Decision details

Decision to support the delivery of Round 3 of the Local Authority Housing Fund programme which will deliver 4 homes for Afghan families. The properties will be purchase on the open market via LAHF grant passported via the Council together with additional borrowing from the existing ADL Loan Agreement. Therefore, in accordance with the Shareholder Agreement 2018, updated in 2022, Aequus must seek approval from the Shareholder for Reserved Matters 22 and 28.

To approve the reserved matters below to allow Aequus Development Limited (ADL) to progress with supporting the Council to deliver this programme:

·  Reserved Matter 22 – approval of total asset acquisitions that will exceed £500,000 but less than £5m per annum

·  Reserved Matter 28 – Making any borrowing.

ADL have supported B&NES with the delivery of the Local Authority Housing Fund Round 1 to provide 22 homes for families with housing needs who have arrived in the UK via Ukrainian and Afghan resettlement and relocation schemes. Round 3 funding will extend the delivery of the ADL supported scheme by providing an additional 4 properties specifically for Afghan families who are part of the Afghan Citizens Resettlement Scheme (ACRS).

The funding for the purchase of the properties will be via LAHF grant passported by the Council (at least 40% of the value) together with additional borrowing from the existing ADL Loan Agreement. A specific Business Case will be completed for each proposed property acquisition to ensure it is viable, in accordance with a model approved by the Managing Director and the Council’s S151 Officer.

This programme will be delivered across 2 years; Year 1 (24/25) and Year 2 (25/26). Year 1 delivery requires purchase of 2 Resettlement Element properties to be completed by 31st March 2025. Year 2 delivery requires purchase and occupation of 1 resettlement element property and 1 large resettlement element property to be completed by 31st March 2026.

ADL will manage the LAHF tenancies via their contracted Rental Managing Agent who will undertake all the normal statutory checks, inventory and maintenance of the properties. Rentals will initially be capped for each property at the 2023 Local Housing Allowance rate plus 7.7%, subject to annual review.

The types of units required to meet the needs of the refugee families have been identified as:

Open market acquisitions

·  3 x 2 bed plus (family accommodation) Resettlement Element properties

·  1 x 4 bedroom house Large Resettlement Element property

·  2 of the properties identified above must be new build homes.

To ensure that the properties remain solely for affordable housing use, ADL are required to place a restrictive covenant on title on the properties purchased through the grant funding to ensure their ongoing use solely for affordable housing purposes.

None.