URL: https://democracy.croydon.gov.uk/ieDecisionDetails.aspx?ID=2735

Decision Maker: Executive Mayor

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

Purpose: This report sets out the opportunity for the Council to accept funding offered under the Local Authority Housing Fund (LAHF) Round 4 Programme by the Ministry of Housing, Communities and Local Government (MHCLG). The funding would support the delivery of 138 homes to provide Temporary Accommodation (TA) within the borough, including 22 homes for the Afghan Resettlement cohort. The programme would be delivered over a four-year period from 2026 to 2030 and would contribute to reducing reliance on temporary accommodation and meeting statutory housing duties.   The report seeks approval to enter into a Memorandum of Understanding (MoU) with MHCLG to secure total funding of £26,262,500. This would enable the Council to deliver 116 homes for TA use, alongside 22 homes to support resettlement households, including larger family units, in line with programme requirements.   DRAFT Recommendation:   Agree and sign the Memorandum of Understanding between MHCLG and the London Borough of Croydon to secure funding of £26,262,500.  

Content: This report sets out the opportunity for the Council to accept funding offered under the Local Authority Housing Fund (LAHF) Round 4 Programme by the Ministry of Housing, Communities and Local Government (MHCLG). The funding would support the delivery of 138 homes to provide Temporary Accommodation (TA) within the borough, including 22 homes for the Afghan Resettlement cohort. The programme would be delivered over a four-year period from 2026 to 2030 and would contribute to reducing reliance on temporary accommodation and meeting statutory housing duties.   The report seeks approval to enter into a Memorandum of Understanding (MoU) with MHCLG to secure total funding of £26,262,500. This would enable the Council to deliver 116 homes for TA use, alongside 22 homes to support resettlement households, including larger family units, in line with programme requirements.   DRAFT Recommendation:   Agree and sign the Memorandum of Understanding between MHCLG and the London Borough of Croydon to secure funding of £26,262,500.   For the reasons set out in the report and its appendices, the Executive Mayor, AGREED to:   1.1         Approve receipt of funding from MHCLG in the sum of £26,262,500 for the delivery of 138 units of TA within the borough of Croydon.   1.2         Approve and sign the Memorandum of Understanding to be entered into between the MHCLG and the London Borough of Croydon to secure the funding of £26,262,500.   1.3         Note that, although there is no match funding required, the council will need to fund the delivery costs as detailed in paragraph 8.1.4.   1.4         Note that, any individual property acquisitions will be subject to the Council’s decision making processes.   To reduce local housing pressures and use of expensive and unsuitable temporary accommodation, by increasing the supply and quality of temporary accommodation available to households owed a homelessness duty by the Council.   Reduce temporary accommodation costs.   The Council retains a statutory duty to house eligible individuals under the main housing duty, regardless of whether LAHF funding is secured.   The Council has discretion in how it utilises both the capital allocation and associated revenue funding, provided that the agreed criteria and delivery targets are met.      Even with the funding set out in this report, it is unlikely that the Council will be able to fully meet anticipated demand for temporary accommodation. If the Council were to decline this funding opportunity, it would further reduce the number of additional temporary accommodation properties that could be delivered within the borough over the next four years.   An alternative option is for the Council not to proceed with the Memorandum of Understanding and associated funding. This would avoid the requirement to commit Council resources towards the delivery and ongoing costs of the programme. However, this option would significantly limit the Council’s ability to increase its temporary accommodation supply and would place additional pressure on existing accommodation arrangements, including continued reliance on higher-cost and lower-quality bed and breakfast provision.  

Date of Decision: May 21, 2026