A report from the Director of Health, Housing and Adult Social Care and Director of Finance, Resources and Customer Care is attached. This outlines proposals for investment in the private rented sector. (Report No.189, agenda part 2 also refers) (Key decision – reference number 3782)
(8.55 – 9.00 pm)
Councillor Ahmet Oykener (Cabinet Member for Housing) introduced the report of the Director of Health, Housing and Adult Social Care and Director of Finance, Resources and Customer Services (No.184) setting out proposals for investment in the private rented sector.
1. That Report Nos.189 and 189A also referred as detailed in Minute No.24 below.
2. Councillor Oykener took this opportunity to express his thanks and appreciation to Hayley Coates for her hard work in moving this project forward.
3. The extensive discussions which had taken place and the reasons for the proposals as set out in the report. The demand for temporary accommodation was significant and there were increasing pressures on housing supply for residents of the borough. The financial implications of the proposals were noted. This represented an innovative proposal which was financially viable and represented value for money for the Council and its residents.
4. An amendment sheet was circulated at the meeting detailing a revision to paragraph 3.18 of the report regarding the initial company structure. Paragraph 3.18 to now read:
“Initially it is proposed that the board membership be as follows:
· 3 x Cabinet Members – one of whom will be the Chair. The Cabinet Members will be determined by Cabinet
· Director of Finance, Resources and Customer Services – who will also be Company Managing Director
· Assistant Director of Community Housing
· Assistant Director Corporate Governance – who will also be the Company Secretary
· 2 Non-Executive Directors (to be remunerated)”
Initially the three Cabinet Members on the board membership would be as follows, as set out in decision 8 below: Cabinet Member for Finance and Property (Chair); Cabinet Member for Housing; and, Deputy Leader of the Council.
Alternative Options Considered: NOTED the alternative options which had been considered as set out in full in section 4 of the report.
DECISION: The Cabinet agreed
1. The principle of utilising appropriate investment to develop a portfolio of houses (through a wholly owned company), subject to properties meeting the agreed financial criteria.
2. To establish a company limited by shares, wholly owned by the Council in line with the proposed structure set out in sections 3.16 – 3.20, to own and manage the properties.
3. Delegate to the Director of Finance, Resources and Customer Services, Director of Health, Housing and Adult Social Care, Cabinet Member for Finance and Property and the Cabinet Member for Housing authority via a portfolio decision to finalise the timing, profile of acquisitions and the detail of the funding arrangements for each phase of the portfolio development, based on the most viable finance stream available, type and level of housing need at that time, and the Council’s best interests, including but not limited to:
· Approval of the terms of the investment
· The terms of any guarantee to be provided to support the provisions of the investment
· The term of any loan agreement between the Council and the Company
· Such other mattes as are regarded as necessary to enable the provision of the investment and acquisition of ... view the full minutes text for item 12