Agenda item

Joint report by Chief Executive/Head of Place (attached).

The Committee considered a joint report by the Chief Executive and Head of Place (circulated previously) regarding the Westacott Housing Infrastructure Fund.

The Regeneration Manager highlighted the following:

·         The Housing Infrastructure Fund was a Government fund awarded through Homes England which was intended to allow local authorities to front load infrastructure on housing sites where the provision of infrastructure by the developer would mean that the housing scheme was unviable.

·         On 23^rd April 2019, the Council received the offer letter from Homes England confirming that this scheme had received the internal approvals to proceed with the formal award of grant subject to a number conditions as detailed in the report and the grant agreement.  The grant award was to fund a roundabout off the A361 to access the development and unlock the delivery of 820 homes.  The Council would pay the grant to the developer Barwood Land. 

·         The infrastructure was required to be in place by March 2022.

·         The Council needed to have legally enforceable methods of recovering the funds from the developer. 

·         There was a clause that stated that if the Council should breach any of the provisions, it must repay the amount granted.  As the Council would be funding the provision of the infrastructure, there was a risk that if the Council could not recover the monies from the development, it would still have to repay that amount to Homes England.

·         The Council had obtained Counsel’s opinion which stated that the only reasonably certain way in which the Council could recover the amounts was to enter into an appropriate agreement with the developer and have a charge placed on land within the ownership of the developer to act as security.

·         The Council was currently in discussions with the developers over the terms of the necessary charges and the level and nature of security required.

·         There was a need to ensure that the relevant dates in the timetable could be met.

·         Concerns had been expressed to Homes England regarding the bureaucratic process in relation to the fund.

·         The intention was that once the dwellings start being constructed, the developer would repay the funds under an agreed repayment mechanism which could then be recycled by the local authority to support further infrastructure which could unlock or accelerate housing development.  Homes England had not issued any guidance in relation to the use if the funds following repayment by a developer.

The Head of Resources confirmed that external advice was also being sought on treasury management.