Agenda item

A report was presented to inform the Board about the new Housing Fund specifically for brownfield sites and asked the Board to consider the criteria and assurance processes proposed to facilitate the delivery of the Fund set out in the appended prospectus.

On the 30th June 2020, the Government launched ‘A New Deal for Britain’ which was a key part of the Government’s Strategy to rebuild Britain following Covid-19 and support the economic recovery across the UK.

As part of this strategy, £40.3m of capital funding and £841,000 revenue funding had been allocated to the Sheffield City Region Mayoral Combined Authority (MCA) for supporting development of housing schemes on brownfield land over the next 5 years.

The £40.3m capital and £841k revenue funding had been devolved to the MCA from the Government’s Brownfield Housing Programme.  This would enable the expansion of the MCA Housing Fund and ensure the MCA and LEP can support the delivery of a greater number of new homes to meet local needs which would otherwise not be brought forward by the Market. 

The profile of capital funding over the five years agreed with MHCLG was set out in paragraph 2.2 of the report and noted by the Board. 

The Board noted that the revenue funding would primarily be used to accelerate the project pipeline to bring forward housing schemes for delivery in the next two years. 

It was proposed to adopt a two phased approach to the Housing Fund Programme.  Early spend up to March 2021 would necessitate a different approach to the full five year programme in order to seek to deliver the ‘early deliverable schemes’ within the initial timeframe.  Further details were presented in paragraphs 2.5, 2.6 and 2.7 of the report. 

The Board noted that the MHCLG had recently announced a bidding round for a further £40m (10% of the total £400m Brownfield Housing Fund), with scheme bids being invited from the Mayoral Combined Authorities.  The focus of the bidding process and assessment is on identifying and supporting MCAs that can demonstrate they have ambitious scheme proposals and that all homes to be delivered using this ‘Competitive’ part of the funding (if successful) must be additional to those coming forward as a result of the existing MCA allocation of funding from the initial 90% of the fund.

The deadline for submission of proposed schemes is the 6th September and discussions are ongoing with partners to identify potential schemes for submission. 

The Board was asked to consider if they wished to submit potential schemes for the Competitive Fund element. 

Following a lengthy discussion and consideration of all the risks and challenges associated the Board agreed that a note be circulated to Members on the afternoon of Friday 4^th September 2020, setting out the number of projects which had been submitted by the local authorities in order for the Board to make a decision whether or not to proceed to submit schemes for the Competitive Fund element.  ACTION: B Guthrie / M Lynam.

Appendix A to the report set out the draft Sheffield City Region Housing Fund (Brownfield) 2020-2025 Prospectus, Criteria and Assurance Process for the Board’s consideration.  

M Lynam reported that there were seven growth areas currently contained in the SEP.  The Board was asked to consider a proposal to amend the top level criteria to see developments and encourage developments outside of the seven areas.  This was to encourage the improvement of the quality of housing delivery, housing sustainability, energy use, type, tenure and quality mix across the SCR. 

The Board considered and agreed to support the above proposal. 

B Guthrie provided the Board with a summary of the consultation feedback received from Housing Directors. The feedback included:

·            How the prioritisation of schemes with lower BCR and value for money are going to measure against those with a higher strategic fit.

·            When will an open call for private sector schemes be opened-up?

·            Low Carbon, no gas criteria standards and how the SCR should approach this. (How it is measured, adopted and if early schemes should be considered in a different way to the remaining programme schemes). 

The Board stated that a balanced and pragmatic approach should be taken to applying the standards during the first two years of the fund.

·           Comments around the assurance process generally and the shortening of the assurance process for the first part of the funding as detailed. 

D Gillespie suggested that the SCR Team was wish to clarify and explore with MHCLG about how Homes England and the SCR might layer funding before the Prospectus is finalised to enhance affordable housing delivery further. For example, it may be possible to layer funding with the new Affordable Homes Programme. 

D Gillespie added that, to help Partners, the Prospectus needed to be clear around what is / is not possible when formulating bids. 

The Board expressed that they would be flexible to meet prior to the scheduled Board meeting in October to sign-off funding requests. 

The Board discussed and agreed that previous LGF schemes which were in the pipeline for spend should now be considered if they meet the criteria.  

RESOLVED – That Board Members:-

1.      Noted the details of the Housing Fund grant allocation and the ongoing work to progress early deliverable schemes.

2.      Considered the proposed housing schemes for the competitive fund, and confirmed the Board’s views on submitting schemes.

Commented on the proposed criteria and assurance processes set out in the Housing Fund Prospectus in Annex A, subject to any suggested Board amendments.