Issue - meetings

A report from the Director of Regeneration and Environment and Director of Finance, Resources and Customer Services is attached. This outlines proposals for setting up a registered provider and procuring an investment partner for the registered provider. (Key decision – reference number 4205)

(Report No.113)

(8.30 – 8.35 pm)

Councillor Ahmet Oykener (Cabinet Member for Housing and Housing Regeneration) introduced the report of the Director of Regeneration and Environment and Director of Finance, Resources and Customer Services (No.113) outlining proposals for setting up a registered provider and procuring an investment partner for the registered provider.

NOTED

1.               Councillor Oykener explained in detail to Members the innovative proposals and the reasons for them, as set out in full in the report. The initial aim of the For Profit Registered Provider would be to purchase completed properties on Council led housing development schemes that it would then retain ownership of and manage with the use of contracted managing agents. In order to meet the condition for spending the retained right to buy receipts, the Council could not have a controlling interest in the new company. The opportunities that would be provided by moving forward with these proposals were outlined to Members.

2.               In addition to the proposals set out in the report, officers would continue to investigate alternative delivery models for future consideration by Members.

3.               In response to questions raised by Cabinet Members, Councillor Oykener explained in detail all of the Council’s housing elements and the roles and responsibilities undertaken through the following: Housing Gateway; Enfield Innovations; Registered Provider: and, the Housing Revenue Account. The functions of all of these elements were outlined and the way forward explained in full. In conclusion, Members expressed their support for the proposals, as set out in the report.

4.               Councillor Taylor highlighted the need to use existing examples from elsewhere to inform the way forward. It was noted that a new company name would be required.

5.               Councillor Oykener concluded that it was the Council’s intention to build more homes. He outlined the potential financial implications for the Council.

Alternative Options Considered: NOTED the detailed alternative options which had been considered as set out in section 4 of the report which included the following:

·       The Council could decide not to spend the retained right to buy receipts already received.

·       The Council could choose to withdraw from the right to buy one for one scheme now and return all receipts retained with effect from quarter 3 (December) this year.

·       The Council could attempt to spend all the money on the provision of new Council homes within the HRA

·       The Council could enter a joint venture registered provider with one or more other Councils. This option was being further considered.

DECISION: The Cabinet

1.               Noted that a budget of a maximum of £120k, was required to engage consultants to assist with the setting up of a new registered provider company, seek registration of the new registered provider company as a registered provider, and to procure an investment partner. This cost would be recouped against future corporation tax liability once the company was set up.

2.               Agreed to authorise, in principle, the setting up of a new Limited Liability Company with the intention that this new company once formed seeks to become a registered provider.

3.  ...  view the full minutes text for item 8