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DECLARATIONS OF INTEREST FOR ITEM:
 
None
 

RESOLVED:
 
That Cabinet:

 
1.   
Approved the strategy for purchase and lease of residential
accommodation as outlined in this report.

2.   
Approved the development and incorporation of a
Limited Liability Partnership for the purpose set out in this
report.

3.   
Approved the initiation of a market exercise by the
LLP (with the Council’s approval as majority member) to
select a suitable funder to provide financing on acceptable terms.
Such offering will include as part of the transaction a registered
provider associated with the funder as part of the same funding
submission to the LLP. This will enable application of GLA Grant
Funding. 

4.   
Approved that an initial capital budget of up
to £5m, funded from the capital programme contingency budget
is agreed for the negotiated purchase price of the Residential
Housing Units and associated costs within the Council’s
Capital Programme.

5.   
Delegated authority is given to the Corporate
Director of Finance and Resources to agree individual property
purchases.

6.   
Approved that any potential deal will come back to
Cabinet for a decision in advance of the
transaction.
 

Reasons for decision
 
It was
considered that the purchase of homelessness discharge
accommodation is necessary for the Council to meet the increasing
demand for the provision of temporary accommodation for the Borough
and to meet the strategic, and financial objectives of the Council.
These are explored in more detail within the main body of the
report below.
 
By
initially acquiring the Residential Housing Units for use in this
scheme the Council will have the opportunity to drive up the
standard of rental property for use for homelessness discharge, and
to secure units specifically for the benefit of the
Borough.
 

Alternative options considered
 
 5.1     Do Nothing - If the Council did
not acquire Residential Housing Units, it is anticipated that the
Council will have a considerable shortfall of homes to meet the
growing needs of the Borough and will fail to meet a key part of
its medium-term financial strategy (MTFS).
 
Direct
Purchase of the properties by the Council – the Council
already has an ambitious acquisitions programme for the purchase of
properties. The purchase of the number of properties outlined in
this report would add further debt onto the Council’s balance
sheet, which is already high and above the average for similar
authorities. In addition, the Council’s strategy for
addressing the temporary accommodation crisis is to have a number
of different initiatives in place and the proposal set out in this
report would support that strategy.