Content

Endorsed the
contents of this report and recommended that Full Council:

1.   
Subject to the approval of the
recommendations below, delegate authority to the Director for
Housing, Neighbourhood and Building Services; Director of Finance
& Resources and Section 151 Officer, taking advice from the
Council's externally appointed legal advisors, and in consultation
with the Leader of the City Council and Cabinet Member for Housing
and Tackling Homelessness, to acquire Lot 1a; and

2.   
Approve that the 'Residential Stock
Portfolio Acquisition' scheme be added to the Housing Revenue
Account (HRA) section of the Council's Capital Programme with a
budget set out in Appendix One to cover the purchase of the housing
portfolio, associated fees and planned refurbishment works, and
financed by borrowing, subject to the satisfactory completion
of:
              
i.        
The outstanding due diligence; and
             
ii.        
A financial appraisal, approved by the Director of
Finance & Resources and S.151 Officer that demonstrates (based
on the completed due diligence) that the financial impact and risks
are affordable and manageable by the Council; and

3.   
Approve the following amendments to the
Treasury Management Limits, to facilitate the additional capital
expenditure for this acquisition:
              
i.        
To increase the authorised limit for external borrowing to
£1,176m; and
             
ii.        
To increase the operational boundary to £1,143m; and

4.   
That in
order that advance treasury management preparations can be made for
the transaction should the acquisition proceed:
              
i.        
The sector limit for investments in money market
funds is temporarily increased to
£105m.

5.   
Note that in approving the temporary changes to the
treasury management limits, no obligation to acquire the housing
portfolio Lot 1a has been entered into and no long-term financial
liabilities have been incurred. The changes simply enable the
Council to accumulate the necessary funding in a risk managed and
cost-efficient manner and have funds available should the
transaction be completed; the risks are considered negligible;
and

6.   
Note that the acquisition is subject to
Clarion completing a successful formal stock transfer consultation
of Clarion residents and Clarion Housing Group Board
approval.