Issue - meetings

The Princess Road and Prince of Wales Road site previously contained 9 detached and semi-detached properties of accommodation for approximately 60 people with complex needs.  The only property remaining is 129-131 Princess Road, the other properties having been demolished due to their condition and in readiness for the new development.

The current proposal presents a new build scheme of 121 apartments and a 20-bed family hostel and associated parking to be provided on this site.  This is a significant increase in the number of homes on the site and will help towards imminent new Local Plan housing targets and will also contribute significantly to unmet housing needs.

RECOMMENDED that Full Council

1.       Approves the proposed £32m housing scheme for progressing to planning and subsequent tender, commencement and completion of build subject to the conditions set out in the Financial Strategyand authorises the Corporate Director for Environment and Community to approve necessary appropriations and contractual and legal agreements in consultation with the Monitoring Officer and Chief Finance Officer.

2.       Approves the financial strategy for the scheme as set out in paragraphs 34 to 58 with specific approval for:

2a. The appropriation of land from the General Fund to the Housing Revenue Account (HRA) to enable the development of the affordable housing is valued at £1.25m.

2b. £18.222m of prudential borrowing to be repaid over 50 years with £8.88m being used to finance the General Fund (Hostel and Private Rented Sector) scheme and £9.342m being used to finance the Housing Revenue Account (HRA) (Affordable rented and Shared Ownership Scheme).    

2c. The utilisation of the capital receipt (valued at £495k) from the sale of the building at Oxford Road referred to in paragraph 43 of the report.

3.     Authorises the Section 151 Officer in consultation with the Portfolio Holder for Finance to determine the detailed funding arrangements.

4.     Authorises the Corporate Property Officer in consultation with the Monitoring Officer to agree the detailed contract provisions; and

5.     Approves the grant of a 25-year lease of the completed private rented sector (PRS) part of the development to Seascape Homes and Property Limited on terms to be agreed by the Corporate Property Officer in consultation with the Monitoring Officer.

Voting: Unanimous

REASON

To enable the proposed housing scheme to progress with the agreed funding arrangements through to planning and subsequent completion in order to deliver the wide range of benefits to the Council and local communities.

The Portfolio Holder for Housing presented a report, a copy of which had been circulated and which appears as Appendix 'D' to these Minutes in the Minute Book.

The Cabinet was advised that the Princess Road and Prince of Wales Road site previously contained 9 detached and semi-detached properties of accommodation for approximately 60 people with complex needs.  The only property remaining was 129-131 Princess Road, the other properties having been demolished due to their condition and in readiness for the new development. The current proposal presented a new build scheme of 121 apartments and a 20-bed family hostel and associated parking to be provided on this site.  The Portfolio Holder emphasised that this was a really good scheme, providing a large mixed tenure development with the majority being affordable homes. It would help towards imminent new Local Plan housing targets and would contribute significantly to unmet housing needs.

The Leader of the Council thanked Councillor Bob Lawton for his role in bringing this scheme forward as previous Portfolio Holder in the former Bournemouth Borough Council. Councillor Lawton commended the scheme to the Cabinet.

A Councillor present at the meeting asked the Cabinet to rethink the scheme due to the lack of social housing in the proposed tenure and concerns about the affordability of ‘affordable housing’ for many people on the housing register.

The Chairman of the O&S Board reported that the Board, at its meeting on 8 July 2019 resolved to support the recommendations as outlined within the Cabinet report.

In considering the recommendations, Cabinet Members supported the principle of social housing as a priority consideration in new builds going forward. The Portfolio Holder reported that he had challenged officers on this issue, however the £5.1 million subsidy required for social rented homes in this case would have made the total scheme unviable. It was noted that 72% of the total homes on the proposed site would be affordable rent and shared ownership at local housing allowance rates, which was considerably higher then the 40% required within policy.

RECOMMENDED that Full Council:

1.      Approves the proposed £32m housing scheme for progressing to planning and subsequent tender, commencement and completion of build subject to the conditions set out in the Financial Strategyand authorises the Corporate Director for Environment and Community to approve necessary appropriations and contractual and legal agreements in consultation with the Monitoring Officer and Chief Finance Officer.

2.      Approves the financial strategy for the scheme as set out in paragraphs 34 to 58 with specific approval for:

2a. The appropriation of land from the General Fund to the Housing Revenue Account (HRA) to enable the development of the affordable housing is valued at £1.25m.

2b. £18.222m of prudential borrowing to be repaid over 50 years with £8.88m being used to finance the General Fund (Hostel and Private Rented Sector) scheme and £9.342m being used to finance the Housing Revenue Account (HRA) (Affordable rented and Shared Ownership Scheme).    

2c. The utilisation of the capital receipt (valued  ...  view the full minutes text for item 15