Issue - meetings

The Cabinet is requested to approve proposals, detailed in the report, concerning the Local Authority Housing Fund – Acceptance of Additional Funding.

The Cabinet considered a report of the Assistant Director of Planning, Transport and Housing Delivery which advised that the Ministry for Housing, Communities and Local Government (MHCLG) had launched a third round of the Local Authority Housing fund (LAHF) to run over the financial years of 2024-25 and 2025-26.

In October 2024, Oldham Council had accepted a funding allocation of £1,506,000 to deliver 16 homes.

In January 2025, an Expression of Interest process was launched by MHCLG for additional funding and Oldham Council had secured a further £372,000 to provide four additional homes.

The Council had only received interest from Cromwood Housing to deliver the additional homes, as detailed in the submitted report.  To deliver the homes, Cromwood required an additional £320,574 and without this additional funding the project would not be deliverable.  

A revenue cost from the Council of £40k per annum would achieve a revenue saving of £61k per annum by virtue of a one-off capital investment therefore delivering an annual revenue saving of £21k.

The Cabinet was informed that the report had been considered by the Place, Economic Growth and Environment Scrutiny Board, held on 12^th June 2025, where the recommendations were supported and endorsed.

Options/alternatives considered:

Option 1 – Award grant monies to Cromwood Housing to enable Cromwood to deliver the housing project. If the Council passported the £372,000 grant monies from MHCLG and it provided Cromwood with additional grant funding of £320,574 from its own budget monies, Cromwood would identify, purchase, refurb, manage and maintain the homes.  The homes would be available for letting by December 2025 at the latest. Cromwood have a strong track record of delivery from the previous LAHF Programmes. 

Option 2 – Council to Self-Deliver. If the Council were to retain the MHCLG Grant and self-deliver the programme, this option would require the Council to find an additional £0.5M. The Council would be responsible for finding the home, purchasing, completing refurbishment works and all on-going management and maintenance.  The Council would own the properties and retain rental income. Capacity and skills for managing the works outlined above would also need to be identified.

Option 3 – To decline the grant. The Council could decline to accept the MHCLG grant and not take part in the scheme.  Any grant received through signing the MoU would be returned to MHCLG.

Option 1 was the preferred option.

Resolved:

That the Cabinet will consider the confidential recommendations, detailed in the report, at agenda item 25.

The Scrutiny Board is requested to scrutinise proposals concerning the Local Authority Housing Fund – Acceptance of Additional Funding.

Members of the Scrutiny Board considered a report of the Assistant Director of Planning, Transport and Housing Delivery which advised that the Ministry for Housing, Communities and Local Government (MHCLG) had launched a third round of the Local Authority Housing fund (LAHF) to run over the financial years of 2024/25 and 2025/26.

In October 2024, Oldham Council had accepted a funding allocation of £1,506,000 to deliver 16 homes.

In January 2025, an Expression of Interest process was launched by MHCLG for additional funding and Oldham Council had secured a further £372,000 to provide four additional homes.

The Council had only received interest from Cromwood Housing to deliver the additional homes, as detailed in the submitted report.  To deliver the homes, Cromwood required an additional £320,574 and without this additional funding the project would not be deliverable.  

A revenue cost from the Council of £40k per annum would achieve a revenue saving of £61k per annum by virtue of a one-off capital investment therefore delivering an annual revenue saving of £21k.

Options/alternatives to  be considered by the Cabinet:

Option 1 – Award grant monies to Cromwood Housing to enable Cromwood to deliver the housing project. If the Council passported the £372,000 grant monies from MHCLG and it provided Cromwood with additional grant funding of £320,574 from its own budget monies, Cromwood would identify, purchase, refurb, manage and maintain the homes.  The homes would be available for letting by December 2025 at the latest. Cromwood have a strong track record of delivery from the previous LAHF Programmes. 

Option 2 – Council to Self-Deliver. If the Council were to retain the MHCLG Grant and self-deliver the programme, this option would require the Council to find an additional £0.5M. The Council would be responsible for finding the home, purchasing, completing refurbishment works and all on-going management and maintenance.  The Council would own the properties and retain rental income. Capacity and skills for managing the works outlined above would also need to be identified.

Option 3 – To decline the grant. The Council could decline to accept the MHCLG grant and not take part in the scheme.  Any grant received through signing the MoU would be returned to MHCLG.

Option 1 was the preferred option.

The Scrutiny Board were informed that the report was due to be considered by the Cabinet at its meeting on 16^th June 2025 and any comments from this Scrutiny Board would be taken into consideration, prior to a decsion being made thereon.

Resolved:

1.    That the Scrutiny Board notes and endorses the report.

2.    That the Cabinet, at its meeting on 16^th June, be recommended to approve the recommendations detailed in the submitted report.