Issue - meetings

Report of the Corporate Director of Finance and Resources (S151 Officer). To be presented by the Cabinet Member for Housing & Planning (Deputy Leader)

DECLARATIONS OF INTEREST MADE FOR THIS ITEM:

None

RESOLVED:

That Cabinet:

1. Approved the acquisition of the freehold interest in the property for housing purposes, for the purchase price as set out in the Part B (Exempt) report and based on the draft Heads of Terms contained in the Part B (Exempt) report.
   
   
2. Approved the total scheme cost for the acquisition as contained in the Part B (Exempt) report.
   
   
3. Noted grant funding from the Greater London Authority (GLA) will be used to part fund the acquisition alongside funding from the General Fund under an approved allocation for acquisitions through the CHAP programme. The amount of grant funding is contained in the Part B (Exempt) report. 
   
   
4. Approved that lets are made in accordance with the grant funding conditions and that the Neighbourhood Moves Scheme will thus not apply to these homes.
   
   
5. Pursuant to the approval of Recommendation 1, approved a leaseback of the two commercial units on terms to be agreed delegated under Recommendation 5. 
   
   
6. Granted delegated authority to the Corporate Director of Finance and Resources following consultation with the Head of Legal and Lead Member for Housing to finalise the Heads of Terms, agree the purchase price following receipt of a valuation, agree Heads of Terms for the leaseback of the commercial units, finalise legal documentation and complete the transactions.

Reasons for decision

The acquisition will result in the addition of 32 new Council homes thereby assisting the Council to house households in need of good quality housing.

The proposed Council homes are well located to enjoy the amenities of Lordship Lane, Lordship Recreational Ground and Bruce Castle Park. 

Alternative options considered

Not to acquire the homes. This option was rejected because it would be a missed opportunity for the Council to:

Secure 32 new Council homes.

Assist in maintaining momentum and progress in the overall aspiration to provide affordable housing in the borough.

The Cabinet Member for Housing and Planning, and Deputy Leader of the Council introduced the report.

It was explained that the Council, with financial support from both the Mayor of London and central government, were building at least 3,000 new council homes at council rents by 2031. We are creating more genuinely affordable homes for local people. To meet this target, it was explained that the Council was purchasing 32 homes at 255 Lordship Lane to let at council rents.

In response to comments and questions from Councillor Emery, the following information was shared:

• It was explained by officers that the properties were currently owned by a private provider and if not taken by the Council, it would be the option of the vendor as to what to do with the properties.
  
  

RESOLVED:

That Cabinet:

1. Approved the acquisition of the freehold interest in the property for housing purposes, for the purchase price as set out in the Part B (Exempt) report and based on the draft Heads of Terms contained in the Part B (Exempt) report.
   
   
2. Approved the total scheme cost for the acquisition as contained in the Part B (Exempt) report.
   
   
3. Noted grant funding from the Greater London Authority (GLA) will be used to part fund the acquisition alongside funding from the General Fund under an approved allocation for acquisitions through the CHAP programme. The amount of grant funding is contained in the Part B (Exempt) report. 
   
   
4. Approved that lets are made in accordance with the grant funding conditions and that the Neighbourhood Moves Scheme will thus not apply to these homes.
   
   
5. Pursuant to the approval of Recommendation 1, approved a leaseback of the two commercial units on terms to be agreed delegated under Recommendation 5. 
   
   
6. Granted delegated authority to the Corporate Director of Finance and Resources following consultation with the Head of Legal and Lead Member for Housing to finalise the Heads of Terms, agree the purchase price following receipt of a valuation, agree Heads of Terms for the leaseback of the commercial units, finalise legal documentation and complete the transactions.

Reasons for decision

The acquisition will result in the addition of 32 new Council homes thereby assisting the Council to house households in need of good quality housing.

The proposed Council homes are well located to enjoy the amenities of Lordship Lane, Lordship Recreational Ground and Bruce Castle Park. 

Alternative options considered

Not to acquire the homes. This option was rejected because it would be a missed opportunity for the Council to:

Secure 32 new Council homes.

Assist in maintaining momentum and progress in the overall aspiration to provide affordable housing in the borough.