Agenda item

The Cabinet Member considered a report which sought authorisation for the Council to accept from the Haringey Community Benefit Society a surrender of the current lease of the 16 Council owned units at Olive Morris Court and for the Council to enter into a new lease for the 16 HCBS owned units and not to proceed with the lease of the Land. Olive Morris Court is a site of 33 modular units constructed on Council owned land. The scheme provides accommodation for people previously sleeping rough as supported housing and office space to provide on-site support and security.

The Cabinet Member sought clarification as to why their needed to be a change in lease arrangements and why this had not been resolved as part of the initial decision. In response, officers advised that this was because of the funding issue and the need to be a registered housing provider in order to receive the full funding from the GLA.

The Cabinet Member noted some grammatical errors in relation to paragraph 4.2 of the report.

In relation to paragraph 5.11 of the report, officers clarified that this part of the report set out that the GLA were happy with the proposed solution.

The Cabinet Member queried why there was not an agreed rent calculation set out in the report, between LBH and HCBS. In response, officers advised that the Heads of Terms set out that there would be no net loss to either organisation. The Council was a shareholder of the HCBS and that it was important that a mutually agreeable solution be found. Both parties wanted to see the delivery of new homes in the borough. This decision, and the funding from the GLA that the decision related to, supported that outcome. 

RESOLVED

The Cabinet Member for Council House-Building, Placemaking and Development Agreed:

1. That the Council accept a surrender of the Lease dated 8 November 2021 from the London Borough of Haringey to Haringey Community Benefit Society of the 16 units in Olive Morris Court; and
2. That the lease to HCBS of the Land will not proceed; and
3. That the Council to take a 30-year lease of the 16 units owned by the Haringey Community Benefit Society and located in Olive Morris Court based on the Heads of Terms attached at Appendix 1 of the report (exempt); and
4. To give delegated authority to Director of Placemaking & Housing to agree the final terms of the Deed of Surrender; and
5. To give delegated authority to Director of Placemaking & Housing to agree the final terms of to the agreements; and
6. To give authority for up to three properties to be let ‘rent-free’ to residents who have no recourse to public funds or other issues restricting their income or eligibility, such as having pre-settled status as a European citizen.

Reasons for decision

Recommendations 2.1 (a), (b) (c) are recommended to ensure that the scheme complies with the GLA funding conditions. This will enable the Council to retain the £1,325,428 paid so far and claim the final payment of £441,809.

Recommendation 2.1 (d) & (e) are recommended to complete the lease.

Recommendation 2.1 (f) is recommended to provide accommodation to those who are unable to claim housing benefit until they address their immigration status.

Alternative options considered

The Council could leave the HCBS as landlord of the entire scheme

This proposal was rejected as this would mean that the Council would need to repay the Olive Morris Court grant already received and be unable to claim the remaining grant.

The Council could accept surrender of the lease for 16 units but not enter into a lease for the 16 units owned by the HCBS.

This proposal was rejected as this would mean that only half the GLA funding for Olive Morris Court would be available meaning the Council would need to repay half of the grant already received for Olive Morris Court and only receiving half of the second completion payment.