Agenda item

To inform Cabinet of the outcome from an initial viability assessment into the Spendells and Honeycroft sheltered housing schemes and seek agreement to commence a formal consultation with residents and affected staff on future proposals for the schemes.

That Cabinet agrees that –

1.       the Spendells and Honeycroft Sheltered Housing schemes have proven to be unpopular for several years due to their shared facilities and dated design and that it is economically unviable for the Housing Revenue Account (HRA) to continually subsidise the on-going and increasing revenue loss of rental income at these schemes;

2.       formal consultation on the principle of closing both the schemes be commenced with residents in accordance with Section 105 of the Housing Act 1985;

3.       that the Portfolio Holder for Housing present the outcome of the viability work for each scheme to the Service Development and Delivery Committee, during the consultation period; 

4.       the outcome of the formal consultation, along with more detail on the costs associated with closure, be reported back to Cabinet to inform the final decisions on the future of these schemes;

5.       an associated budget of £200,000 within the HRA in 2017/18, be established to support residents throughout the whole process, funded from the HRA General Reserve;

6.       Officers be authorised to commence preparations to secure alternative accommodation for affected residents in the event that Cabinet decides to close these schemes, including holding open voids at other sheltered schemes; and

7.       further work be undertaken by Officers exploring the provision of alternative sheltered type housing accommodation after detailed financial modelling within the HRA.

Councillor G V Guglielmi had earlier declared an interest in this item insofar as he lived adjacent to the Honeycroft, Lawford Sheltered Housing Scheme.

Councillor Bucke had earlier declared an interest in this item insofar as he was also a member of Frinton and Walton Town Council.

Councillor Baker had earlier declared an interest in this item insofar as he was the Ward Member for Lawford.

There was submitted a report by the Portfolio Holder for Housing (Report A.16), which informed Cabinet of the outcome from an initial viability assessment into the Spendells and Honeycroft sheltered housing schemes and which sought Cabinet’s agreement to commence a formal consultation with residents and affected staff on future proposals for those schemes.

It was reported that, following a request made in 2016 by the Housing Portfolio Holder, viability appraisals of two Sheltered Housing Schemes, Spendells House, Walton-on-the-Naze and Honeycroft, Lawford including the future of those two sites had been undertaken by Officers.

Cabinet was informed that the viability work had considered the level of occupancy at both schemes and the costs associated with running them.  Various options had been produced and presented to residents within those Schemes in October 2016 as part of an informal consultation exercise.  It had been clear from that consultation there was little support for continuing to operate the schemes without making significant changes to the layout and quality of the accommodation.

Cabinet was advised that assessments of Option 1 (Continue with No Change) and Option 2 (Increase the range of Occupancy) had demonstrated that the Council’s Housing Revenue Account (HRA) would have to continue subsidising an ongoing revenue loss. As a result it was not a viable option to keep operating those two premises with such low occupancy rates. 

Therefore, it was now proposed by the Housing Portfolio Holder that the Spendells House scheme in Walton-on-the-Naze should be closed which would provide annual savings to the HRA.  Options in respect of the future use of that site would be brought to Cabinet once they had been fully evaluated by the Officers.

The Portfolio Holder’s further recommendation was that the sheltered accommodation in the Honeycroft scheme in Lawford, not including the 8 bungalows, would also be closed which would also provide on-going savings to the HRA, but with further work being undertaken to explore future possibilities for that site, which could include the provision of alternative bungalow accommodation potentially for the use of existing residents but such options would require detailed financial modelling within the HRA to determine their viability.

Cabinet was made aware that a statutory formal consultation on the Portfolio Holder’s proposals must be undertaken with residents and affected staff before the final recommendation(s) could be submitted to it.

The Portfolio Holder informed Cabinet that Frinton and Walton Town Council would be consulted on the proposals that related Spendells House.

Accordingly and in order to allow these matters to progress it was moved by Councillor Honeywood, seconded by Councillor McWilliams and:

RESOLVED that Cabinet agrees that –

1.         the Spendells and Honeycroft Sheltered Housing schemes have proven to be unpopular for several years due to their shared facilities and dated design and that it is economically unviable for the Housing Revenue Account (HRA) to continually subsidise the on-going and increasing revenue loss of rental income at these schemes;

2.         formal consultation on the principle of closing both the schemes be commenced with residents in accordance with Section 105 of the Housing Act 1985;

3.         that the Portfolio Holder for Housing present the outcome of the viability work for each scheme to the Service Development and Delivery Committee, during the consultation period; 

4.         the outcome of the formal consultation, along with more detail on the costs associated with closure, be reported back to Cabinet to inform the final decisions on the future of these schemes;

5.         an associated budget of £200,000 within the HRA in 2017/18, be established to support residents throughout the whole process, funded from the HRA General Reserve;

6.         Officers be authorised to commence preparations to secure alternative accommodation for affected residents in the event that Cabinet decides to close these schemes, including holding open voids at other sheltered schemes; and

7.             further work be undertaken by Officers exploring the provision of alternative sheltered type housing accommodation after detailed financial modelling within the HRA.