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Issue - meetings
Financial & Legal Business Case for Local Housing Company
Meeting: 05/12/2016 - Cabinet (Item 53)
53 Financial & Legal Business Case for Local Housing Company
(Cabinet Decision)
Additional documents:
- Enc. 1 for Financial & Legal Business Case for Local Housing Company , View reasons restricted (53/2)
- Enc. 2 for Financial & Legal Business Case for Local Housing Company , View reasons restricted (53/3)
- Enc. 3 for Financial & Legal Business Case for Local Housing Company , View reasons restricted (53/4)
Minutes:
The Assistant Director, Housing and Built Environment, presented a report which sought an in principle agreement to create a Housing Company, which will be wholly owned by the council.
The purpose of the Housing Company will be to generate additional income for the council. The report noted that a number of other local authorities had adopted similar models as a vehicle for property investment. The council had appointed consultants to carry out initial investigations of the legal and financial considerations involved in setting up the Housing Company. Once an in principle agreement to establish the company had been given, a detailed business case would be developed.
The Housing Company would be designed initially to acquire and provide housing for both sub-market and market rent in the Borough, but with the potential to undertake development activities (and provide housing for sale or rent) either inside or outside the Borough.
The Assistant Director, Financial Services and Revenues, said that the Audit Committee and ultimately Full Council would need to consider the appropriate level of investment in the company and the risks to the council, based on the business plan, as part of the budget setting process.Councillor Forward proposed approval of the recommendations to the Assistant Director, Housing and Built Environment’s report, which was seconded by Councillor Cartwright.
RESOLVED (by 6 votes for, 0 against, with 2 abstentions) that:
1. The principle of establishing a local housing company is supported on the basis of the governance and constitutional arrangements set out in the Assistant Director, Housing and Built Environment’s report;
2. A detailed company business plan and governance arrangements are developed for a wholly owned Housing Company and implemented subject to final approval by Full Council, and;
3. Funding from the council be determined following production of a viable and long term sustainable business plan
The reason for this decision was:
By agreeing to the recommendations, the council would be improving access to existing housing and delivering additional homes. This is key to the council’s regeneration plans and there are established corporate commitments covering the council’s housing and regeneration ambitions for the town.
There is also a necessity to generate new income streams to safeguard future service provision for residents, which has also been identified as a key corporate aim.
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