Decision details

Recommendation Of The Residents' Commission On Council Housing And Outcome Of The Strategic Housing Stock Options Appraisal

Decision Maker: Cabinet

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: No

Purpose:

Report to consider the recommendations of the Residents' Commission on Council Housing which was established to consider the best options for the future of social housing in the Borough.

Decision:

That Cabinet:

 

The Stock Options Appraisal and Report of the Residents’ Commission

 

1.1         Thank the Residents’ Commission on Council Housing (“The Residents’ Commission”) for its report and the time, effort and expertise that has gone into its production.

1.2         Note the outcome of the Stock Options Appraisal and the officer comments on it.

1.3         Accept in full the recommendations of the Residents’ Commission as to the:

·         Future ownership of the council’s housing stock;

·         Means of increasing resident control over  the ownership and management of council homes;

·         Improvement of services to tenants and leaseholders

1.4         In the light of the Stock Options Appraisal and the report of the Residents’ Commission, resolve to formally pursue the transfer of the Council’s housing stock to a resident-led Registered Provider which is constituted on the Community Gateway model.

1.5         Note the benefits to residents and the Council arising from the work of the Residents’ Commission and the Strategic Housing Stock Options Appraisal and in particular the new Stock Condition Survey, the updating of the Housing Revenue Account Business Plan, and the significant improvement in the breadth and quality of resident involvement in on the development of services to tenants and leaseholders.

1.6         Note that the implementation of a stock transfer would be subject to consultation and a ballot of residents, the availability of funding and the negotiation of a satisfactory financial settlement, including on the overhanging debt, the consent of the Secretary of State, and a further decision by the Council itself to proceed.

 

Application for Stock Transfer

 

1.7         Authorise the Chief Executive, in consultation with the Cabinet Member for Housing, formally to apply to Communities and Local Government (DCLG) and the Greater London Authority (GLA) for approval to commence the preparation for a Large Scale Voluntary Transfer (LSVT) of the Council’s housing stock.

1.8         Delegate to the Chief Executive the authority to hold discussions with DCLG and GLA in pursuance of the transfer proposal.

 

Transforming Services and Increasing Resident Control

 

1.9         Note that the Lead Directors for Housing are initiating a customer service improvement programme based on the Blueprint proposed by the Residents’ Commission for the Housing Service and centred on the requirements of customers and increasing resident control over housing services. This programme will be developed in full consultation with residents and is the subject of another report on this Cabinet agenda (Transforming the customer experience of the Housing Service).

 

New Structures for the Future of Housing

 

1.10      Delegate to the Chief Executive, in consultation with the Cabinet Member for Housing, the authority to create a new organisation constituted as proposed by The Residents’ Commission capable, subject to the agreement of tenants in a ballot, of receiving the transfer of the Council’s housing stock.

1.11      Invite members of the Residents’ Commission who wish to do so to form an Advisory Group to advise on the implementation and planning of Recommendation 2.10 above.

 

Community Benefits, Corporate and Financial Implications

 

1.12      Note the impact of the Chancellor’s announcements in the July 2015 Summer Budget on the HRA Business Plan (and of the Housing Bill and the outcome of the Comprehensive Spending Review.

1.13      Note that there will be a corporate impact of a stock transfer; including an impact on the General Fund should it proceed and instruct Officers to report further on this in the report to the Cabinet Member for Housing in March 2016.

1.14      Note the potential implications for Council staff should a stock transfer proceed.

1.15      Agree an additional budget of £372,000 from the General Fund and £80,000 from the Housing Revenue Account which can be funded from underspends in the Housing Revenue Account and the carry forward of the predicted £245,000 underspend from the Residents’ Commission budget for the initial work to develop the business case and the Offer for implementation of the proposals set out in this report for the pursuit of a Large Scale Voluntary Transfer and for a service transformation programme which will fund the programme until March 2016 at which point progress will be reviewed and formally reported to the Cabinet Member for Housing.

1.16      Delegate authority to the Cabinet Member for Housing to release a further £778,000 from the General Fund and £125,000 from the Housing Revenue Account to progress beyond the business case to finalise and seek DCLG/HCA consent to a detailed Offer during financial year 2016/17.

1.17      Delegate authority to theCabinet Member for Housing to release up to £500,000 further funding from the General Fund in the event of any significant delays in decision making by the Department for Communities and Local Government.

1.18      Delegate authority to the Lead Directors for Housing in consultation with the Cabinet Member for Housing to exercise the option to extend the term of the following five contracts:

a)            external Independent Tenants’ and Leaseholders’ Adviser, let to TPAS UK Ltd, to allow for further advice and independent support for tenants and leaseholders in the lead up to a ballot of residents.

b)            external legal advice, let to Trowers & Hamlins LLP, to allow for further advice in developing the Business Case to be submitted to DCLG and the Offer Document in the lead up to a ballot of residents.

c)            external property and surveying advice, let to Savills (UK) Ltd, to allow for further advice on the stock condition survey and specialist structural surveys, environmental surveys, periodic updates throughout the programme as required, rights to the data and analysis be available/assigned to any new organisation(s) and their advisers in the lead up to a ballot of residents.

d)            external financial advice, let to Capita Property and Infrastructure Ltd, to allow for further advice in developing the Business Case to be submitted to DCLG and the Offer Document in the lead up to a ballot of residents.

e)            external Communications and Consultation Adviser, let to SKV Communications Ltd, to allow for further advice in developing the Business Case to be submitted to DCLG and the Offer Document in the lead up to a ballot of residents.

1.19      Delegate authority to the Lead Directors for Housing in consultation with the Cabinet Member for Housing to procure as appropriate and award contracts for the provision of external advice required to progress the programme up to and including a ballot of residents.

 

Report author: Charles Hyde

Publication date: 09/12/2015

Date of decision: 07/12/2015

Decided at meeting: 07/12/2015 - Cabinet

Accompanying Documents: