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1 1507 DELEGATED POWERS REPORT NO. SUBJECT: West Hendon Regeneration Scheme Discretionary Home Loss Payments Control sheet All of the following actions MUST be completed at each stage of the process and the signed and dated report MUST be passed to Governance Service for publishing All reports 1. Governance Services receive draft report Andrew Charlwood 2. Governance Services cleared draft report as being constitutionally appropriate 3. Finance clearance obtained (report author to complete) 4. Staff and other resources issues clearance obtained (report author to complete) 5. Trade Union response received (Staffing issues only) 6. Legal clearance obtained from (report author to complete) 7. Policy & Partnerships clearance obtained (report author to complete) 8. Equalities & Diversity clearance obtained (report author to complete) 9. The above process has been checked and verified by Director, Head of Service or Deputy (report author to complete) 10. Signed & dated report, scanned or hard copy received by Democratic Services for publishing 11. Report published by Governance Services to website Date Name of Fin. officer Hayley Woolard Name of Res. officer Craig Cooper Date Name of TU rep. Date Name of Legal officer N/A Tobenna Erojikwe Date Name of P&P officer Andrew Nathan Name of officer Julie Pal Name Tony Westbrook/ Lucy Shomali Date Date Date Officer reports: 12. Head of Service informed report is published and can be implemented. Date Cabinet Member reports: 13. Expiry of call-in period Date N/A 14. Report circulated for call-in purposes to Business Manamgent OSC Members & copied to Cabinet & Head of Service Date
2 ACTION TAKEN UNDER DELEGATED POWERS BY OFFICER IN CONSULTATION WITH CABINET MEMBER(S) (EXECUTIVE FUNCTION) Subject West Hendon Regeneration Scheme Decant Payments for Home Loss Officer taking decision Interim Director, Environment, Planning & Regeneration Date of decision 9 January 2012 Summary Officer Contributors Status (public or exempt) Wards affected Enclosures To approve the making of discretionary payments, for home loss, to secure tenants who transfer from the West Hendon Estate to the Initial Phase development undertaken by Barratt Metropolitan Limited Liability Partnership. Angela Latty, Assistant Project Manager Strategic Planning and Regeneration Public with separate exempt report West Hendon None Reason for exemption from callin (if appropriate) Not applicable Contact for further information: Angela Latty, Regeneration Service, Environment, Planning and Regeneration, Serial No. 1507
3 1. RELEVANT PREVIOUS DECISIONS 1.1 Planning and Environment Committee 11 December 2007 (Decision 10); approved demolishing of former Lakeview Children s Centre and the redevelopment of the site with 8 affordable housing units subject to the completion of a Section 106 Agreement. 1.2 Cabinet Resources Committee 25 March 2008 (Decision 14); approved the transfer of the former Lakeview Children s Centre site to Barratt Metropolitan LLP for redevelopment of 8 new affordable houses. 1.3 Planning and Environment Committee 22 December 2008 (Decision 8); approved Reserved Matters Application to develop Phase 2A of the development. 2. CORPORATE PRIORITIES AND POLICY CONSIDERATIONS 2.1 The regeneration of the West Hendon Estate contributes to the delivery of the Corporate Plan priority of a successful London Suburb and its Sustainable Community Strategy. Strategic objectives under the above include to deliver sustainable housing growth, to support strong and cohesive communities and to ensure residents continue to feel that Barnet is a place where people from different communities get on together including through effective management of our regeneration programmes. 2.2 The West Hendon Regeneration also supports the corporate priority of sharing opportunities, sharing responsibilities. The new development will offer more choice by providing a number of different housing options such as shared equity, shared ownership etc to residents and those in the wider community. 2.3 The West Hendon Regeneration Scheme will provide up to 2171 new homes designed to a high standard as well as quality open spaces, improved parking provision, community facilities and employment opportunities (through the Section 106 contribution). The scheme will establish a new and sustainable neighbourhood in which people want to live, work and prosper within a growing, mixed strong community. 3. RISK MANAGEMENT ISSUES 3.1 If the West Hendon regeneration scheme does not proceed to the next phase, the Council will have possession of flats within the estate which can be re-let. 3.2 It is not considered that the issues involved are likely to raise significant levels of public concern or give rise to policy considerations.
4 4. EQUALITIES AND DIVERSITY ISSUES 4.1 The Council is committed to improving the quality of life and wider participation for all in the economic, educational, cultural, social and community life of the Borough. The West Hendon Regeneration Scheme will provide a mix of affordable and private sale properties. The new, mixed tenure housing will improve the community cohesion in an area with a highly diverse population. It will provide increased choice and opportunity for Barnet residents. This supports the overall aim of the council s Equalities Policy and supports the equality priorities outlined in Barnet s Equality Scheme. 4.2 It is not considered that the issue involved will give rise to any issues under the Council s Equalities policies and will not compromise the Council in meeting its statutory equalities duties. 5. USE OF RESOURCES IMPLICATIONS (Finance, Procurement, Performance & Value for money, Staffing, IT, Property, Sustainability) 5.1 There are provisions under the Deed of the Variation to the Principal Development Agreement for the scheme (PDA), for the development of the Initial Phase, for the Council to recover any costs properly incurred in accordance with the Eighteenth Schedule (Decant Plan) of the PDA. 5.2 The Deed of Variation clause 48.12, allows the Council to reclaim costs arising from Home Loss and Disturbance Payments to tenants. For the Initial Phase, the Council will directly administer the Home Loss Payments to 43 secure tenants, and it will make the necessary deductions were applicable for rent and council tax arrears etc. Whilst, Barratt Metropolitan Limited Liability Partnership (BMLLP) will be directly administering the disturbance payments. 5.3 The Council will be making Home Loss Payments to 8 tenants who are moving to new homes in the pilot phase, in December 2011 and January These costs can be recovered, as and when these costs are incurred by the Council. As a consequence, these costs can be contained within the budget provision for It is estimated that the sums equivalent to Home Loss Payment which are being recommended for payment to the secure tenants, who will be taking up rented accommodation in the pilot phase of the development, will total approximately 37,600 ( 4,700 x 8). 5.5 The Council is also due to make payments for home loss to 35 secure tenants in autumn These tenants will be moving to new homes in Phase 2A (Lakeside). Once again, the Council can reclaim its costs, as and when each payment is being made to these tenants. These costs can be contained within the budget provision for The estimated sums equivalent to Home Loss Payments which are being recommended for payment to secure tenants, who are taking up rented accommodation in Phase 2A (Lakeside) of the development, will total approximately 164,500 ( 4,700 x 35). It is intended, that this proposed
5 expenditure will be contained within the budget provision for year These costs will be recovered, as and when these costs are incurred by the Council. 5.6 In May 2010, the Council made a discretionary Home Loss payment to 1 secure tenant in Rosemead. At the time, the Council made a discretionary payment to this tenant which was equivalent to home loss, and paid for the removal costs. This cost totalled, 5, 170, and the Council has recovered this cost from BMLLP. 5.7 The Council can make such payments pursuant to the statutory provisions referred to in the Legal Issues section, at paragraph 6 below. 5.8 There are no staffing or ICT issues associated with this transaction. The property implications are set out in section 8 below. 6. LEGAL ISSUES 6.3 Section 2 Local Government Act 2000: This well-being power authorises a local authority to do anything which they consider is likely to achieve any one or more of the following objects: a. the promotion or improvement of the economic well-being of their area; b. the promotion or improvement of the social well-being of their area; and c. the promotion or improvement of the environmental well-being of their area. In using this power the local authority the local authority must have regard to its Community Strategy. 6.2 Section 111 Local Government Act 1972: This provision empowers a local authority to do anything (whether or not involving the expenditure, borrowing or lending of money or the acquisition or disposal of any property or rights) which is calculated to facilitate, or is conducive or incidental to, the discharge of any of their functions. 7. CONSTITUTIONAL POWERS 7.1 Council Constitution, Part 3, Responsibility for Functions; paragraph 6.1 (Powers Delegated to Officers) enables Chief Officers to take decisions in consultation with the Cabinet Member concerned, amongst other things, to discharge the duties allocated to them or dealt with by their staff, except for matters specifically reserved to Executive Members, Cabinet meeting, Cabinet Committees, Committees or Council. 8. BACKGROUND INFORMATION 8.1 BMLLP will be completing the Pilot Phase (Lakeview) of 8 affordable houses for social rent in December Phase 2A also known as Lakeside is due to be completed in December 2012, and this phase comprises 151 private units for sale and 35 affordable homes, including 5 affordable houses for social rent. The Council has 100% nomination rights to the new affordable homes.
6 8.2 The Initial Phase of the development is intended to provide replacement accommodation for secure tenants presently occupying properties in Warner Close, Tyrrel Way, Marriotts Close and part of Ramsey Close within the West Hendon Regeneration Estate. 8.3 Because the secure tenants are effectively moving at the Council s request, they are each expecting to receive sums equivalent to statutory home loss and disturbance payments. The early decanting of these tenants into alternative accommodation will assist the Council with its regeneration proposals. 8.4 If the discretionary home loss payments are not made, the Council will have to wait until Ground 10A consent is obtained, before it can require the tenants to move. However, on this occasion, the Council has decided not to seek Ground 10A because the secure tenants are voluntarily moving to their new homes. In addition, the tenants existing homes are not required for demolition, and these properties can be re-let. 9. LIST OF BACKGROUND PAPERS 9.1 None 10. CONSULTATION WITH CABINET MEMBER(S) 10.1 The Cabinet Member for Regeneration has been consulted and has agreed that the following action is taken. 11. OFFICER DECISION I authorise the following action 11.1 Approval for the making of discretionary payments for the loss of their homes to the secure tenants within the West Hendon Estate who will be moving into new properties within the Initial phase development. Signed Pam Wharf Interim Director Environment Planning and Regeneration Date 9/01/12
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