Agenda item - Local Housing Company

Exempt Report of Head of Regeneration and Housing

Resolved

(1) That the creation of a Local Housing Company, registered with the Financial Conduct Authority (FCA) as a Community Benefit Society, HMRC as an exempt charity and the Homes and Communities Agency (HCA) as a registered provider be approved.

(2) That the sale of existing affordable housing assets (both completed and occupied and in development) as itemised in the exempt annex to the Minutes (as set out in the Minute Book) at existing market value as certified by an independent valuer to the Local Housing Company (once incorporated and registered with the FCA and the HCA) be approved and it be noted that any proposed future disposals of Council owned assets to the Local Housing Company would form the subject of future reports to Executive or full Council as appropriate.

(3) That the lending of finance from the Council to the Local Housing Company, as long as this is viable for both the Local Housing Company and the Council and is within the Council’s peak borrowing limits and the legal requirements relating to the prohibition of unlawful State Aid, be approved.

(4) That approval be given for the Council undertaking a key financial role in the Local Housing Company, subject to such role complying with the legal requirements in relation to the prohibition of unlawful State Aid, in particular:

i. Through the provision of loan finance on a formal loan arrangement with the Council

ii. Through providing a contingent guarantee for external finance and lease arrangements

(5) That authority be delegated to the Director of Resources, in consultation with the Leader of the Council, to approve the business plan of the Local Housing Company and to appoint Council Directors to the Board of the Local Housing Company (if incorporated and registered with the FCA and the HCA) including such future appointments as are necessary to fill vacancies that might arise.

(6) That delegated authority be granted to the Head of Regeneration and Housing, in consultation with:

· The Leader of the Council

· The Lead Member for Housing

· The Lead Member for Estates and the Economy

· The Lead Member for Financial Management

· The Director of Resources

· The Director of Development

· The Head of Finance and Procurement

· The Head of Law and Governance

to take the necessary operational, legal and financial steps to ensure effective implementation of the above, including the naming of the Local Housing Company and its subsidiary, subject to there being no conflict of interest arising for the Head of Regeneration and Housing between the Council and the Local Housing Company in respect of any actions to be taken following the Company’s incorporation and registration with the FCA and HCA.

The Head of Regeneration and Housing submitted an exempt report which followed on from the 5 October 2015 report to Executive, which recommended that Council approves the creation of a Local Housing Company as a vehicle to develop, own and manage affordable housing assets and ancillary activities including existing housing assets in the Council’s ownership, both built (and occupied) and in development.