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Issue - decisions

Green Homes Grant Local Authority Delivery Scheme

28/06/2021 - Green Homes Grant Local Authority Delivery Scheme

12.1

The Green Homes Grant Local Authority Delivery (LAD II) Scheme is a government funding opportunity for retrofit insulation, energy efficiency and heating measures across all tenures of housing in low-income households with poor energy efficiency.

 

Specifically, the LAD II scheme is for retrofit of lower income homes  (where the gross household income no more than £30,000 p.a.) with poor energy efficiency (Energy Performance Certificate (EPC) rating D-G).

 

Sheffield City Council completed an application for the LAD II funding, on the 26th of March 2021 and have now received confirmation that the funding application for the project has been approved by the Tees Valley Combined Authority for grant funding up to £3,003,507 . On signature on the grant documentation the Council will become the accountable body for the full award and the programme of work.

 

 

12.2

RESOLVED: That Co-Operative Executive approve:-

 

1)    The Council accepting the government’s grant funding offer of up to £3,003,507 from Tees Valley Combined Authority (TVCA) and approves the Council entering into a memorandum of understanding and funding offer letter on the terms outlined in this report;

 

2)    The energy efficiency and carbon reduction measures programme set out in the report;

 

3)    The addition to the Housing Revenue Account (HRA) capital programme of a total of £786,683 for additional works to council housing stock being delivered as a result of the successful funding bid (being £636,733 grant funding and £149,950 additional match funding from the HRA);

 

4)    The procurement route set out in section 3.2 of the report for the residual element of the public sector housing works identified above not currently covered by existing contracts and procurement exercises; 

 

5)    The delegation of contract award for the above public sector housing contract to the Executive Director of Place in consultation with the Director of Finance and Commercial Services and the Director of Legal and Governance;

 

6)    The principle of the Council acting on behalf of SYHA in undertaking the required procurement;

 

7)    The principle of the Council entering into a council supply agreement with SYHA for the services provided by the Council relating to the procurement and  contract delivery of the works to SYHA properties of which the exact working arrangements between the two parties will be subject to a future decision via the Leaders Scheme of Delegation prior to commencing any works on SYHA properties;

 

8)    Additional funding to the non HRA capital programme of £194,718 for the works to be delivered to improve South Yorkshire Housing Association (SYHA) owned properties (being £72,843 grant funding and £121,875 additional match funding from SYHA);

 

9)    The procurement of a Principal Contractor, to deliver Private Sector works, by direct appointment from a national construction framework and delegation of contract award to the Executive Director of Place in consultation with the Director of Finance and Commercial Services and the Director of Legal and Governance on terms that are not materially different to those outlined in the report;

 

10)The additional funding to the non HRA capital programme of £2,261,672.38 for the works to Private Sector Houses;

 

11)That the Private Sector Housing Assistance Policy be amended to include the Green Homes Grant, as detailed in this report and set out in appendix 1 to the report; and

 

12)To the extent not already delegated to them by the Leader’s Scheme of Delegation, delegates authority to the Executive Director of Place, the Director of Finance and Commercial Services and the Director of Legal and Governance to take any other decisions necessary in order to meet the aims and objectives of the report.

 

13)In recognition of the many vulnerable households who own their own home and would benefit from these works, to use best endeavours to identify those households and encourage them to apply for grant support.

 

 

12.3

Reasons for Decision

 

 

12.3.1

The recommendations as set out in this report will enable the Council to deliver energy efficiency and carbon reduction measures to 502 Council properties, and potentially 15 properties owned by SYHA and 265 properties in the private housing sector if these elements of the project are agreed and finalised. The LAD II project provides an excellent opportunity to retrofit some of the least efficient stock across tenure in the city and will contribute towards measurable changes and improvements towards the city’s net zero carbon 2030 ambitions.

 

 

12.4

Alternatives Considered and Rejected

 

 

12.4.1

Alternative option one -  Include in imminent procurement

One option would be for the works for the 330 SCC properties which are not currently in a planned programme(referred to under item 3.2 above) is to include these in the imminent procurement of the Elemental contract. However, this increases the delivery risk should there be any procurement or tendering delays. This option was rejected on the basis that by spreading the delivery of the works over 3 contracts would reduce the risk of procurement or contract appointment delays.

 

 

12.4.2

Alternative option two – Do Nothing

This option is not a viable option as this mean that the works to 330 Council properties would be delivered and the Council would lose the opportunity to maximise on grant funding, available under LAD II, to improve the energy performance of 330 of the worst energy performing Council properties

 

 

12.4.3

Due to the tight timescales for delivering the bid requirement, on receipt of approval of the grant funding, the recommended procurement and delivery options set out under section 3 above in this report are considered to be the most expeditious.

 

 

12.5

Any Interest Declared or Dispensation Granted

 

 

 

None

 

 

12.6

Reason for Exemption if Public/Press Excluded During Consideration

 

 

 

None

 

 

12.7

Respective Director Responsible for Implementation

 

 

 

Interim Executive Director, Place

 

 

12.8

Relevant Scrutiny and Policy Development Committee If Decision Called In

 

 

 

Overview and Scrutiny Management