To consider the record of decision setting out the Mayor’s formal response to the Council’s objections to the Housing Policy Framework Document.

Further to the Council meeting held on 22 June 2017, members considered the submitted report on the Mayor’s response to the objections raised by the Council on the Mayor’s proposed Housing Companies Policy Framework document.

Mayor Oliver proposed and Councillor King seconded a motion as set out below:

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.

During the debate Councillor Thomas (D) proposed and Councillor Darling (S) seconded an amendment to the motion as follows:

(i)         that the Housing Rental Company Policy Framework document, as set out in Appendix 1 to the amendment published on 19 July 2017, be approved;

(ii)        that a Housing Rental Company Committee be created, with the Terms of Reference as set out in Appendix 2 to the amendment published on 19 July 2017, consequently all of the reserved matters for the Housing Rental Company will be decided by the Committee.  The Committee to comprise of six Members and that the Special Responsibility Allowance (SRA) for the Chairman of the Committee be £3,405 subject to consultation with the Independent Remuneration Panel; 

(iii)       that Council allocate up to £50,000 from the Transformation Budget to enable an overarching business plan and individual business cases for the Housing Rental Company to be prepared;

(iv)       that, in principle, the Council grant to the Housing Rental Company working capital of £250,000 in the form of a loan, the terms of which to be agreed by the Head of Finance including any timing and value of drawdown against this amount in accordance with detailed business cases being presented to the Housing Rental Company Committee.

(v)        that Council approve £25m of Prudential Borrowing, in principle, to facilitate the work of the Housing Rental Company, in the form of a loan for a capital purpose.  Detailed business cases are required to be presented to the Housing Rental Company Committee for approval, in order to trigger any draw down against this amount.  The terms of the loan to be determined at the point of draw down by the Head of Finance;

(vi)       that the Director of Adults and Transformation be given delegated authority to appoint the Directors of the Housing Rental Company;  and

(vii)     The Council Asset Management Plan be amended so as to include the following:

Where the Council proposes to dispose of land of any value to the Housing Rental Company these shall be decisions for Full Council to take as part of the approval of each Business Case

The amendment was put to the vote and as more than two-thirds of members present and voting had cast their vote in support of the amendment, it was carried.

The amended (substantive) motion was then considered by members and as more than two-thirds of members present and voting had cast their vote in support, it was agreed by the Council as follows:  ...  view the full minutes text for item 67

To discuss the progress being made towards a suggested, amended Policy Framework document in relation to the Housing Company.

The Assistant Director – Corporate and Business Services provided an update to the Board on the proposed amendment to the Mayor’s Policy Framework proposal in relation to the Housing Company.

To consider the submitted report setting out the proposed Housing Policy Framework document.

This item was deferred from the meeting following the urgent decision of the Assistant Director of Business and Corporate Services for it to be considered at the Adjourned Annual Council meeting on 10 May 2017.

To consider the submitted report on the above.

(Note: this report contains an exempt appendix which has been circulated separately.)

Prior to consideration of Minute 168, the Chairman declared his pecuniary interest and withdrew from the meeting.  The Vice-Chairwoman chaired the meeting for this item.

Councillor Brooks in the Chair

Further to the Council’s in principle decision on 22 September 2016 to establish a new wholly owned development company to develop and own homes, Members received an update on the development of proposals and details of the proposed company structure (set out in the submitted report).

Members received the recommendations of the Overview and Scrutiny Board that the proposals contained within the report were followed.

Councillor King proposed and Councillor Haddock seconded a motion, which was agreed by the Council as set out below:

(i)         that Council approves the establishment of the Holding Company as a wholly owned company limited by shares of the Council for all Council wholly owned companies, and delegates to the Director of Adults and Transformation authority to implement this decision, including approval of the Memorandum and Articles of Association, in consultation with Group Leaders;

(ii)        the Council approves the establishment of a Housing Development Company as a wholly owned subsidiary (company limited by shares) of the Holding Company, and delegates to the Director of Adults and Transformation authority to implement this decision, including approval of the Memorandum and Articles of Association, in consultation with Group Leaders;

(iii)       the Council approves the establishment of a Housing Rental Company as a wholly owned subsidiary (company limited by shares) of Holding Company, and delegates to the Director of Adults and Transformation authority to implement this decision, including approval of the Memorandum and Articles of Association, in consultation with Group Leaders;

(iv)       that Council authorise the Director of Adults and Transformation to approve the appointment of any Officer(s) as a director and/or company secretary of the Holding Company and/or either the Development Company or Rental Company during the application to register Holding Company and/or Housing Development Company;  and

(v)        that the Housing Company Policy Framework document be presented to Council for consideration in April 2017, together with an outline business case.

The Director of Adult Services and Transformation to present the draft report to the Council on the proposal to establish a new wholly owned development company to develop and own homes.

The Mayor and Executive Lead for Planning, Transport and Housing to answer the Board’s questions.

The Board to determine if it wishes to make any comments, conclusions or recommendations to the Council.

Members considered an exempt report and appendices that provided an update on the development of proposals to generate income through housing, in particular the outline business case, proposed structure and governance implications.

Resolved:  (i)  that the Council be recommended:

a.    to approve the establishment of the company structures as set out in the submitted report and due to be presented to Council on 23 February 2017; and

b.    to request that the Housing Company Policy Framework document together with an outline business case be presented to Council in April 2017.

(ii)        that a task and finish group be established to consider the Housing Company Policy Framework document and outline business case ahead of consideration by Council.

To consider the submitted report on the above.

Prior to consideration of Minute 70, the Chairman declared his pecuniary interest and withdrew from the meeting.  The Vice-Chairwoman chaired the meeting for this item.

Councillor Brooks in the Chair

The Council considered a business case (as set out in the submitted report) for 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.  It was noted the creation a housing development and housing management company would allow the Council to acquire, build, rent and sell housing to create both capital and revenue receipts for the authority.

Councillor King proposed and Councillor Parrott seconded a motion, which was agreed by the Council as set out below:

(i)         that Council agree 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

(ii)        that up to £75,000 be authorised from the Transformation Fund to undertake the necessary due diligence, explore the objectives listed in paragraph 2.5 to the submitted report and to carry out:

·                    The appropriate company structure;

·                    Governance arrangements;

·                    Financial modelling and stress tests;

·                    Taxation;

·                    Financial flows between the two entities; and

·                    Analysis of the benefits and risks.