Purpose

At a meeting on 2nd
October 2023 Cabinet approved the procurement of a new temporary
accommodation contract to enable the Council to continue to meet
its statutory duties under the homelessness legislation by
providing temporary accommodation. Cabinet gave delegated authority
to Head of Housing and Customer Services in consultation with the
Portfolio Holder, to grant the contract in accordance with the
procurement process.
 
Suitable properties are
required to provide the above-mentioned temporary
accommodation.
 
On 12th September
2024,  SDC took a 7 year headlease from
Orbit Housing Association Limited, of 33 properties in Stratford
upon Avon. This was with the intention of subletting them to
SDC’s new temporary accommodation contract provider, who in
turn will grant occupation agreements in accordance with the
temporary accommodation contract.
 
SDC owns the freehold or long
leasehold of 6 other properties in Stratford upon Avon which are
also suitable for letting in connection with the provision of the
temporary accommodation contract.
 
A draft sublease of the
properties owned by Orbit Housing Association Limited, and a draft
lease of the properties owned by SDC formed part of the tender
pack. These documents included rental figures and are to be entered
into alongside the services contract.
 

Content

To grant a 3 year sublease of
properties owned by Orbit Housing Association Limited commencing
December 2024.
 
To grant a 3 year lease of
properties owned by SDC commencing December 2024.
 

Reasons for the decision

The procurement process has
been completed and the Head of Housing and Customer Services in
consultation with the Portfolio Holder, has been given delegated
authority to grant a new temporary accommodation services contract
in accordance with that process.
 
The new temporary accommodation
provider will need suitable properties from which to perform the
temporary accommodation contract.
 
The current temporary
accommodation provider is already using the properties referred to
in the “Subject” section above, pursuant to relevant
short term lease documents. Previous temporary accommodation
providers have also used the same properties.
 
The new temporary accommodation
services contract is for a period of 3 years with the ability for
SDC to require the provider to take two successive 1year
extensions.
 
The sublease and lease is
therefore also for a term of 3 years with the ability for SDC to
require the provider to take two successive 1year lease
extensions.  
 
The terms of the sublease are
the same as the terms of headlease between Orbit and SDC
(importantly the contract provider will be paying the same rents,
insurance and service charge under the sublease as are charged to
SDC under the headlease).
 
The terms of the lease of SDC
owned properties are the same as the sublease, save that SDC had
the discretion to decide the level of rent.
 

Alternative options considered

SDC could use B&B’s
and guest houses instead of granting the sub lease and lease.
However this is not as cost effective and such accommodation is not
as suitable. The proposed option given the circumstances detailed
above is to grant the lease and sublease.