Agenda item

C Blackburn introduced a report to provide an update on progress with the Housing Fund (Brownfield) and requested the Board’s endorsement of the Strategic Business Case for the programme and to give approval for the revenue fund allocations. 

The Board was reminded that, in June 2020, the Government had 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 £841k revenue funding had been allocated to the MCA for supporting the development of housing schemes on brownfield land over the next 5 years.

Appendix A to the report provided the Board with the Appraisal Panel summary for the Housing Fund (Brownfield) 5 year Programme Strategic Business Case (SBC) for consideration, with a view to recommending it for approval by the MCA.  The SBC included the Early Deliverable pipeline schemes.

The Appraisal Panel had confirmed that, as a whole the Housing Fund (Brownfield) programme provided good value for money.  The programme had an overall Benefit Cost Ratio (BCR) of 1.06, based on the Early Deliverable pipeline of schemes. 

The Board noted that, following ongoing work with Local Authority Housing Directors, the schemes listed in paragraph 2.3 of the paper were those that were being progressed as ‘Early Deliverable’ schemes, some of which were intended for funding approval consideration before the end of March.  These include the schemes that had been submitted for funding from MHCLG’s Competitive element of the Brownfield Housing Fund.  Following an announcement from MHCLG, it was confirmed that the schemes had been unsuccessful.  

In advance of the announcement, the MCA Executive had worked with the relevant Local Authority sponsors to work on developing scheme Full Business Cases (FBCs).  It was anticipated that some of the schemes would be presented at the next Board meeting for consideration for investment. 

The Board’s attention was drawn to the table presented at paragraph 2.5 of the report.  The table provided Members with the proposed initial revenue allocations to help accelerate business case development of the next pipeline of schemes for 2021/22.  The intention was for revenue funding to be capitalised at the point of a capital scheme approval; to be revolved back into the revenue ‘pot’ to support project development for further housing pipeline schemes in the 5 year programme.

The Board considered and approved the revenue funding allocations set out in paragraph 2.5 for accelerating the delivery of the 2021/22 pipeline schemes.

Members noted that work was ongoing with Local Authorities to develop a 5 year pipeline of schemes, as part of the Fund Conditions was to inform NHCLGby June 2021 of the proposed 5 year programme.  Proposals for the pipeline of both capital and revenue schemes would be reported to future Board meetings for consideration. 

Following ongoing activity, should it be considered that there may not be sufficient schemes to meet Fund targets and ambitions, consideration would be given to the option of opening up the Fund to wider stakeholders. This approach was welcomed by the Board.

RESOLVED – That the Housing and Infrastructure Board:

1.     Endorse the Housing Fund (Brownfield) Programme Strategic Business Case (SBC), noting the initial Early Deliverable schemes.

2.     Approved the revenue funding allocations set out in paragraph 2.5 for accelerating the delivery of the 2021/22 pipeline schemes.

3.     Delegate authority to the Head of Paid service in consultation with the Section 73 Officer and the Monitoring Officer to enter into legal agreement for the business development costs of pipeline schemes.