To support the establishment of a Regional Loans Scheme, and to fund the set up costs, these being £3,000 per local authority.
2
Recommendation
2.1
To support the establishment of a Regional Loans Scheme to take effect from April 2009. Approve a resolution under the Local Government Act 2000 and Local Authorities (Arrangement for the Discharge of Functions) (England) Regulations to allow the Accountable Body to perform the functions of bidding, controlling and otherwise administering the Regional Loans Programme.
3
Report
3.1
The Regulatory Reform (Housing Assistance) (England and Wales) Order 2002 made it clear that Government wants local authorities to move away from grants and to loans (financial assistance). Home owners are being encouraged to take responsibility for the maintenance of their own homes, allowing local authorities to target their resources to those in most need. It is also recognised by the government and other agencies that the development of a targeted financial assistance scheme requires considerable development resources and can be best achieved through regional and/or sub-regional collaboration. Such schemes can achieve greater efficiencies if organised at a wider geographical scale.
3.2
As part of the Public Service Agreement (PSA) local authorities are also expected to reduce the number of vulnerable households that occupy non decent accommodation. By 2010 it is expected that at least 70% of vulnerable households in the private sector occupy decent homes. Both local authorities and the Regional Housing Board have made slow progress against this target and government feel the pace of change is too slow.
3.3
Regulatory Reform Housing Assistance England and Wales, Order 2002 provides councils greater freedom and flexibility to create and match financial assistance mechanisms to meet local need. Local Government Act 2000 and Local Authorities (Arrangement for the Discharge of Functions) (England) Regulations would allow the Accountable Body to perform the functions of bidding, controlling and otherwise administering the Regional Loans Programme.
3.4
The proposals include a contribution from each local authority in the North East of £3,000 for set up costs of a regional loans service. This can be met from within existing budgets.
3.5
The proposal supports the achievement of decent homes for those vulnerable people who live in the private sector.
4
Implications
4.1
Comments from the Council’s Section 151 Officer
The scheme can be accommodated form within existing budgets
4.2
Comments from the Council’s Monitoring Officer
No comments.
4.3
Comments from the Head of Paid Service
The Loans Board would take on the responsibility for processing and administering applications and loans and there would therefore be a saving for the Council arising from this proposal
4.4
Local Agenda 21
Not applicable
4.5
Equality
The scheme will allow for greater targeting of resources to improve the living conditions of vulnerable people in the borough, who are more represented within disadvantaged groups. Grants funded by the Local Authority will still be available to those most vulnerable groups.
4.6
Crime and Disorder
None.
5
Report Author
5.1
Mike Haynes, Head of Property and Housing, telephone (01289) 301830, email: mhay@berwick-upon-tweed.gov.uk
6
Service Head
6.1
Rob Marriner, Director of Environment
7
Background Papers
7.1
Background paper on Regional Loans Scheme attached
