The Leader of the Council, Councillor Peray Ahmet, approved a significant virement of £3.5 million from the Housing Revenue Account (HRA) reserves to address escalating housing disrepair cases and fund essential electrical safety inspections. The meeting also saw the appointment of a representative to the Seven Sisters Market Partnership Advisory Group (SSMPAG) and consent given for Homes for Haringey to appoint new external auditors.

Housing Disrepair and Electrical Safety Funding Approved

A crucial decision made at the meeting was the approval of a £3.5 million virement from the Housing Revenue Account (HRA) reserves. This funding is earmarked for two critical areas: managing the increasing costs associated with legal housing disrepair cases and funding the delivery of Electrical Inspection & Condition Reports (EICRs) for the council's housing portfolio.

The report presented highlighted that the number of disrepair cases had continued to rise, necessitating additional funds for legal services and external contractors. The council's responsive repairs service lacked the capacity to handle the volume of work required for historic disrepair cases, leading to a need to appoint four external contractors. This decision aims to expedite the resolution of these cases, mitigate further legal costs, and prevent potential legal repercussions for the council.

Councillor Williams, Cabinet Member for Housing, Private Renters and Planning, expressed assurance that a robust plan was in place to tackle the disrepair cases, acknowledging that it would take time to see the full impact.

The virement breaks down as follows:

• £2.8 million from the HRA reserves for legal services related to housing disrepair cases and the appointment of four contractors to complete repair work.
• £0.7 million from the HRA reserves to cover the cost of Electrical Inspection Condition Reports (EICRs) for the 2024/25 financial year.

The report detailed that the total additional spend requirement for housing disrepair cases and EICRs was £6.9 million. Of this, £3.4 million would be funded from other sources within the HRA, with the remaining £3.5 million coming from reserves. The council is committed to replenishing the HRA reserve to maintain its viability.

The decision to approve the virement was made because the agreed 2023/24 budget for legal firms acting on disrepair cases had been exhausted. The council is legally obligated to address disrepair issues, and failure to do so could result in tenants and leaseholders pursuing legal action, potentially leading to court orders for repairs, damages, and legal costs. The report also stressed the council's regulatory responsibility to conduct EICRs every five years to ensure electrical safety in its housing stock.

Alternative options considered included doing nothing, which was deemed not viable due to the risk of legal judgments against the council and potential penalties for non-compliance. Another option was to identify savings or halt other housing works to fund these costs, but the report indicated that the required £6.9 million would be funded through a combination of reserve drawdowns and savings from the Housing Operations & Building Safety revenue budget. Insourcing of legal and repairs services was also considered, with capacity being developed, but the immediate need for external support remained.

Seven Sisters Market Partnership Advisory Group Appointment

Councillor Peray Ahmet agreed to nominate the Lead Member for Placemaking and Local Economy to represent the council as an observer on the Seven Sisters Market Partnership Advisory Group (SSMPAG). This nomination will be noted at the next Full Council Meeting on 20th May 2024.

The SSMPAG has been established by Places for London (PfL), the commercial property arm of Transport for London (TfL), to advise on the long-term future of the Seven Sisters Market, which has been closed since March 2020. The council has a long-standing interest in the market's return, recognising its potential to revitalise the local economy and attract footfall to the Seven Sisters/West Green Road District Centre.

The nominated Lead Member will act in an observer capacity, with no voting rights, serving as a conduit for information between the group and the council. This role is seen as crucial for the council to stay informed about discussions regarding the market's future and to contribute to its successful regeneration. The council's involvement is aligned with its Corporate Delivery Plan, particularly concerning placemaking and building an inclusive economy.

Appointment of External Auditors for Homes for Haringey

The Leader of the Council gave consent for Homes for Haringey (HfH) to appoint new external auditors. HfH, a wholly-owned subsidiary of the council, is required by the Companies Act 2006 to have its financial statements independently audited. The previous auditors, PricewaterhouseCoopers, resigned in December 2023.

The decision authorises the Director of Placemaking and Housing to write to HfH confirming the council's consent. This appointment is necessary for HfH to meet its filing requirements with Companies House and for its Board to consider the audit report by August 2024. The report noted that only one submission was received from potential auditors, but the Company Secretary of HfH was content with their suitability. Failure to appoint auditors in a timely manner could result in penalties for late filing. This decision is considered a non-key decision as it relates to the operational running of the subsidiary company and does not directly impact the council's expenditure or savings.