Agenda item

9.1

The Executive Director, Place and Executive Director, Communities submitted a joint report seeking authority from Cabinet to use allocations from the Housing Revenue Account (HRA), the Capital Programme and the Local Growth Fund (LGF), to complete rehousing and demolition on the Arbourthorne Fields Redevelopment Scheme as set out in the report and supported by Cabinet in 2008.

9.2

RESOLVED: That Cabinet:-

(a)

authorises the delivery of the Arbourthorne Fields Development Scheme as set out in the report;

(b)

notes the impact continuing the scheme will have to the HRA 30-year business plan;

(c)

approval be given for the acquisition, vacation and demolition of all the properties listed in Appendix 1 of the report and shown on the plan at Appendix 2;

(d)

approval be given for the acquisition, vacation and demolition of 13 no. garages, listed at Appendix 1 of the report and shown on the plan at Appendix 2;

(e)

authorises the Director of Housing Services (or such other Director as is nominated by the Executive Director, Communities) from time to time to stop letting such of the properties listed in Appendix 1 of the report, in consultation with the Director of Regeneration and Development Services as to what he considers desirable to meet the needs of the Redevelopment Scheme;

(f)

resolves that each demolition sub-phase shall be a demolition phase for the purposes of awarding priority under the Lettings Policy;

(g)

authorises the Director of Regeneration and Development Services to declare demolition sub phases and in consultation with the Director of Care and Support (or such other Director as is nominated by the Executive Director, Communities) set the date in a declared demolition sub-phase from which priority will be awarded;

(h)

authorises the Director of Care and Support (or such other Director as is nominated by the Executive Director, Communities) to waive the Lettings Policy in respect of nominations to the Sanctuary Older Persons Housing Scheme of residents of undeclared phases as outlined in the report;

(i)

authorises the repurchase of homes not within a declared demolition phase, where the resident is to be rehoused within the Sanctuary Older Persons’ Housing Scheme, Arbourthorne, as shown on the plan in Appendix 2 to the report;

(j)

authorises the Director of Regeneration and Development Services, in exceptional circumstances, outwith resolutions (f), (g), (h), to agree the repurchase of homes not within a declared demolition phase;

(k)

authorises the Director of Regeneration and Development Services to vary or alter the boundaries of demolition sub phases in accordance with the needs of the Redevelopment Scheme;

(l)

resolves that discretionary home loss payments, under Section 29 of the Land Compensation Act 1973 be made to tenants of Council owned properties, listed in Appendix 1 of the report who have been in occupation for 12 months at the time of the displacement, and discretionary payments made to cover any removal expenses under Section 26 of the Housing Act 1985;

(m)

resolves that Notice Seeking Possession may be served under Ground 10 of Schedule 2 of the Housing Act 1985 on any tenant of the properties listed at Appendix 1 of the report which falls within a declared demolition phase;

(n)

authorises the Director of Capital and Major Projects to (i) negotiate and agree terms for the acquisition of dwellings listed in Appendix 1 of the report, and any other property, not owned by the City Council, and (ii) instruct the Director of Legal and Governance to complete the necessary legal documentation in respect of the acquisition of such properties;

(o)

authorises the Director of Capital and Major Projects to make home loss payments to owner occupiers or tenants in privately owned properties who have been in occupation for 12 months at the time of displacement and basic loss payments to owners as required under the Land Compensation Act 1973 together with the appropriate disturbance payments;

(p)

authorises the Director of Capital and Major Projects  to (i) negotiate the surrender of any commercial leases including electrical substations, telecommunications and other service equipment if required; and (ii) instruct the Director of Legal and Governance to complete the necessary legal documentation;

(q)

authorises the Director of Care and Support (or other such Director as is nominated by the Executive Director, Communities) to designate all premises on the Arbourthorne and Norfolk Park Estates as within a Demolition Band within the meaning of the Lettings Policy for residents at Arbourthorne Fields awarded rehousing priority, vary or terminate the Demolition Band as he considers necessary in the interests of the redevelopment programme;

(r)

notes that a capital approval submission will be made via the monthly budget monitoring report for the capital expenditure associated with this proposal;

(s)

resolves that the Private Sector Housing Policy be amended, as set out in Appendix 4 to the report;

(t)

resolves that the decisions delegated to the Regional Loans Manager within the policy are exercised in respect of Arbourthorne Fields in consultation with the Director of Development and Regeneration Services; and

(u)

resolves that the rents of the 193 Council owned properties, set out in Appendix 1 be frozen upon the declaration of the appropriate demolition phase or sub phase as set out in Appendix 1 to the report and the plan at Appendix 2.

9.3

Reasons for Decision

9.3.1

To deliver the Arbourthorne Fields Redevelopment Scheme, as set out in the report.

9.3.2

To deliver a ‘whole estate solution’ for the Arbourthorne ‘5M’ properties, which the alternative options do not offer.

9.3.3

To provide certainty to the residents of the remaining 246 properties (193 Council and 53 Privately Owned) affected by the Arbourthorne Fields Redevelopment Scheme.

9.3.4

To demolish unsustainable housing and create the opportunity to redevelop the area with high quality, sustainable new homes.

9.4

Alternatives Considered and Rejected

9.4.1

Do Nothing

This is not an option available to the Council, primarily due to the requirement for the Council to bring its housing stock up to the Decent Homes Standard. This option has therefore not been explored in any detail.

9.4.2

Retain Stock

This option involves carrying out Decent Homes and external additional investment works to the 193 Council owned 5M properties.

The cost of bringing the properties up to the Decent Homes Standard and making them structurally sound would be approximately £8.98 million.

The Council would receive net rental income from these properties of approximately £0.3 million per year.

The benefits of this option are as follows:-

·         Council properties remain viable for 30 years

·         Council tenants receive investment to their properties

·         193 Council properties retained in the HRA, with associated asset values

The risks and issues associated with this option are:-

·         Despite this significant level of investment, this option still does not provide a comprehensive solution for the whole estate.

·         Fundamental issues with layout and the run down environment of the estate are not addressed

·         Retaining existing stock will mean no diversified housing offer for the area

·         This option does not deliver the corporate strategic outcome of a ‘A Great Place to Live’.

·         Investment only benefits the Council owned properties, and does not provide a solution for the remaining 53 privately owned properties

·         Failure of private owners to maintain their own properties may result in Council investment being compromised by nature of terrace type construction of 5M properties

·         Similarly, the ‘pepper potted’ nature of privately owned properties will have a negative effect on the appearance of the neighbourhood, if these properties are not maintained

·         Existing development sites on Phase 1 are less likely to be attractive to developers, due to the retention of existing stock and the reduced land package on offer

This option has therefore been discounted because it does not offer a whole estate solution, despite significant investment in Council stock. It will not deliver transformational change for the neighbourhood and will result in the retention of unsustainable properties that will require further substantial investment in the future. Privately owned properties will receive no investment, which will have a detrimental effect on the overall appearance of the neighbourhood.

9.5

Any Interest Declared or Dispensation Granted

None

9.6

Reason for Exemption if Public/Press Excluded During Consideration

None

9.7

Respective Director Responsible for Implementation

Simon Green, Executive Director, Place and Richard Webb, Executive Director, Communities

9.8

Relevant Scrutiny and Policy Development Committee If Decision Called In

Safer and Stronger Communities

9.1

The Executive Director, Place and Executive Director, Communities submitted a joint report seeking authority from Cabinet to use allocations from the Housing Revenue Account (HRA), the Capital Programme and the Local Growth Fund (LGF), to complete rehousing and demolition on the Arbourthorne Fields Redevelopment Scheme as set out in the report and supported by Cabinet in 2008.

9.2

RESOLVED: That Cabinet:-

(a)

authorises the delivery of the Arbourthorne Fields Development Scheme as set out in the report;

(b)

notes the impact continuing the scheme will have to the HRA 30-year business plan;

(c)

approval be given for the acquisition, vacation and demolition of all the properties listed in Appendix 1 of the report and shown on the plan at Appendix 2;

(d)

approval be given for the acquisition, vacation and demolition of 13 no. garages, listed at Appendix 1 of the report and shown on the plan at Appendix 2;

(e)

authorises the Director of Housing Services (or such other Director as is nominated by the Executive Director, Communities) from time to time to stop letting such of the properties listed in Appendix 1 of the report, in consultation with the Director of Regeneration and Development Services as to what he considers desirable to meet the needs of the Redevelopment Scheme;

(f)

resolves that each demolition sub-phase shall be a demolition phase for the purposes of awarding priority under the Lettings Policy;

(g)

authorises the Director of Regeneration and Development Services to declare demolition sub phases and in consultation with the Director of Care and Support (or such other Director as is nominated by the Executive Director, Communities) set the date in a declared demolition sub-phase from which priority will be awarded;

(h)

authorises the Director of Care and Support (or such other Director as is nominated by the Executive Director, Communities) to waive the Lettings Policy in respect of nominations to the Sanctuary Older Persons Housing Scheme of residents of undeclared phases as outlined in the report;

(i)

authorises the repurchase of homes not within a declared demolition phase, where the resident is to be rehoused within the Sanctuary Older Persons’ Housing Scheme, Arbourthorne, as shown on the plan in Appendix 2 to the report;

(j)

authorises the Director of Regeneration and Development Services, in exceptional circumstances, outwith resolutions (f), (g), (h), to agree the repurchase of homes not within a declared demolition phase;

(k)

authorises the Director of Regeneration and Development Services to vary or alter the boundaries of demolition sub phases in accordance with the needs of the Redevelopment Scheme;

(l)

resolves that discretionary home loss payments, under Section 29 of the Land Compensation Act 1973 be made to tenants of Council owned properties, listed in Appendix 1 of the report who have been in occupation for 12 months at the time of the displacement, and discretionary payments made to cover any removal expenses under Section 26 of the Housing Act 1985;

(m)

resolves that Notice Seeking Possession may be served under Ground 10 of Schedule 2 of the Housing Act 1985 on any tenant of the properties listed at Appendix 1 of the report which falls within a declared demolition phase;

(n)

authorises the Director of Capital and Major Projects to (i) negotiate and agree terms for the acquisition of dwellings listed in Appendix 1 of the report, and any other property, not owned by the City Council, and (ii) instruct the Director of Legal and Governance to complete the necessary legal documentation in respect of the acquisition of such properties;

(o)

authorises the Director of Capital and Major Projects to make home loss payments to owner occupiers or tenants in privately owned properties who have been in occupation for 12 months at the time of displacement and basic loss payments to owners as required under the Land Compensation Act 1973 together with the appropriate disturbance payments;

(p)

authorises the Director of Capital and Major Projects  to (i) negotiate the surrender of any commercial leases including electrical substations, telecommunications and other service equipment if required; and (ii) instruct the Director of Legal and Governance to complete the necessary legal documentation;

(q)

authorises the Director of Care and Support (or other such Director as is nominated by the Executive Director, Communities) to designate all premises on the Arbourthorne and Norfolk Park Estates as within a Demolition Band within the meaning of the Lettings Policy for residents at Arbourthorne Fields awarded rehousing priority, vary or terminate the Demolition Band as he considers necessary in the interests of the redevelopment programme;

(r)

notes that a capital approval submission will be made via the monthly budget monitoring report for the capital expenditure associated with this proposal;

(s)

resolves that the Private Sector Housing Policy be amended, as set out in Appendix 4 to the report;

(t)

resolves that the decisions delegated to the Regional Loans Manager within the policy are exercised in respect of Arbourthorne Fields in consultation with the Director of Development and Regeneration Services; and

(u)

resolves that the rents of the 193 Council owned properties, set out in Appendix 1 be frozen upon the declaration of the appropriate demolition phase or sub phase as set out in Appendix 1 to the report and the plan at Appendix 2.

9.3

Reasons for Decision

9.3.1

To deliver the Arbourthorne Fields Redevelopment Scheme, as set out in the report.

9.3.2

To deliver a ‘whole estate solution’ for the Arbourthorne ‘5M’ properties, which the alternative options do not offer.

9.3.3

To provide certainty to the residents of the remaining 246 properties (193 Council and 53 Privately Owned) affected by the Arbourthorne Fields Redevelopment Scheme.

9.3.4

To demolish unsustainable housing and create the opportunity to redevelop the area with high quality, sustainable new homes.

9.4

Alternatives Considered and Rejected

9.4.1

Do Nothing

This is not an option available to the Council, primarily due to the requirement for the Council to bring its housing stock up to the Decent Homes Standard. This option has therefore not been explored in any detail.

9.4.2

Retain Stock

This option involves carrying out Decent Homes and external additional investment works to the 193 Council owned 5M properties.

The cost of bringing the properties up to the Decent Homes Standard and making them structurally sound would be approximately £8.98 million.

The Council would receive net rental income from these properties of approximately £0.3 million per year.

The benefits of this option are as follows:-

·         Council properties remain viable for 30 years

·         Council tenants receive investment to their properties

·         193 Council properties retained in the HRA, with associated asset values

The risks and issues associated with this option are:-

·         Despite this significant level of investment, this option still does not provide a comprehensive solution for the whole estate.

·         Fundamental issues with layout and the run down environment of the estate are not addressed

·         Retaining existing stock will mean no diversified housing offer for the area

·         This option does not deliver the corporate strategic outcome of a ‘A Great Place to Live’.

·         Investment only benefits the Council owned properties, and does not provide a solution for the remaining 53 privately owned properties

·         Failure of private owners to maintain their own properties may result in Council investment being compromised by nature of terrace type construction of 5M properties

·         Similarly, the ‘pepper potted’ nature of privately owned properties will have a negative effect on the appearance of the neighbourhood, if these properties are not maintained

·         Existing development sites on Phase 1 are less likely to be attractive to developers, due to the retention of existing stock and the reduced land package on offer

This option has therefore been discounted because it does not offer a whole estate solution, despite significant investment in Council stock. It will not deliver transformational change for the neighbourhood and will result in the retention of unsustainable properties that will require further substantial investment in the future. Privately owned properties will receive no investment, which will have a detrimental effect on the overall appearance of the neighbourhood.