Decision details

Cllr Cartwright questioned how the Council would be addressing the issues raised in the report, arguing that it showed that the Council had been incompetent. The Leader responded by explaining that the current administration had inherited a flawed arrangement with the ALMO (Arm’s Length Management Organisation) and that there had been manifest incompetence in the management of the scheme, including financial. The Council had not abdicated its responsibilities and had taken back control of the scheme at the first opportunity and took measures to address a building project that was severely over-budget and running behind schedule. It was also noted that the Council would now be keeping the asset and receiving a rental income from it.

RESOLVED –

That the Cabinet agree

i)                    That the rooftop apartments are retained by the Council within the HRA and let at discount market rent (80% of market rent), estimated to be in the region of £243,288 per annum (based on £1,646 per month for each of six 735 sq ft 2 bed flats and £1,733 per month for each of six 1,044 sq ft 2 bed flats). This equates to a Net Present Value (net of management costs) over 30 years of £ 2,936,871.

ii)                  That the letting of the rooftop apartments be carried out by the Home Buy Team initially to applicants on the Home Buy register on a 2-year fixed-term tenancy, and that the management be carried out by the in-house Housing Management service.