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 company, wholly owned by the Council, to deliver new Council-led housing development schemes.

The Cabinet Member for Housing, and Estate Renewal introduced the report which sought permission to set up a wholly owned company (WOC) to deliver new build Council-owned homes.

The Cabinet Member expressed that current Labour leadership was elected on a manifesto that placed housing at its heart and was committed to delivering 1,000 new Council homes at Council rent by 2022, to meet the needs of those on the waiting list. The creation of a wholly owned company represented a clear change in direction of housing in Haringey and the Council owns a number of sites in the borough which can be used to develop new housing.

The Cabinet Member referred to the last two bullet points at recommendation 3.6 and advised that the inclusion of these two housing sites was subject to approval of agenda item 19.

• In response to a question regarding the allocation of up to £500,000 funding from the Government’s Flexible Homelessness Support Grant to address the initial set up of WOC, it was noted that no current projects were losing funding as a result. This was a three year funding programme that was entirely flexible and so the money could be moved around, between projects and over different years, and it was expected to be repaid once the costs of WOC become capitalised. Furthermore, although the cost allowed for the setup of the WOC  is up to a maximum of £500,000, it was expected to be far less than this.

• In response to a question regarding the potential of the WOC to be able to deliver on larger schemes, it was noted that other local authorities whose  WOCs had taken on large schemes in the first instance, had taken considerable time to enable procurement of land and get development underway. The proposed WOC was in a better position because the Council was already in possession of the land for the type of schemes proposed in the report. In time, the WOC may be able to take on much larger and more complex schemes, but expertise would need to be built up first.

RESOLVED

1.            To agree to set up a Wholly Owned Company (WOC), as set out in paras 6.5 to 6.30, with the primary purpose of maximising the delivery of new Council owned homes on the condition that the WOC shall not be incorporated until Cabinet has considered the further report set out in paragraph 3.6;

2.            To note that the Director of Housing, Regeneration and Planning, in consultation with the Director of Finance and Deputy Leader of the Council and Cabinet Member for Housing and Estate Renewal, will take all necessary steps towards setting up the WOC, including but not limited to drawing up the Articles of Association of the WOC, the Shareholder’s Agreement between the Council and the WOC, any other necessary agreements and legal documentation required, including, if necessary, registration of the WOC as a Registered Provider; subject to recommendation 3.6;

3.            To agree that the WOC may undertake commercial activities,  ...  view the full minutes text for item 31