I introduced a four-fold integrated flexible housing delivery model to Tower Hamlets Council, as follows:
1. Housing Revenue Account new build - direct delivery using Right To Buy receipts and HRA borrowing to deliver permanent affordable rented homes at social rents and a local income-based product called Tower Hamlets Living Rent.
2. General Fund conversions and acquisitions - the Council is converting redundant office and community buildings into temporary homes for homeless families, as well as acquiring second hand homes locally and in neighbouring boroughs, both ex-Council housing buybacks and private market purchases. Let at Local Housing Allowance levels, these homes are keeping families out of Bed and Breakfast or nightly paid temporary accommodation as well as providing asset growth and revenue income to the General Fund. Capital costs are met by Right To Buy receipts and prudential borrowing.
3. Wholly Owned Company (WOC) - Seahorse Homes Ltd has been established to provide market rented homes, using Council equity investment and commercial rate borrowing (to comply with State Aid rules), with homes either acquired from private developers or developed directly on Council land. The purpose is to generate revenue for other essential Council services as well as to cross-subsidise affordable homes developed by the fourth vehicle (see 4. next).
4, Community Benefit Society (CBS) - Mulberry Housing Society is an independent charitable entity established by the Council to provide affordable housing outside direct Council control, sponsored by Council funding and using Council freehold land assets. The CBS holds homes on a long lease and rents them to nominees from the Council's housing register. It is funded by Right To Buy receipts, loans from the Council and s106 commuted sums.
The key to effective delivery across this four-fold approach is an integrated client and delivery team in the Council, so that every opportunity that arises is evaluated, approved, project managed and handed over by a joined-up central resource. This avoids any conflict or competition between interested parties and builds into the development process considerable flexibility to take schemes forward through Planning and procurement, with scope to adjust or re-allocate homes to one or more of the four outcome points above, as funding constraints, legislative rules or political priorities change over time.
1. Housing Revenue Account new build - direct delivery using Right To Buy receipts and HRA borrowing to deliver permanent affordable rented homes at social rents and a local income-based product called Tower Hamlets Living Rent.
2. General Fund conversions and acquisitions - the Council is converting redundant office and community buildings into temporary homes for homeless families, as well as acquiring second hand homes locally and in neighbouring boroughs, both ex-Council housing buybacks and private market purchases. Let at Local Housing Allowance levels, these homes are keeping families out of Bed and Breakfast or nightly paid temporary accommodation as well as providing asset growth and revenue income to the General Fund. Capital costs are met by Right To Buy receipts and prudential borrowing.
3. Wholly Owned Company (WOC) - Seahorse Homes Ltd has been established to provide market rented homes, using Council equity investment and commercial rate borrowing (to comply with State Aid rules), with homes either acquired from private developers or developed directly on Council land. The purpose is to generate revenue for other essential Council services as well as to cross-subsidise affordable homes developed by the fourth vehicle (see 4. next).
4, Community Benefit Society (CBS) - Mulberry Housing Society is an independent charitable entity established by the Council to provide affordable housing outside direct Council control, sponsored by Council funding and using Council freehold land assets. The CBS holds homes on a long lease and rents them to nominees from the Council's housing register. It is funded by Right To Buy receipts, loans from the Council and s106 commuted sums.
The key to effective delivery across this four-fold approach is an integrated client and delivery team in the Council, so that every opportunity that arises is evaluated, approved, project managed and handed over by a joined-up central resource. This avoids any conflict or competition between interested parties and builds into the development process considerable flexibility to take schemes forward through Planning and procurement, with scope to adjust or re-allocate homes to one or more of the four outcome points above, as funding constraints, legislative rules or political priorities change over time.
