Issue - meetings

[Report of the Director for Housing and Growth. To be introduced by the Cabinet Member for Housing, and Estate Renewal.]

To set up a Community Benefit Society  to acquire, repair and manage homes to be used as housing options for Haringey housing applicants. Also to update Members on work on a potential Purchase, Repair and Management Partnership to deliver additional homes for the same purpose.

The Cabinet Member for Housing and Estate Renewal introduced the report which proposed two schemes to increase housing options. These options were A Community Benefit Society (CBS), and a Purchase, Repair and Management Joint Venture Partnership (PR&M).

This would allow an increase in the number of properties available to the Council to use as temporary accommodation, or provide more affordable and better quality private rented housing into which homelessness duty can be discharged.

The Cabinet Member outlined that the manifesto upon which the Labour Council Leadership was elected is clear on the need to act decisively to address homelessness in the borough and to help the 3,000 households in temporary accommodation, and sometimes in homes that are in poor condition. The administration promised to deliver housing differently, alongside the position of the wholly owned company.

In response to questions, the following was noted:

• It was highlighted that the decision on the Community Benefit Society was more of a safety mechanism as it was anticipated that the wholly owned company (WOC) may be able to achieve what the CBS seeks to achieve in terms of provision of homes.
• It was noted that the caps on acquiring 100 properties and spending £25m did not mean an expected £250,000 cost per home. Instead these two figures represented a double lock on spending and acquisitions by officers, before the proposal comes back to Cabinet for review and to agree further spending and acquisitions. For information, the modelling for the CBS had assumed an average cost of properties acquired as £360k per home.
• With regard to what discussions there had been with potential partners in PR&M, it was noted that there was a formal procurement process, started late last year, which in January 2018 identified three bidders as potentially meeting the requirements needed. Although there has been initial meetings with them, this process has been paused in order to explore the proposal with the newly elected Council before further progressing negotiations. The bidders would be named once the procurement had been finalised, if Cabinet decided to proceed with the proposal at that stage.
• It was noted that, where possible, the Council was aiming to house residents in temporary accommodation within the borough but may use properties in neighbouring boroughs such as Enfield, Waltham Forest or Barnet.
• All homes acquired through CBS would be managed by Homes for Haringey. It was further clarified that there may be bidders for the Purchase, Repair and Management Joint Venture Partnership (PR&M) in the form of a consortium, including a registered provider.

RESOLVED

1.    To agree to set up a Community Benefit Society, as set out at paras 6.8 to 6.18.

2.   To agree to the acquisition of the first 100 residential units for the purposes as set out in paras 6.8 to 6.18.

3.            To approve the first funding tranche of capital of up to £25m in 2018/19 for the purchase of properties set out in recommendation 3.2 to be funded by £17.5m of borrowing and  ...  view the full minutes text for item 32