Decision details

The report sets out proposals for the next stage of EBC housing development utilising previously approved loan facilities to Eastbourne Housing Investment Company Limited and Aspiration Homes LLP. The report also requests a new loan facility for the street acquisitions programme. 

To delegate authorities for loan agreements between EBC and both companies and delegated authority for the disposal of vacant land.

(Key decision):

(1) To note the Council’s housing development pipeline of homes to be delivered through the Housing Revenue Account (“HRA”), Aspiration Homes (“AHLLP”) and Eastbourne Housing Investment Company (“EHICL”) by a mix of purchasing land for new development and acquisitions of existing properties.

(2) To give delegated authority to the Director of Regeneration and Planning, in consultation with the Cabinet member for Direct Assistance Services, to dispose of land currently held in the HRA as listed in the programmes set out in the report and identified as held within the HRA to Aspiration Homes or EHICL pending due diligence. This delegation was to include authorisation not to dispose by auction or invitation of tenders following public advertisements is usually required by the Council’s Contract Procedure Rules (paragraph 18.1). To further give delegated authority to the Director of Regeneration and Planning in consultation with the Lead member for Housing to determine the terms for the disposals that may be below market value.

(3) In relation to loans from the Council:

(a) To note the loan amounts associated with the delegation at paragraph 2 above as follows:

(i) A loan amount of up to £6,900,000 required to develop or acquire the homes set out under the AHLLP programme that would be covered by £10m loan facility approved in the 2017/21 capital programme; and

(ii) A loan amount of up to £6,600,000 required to develop or acquire the homes set out under the EHICL programme that would be covered by £20m loan facility approved in the 2017/21 capital programme;

(b) To agree that the Council makes a further loan facility available of up to £10m on market terms to Eastbourne Housing Investment Company Ltd (EHICL) for the purpose of enabling the company to purchase residential accommodation under the existing programme relating to the purchase of such accommodation; and

(c) To authorise the Deputy Chief Executive, in consultation with the Cabinet member for Finance, to determine the terms of any loan which would be offered.

(4) To approve a housing strategy feasibility budget of £200,000 for site assessments related to housing development. This budget would be spent on emerging development opportunities within the programme.

(5) To authorise the Assistant Director for Legal and Democratic Services to ensure that a “Funding Agreement” pursuant to the existing “Deed of Entrustment” is entered into by Aspiration Homes with the Council so that right to buy receipts were appropriated in accordance with legislative requirements and the retention agreement with Government in relation to “social housing”. To give delegated authority to the Director of Regeneration and Planning to determine the terms of such agreements.

(6) To delegate authority to the Director of Regeneration and Planning and the Cabinet member for Direct Assistance Services (and where appropriate the Deputy Chief Executive and Assistant Director – Legal and Democratic Services) to progress the projects through the Clear Futures Energy & Sustainability Joint Venture if they consider it appropriate, and at an appropriate future stages to decide if the projects should be put forward to the Clear Futures Steering Board for inclusion as part 1 and/or part 2 projects.