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					Report to Cabinet                                                                  Ward:
                                                                                   All
22nd March 2010



      Homes and Communities Agency and Hull City Council Local
          Investment Agreement and Local Investment Plan

                                    2010/11 to 2013/14


             Report of the Strategic Director for Housing Investment and Renewal
                                On behalf of the Chief Executive


1     Purpose of the Report and Summary

      1.1      To seek Cabinet approval of the Local Investment Agreement 2010-2011
               between the Homes and Communities Agency and Hull City Council and to
               approve in principle the draft Local Investment Plan 2011-14, which will be
               finalised with the Homes and Community Agency, once the new
               Comprehensive Spending Review is announced.

2     Recommendations

      2.1      That Cabinet approve the Local Investment Agreement for 2010-11 with the
               Homes and Community Agency if it is available by 22 nd March 2010, or if not
               delegate to Interim Deputy Chief Executive in consultation with the portfolio
               holder; and

      2.2      That Cabinet approve the Local Investment Plan as the basis for a further
               Local Investment Agreement which will cover the period 2011-2014 and
               which will be finalised later in 2010-11.

            This is a key decision. The matter is in the Forward Plan – Ref 0096/09

3.   Background

      3.1      The Single Conversation is the Homes and Communities Agency’s (HCA’s)
               most important business process. A guidance document on the Single
               Conversation was published on 12th May 2009 which identified the process
               being underpinned by the development of a Local Investment Plan and a
               Local Investment Agreement.
      3.2   The Local Investment Plan is expected to set out the investment priorities for
            an area to deliver the agreed vision and economic purpose of the place
            based on robust evidence from local strategies, including the Sustainable
            Communities Strategy, Local Development Framework and the Local
            Economic Assessment. The Plan proposes objectives, outputs and
            outcomes that are expected from each partners’ interventions. Given that the
            Local Investment Plan will have an economic, social and environmental
            focus other public agencies may be involved in its preparation, including the
            Regional Development Agency (RDA) and Environment Agency.

      3.3   Based on the Local Investment Plan, the HCA will agree a Local Investment
            Agreement with Local Authorities which will set out the funding and
            resources that the HCA will invest in the area over time as resources are
            made available, and the outputs and outcomes expected from them. Each
            programme or project under the Local Investment Agreement (LIA), such as
            providing social rented homes, will be separately assessed to ensure that it
            meets the required criteria and provides value for money. Any indications of
            future investment in a Local Investment Agreement will be subject to relevant
            project appraisal processes and programme criteria.

      3.4   The HCA in Yorkshire and the Humber published its Regional Investment
            Strategy on 10th July 2009. As part of the first roll-out of the Single
            Conversation process, the HCA has proposed that Investment Agreements
            will be in place with Hull, Sheffield and the Leeds City Region by March
            2010.

      3.5   The HCA’s Regional Director, David Curtis, has also formally confirmed his
            intentions to build upon HCA’s existing commitment to the regeneration of
            Hull by seeking an early Single Conversation Agreement by March 2010 with
            the City Council and its partners. The HCA will however only be able to
            confirm the Local Investment Agreement for the three year period after
            2010/11 following the next Comprehensive Spending Review and
            confirmation of resources available to the HCA

      3.6   It is anticipated that the Local Investment Plan will be developed as a rolling
             three year programme and subject to regular review.

4.   Draft Local Investment Agreement and Draft Local Investment Plan

     4.1    The Draft LIA will set out the committed funding from the HCA in 2010/11 and
            the funding allocated by Hull City Council and its partners in support of this
            investment (for example from Yorkshire Forward). The Local Investment Plan
            sets out the aspirations for investment in 2011-2014. The draft LIA and LIP
            are attached as appendices to this report. The LIA is likely to be populated
            with current commitments before Cabinet on 22 nd March 2010. and if so will
            be brought to the meeting for agreement.

     4.2    The Draft LIP sets our the city’s ambitions within the context of delivering the
            long-term vision for Hull set out in our Sustainability Community Strategy:

            Hull is a city which is living, learning, working, health and proud.
      One of the most important cities in Northern Europe, we are a gateway for
      global trade and the heart of a prosperous Humber sub-region.

4.3   The LIP relies on a comprehensive evidence base which identifies the strong
      links between Hull and East Riding which are evident through the travel-to-
      work patterns and migration. Whilst appreciating that the housing market and
      functional economic areas straddle and cut across administrative boundaries,
      the LIP recognises that specific focus is required on the City of Hull. Within
      the functional market area, a high proportion of low-income, poorly-qualified,
      unemployed and workless residents live within the Hull Local Authority area.
      and this results in the need for high level of investment in the City of Hull.

4.4   The Local Investment Plan is informed by the Housing Market Assessment
      and aligned to the emerging Core Strategy for the City.

4.5   The LIP prioritises investment based on the city’s geographic and thematic
      priorities. The geographic priorities, focus on four areas:

         City Centre
         West Hull
         East Hull
         North Hull

4.6   Gateway has been allocated £28m in 2010/11 to take forward the
      programmes developed through the Newington and St Andrew’s and
      Holderness Road Corridor Area Action Plans. An aspiration for an additional
      £1.2m in 2010/11 and a further £106.6m to take these programmes forward
      in 2011-14 is set out in the plan, including additional funding to accelerate the
      acquisition programme in NaSA to provide a site for a new secondary school .
      An additional £24m from the HCA’s National Affordable Housing Programme
      funding would be required to support the delivery of these programmes.

4.7   The key public sector-led regeneration areas in North Hull are Orchard Park
      and North Bransholme. Orchard Park will be supported by the HCA through
      PFI funding and North Bransholme via a potential tenant-led stock transfer.
      Emerging needs will be addressed in the rolling three year programme.

4.8   The thematic priorities within the Local Investment Plan for which specific
      schemes are in development (with and estimated requirement in 2011-14 of
      £4.9m) focus on:

          o Supported Housing – specifically the delivery of specialist extra care
            housing and housing for vulnerable people to support the delivery of
            additional extra care housing to that to be funded through the
            Department of Health PFI credits and to deliver additional supported
            housing. Reports is respect of specific projects will be submitted to
            relevant area committees and Cabinet as appropriate
          o Equality, Diversity and Mixed Communities which includes :
                Addressing overcrowding/under occupation and anti social
                 behavior;
                       Providing suitable sites for Gypsy and Traveller communities to
                        deliver additional traveller sites .Reports in respect of specific
                        projects will be submitted to relevant area committees and
                        Cabinet as appropriate
                  o Enhanced Housing Options – linking housing, employment and
                    education advice and providing more holistic/joined up and
                    preventative services

     4.9      The LIP demonstrates how the Council has developed a joined up approach
              to regeneration and investment by partnership working led by the All ONE
              Hull Regeneration (Chief Executives and Chairs)Group and involving the
              Council primarily its Housing Investment and Renewal and Economic
              Development Teams working with its partners in Building Schools for the
              Future, Citycare, Hull Forward, and Gateway. This is being taken forward
              through the recruitment of a Corporate Director for Regeneration and the
              development of a Total Governance model.

      4.10     The LIP reflects currently agreed strategic priorities and the HCA have
               advised that any initial commitment can only be to funding in 2010-11.
               Funding of the programme from 2011-14 will be subject to funding confirmed
               to the HCA following the next comprehensive spending review, and a review
               of the LIP.

5.   Consultation

     5.1   The investment priorities as proposed within the LIP have been previously the
           subject of extensive consultation as part of the community engagement
           processes.

     5.2     A presentation on the LIP has been made to the Executive Boards of Gateway
             and Hull Forward and a briefing paper provided to the Executive Board of One
             Hull.

     5.3     Workshops for Area Housing Boards and Area Committees and a Stakeholder
             Event for wider partners are organised for the week commencing 15 th February
             and a specific consultation event for local Housing Associations was held on
             the 24th February. There was general stakeholder support for the priorities set
             out in the LIP.

6    Council Priorities

     6.1 The proposed investment priorities in the Draft Local Investment Plan are
         consistent with priorities identified in the emerging Core Strategy and the
         Sustainable Community Strategy.

7    Options

     7.1 Option One: To approve the Draft Local Investment Plan

      7.1.1 The investment priorities as proposed within the LIP have been extensively
             consulted on as part of the community engagement processes relating to the
             individual spatial areas and thematic priorities.
      7.2    Option Two: To propose amendments to the Draft Local Investment
             Plan and if applicable a re-prioritisation of investment in respect of
             years 2010-14

      7.2.1 To propose major amendments would be inconsistent with agreed
            investment priorities and could result in the need for extensive renegotiation
            with the HCA, and the potential for investment and momentum on delivering
            these priorities to be lost.


8.    Comments of the Head of Legal & Democratic Services

      8.1    The LIA represents the contractual relationship between the Council and
             HCA, and underpins the LIP, which will evolve over time. As noted in the
             main body of the report (at the time of writing), the LIA remains in draft may
             be subject to further amendment by the HCA. As such, final comments will
             be reserved until the final version of the agreement is received. However, it
             is noted that the draft at Appendix 3 seems appropriate.


9.    Comments of the Corporate Director of Business Support/Section 151 Officer

      9.1    The Head of Finance supports the recommendations and the development of
             both the LIA and LIP as key elements of strategic investment planning for the
             city.

      9.2    It is anticipated that the funding commitments included within Draft LIA,
             relating to the Council, will be consistent with the Capital programme
             approved by Council on 25th February and as such approval of the LIA and
             LIP will not commit the Council to expenditure beyond current budget
             approvals. This will be confirmed at the Cabinet meeting given receipt of the
             completed LIA from the HCA.


10.   Comments of the Head of Workforce Strategy

      10.1   Not applicable

11.   Comments of the Portfolio Holder for Regeneration and Housing Strategy

      11.1 The Portfolio Holder welcomes the report and will give detailed comments at
           the Cabinet meeting. The Single Conversation process with the Homes and
           Communities Agency has been helpful in integrating and joining up
           regeneration in Hull.

12.   Comments of Overview and Scrutiny

      12.1      The Housing, Neighbourhood Renewal and Urban Regeneration
                Overview and Scrutiny Commission agree that :
                     (a) although welcoming the additional funding that the Homes and
                         Communities Agency provides, the Commission feels that the
                         funding system currently adopted is too restrictive and that Members
                         would wish to be able to have more local determination to carry out
                         full consultation to deliver on the publics priorities;

                     (b) that the Commission supports the bid for additional funding for the
                         Newington and St Andrews Programme.


 13.   Conclusions

       13.1             The investment priorities as proposed within the LIP have been
                        previously the subject of extensive consultation as part of the
                        community engagement processes relating to the individual spatial
                        areas and reflect the priorities set out in the emerging .core strategy.

       13.2             Being successful as one of the first Local Authorities to develop the
                        Local Investment Plan, places Hull in a favourable position vis-à-vis
                        HCA investment decisions within the Yorkshire and Humber region.




14.    Recommendations

       14.1   That Cabinet approve the Local Investment Agreement for 2010-11 with the
              Homes and Communities Agency if it is available by 22 nd March 201, or if not
              delegate to the Interim Deputy Chief Executive in consultation with the
              portfolio holder; and

       14.2   That Cabinet approve the Local Investment Plan as the basis for a further
              Local Investment Agreement which will cover the period 2011-2014 and
              which will be finalised later in 2010-11.


                                        Pauline Davis,
                   Strategic Director for Housing Investment and Renewal
                               On behalf of the Chief Executive


Contact Officer:        Laura Carr and Lesley Alderson-Speight
Telephone No:           616266 and 614207

Officer Interests:      None

Appendix 1 : Risk Assessment

Appendix 2 : Draft Local Investment Agreement

Appendix 3: Homes and Communities Agency and Hull City Council Local Investment
              Plan 2010-2014
                                                                                                     Appendix 1: Risk Assessment

Risks                                   Current risk       Treatment/Control Action                        Residual risk
 Option 1. To approve the Draft Local Investment Agreement and Plan
                                         Impact Likelihood                                                 Impact    Likelihood

Approval of the LIP will enable the
authority to enter into a Local Investment
Agreement for 2010/11 and provide
greater clarity of funding requirements for
2011-14

Risks relate to individual projects which     3      3            Well worked up projects which can be     1         1
will be individually risk assessed and is                         implemented on flow
dependent on specific projects


 Option 2. To propose amendments to the Draft Local Investment Agreement and Plan and if applicable a re-prioritisation of
        investment in respect of years 2010-14

                                              Impact Likelihood                                            Impact    Likelihood

Dependent on proposed amendments              3      3            Ongoing discussion within stakeholders   2         1
could delay agreement of programmes                               and HCA to gain consensus
with HCA and could delay agreement on
2011-14 funding

				
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