the variation of any boundaries as required and to instruct the Director of Legal and Governance to complete the necessary legal documentation; and

(h)

dedicated affordable housing funding is paid into the Corporate Resource Pool in lieu of the estimated capital receipts forgone on the General Fund land (excluding the land shown at Appendices A and B).

8.3

Reasons for Decision

8.3.1

Building housing at Catherine Street would regenerate this site in the heart of Burngreave, which was identified as a key intervention in the Burngreave and Fir Vale masterplan.

8.3.2

Developing the site at Chapelwood Road in Darnall would address a long term vacant site and provide affordable larger family homes that were particularly needed in the local area.

8.3.3

The proposed scheme at Hazelhurst and Chantrey in Jordanthorpe would build on the success of the existing White Willows Extra Care scheme and provide further older persons accommodation in an accessible location.

8.3.4

Developing an initial phase of affordable housing at the Adlington regeneration site would address the local need for affordable housing whilst also setting the quality standard for future phases of housing development.

8.3.5

The sites at Cricket Inn Road and Maltravers Way are both identified in the Wybourn, Arbourthorne and Manor Park Masterplan and their development would contribute significantly to the regeneration of the Wybourn estate, under the stewardship of Great Places.

8.3.6

The development of older persons housing at Sevenfields would meet a local need identified in the consultation that took place following the closure of Wisewood Secondary School. It would also contribute to the successful marketing of the Spider Park development site as agreed by Cabinet in May 2013.

8.3.7

The payment of dedicated affordable housing funding into the Corporate Resource Pool in lieu of capital receipts would ensure that the Council maintains maximum flexibility in the use of its resources.

8.4

Alternatives Considered and Rejected

8.4.1

Housing Revenue Account Sites

The alternative options for the HRA sites would be:-

(a) retain them for development of new Council housing, or

(b) retain them for future disposal on the open market

8.4.2

Developing new Council housing on the HRA sites would have the advantage of retaining the assets whilst still delivering affordable housing. However, the HRA Business Plan does not currently have the capacity to deliver all of these sites – and it would not be able to deliver them within a timescale that would guarantee New Homes Bonus. There are alternative sites that can be made available for new Council house building and, in order to maximise the amount of new affordable housing in the City, it is necessary to maximise investment  from the Council, housing associations and the Homes and Communities Agency (HCA)>

8.4.3

Retaining the HRA sites for future disposal could realise capital receipts for reinvestment into either the existing housing stock or the development of new Council housing on other sites. However, the market value of the sites is relatively low, which means that the potential impact of capital receipts from the sites is outweighed by the strategic outcome of 100 new affordable homes on HRA land levering in £11m of external funding from the HCA and the housing associations, which would otherwise be lost to the City.

8.4.4

General Fund Sites

The alternative option for the General Fund sites would be to retain for disposal on the open market, thus releasing affordable housing funding to spend on other affordable housing projects. The effect on the Corporate Resource Pool would be neutral. However, there would be a negative effect on affordable housing delivery as many affordable homes without matching the Council’s affordable housing funding investment from the HCA and the housing associations. Nor would there be certainty of immediate housing delivery with the associated economic benefits and New Homes Bonus payments.

8.5

Any Interest Declared or Dispensation Granted

None

8.6

Reason for Exemption if Public/Press Excluded During Consideration

None

8.7

Respective Director Responsible for Implementation

Simon Green, Executive Director, Place

8.8

Relevant Scrutiny and Policy Development Committee If Decision Called In

Economic and Environmental Wellbeing