The Leader and Cabinet Member for Finance reminded Members that any discussion on the exempt Appendix Business Plan would take place in closed session.

The Cabinet Member for Housing introduced the report and said that prior to the Covid-19 pandemic a paper was considered by Cabinet, highlighting the options for the delivery of additional, affordable housing within the Borough and the establishment of a Local Housing Company (LHC) was part of that delivery.  He said that the Business Plan, governance structures and financing of the company had been carefully considered and developed by officers and members of the Cabinet. 

The Cabinet Member for Housing said the plan was for additional housing on Council-owned land, with the highest possible environmental standards that could viably be achieved.  He said that the forming of the company offered long-term opportunities for the Council to directly intervene in the housing market, along with tenure flexibility to ensure that projects were financially viable and did not place the Council in any undue, significant financial risk. The Cabinet Member for Housing highlighted that many other Councils throughout the country had successfully established their own housing companies to deliver affordable housing and long-term income for their authorities.  Finally, he said that, if approved, the proposal would be the second largest investment by the Council, after the Spirit of Sittingbourne project which had carried more risk, and the Council was fully committed to delivering additional affordable housing.

The Deputy Cabinet Member for Housing highlighted the rise in homelessness and those households in temporary accommodation in Swale, despite more recent additional resources.  He referred to previous proposals to address the homeless issue which were considered to be unviable by the previous administration, and he referred to the report which set out the viability of the proposal.  The Deputy Cabinet Member for Housing said that the proposal indicated a fundamental change in direction that was essential if the Council were to combat the effects of Universal Credit, the Covid-19 pandemic and BREXIT on the unemployment figures and their consequence.  He referred to the income stream that would be received from the LHC which would assist in the revenue budget.

The Cabinet Member for Economy and Property said that the proposal, if agreed, would be a huge investment in the Council’s time and resources but was one of the few things the Council could do to influence its housing stock.  She said that the setting up the LHC would be a milestone for the Council and would be for the benefit of the residents of the Borough.  The Cabinet Member for Economy and Property acknowledged the huge task of setting the company up but gave her full support.

The Leader and Cabinet Member for Finance reminded Members that when the coalition came into office, they wanted to make better use of the planning system to secure more affordable housing and he said that if all the planning approvals that had been granted with affordable housing were implemented over the next five years,  ...  view the full minutes text for item 215