Issue - decisions

RESOLVED:

Decisions by the Cabinet

1.  That the procurement strategy, as detailed in paragraphs 51 to 119 of the report to appoint development partners for mixed tenure housing schemes, including council homes and key worker homes, across at least two lots for use until 31 March 2031 be approved, using the following routes in line with the council’s contract standing orders (CSO) which includes:

a.  A restricted procurement strategy or competitive dialogue, compliant with procurement regulations, in line with the Public Contract Regulations (PCR) (2015) or Procurement Act (PA) (2023), is adopted as set out in paragraphs 53 to 70 of the report to award development agreements for at least two lots of new homes packages.

b.  In lieu of a payment for the land, a pre-determined policy compliant percentage of affordable housing, including council homes and key worker homes, would be returned to the council upon completion reflecting our investment and scheme viability with the developer partner retaining the private housing, under a long lease term of up to 999 years. Other benefits, financial or otherwise may be received in addition subject to scheme feasibility and viability.

2.  That it be noted that this report affords the council a route to market by leveraging its land holdings and utilising Greater London Authority (GLA) Affordable Housing Programme Grant and other potential grant sources, such that the council can present an attractive package of opportunities to the market, in return for the delivery of new affordable homes and potentially other benefits.

3.  That it be noted the failure to make decisions on this programme in a timely fashion will hinder the ability of the council to meet target start on site dates, set by the GLA Affordable Housing Programme, which in turn would threaten a potential allocation to the council of over £116m.

4.  That it be noted subject to the performance of the development partnership, and at the discretion of the council, further sites could be added in the future (up to 2031) which would be subject to separate approval via individual decision making (IDM).

5.  That it be noted that the development agreements will include procurement of works to deliver new homes in lieu of land payment and include lease arrangements as set out in paragraphs 162 to 168e of the report.

6.  That it be noted that the initiation of the procurement exercise outlined in this gateway (GW) 1 report and the financial position throughout all milestones, is subject to the approval of the feasibility budget by housing revenue account (HRA) recovery board and the strategic director of finance.

Decisions by the Leader of the Council

7.  That the final approval via individual decision making (IDM) be delegated to the cabinet member for new homes and sustainable development, in consultation with the strategic director of housing, the strategic director of finance and the strategic director of planning and growth, to agree the lotting strategy (including consideration for a portfolio approach), and subsequent approval of the final package of sites within the new homes packages on completion of the site due diligence exercise detailed in paragraphs 22 to 28 of the report; the delegation is subject to the sites meeting the selection criteria set out in paragraphs 24 and 36 of the report and on the basis that there are clear exit routes pre-contract and post-contract.

8.  That the final approval for the preferred procurement route for at least two outlined lots in recommendation (a) be delegated to the cabinet member for new homes and sustainable development, in consultation with the strategic director of housing, the strategic director of finance and the strategic director of planning and growth, with the further sites added in the future (up to 2031) at the discretion of the council and subject to a further IDM approval.

9.  That the gateway (GW) 2 contract award decision, through one of the procurement options outlined in recommendation 1a and inclusive of the approval to divest the land for the lease, disposal or acquisition (where required), and only where award is at no additional cost to the council, be delegated to the cabinet member for new homes and sustainable development, in consultation with the strategic director of housing, the strategic director of finance, and the strategic director of planning and growth, for programmatic reasons which are set out in paragraph 89 to 92 of the report.

10.  That the disposal of land (including grant of leases) and acquisition of land (if there is to be any sub-lease back to the council of affordable units and other space) be delegated to the cabinet member for new homes and sustainable development in consultation with the strategic director of housing, the strategic director of finance, and the head of property.