that:

1. The Director (Housing) in consultation with the S.151 Officer and Lead Member be given delegated authority to purchase the site.

2. The Director (Housing) in consultation with the S151 Officer and Lead Member be given delegated authority to use of relevant frameworks to procure and award contracts (including direct award if appropriate) in accordance with Gravesham's Procurement Strategy.

3. Director (Housing) in consultation with the S151 Officer and Lead Member be given delegated authority to negotiate and agree on amendments both contractually and budgetary if required as long as the returned tender price and any subsequent amendments, relative to anticipated rental income, continues to demonstrate the scheme can repay the associated borrowing within a period of not more than 30 years.

The Director (Housing) advised that, in early 2024, Gravesend Churches Housing Association (GCHA) approached the Council regarding the possibility of purchasing a site they owned which they longer wished to develop due to a change in their budgetary priorities in concentrating on upgrading existing stock.

Details were shared with Gravesham's development team which confirmed that the site had planning permission (ref 20190520) for 14 x 2 bed flats with the planning consent open due to preliminary works being started on site. Two bedrooms was currently the Council’s biggest need on the housing register.

Key information was shared with the Council’s valuation consultant (Graves Jenkins) who valued the site at £525,000 on the open market.

GCHA had expressed their wish for the site to be developed for affordable housing and were therefore willing to accept an offer that was lower than what they paid for the site but not to be in a loan covenant breach. Following consultation with Management Team, the Lead Member and Leader of the Council, the Council wrote to GCHA to make a formal offer subject to contract. The offer was to pay the market valuation and also effectively reimburse GCHA for the Section 106 Agreement fees they had paid; it was agreed that this seemed to be a fair approach.

Subject to Cabinet’s approval, the Director (Housing) would share solicitor’s details and will commence the legal and procurement process.

A financial appraisal of the scheme had been undertaken with the total cost being estimated at £4,660,680. The scheme would be funded through a combination of retained Right to Buy (RTB) receipts currently calculated for the financial appraisal as £2,257,356 and loan finance of £2,403,324. There would be the possibility that liaison with Homes England may mean rather than RTB receipts, Homes England grant may be secured, allowing Right to Buy receipts to be used for other programme schemes in the pipeline. All units will be for social rent (subject to viability if circumstances change). The appraisal showed that the scheme would repay within a period of not more than 30 years.

The Cabinet stated that, if approved, there needed to be a clear plan for construction so that the site did not remain a stalled site. The Director (Housing) confirmed that, if approved, the intention will be to commence the governance process/appointment of a contractor as soon as practicable in order for the site to be developed without delay.

The Cabinet acknowledged this was a brownfield site and would meet the housing needs of the Council and its residents.

Resolved that:-

1. the Director (Housing) in consultation with the S.151 Officer and Lead Member be given delegated authority to purchase the site;
2. the Director (Housing) in consultation with the S.151 Officer and Lead Member be given delegated authority to use relevant frameworks to procure and award contracts (including direct award if appropriate) in accordance with Gravesham's Procurement Strategy; and
3. the Director (Housing) in consultation with the S.151 Officer and Lead Member be given delegated authority to negotiate and agree on amendments both contractually and budgetary if required as long as the returned tender price and any subsequent amendments, relative to anticipated rental income, continued to demonstrate the scheme can repay the associated borrowing within a period of not more than 30 years.