This report sets out a proposal to appropriate Southcote library from the General Fund to the Housing Revenue Account for market value for the development and provision of affordable housing.

The Director of Economic Growth & Neighbourhoods submitted a report on a proposal to appropriate Southcote Library from the General Fund to the Housing Revenue Account (HRA) for market value for the development and provision of affordable housing.  A site plan was attached to the report at Appendix 1.  The report explained that the Committee had previously resolved to dispose of the site to Sovereign Housing Association (SHA) at its meeting on 3 August 2020 (Minutes 25 & 29 refer) for the development of affordable housing.  However, in January 2023, the Council had been advised that, following an internal review, SHA had withdrawn from the purchase of the site.  As a result, the Council had considered contacting the previous underbidders for the site; remarketing the site; and appropriating the site to the HRA for the development of Council housing. 

The report stated that there was authority to appropriate suitable sites for the purpose of delivering new housing in cases where a business plan showed it was cost effective. The proposed scheme had been modelled within the latest 30 Year HRA business plan and it remained financially viable.  A key priority of the Corporate Plan and the Housing Strategy 2020-2025 was to build new homes, which supported the appropriation to the HRA being the best option, rather than remarketing the site. The HRA would potentially deliver 15 x 2 Bed flats for Social Rent at an anticipated scheme cost of £3.8m (£800k Land Appropriation and £3m build cost).

Resolved –

That the appropriation of the Southcote Library site from the General Fund to the Housing Revenue Account (HRA) for Market Value for the development and provision of affordable housing be approved.