Decision details

The Council has entered into a funding agreement in relation to an offer of £21.7m of Housing Infrastructure Fund grant to support the delivery of the Garden Village at Handforth.

The Council has made substantial progress on the scheme, such as securing planning consent, and the preliminary design of the primary infrastructure is well underway.

However, Homes England has issued a Reservation of Rights letter as it has become clear that the milestones set out in the current funding agreement (which requires completion of funding drawdown by the 31/03/2025) are unachievable.

Homes England has therefore concluded that the Council will default on the current agreement. Under the terms of the funding agreement, the Council is required to submit a Remediation Plan to set out how it will remedy or mitigate this default. If the Remediation Plan is accepted by Homes England, they will prepare a contractual Deed of Variation or Deed of Amendment which will need to be entered into.

1        To submit a Remediation Plan to Homes England. This will serve to extend delivery milestones, and update the work programme, cashflow and expenditure forecast, and extend the availability of HIF funding until 31/03/27.

2        To enter into a Deed of Variation or Amendment with Homes England to amend the Housing Infrastructure Fund Grant Determination Agreement to reflect the Remediation Plan.