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The Assistant Director Policy and Corporate submitted a report a copy of which had been circulated to each Member.
Councillor Bourne, Portfolio Holder for Housing and Communities introduced the report. The proposals in the report were aimed at tackling homelessness by increasing the supply of permanent housing and temporary accommodation. In particular the aim was to reduce the number of families being housed in bed and breakfast accommodation by providing help and support in different ways and increasing the housing stock. It was explained that right to buy was having a significant impact on the Council‘s housing stock. The Council was losing approximately 50 properties per year through Right to Buy.
It was proposed to invest £3.63 million to tackle homelessness across the borough. £2.9 million would be used to purchase up to 16 units for use as temporary accommodation. The properties would be owned by the Council and managed by Colchester Borough Homes. A pilot would be introduced to increase the supply of private rented sector accommodation. Process changes would be introduced to the way the Allocations Policy was implemented, and it was proposed that the Council continue to buy former right to buy properties to be used as permanent accommodation.
Councillor Willetts attended and with the consent of the Chairman addressed the Cabinet. It was agreed that homelessness was a serious problem, and it was a paradox that homelessness was growing at the same time as record levels of housing growth were being experienced. A tougher approach needed to be taken to ensure developers provided higher levels of affordable housing, particularly in rural areas. Whilst the proposals were supported, they did not address the fundamental problem as they did not increase the housing stock and did not address the needs of rough sleepers.
Councillor Smith, Leader of the Council and Portfolio Holder for Strategy, responded that government policies prevented enough houses for rent being built and allowed developers to avoid their responsibilities to provide affordable housing. Government policies also prevented Council’s building new Council housing. The proposals were sensible and were a good use of New Homes Bonus.
Councillor Bourne, Portfolio Holder for Housing and Communities, stressed that if the government were serious about tackling the problem of homelessness they would allow Council’s more freedom such as allowing them to use all their Right to Buy receipts. It was not acceptable to propose lower standards of accommodation for street homeless.
RESOLVED that:-
(a)
Up to 16 homes be purchased to be used as temporary accommodation for homeless households up to a value of £2.9 million.
(b)
The requirement for General Fund prudential borrowing to enable these purchases be noted and be
RECOMMENDED TO COUNCIL for approval as part of the budget item.
(c)
The use of up to £1 million of Affordable Housing New Homes Bonus income to fund a proportion of the purchase costs of the 16 properties be approved, as set out in the financial implications of the Assistant Director’s report.
(d)
Authority be delegated to the Strategic Director Commercial and Place or Assistant Director Policy and Corporate Services, in consultation with the Portfolio Holder for Business and Culture, to negotiate the terms and purchase price of individual properties.
(e)
The use of £100,000 new homes bonus income and £150,000 from the Government’s Flexible Homelessness Support Grant to fund a two year pilot scheme to increase the supply of private sector rented accommodation be approved.
(f)
The purchase of, for use as permanent accommodation, former council properties bought under the right to buy offered back to the Council under the “right of first refusal” legislation be continued, where these offer good value for money and are in areas of high housing need.
REASONS
Colchester Borough Council has a legal duty to provide accommodation to people who are homeless, so long as they meet the criteria set out in law, as set out in detail in paragraph 5.1 of the Assistant Director’s report.
Whilst the Council and its arms-length management organisation, Colchester Borough Homes, are preventing more people from becoming homeless each year, the number of homeless households in temporary accommodation continues to increase.
The recommended decisions contained in the Assistant Director’s report will support the Council and Colchester Borough Homes to prevent homelessness and improve the experience of temporary accommodation for those who are homeless and waiting for permanent housing to become available.
ALTERNATIVE OPTIONS
Not to proceed with the recommended decisions contained within the Assistant Director’s report. This could result in households who are homeless being placed in less suitable temporary accommodation (such as bed and breakfast) or in accommodation outside of the Colchester Borough.
Pursue other options. Research was undertaken to look at options to tackle homelessness and improve the experience of temporary accommodation. These options are contained in the background paper to this report. Other options were rejected because they were not cost effective; took too long to deliver; and/or there were too many risks attached to successful delivery.