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Agenda item
Development of a Social Lettings Agency for Hastings
(Cabinet Decision)
Minutes:
The Assistant Director, Housing & Built Environment presented a report on the development of a social lettings agency for Hastings. The council run Social Lettings Agency (SLA) currently leases 45 units of accommodation from private individual property owners. The private sector leasing model was, until March 2017, funded by the Temporary Accommodation Management Fee (TAMF). This was a demand led payment from government which paid a supplement of £60 per week, per property, in addition to the standard Local Housing Allowance rate. The TAMF payments enabled the scheme to offset the operating costs of managing accommodation.
Two amendments to the report by officers were pointed out, in the five year forecast section of the report. The first amendment was that the Grant Funding Required should be corrected to -£98,949 in 2018/19 and -£77,101 in 2019/20 The second amendment was that the Bad Debt (Rent) costs were incorrect, and should be £13,673 in 2018/19 and £2,665 in 2019/20.
It was noted that a funding change to a cash limited grant was put in place. This had caused the existing scheme to no longer be viable. Though, a business plan was ready to be put in place to continue the service, which was considered important to the town.
In 2017, it was discussed whether the council would establish a commercially competitive scheme, however it was not recommended that this should happen currently, but could be considered in the future.
A question was raised on what would happen if the recommendation were not accepted. The reply was that there would have to be made arrangements to assist with the rehousing of tenants if the leases were terminated.
Councillor Batsford proposed the approval of the recommendations, seconded by Councillor Fitzgerald. Councillors Forward and Beaney could not vote due to their interests in this item.
RESOLVED (by 4 votes for, to 2 against) that:
Members are asked to approve the recommendation within the report for the council to proceed with two new service models for the SLA. The two models being proposed are:
· A Guaranteed Rent Scheme
· A Management Service to support the Council’s Housing Company
The reason for this decision was:
1. The objective of the SLA is to improve access to quality, well-managed private sector housing for households who present to the council as homeless or at risk of homelessness. Cabinet approval was granted in July 2017 for a cost effective scheme to be developed to replace the council’s existing private sector leasing arrangements and allow for the SLA to continue operating and achieve its objective. This was necessary due to changes in central government funding arrangements.
2. The introduction of the Homelessness Reduction Act in April 2018 allows for local authorities to discharge a new ‘Relief Duty’ by offering the minimum of a fixed-term 6 month Assured Short-hold tenancy in the private rented sector from a private landlord. It is therefore increasingly a priority for the council to minimise the cost of homelessness by maximising access to affordable, suitable and well managed private sector accommodation.
3. Continuation of SLA also provides the council will the necessary property management capacity to provide services to the council owned Housing Company.
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