Agenda item

Consider report by Service Director Regulatory Services providing a brief overview of the business case for the provision of extra care housing in Berwickshire (copy attached).

There had been circulated copies of a report by the Service Director Regulatory Services proposing that 2 new extra care housing schemes should be developed in Berwickshire.  The report provided a brief overview of the business case for the provision of extra care housing in Berwickshire and the process used to inform the development of that business case which included testing the needs assessment for extra care housing, a separate evaluation of the Dovecote extra care housing in Peebles and an option appraisal. The needs assessment concluded that there was a large projected need for this type of housing model in Berwickshire and findings indicated a requirement for two new extra care housing developments with the first being built in Duns and the subsequent development in Eyemouth.  Through an option appraisal approach, the study also concluded that it would be best value if the projects were developed, owned and managed by a Registered Social Landlord, although it was anticipated that as these were high costs projects they were highly likely to require some gap funding from the Council’s Affordable Housing Budget. It was envisaged that these developments would provide both housing for social and mid-market rent and shared equity options, all of which were considered as being compliant with the Council’s Affordable Housing Policy definitions. Further individual site specific feasibility studies were required to test the financial modelling.   The evaluation of Dovecot Court concluded that the Dovecote extra care housing was meeting this type of need that it was intended to address; and made a number of recommendations for service provision at Dovecot which would also influence future services provided in future new build developments. 

2.2       Members were content with the direction of travel and conclusions contained within the report but asked questions on the detail of the Extra Care Business Case prepared by an independent consultant, which was presented as an appendix.  Questions referred in particular to the analysis of need, demand and supply of Extra Care Housing and Housing with Care and the estimated numbers of Extra Care Housing units required in Berwickshire.  Further information was given by the Chief Financial Officer and the Group Manager, Housing Strategy and Services.  Members were advised that further detailed reports which lay behind the business case could be provided if required. Reference was made by officers to the demographic time bomb in terms of the care of older people and an independent survey which had shown that in the Borders, by 2018, there would be a shortfall in the provision of Extra Care Housing and Housing with Care of 192 units and 545 units respectively.  This was the first stage of a programme to provide this type of housing in all major towns in the Borders. Members were also referred to the Council’s Local Housing Strategy 2012-20. Confirmation was given that all the options in the Business Case were negatively funded i.e. some additional funding would be required from the Council and/or its partners over and above Scottish Government grant funding. The proposal was to ring-fence funding from 2^nd Homes Council Tax and Developer Contributions to address this funding gap.

DECISION

AGREED:-

(a)           that officers initiate discussions with RSL partner organisations to establish and agree the most appropriate partner who was financially viable, experienced and capable of delivering projects of this scale;

(b)     that officers continue to liaise with Scottish Government to trail the intention to develop these projects via the Strategic Housing Investment Plan and established processes; 

(c)       in principle to assist the development of these two proposed affordable housing projects by using the Council’s 2nd Homes Council Tax budget to compensate the 10-year Capital Investment Programme on the basis of affordable housing valuation for the sites; and

(d)      in principle to use 2^nd Homes Council Tax and Developer Contributions to address the funding gap associated with this type of development potentially above affordable housing benchmark eligible grants.

MEMBERS

Councillors Aitchison, Davidson and Parker joined the meeting during consideration of the above item.

CHAIRMAN

Councillor Parker chaired the meeting for the remaining items of business.