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					                                               Agenda Item No.: 6
   Finance Sub-Committee



                   Finance Sub-Committee 24 February 2009

                             New Build Programme

                          Report by: Asset Manager



       1. Options previously identified and reported to Finance Sub-
          Committee to resolve the new build viability issues are being
          actively explored in relation to Beavers Lane, Heston Area and
          Convent Way and are set out here.
       2. Expenditure to date this year in relation to new build totals £211k
          and details are provided here.


1. Recommendations.

1.1.   That the Finance Sub-Committee note the contents of this report.

2.   Overview
2.1. The funding identified to support the four projects is set out in Appendix 1.
     Three of the four new build projects are supported by Area Renewal
     funding from the LDA; Convent Way is self-financing.
2.2. The projected 2008/2009 expenditure profile against budget for each
     scheme is set out in Appendix 2. There has been significant slippage due
     to delays in taking each project forward. Current spend profiles are
     indicative and subject to making good progress from now on.
2.3. To date some £527k has been spent in total in relation to New Build and is
     set out below. Some £243k of this spend has been coded to capital codes
     and this will need to be moved onto the company’s balance sheet code
     before the end of the year.
                    convent      beavers       heston        manor        Other        total
2006/2007
hh                  35,010.32     12,149.50      3,037.38     3,037.38                53,234.58
capital                      0             0             0            0                     -
Total 2006/2007     35,010.32     12,149.50      3,037.38     3,037.38                53,234.58

2007/2008
hh                    3,456.83     11,079.53     19,108.90     6,239.64               39,884.91
capital             27,107.22     28,066.30    144,612.70    23,241.85               223,028.07
Total 2007/2008      30,564.05     39,145.83    163,721.61    29,481.49              262,912.98

2008/2009
hh                   18,804.21   113,948.04     43,969.65    13,498.51      500.00   190,720.41
capital               2,679.87     5,481.29      8,482.25     4,037.31                20,680.72
Total 2008/2009      21,484.08   119,429.33     52,451.90    17,535.82      500.00   211,401.13

Total all years     87,058.45    170,724.66    219,210.88    50,054.69     500.00    527,548.69


2.3 All four schemes are dependent on income from private sales, falling sales
   values and have therefore been affected adversely by current market
   conditions.   The table below sets out the actions that are being pursued.
   These are being reported to the New Business Working Group of the Board.

Project           Issue                         Action
Convent           Cost Plan Deficit of          LBH Affordable Housing Fund
Way               £1.05m                        Panel have agreed to support – cost
                                                plan now viable
Beavers           Cost plan deficit of          Homes and Community Agency
Lane              £1.4m plus a further          grant proposal for £2.8m has been
                  £1.45m at risk due to         made formally and HCA response
                  lack of demand for            awaited
                  leaseholder
                  reprovision units.
Manor             Unfavourable                  Planners direction being sought – it
Lane              response from                 may be possible to free up grant for
                  planners indicates            allocation elsewhere
                  original 100 unit
                  scheme may be
                  unfeasible
Heston            Cost plan deficit of up       An analysis of regeneration works is
Area              to £5.4m has been             being undertaken and this may
                  identified by                 identify additional grant for new
                  developer                     build, HCA grant bid being
                                                developed, HH borrowing being
                                                actively explored.
2.4    Hounslow Homes and LBH are analysing the implications presented by the
       HCA Grant agreement and have agreed the appointment of a legal
       representative.

3. Convent Way

3.1.   The Council agreed in January 2009 to support the project from AHFP
       monies up to a maximum of £1.1m. This means that the cost plan is now
       viable and work is underway to get the project on site this financial year.

3.2.   Secretary of State consent for the transfer of land from LBH to Lovells and
       HH has been agreed but will need to be resubmitted due to amendments
       to the financing. Confirmation that this submission has been made is
       being sought from the Council.

3.3.   The various legal documents that are required to enable this project to
       commence on site are now practically complete and it is hoped that subject
       to CLG being satisfied with revised proposals, we will shortly be in a
       position to exchange contracts with the Council and Lovell Partnership.
       The following issues were reported as outstanding at the last capital
       strategy meeting and are still outstanding. Work is progressing with the
       Council’s solicitors to try to ensure a speedy resolution:

    Unilateral S106 Agreement. Council issued a revised agreement which has
     been heavily amended following a delay of around 6 months. Trowers and
     Lovells solicitors have reviewed. Additional qualitative standards have been
     added in which will require deletion and this has been discussed with the
     Housing Strategy officers involved in the project at the council.
    North Hyde Lane – Section 106 agreement has now been received by
     Lovells and commented on, with LBH now to respond. Additional S106
     contributions of £10k added despite the original planning permission
     confirming the costs at that time.
    The Council and their solicitors have yet to approve the final forms of the
     tenancy agreement, option to purchase document, nominations agreements
     or the HH/LBH land and development agreement. This is being chased.
    The PPC 2000 building contract between Hounslow Homes and Lovells has
     now been principally agreed although one or two areas regarding risk
     apportionment remain which are being finalised. LAD’s and Loss and
     Expense proposals following negotiations with Lovells will be addressed
     within a Trowers contract report for the CEO’s approval in line with the
     Board report recommendations.
3.4. Hounslow Homes’ legal costs have increased from the original cost plan
      levels, partly due to the delays in delivering this project, the additional work
      on the unilateral agreement and the title searches. The current 2008/09
       projection is £30k (as opposed to the budgeted figure of £8k). Provision
       for the increased costs has been made within the cost plan figures
       provided to LBH and those costs are therefore covered by the AHFP grant.
       There is headroom within the AFHP grant of £50k should either LBH or HH
       costs increase further.
3.5.   A start on site might still be achieved in March 2009. East and West
       Garage sites will be developed concurrently. Contract periods are 54
       weeks (West site) and 40 Weeks (East site). The North Hyde Lane site
       will be moth-balled by the developer until the market improves.


   Financing of the scheme

3.6    The scheme costs and financing are set out overleaf.
3.7
      Convent Way - Lovells Cost Plan December 2008
                                                                                                                                        Variance April-
                                                                                                                      As at December      Dec 08 (see
                                                                                                   April 08 figures          08          notes below)
                                    Size                Tenure                  Location  Number        Total              Total
      Sales values               1 bed flat market sale                       North Hyde       2          £340,000           £342,434            £2,434
                                 2 bed flat market sale                       North Hyde       5       £1,225,000            £959,852         -£265,148
                                 2 bed flat market sale                       North Hyde       3          £720,000           £575,911         -£144,089
                                 2 bed flat market sale                       Convent Way     20       £4,200,000          £3,096,355       -£1,103,645
                                            Freehold Reversion                                            £110,500           £127,500           £17,000
                                            Affordable Housing Panel Grant                                                 £1,050,000        £1,050,000
                                 2 bed flat Lovells Choice                    Convent Way      4         £588,000            £430,220         -£157,780
      Total sales revenue                                                                     34       £7,183,500          £6,582,272         -£601,228

      Construction costs                      Market sale & Lovells Choice    Both            34
                                              Affordable                      Convent Way     15
                                                                                              49       £5,279,065         £5,008,369         -£270,696

      Selling costs                           Market Sale
                                              Lovells Choice
                                                                                                         £206,310           £365,483          £159,173

      Overheads and Profit                    Market sale and Lovell Choice
                                              Affordable
                                                                                                       £1,370,080           £696,375         -£673,705

      Fees                                    LBH, HH and Redloft                                        £150,000           £230,000           £80,000
                                              Section 106                                                                    £29,000           £29,000
      Legals and SDLT                         Lovells                                                    £178,045           £253,045           £75,000

      Total costs                                                                                      £7,183,500         £6,582,272         -£601,228

      Overall Developer Return                                                                             19.07%             10.58%
   Cash Flow Forecast

3.8    Hounslow Homes costs will be funded by S24 /25 grant from LBH (for
       which Secretary of State consent is required). Until grant can be paid, any
       costs incurred by HH are unfunded. All HH new build costs are coded to
       the HH balance sheet as assets under construction. It is anticipated that
       Secretary of State consent will be achieved this year.
3.9    The cashflow forecast for the project is set out at Appendix 2.


   Budget against actual 2008/09

3.10 The table below shows the total HH budget for Convent Way in 2008/09,
     the profiled budget and actual expenditure to date in 2008/09. There is
     slippage on the construction costs and legal fees (as set out above) have
     exceeded the original budget.


                                                                               Variance
                                            Total 08/09           Actual      bet actual
                                  2008/2009 projected Profiled Expenditure       and
                                   budget    outturn    Budget   to date       profiled
                                    £000       £000      £000      £000          £000
Convent Way
HH company expenditure
Legal advice                             8         30      15          14 -             1
Tax advice                               6          3       0           0           -
Development Fees                        20         16       7           7 -             0
Client side costs                       14         12     -                         -
New Build Payment to contractor      1,100        100     -                         -
Total HH company expenditure         1,148        161      22          21 -             1



4.   Beavers Lane
4.1. Planning approval has been granted and contracts are now being finalised
     for Board approval. Secretary of State consent for the land transfer and
     grant will be required and the Council is undertaking a feasibility and value
     for money review.
4.2. The project team has identified that due to the fall in projected sales values
     this project is not viable without additional subsidy. Various options have
     been identified and the appraisal below assumes the additional £510k
     regen grant and that grant is used by A2/DHG to support the Shared
     Ownership Units. There is still a shortfall and negotiations with the Homes
     and Communities Agency (HCA) have begun and activity is set out below:
    The project team has submitted a formal application to the HCA. Should
     HCA indicate that they are not able to support this project an alternative
     source of subsidy will need to be identified.
           The Council and Hounslow Homes have begun to analyse the issues
            presented by the Grant Agreement with the HCA.
           The Council and Hounslow Homes have selected a firm of solicitors
            following a competitive process to represent us in our negotiations with
            HCA, ( Devonshires ). Trowers already act for the HCA.
           Work is ongoing to explore the best means of managing the risks inherent
            in bidding for HCA grant (ie that grant may be repayable and that HH
            performance may fall below an acceptable standard).
           The HCA Grant Agreement requires the Council to act as Guarantor of HH
            including, the repayment of grant if in the view of the HCA there are
            performance failures. At the present time the Council believe that means
            they have a contingent liability, for which they do not have budgetary scope.
            We are exploring a solution involving performance bonds but these require
            counter indemnities. We will also explore with the Council, the nature of
            their Contingent Liability view and will update members at the meeting on
            latest developments.

      4.3     In the meantime tenants are being actively encouraged to transfer from the
              blocks at Beavers and the Council are making good progress in buying out
              leaseholders. The table below sets out the progress on this. There are
              currently 20 void properties, most of which could be let as temporary
              accommodation. Housing Management are to agree a contract with LBH for
              the management of this accommodation. Void works are likely to be
              required in each one before letting.
                                       Original occupancy                        Current Occupancy
                            Tenants Leaseholders Void/temp    Total   Tenants Leaseholders Void/temp    Total
Block 1   260-294 Beavers        10              8                 18        6            4         8        18
Block 2   324-358 Beavers        15              3                 18      12             2         4        18
Block 3   13-47 Chester          12              5        1        18        9            3         6        18
Block 4   14-48 Chester          16              2                 18      13             1         4        18
Total                            53             18        1        72      40            10        22        72




      4.4     Current indications are that not all tenants who wish to remain on the estate
              will be accommodated within the first phase of the affordable new build.
              Therefore (in order to offer the developer vacant possession of block 2), it is
              proposed to offer some residents a temporary decant while phase two is
              under construction. The additional cost of this course of action is estimated
              to be £5,700. This will reduce as more tenants move away from the estate
              and it may not be necessary at all in the end.

              Financing of the scheme

      4.5    The developer’s current financial appraisal of the Beavers Lane scheme is
            summarised in the table overleaf. The project team has identified that due to
      the fall in projected sales values this project is not viable without additional
      subsidy and a formal approach has been made to HCA for grant support.

 Beavers Lane Estate Regeneration

 Development Appraisal

 July 2008 Planning Approval - Proposed Legal Contract Programme - With SO Grant


 Summary:
                                            %         £            £                 £

 Income:
 Sales Revenue
                     Private                       21,605,000
                     LCHO                           1,450,000
                     Shared Ownership               4,362,568
 Total Sales Value                                              27,417,568

 Other Income                                                    4,591,000

 Total Income                                                                    32,008,568

 Expenditure:
 Land Assembly                                                   3,681,000
 Construction Cost                                              22,996,874
 On-Costs                                                        2,957,620
 Other Costs                                                       828,582

 Total Expenditure                                                               30,464,077

 Developer Return                          7.70%                                  1,544,491

 Required Developer Return =                16%                                   2,980,000

 Surplus/-Deficit =                                                          -    1,435,509

4.6    The proposed grant bid to the HCA totals some £2.8m, and covers the
       £1.4m shortfall set out above as well as provision for the 10 leaseholder
       units which do not appear to be required by existing leaseholders on the
       estate. The developer’s cost plan assumes income of £1.45m from the sale
       of these units. The calculation for the grant bid is set out overleaf.
HCA Grant bid for Beavers Lane

Costs and Grant Income Summary
Leasehold re-purchasing costs (estimated)                         -       £3,100,000
Tenant home loss and disturbance costs (estimated)                -       £290,000
S106 and Legal costs (estimated)                                  -       £682,000
Total land assembly and vacant possession costs (estimated)       -       £4,072,000


Affordable construction costs                                     -       £7,414,553
Hounslow Homes on costs (estimated)                               -       £300,000
Total scheme costs (for HH affordable units)                      -       £7,714, 553


Total scheme costs (for HH units) plus land assembly              -       £11,786,553


London Regional Housing Board Grant                               -       £3,516,000
LB Hounslow Affordable Housing Fund                               -       £1,075,000
Total other public subsidy / grant income                         -       £4,591,000


Cross-Subsidy Required from Private Sales                         -       £7,195,553
Originally assumed level leading to reduction in land value achievable:
Value of free Council land for private units @£45,000 per plot    -       £4,300,000


Shortfall                                                         -       £2,895,553




      4.7     A response from HCA is awaited.

4.8     The HRA costs on this project relate to the regeneration works to be
      undertaken at Clements Court. Council approval is currently being sought
      for Phase 1 (works to the Tower block). This will be followed by carpark
      demolition (phase 2), creation of a community/adult training centre (phase 3)
      and environmental improvements (phase 4). Phases 3 and 4 will require
      Finance Sub-Committee approval and this will be sought as projects come
      forward.

       Cash Flow Forecast

4.9    Hounslow Homes costs will be funded by S24 /25 grant from LBH (for
      which Secretary of State consent is required). Until grant can be paid, any
      costs incurred by HH are unfunded and sit on the company’s balance sheet.
      It is not anticipated that consent will be achieved this financial year.

       Budget against actual 2008/09

4.10 The table below shows the total HH budget for Beavers Lane in 2008/09,
     the profiled budget and actual expenditure to date as at period 9 2008/09.
     There has been some slippage on the projected decanting programme,
     which is now underway. Legal costs have already reached the budget level
     and a revised projection is being sought and must be fully funded from
     within the cost plan. Provision for this has been made in the grant bid to
     HCA.

                                                                 P9 Monitoring

                                                                                 Variance
                                             Total 08/09            Actual       bet actual
                                 2008/2009    projected Profiled Expenditure        and
                                  budget       outturn   Budget    to date        profiled
                                   £000         £000      £000       £000           £000
Beavers
HH Expenditure
HRA
Regeneration Works                   1,670         250      -            -             -
Internal Fees                           16          16      -            -             -
Total HRA                            1,686         266      -            -             -
HH company expenditure
Decanting                              200         100      40           39 -              1
External fees                                              -                           -
Legal advice                            36          67      57           57                0
Tax advice                               6           6       6            6 -              0
Development Fees                        69          23      18           18 -              0
Consultation costs                                 -       -              0                0
Clerk of works                          39          18     -                           -
Internal Fees                           27          27     -            -              -
Construction costs                   1,964         -       -            -              -
Total HH company expenditure         2,341         241     121          119 -              2
Total all HH Expenditure             4,027         507     121          119 -              2


5 Heston Area Sites
5.3 The original LDA bid (and approval) envisaged a scheme of 155 units of which 87 would
       be for affordable use with the remaining 68 being sold for private sale to provide the
       necessary cross subsidy. This proposal has, however, been adversely affected by the
       current problems in the housing sales market.
5.4    Lovell have now produced 2 alternative proposals which are set out as a. and b. below.
          a. Provides 200 units (of which 87 are affordable) This proposal demonstrates that a
          scheme of 200 units will be needed to make the 87 affordable units viable (at the
          expense of future affordable housing provision). A 200 unit scheme will be
          dependent on the views of planners, members and residents.
         b. Provides 155 units (of which 87 are affordable) but which requires £5.5m of
         additional subsidy. Various means of levering in additional subsidy are to be
         explored.
5.5   The cost plan for option b is set out overleaf.
5.6   Additional subsidy could be funded by Social Housing Grant from the HCA, or from
      LBH’s Affordable Housing Fund, or by increasing the percentage of the LDA grant
      awarded for the Regeneration proposals. A further option would be to secure borrowings
      from a private funder which would be repaid via future rental income.
Revenue
    sale           unit type         number            size                value            total
                1 bed flat             23               43
                2 bed flat             16               63
                2 bed house            13               65
                3 bed house            12               80
                4 bed house             4              105
                                       68                                                £15,035,979


 intermediate      unit type         number            size                value            total
                1 bed flat              0               46
                2 bed flat             12               70
                3 bed house            10               90
                4 bed house             3              140
                                       25                                                £4,426,548


       rent        unit type         number            size                value            total
                1 bed flat                              46
                2 bed flat             28               70
                3 bed house            25               90
                4 bed house             9              140
                                       62                                                 £900,000

                Freehold reversion                                                        £210,375

                                      155                          total                  £20,572,901


cost            construction    brabazon             £10,370,360
                                northfield
                                redwood
                                passingham            £5,190,147
                                norman                £3,036,833
                                total                £18,597,340

                inflation                             £2,221,204


                selling costs   sale                   £526,259                3.5%
                                intermediate           £110,664                2.5%
                                total                  £636,923


                Profit              £15,035,979       £2,706,476                   18%
                                      £4,426,548        £663,982                   15%
                                      £9,368,345        £655,784                    7%
                                total                 £4,026,242

                legals                                 £300,000
                SD                                     £250,000
                                                       £550,000

                                                                   total                  £26,031,710

                                                                   residual Value         -£5,458,809


                                                   Grant @ £88K                            £5,456,000


        5.7     Lovells are developing a proposal for HCA submission and this is to be
                looked at in detail by the project team at its next meeting with residents will
                not begin until a viable scheme and programme are agreed.
        5.8     An umbrella agreement linking individual sites/estates to the intentions of
                the project as a whole and to enable planners to take the whole project into
     consideration as they receive individual applications is in development.
     Planners are still to take legal advice on the suitability of the proposed
     framework and LBH officers are to chase progress on this.
5.9 Apollo are to deliver the environmental improvements on each estate and
     are undertaking feasibility exercise at the moment in consultation with staff
     and residents. As a result of this we may be able to identify that some of the
     grant earmarked for regeneration can be redirected to support the new
     build. Currently some £5.5m worth of grant is identified for the regeneration
     works.
5.10 In view of the ongoing difficulties with asbestos and security at Passingham
     House Lovell have been instructed, by way of letter of intent, to procure the
     removal of the asbestos in the short term, and the securing of the site prior
     to demolition, ahead of the signing of contracts. In order to progress the
     project, LBH have separately agreed to finance the design costs for the
     new build at Heston Farm Estate. This needs to be formally written into the
     Council’s underwriting agreement.


Cash Flow
5.11 Hounslow Homes’ costs will be funded by S24 /25 grant from LBH (for
     which Secretary of State consent is required). Until grant can be paid, any
     costs relating to the new build and incurred by HH are unfunded.
5.12 A cash flow forecast will need to be developed once the programme and
     cost plan have been agreed. It is not anticipated that any spend on new
     build construction will be achieved in the current financial year, neither will
     there be significant expenditure on regeneration activity.

Budget against actual 2008/09
5.13 The table overleaf shows the total HH budget for Heston, the profiled
     budget and actual expenditure to date in 2008/09. The original budget
     included a provision for construction costs, it is no longer anticipated that
     spend on the new build will be incurred in 2008/2009.
                                                                            Variance
                                         Total 08/09           Actual      bet actual
                               2008/2009 projected Profiled Expenditure       and
                                budget    outturn    Budget   to date       profiled
                                 £000       £000      £000      £000          £000
Heston
HRA
Regeneration Works                   79         60     -                         -
External fees                        17         29     -                         -
Internal Fees                        47         47     -                         -
Total HRA                           143        136     -            -            -
HH company expenditure
External fees                        50         25     -             0               0
Legal advice                        165         42      27          25 -             2
Tax advice                            6          6     -             0               0
Development Fees                     68         42      27          27 -             0
Internal Fees                        32         32     -                         -
Construction costs                  235        -       -                         -
Total HH company expenditure        556        147      54          52 -             2
Totall all HH Expenditure           698        283      54          52 -             2




6 Manor Lane
6.3 Following significant amendments suggested by planners to the original
    Manor Lane project, the developer has sought proposals from architects
    and discussions on those proposals are now being held with planners. In
    particular their views are sought on the acceptable treatment of the
    adjacent play area.
6.4 An indicative cost plan has been put together by the developer. It assumes
    that fewer units can be developed on the site (as a result of planners’
    comments). Should this prove to be the case, there is some potential that
    regeneration grant for Manor Lane could be freed up to support the
    Beavers Lane project.
6.5 In the meantime, as Moss Gardens presents a potential security risk,
    planning permission for its demolition has been sought. Planners have
    indicated that they have some queries for Council officers. Demolition can
    take place as soon as planning has been agreed, subject to LBH signing an
    underwriting agreement.
6.6 The Council has begun to buy out leaseholder properties.
 Financing of the scheme
6.7 The monies available to finance the scheme are summarised below. These
     figures are based on the latest (indicative) cost plan and are subject to
     change.

                                       LBH
                                   Affordable                                                       Total inc
Resources Available by Grant        Housing       HRA Capital       Private              Decent      Decent
Work Type             Amount          Fund         Resource       financing    Total     Home s *    Home s

New Build                  3,540              -           -           14,835    18,375                18,375
Regeneration                 560              -           -              -         560                   560
Decent Homes                 -                -           -              -         -          693        693
Total M anor Lane          4,100              -           -           14,835    18,935        693     19,628




6.8   The developers cost plan shows that the costs of building the project might
      total some £17,933k, leaving some £1m available. Please note that these
      figures are dependent on the approval of a scheme and the treatment of
      the play area. The project costs (including the decent homes work) are set
      out below.


                                                        Total
          Ne w Build                                   Budge t
                                                        £000
          HH Legal                                            57
          LBH Legal                                           22
          LBH land valuation                                   5
          Tax advice                                          10
          HH Tax/stamp duty                                  -
          CPO Enquiry costs
          Tenant decants                                        137
          HH Development                                        100
          HH Clerk of works & Contract admin                     59
          Quantity Surveyor                                      11
          HH In house project team                               59
          Lease holder buyout                                 1,600
          LBH leasehold advisor                                   8
          Construction costs affordable rented                3,217
          Construction costs affordable lcho                    254

          Construction costs affordable S/O               2,979
          Construction costs private                      6,057
          Developer oncosts                               2,026
          Developer return                                1,333
          Total                                          17,933
          Decent Homes Work                                 693
          Total inc Decent Homes Work                    18,626


6.9   A cashflow forecast for the project will need to be developed once the
      scheme has been finalised.
6.10 The table below shows the total HH budget for Manor Lane in 2008/09, the
     profiled budget and actual expenditure to date in 2008/09. There are no
     significant variances in Period 9, though some slippage is now anticipated.


                                                                             Variance
                                         Total 08/09           Actual       bet actual
                               2008/2009 projected Profiled Expenditure        and
                                budget    outturn    Budget   to date        profiled
                                 £000       £000      £000      £000           £000
Manor
HH Expenditure
HH company expenditure
Decanting                            67        -       -                          -
External fees                        35        -       -            -             -
Legal advice                         27         11      11           11               0
Tax advice                            7          1       1            0 -             1
Development Fees                     50          8       5            5               0
Internal Fees                        23         23     -              0               0
Construction costs                  -          -       -                          -
Total HH company expenditure        209         43      17          18                1




7 Board engagement
7.1 The New Business Working Group continues to meet and its revised terms
of reference are attached at Appendix 4. It is envisaged that this group will
support the development of these projects (and any other new business
developments) but that the monitoring role remains with the Finance Sub-
Committee.



8 Head of Equalities Comment
8.1 The Head of Equalities has been consulted in the preparation of this report
and has no further comment to make
Appendix 1 – Resources available to support New Build Projects

                                    LBH
                                Affordable                                         Total inc
Resources Available    Grant     Housing HRA Capital Private             Decent     Decent
by Work Type          Amount       Fund    Resource financing   Total    Homes *    Homes Comments
Beavers Estate         £000        £000      £000      £000     £000      £000      £000
New Build                3,516       1,075       -     27,417   32,008              32,008 private from Ron Sep 08
Regeneration             2,110         -       1,000      -      3,110               3,110 Clements Court Regeneration
Decent Homes and other     -           -         -        -        -       2,681     2,681 Works completed - for LDA monitoring only
                         5,626
Total Beavers and Clements Court     1,075     1,000   27,417   35,118     2,681    37,799
Heston Area

New Build                 991          -         -     19,582   20,573              20,573   This is LDA units only based on Steve's Dec figs
Regeneration            5,559          -         -        -      5,559               5,559
Decent Homes              -            -         -        -        -      13,682    13,682   Works completed - for LDA monitoring only
Total Heston Area       6,550          -         -     19,582   26,132    13,682    39,814
Manor Lane
                                                                                           private is sales value from UHL June cost plan inc
New Build               3,540          -         -     14,835   18,375              18,375 developer return
Regeneration              560          -         -        -        560                 560
Decent Homes              -            -         -        -        -         693       693 Works completed - for LDA monitoring only
Total Manor Lane        4,100          -         -     14,835   18,935       693    19,628
Convent Way
New Build                 -         1,050        -      5,532    6,582               6,582 from Lovells Jan 09 cost plan
Total Convent Way         -         1,050        -      5,532    6,582               6,582
Total All              16,276       2,125      1,000   67,366   86,767    17,056   103,823
Appendix 2 – Hounslow Homes New Build Expenditure
Projection 2008/2009
                                                                P9 Monitoring                 For LBH Monitoring

                                                                                Variance                For new
                                            Total 08/09           Actual        bet actual For capital build grant
                                  2008/2009 projected Profiled Expenditure         and     invoice to   claim in
                                   budget    outturn    Budget   to date         profiled LBH in year     year
                                    £000       £000      £000      £000            £000       £000        £000
Beavers
HH Expenditure
HRA
Regeneration Works                    1,670       250     -             -             -           250
Internal Fees                            16        16     -             -             -            16
Total HRA                             1,686       266     -             -             -           266         -
HH company expenditure
Decanting                              200        100      40           39 -              1                   -
External fees                                             -                           -
Legal advice                            36         67      57           57                0                   -
Tax advice                               6          6       6            6 -              0                   -
Development Fees                        69         23      18           18 -              0                   -
Consultation costs                                -       -              0                0                   -
Clerk of works                           39        18     -                           -                       -
Internal Fees                            27        27     -            -              -                       -
Construction costs                    1,964       -       -            -              -                       -
Total HH company expenditure          2,341       241     121          119 -              2       -           -
Total all HH Expenditure              4,027       507     121          119 -              2       266         -
Manor
HH Expenditure
HH company expenditure
Decanting                               67        -       -                           -                       -
External fees                           35        -       -             -             -                       -
Legal advice                            27         11      11            11               0                   -
Tax advice                               7          1       1             0 -             1                   -
Development Fees                        50          8       5             5               0                   -
Internal Fees                           23         23     -               0               0                   -
Construction costs                     -          -       -                           -                       -
Total HH company expenditure           209         43      17           18                1        -          -
Heston
HRA
Regeneration Works                      79         60     -                           -            60
External fees                           17         29     -                           -            29
Internal Fees                           47         47     -                           -            47
Total HRA                              143        136     -             -             -           136         -
HH company expenditure
External fees                           50         25     -              0                0                   -
Legal advice                           165         42      27           25 -              2                   -
Tax advice                               6          6     -              0                0                   -
Development Fees                        68         42      27           27 -              0                   -
Internal Fees                           32         32     -                           -                       -
Construction costs                     235        -       -                           -                       -
Total HH company expenditure           556        147      54           52 -              2       -           -
Totall all HH Expenditure              698        283      54           52 -              2       136         -
Convent Way
HH company expenditure
Legal advice                              8        30      15           14 -              1                    30
Tax advice                                6         3       0            0            -                         3
Development Fees                         20        16       7            7 -              0                    16
Client side costs                        14        12     -                           -                        12
New Build Payment to contractor       1,100       100     -                           -                       100
Total HH company expenditure          1,148       161      22           21 -              1        -          161
Total All Schemes
HRA Expenditure                       1,828       402     -            -              -           402         -
HH Company Expenditure                4,254       577     214          211 -              3       -           161
Total All HH Expenditure              6,082       979     214          211 -              3       402         161
Appendix 3
HOUNSLOW HOMES CONVENT WAY SCHEME – AFFORDABLE HOUSING CASHFLOW DIAGRAM
                                             A F H Receipt
                                                £1,050 k

                                              L.B. HOUNSLOW

                                                    Fees
      Noms. Agreement                  S25 & Land   £20k      Land £1,315k-----------------------------------Note :-
                                        £2,345k                                                             Value of land has reduced following
                                                                                                            Reduction in projected sales values

             HOUNSLOW HOMES                                    LOVELLS
                                       Buys Affordable
             Fees                      Units £2,201k          Build Cost    £2,201k
             £144k

SUMMARY OF CASHFLOWS FOR EACH OF THE KEY PARTNERS
                     Hounslow Homes          L B Hounslow                                 Lovells
                                                                                          Affordable       Sales              Total
Inflows
S25 Grant from LBH        £2,345 k                            Sale Affordable to HH         £2,201 k
AFH Monies                                    £1,050 k        Sale Private                                £ 5,465 k             £7,666 k
Land sale to Lovells                          £1,315 k

Outflows
Fees & Internal Costs     (£ 144 k)          (£ 20 k)
S25 Grant to H H                             (£2,345 k)       Purchase of Land - L B H                 (£ 1,315 k)            (£1,315 k)
Build cost Affordable     (£2,201 k)                          Costs of Construction        (£ 1,438 k) (£ 3,570 k)            (£5,008 k)
                                                              Fees & Internal Costs        (£    81 k) (£ 201 k)              (£ 282 k)
                                                              Selling Costs                            (£ 365 k)              (£ 365 k)
                                                              Profit & Overheads           (£ 682 k) (£      14 k)            (£ 696 k)
                          _________          _________                                    _________ _________                 _________
NET “CASHFLOWS”            £ Nil              £ Nil                                        £ Nil        £ Nil                  £ Nil
Appendix 4 New Business Working Group Terms of Reference
Purpose
The New Build and New Business Working Group is primarily a strategic
group of HH Board members which will be involved in the identification of new
business opportunities, engage in ‘blue skies thinking’, act as a sounding
board for Hounslow Homes officers and perform an advisory and steering role
in relation to new business activity taking place within the organisation
(including the new build projects and associated activity). Once projects have
progressed to implementation or delivery stage, the monitoring role will be
passed onto the Finance Sub-Committee of the Board. The life of this group
is not time-limited.
Its purpose is to
       identify opportunities for new business activity and engage in ‘blue
        skies thinking’ on behalf of the organisation;
       support the development of new business opportunities;
       scrutinise the development of the New Build Programme and
        associated activity (during the pre-construction phase)
       advise officers on any component part of these and other new
        business projects as the members deem appropriate and
        make recommendations for decisions to the Board and to its Finance
         Sub-Committee.
Its terms of reference is broadly as follows:
    to support the exploration of opportunities for trading and developing
        new service offers
    to support the development of future new business projects (including
        new build)
    to seek approval from the Finance Committee for expenditure or
        additional resources required to develop new business opportunities
        or to best position Hounslow Homes to take opportunities forward.
        Subject to available resources and approvals to appoint external
        consultants able to advise on new business developments.
    to make any other recommendations that the members deem
        appropriate
Membership and Meetings
 Up to 7 members of the Board - no requirements as to which constituencies
  they come from.
 The working group will appoint a Chair and Vice-Chair at its first meeting.
 The frequency of meetings was agreed at the first meeting of the group as
  bi-monthly.
Appendix 4 New Business Working Group Terms of Reference
 Written reports will be circulated one week in advance. The working group
  may occasionally receive verbal reports.
 The Vice-Chair to manage meetings in the absence of the Chair.
 The meetings are to be serviced by the Company Administration Team
 Members of the Group in 2008/09 are: Sukhvinder Duggal (Chair), Lee
  Cartwright (Vice-Chair), Alf Chandler, Mohammad Chaudhry, Graham
  Edwards and Paula Lewis.

				
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