Issue details

To agree the principle of the Council submitting a bid for additional Housing Revenue Account borrowing.

At the end of June 2018, the Secretary of State for Housing, Communities and Local Government announced the availability of additional Housing Revenue Account (HRA) borrowing funds for ‘high affordability pressure areas’.  High affordability pressure areas are those where the average weekly cost of private rent is £50 or more than the average cost of social rent.  Fareham borough is one of many authorities in England where this applies.

£500 million of additional borrowing is available outside of London between 2019/20 and 2021/22.  With the Council’s Corporate priority of ‘Providing Housing Choices’ the availability of the additional HRA borrowing could provide an important opportunity to enable the delivery of additional affordable homes on Council owned (or potentially owned) sites.

Bids for additional HRA borrowing must be site specific and include certain criteria and information.  The bids must be submitted by 07 September 2018.

This report seeks Executive approval for the principle of bidding for this additional borrowing, with the total amount bid for not exceeding £13 million.  The final bids will be submitted by the Managing Director of Fareham Housing and based on the detailed information required for each site/bid, including the expected development costs and borrowing required.  This can vary depending on the individual site, affordable tenure and other matters.  It is not expected to exceed £13 million.

It should be noted that this is a decision to approve the principle of bidding for money and not a decision to accept or use any funds that may subsequently become available.