Report to-follow.

To-follow report added 22 March 2022.

The Leader and Cabinet Member for Finance introduced the tabled report which provided an update on progress made on the Local Housing Company and the progress in developing the initial three development sites.

The Cabinet Member for Finance provided some background and progress to date as set-out on the tabled paper.  He said the plan was to develop 185 units, and this was not viable without borrowing, which would be a loss to the Council.  Grant funding was being pursued from Homes England (HE) and this would enable the increase in the number of affordable homes.  In order to apply for the funding, there was a requirement to become an investment partner with HE and any homes built must be owned and registered with a Registered Provider.

In response to a question on accountability, the Chief Executive explained that the Shareholder Panel would be a sub-committee of the new housing committee, and the minutes from those meetings would go to Full Council.

The Cabinet Member for Finance explained that HE was a Government quango to help capitalise affordable housing.  The Cabinet Member for Housing added that HE was there to assist in developing affordable housing in line with Government targets.  The Director of Resources said the funding from HE was a grant and not a financial investment.

In response to a question about the need for a registered provider now, the Cabinet Member explained that under the previous Savills scheme this had not been necessary and there had also been no need to look for an external grant.

A Member asked what other options had been looked at and the Cabinet Member for Housing explained that the board had looked at the option of private sales to finance affordable housing on other sites, but this was not possible; and to increase the volume of other rental models with private rental which would increase the viability gap.  He spoke on the option of a joint venture, but this would mean that the Council would not have control over the properties long-term and would also not been able to realise a capital receipt.  The Member was concerned about the costs and the Cabinet Member for Finance said the Shareholder Panel would scrupulously examine the costs and viability.

A Member spoke on the requirement to have a registered provider and the management of the company.  In response, the Head of Housing and Community Services said a third party would manage the properties and they in turn would be managed and monitored by the Council’s standards.

In response to a question, the Cabinet Member for Finance confirmed that in terms of long-term continuity, the Shareholder Panel would be made up of Members and officers in their specific roles, such as Chief Executive/Section 151 Officer.  The Head of Housing and Community Services explained that there were documents in place on how the Board of directors was made up, which included that if a person left the Council, they would no longer be on the company board.  The Chief Executive added that in terms of the officer role on the company board, this role was separate from their day job, and it was a very serious undertaking, that required training.  In response to a further question on the make-up of the Shareholder Panel, the Chief Executive said the Panel needed to be taken from the ‘parent’ committee, which was quite likely going to be the housing committee, and this would be politically balanced.

The Chairman moved the following motion:  That the appropriate committee, post May 2022, considered the Local Housing Company, with updates, as an agenda item.  This was seconded by the Vice-Chairman.  On being put to the vote the motion was agreed.

The Chairman thanked the Leader and Cabinet Member for Finance, the Cabinet Member for Housing, the Director of Regeneration and Neighbourhoods and the Head of Housing and Community Services for attending the meeting for this item.

Resolved:

(1)      That the report be noted.

(2)      That it be recommended that the appropriate committee, post May 2022, considered the Local Housing Company, with updates, as an agenda item.