The Council, at its meeting held on 22 September 2016, has agreed the principle of setting up a new wholly owned development company to develop and own homes with the overarching aim of maximising income back to the Council and supports outcomes in the housing strategy.  The proposal outlines the necessary due diligence to explore the objectives listed in paragraph 2.5 to the submitted report and to recommend:

·       The appropriate company structure  and Governance arrangements;

·        Financial modelling and stress tests and flows to council; and

·        Benefits and risks.

The Mayor disagrees with the Council’s objection and confirms his original recommendation to Council as set out below:

That the Housing Company Policy Framework document set out at Appendix 2 to the submitted report be approved.

To respond to the Council’s objections to the Housing Companies Policy Framework document.  The Mayor wishes to only utilise the funds available as a result of contributions for affordable housing to deliver the following elements of the Council’s Housing Strategy, either undertaken by the Council or commissioned by the Council:

(i)             Increasing the number of affordable homes delivered;

(ii)            Increasing standards in the private rented sector;

(iii)          Provide greater flexibility when dealing with housing needs for local people;

(iv)          Increase the level of adapted accommodation to allow more people with care and support needs to live in specialist housing;

(v)           Unlock stalled sites in and around the town centre to assist with regeneration and increase footfall in the areas town centres; and

(vi)          Assist with regenerating areas of deprivation.

The Mayor does not wish to undertake this work through the housing companies established by the Council in February 2017 due to the inherent level of risk and volatility in the housing market and the consequent risk that this may place on the Council’s financial position.

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The Mayor’s response to the Council’s objection will be considered at the Council meeting on 20 July 2017.

At the meeting of Council held on 22 June 2017, the Council formally objected to the to the Mayor’s Policy Framework document as set out at Appendix 2 to the submitted report.

The Council objected on the basis that his proposals do not sufficiently, nor progressively, address the Council’s challenges in respect of:

(i)              Increasing the number of affordable homes delivered;

(ii)             Increasing standards in the private rented sector;

(iii)            Providing greater flexibility when dealing with housing needs for local people;

(iv)           Increasing the level of adapted accommodation to allow more people with care and support needs to live in specialist housing;

(v)            Unlocking stalled sites in and around the town centre to assist with regeneration and increase footfall in the areas town centres; and

(vi)           Assisting with regenerating areas of deprivation.

The Council requests that the Mayor consider how the Policy Framework can be used more progressively to address these issues, including how the creation of a Housing Rental Company could be used to address the same.

In accordance with the Constitution at F4.9, the Council therefore requires the Mayor to consider this objection by 7 July 2017 and either:

(a)      submit a revision of the Housing Company Policy Framework Document with the reasons for any amendments to the Council for its consideration; or

(b)      inform the Council of any disagreement that the Executive has with any of the Council’s objections and the Executive’s reasons for any such disagreement.

The Mayor considered the recommendation of the Council and his proposed response is set out above.

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