Agenda item

Councillor Cowan welcomed the Chair of the Residents’ Commission, RT. Hon Keith Hill and the Commission’s members, residents and officers to the meeting.  He asked Councillor Lisa Homan, the Cabinet Member for Housing, to introduce the report.

 

Councillor Homan stated that the Administration’s Manifesto commitment was to protect council house residents’ homes from demolition and improving services.  The Administration had promised to take immediate measures to protect council homes now and in the future and work with council housing residents to give them ownership of the land their homes are on.  The setting up of the Commission was the 1^st step on this journey.  The 2^nd step was to agree the Cabinet report before the committee.  The approval will alleviate the fear of home sale by politicians and find a way of resolving the previous administration’s ruthless policy of selling off houses.  Residents will become architects of their own destiny. 

 

Since the Commission had embarked upon its work, the national scene had changed with councils being in a worst position to deliver new and maintain its current housing stock. That would not discourage the Administration from progressing this land breaking vision.  She thanked, on behalf of the Cabinet, the members of the Residents’ Commission and the officers who had supported the process.  She also noted that another piece of work “Improving Housing Services” which was produced by the Commission will be considered later in the meeting.

 

The Chair, RT. Hon Keith Hill, stated that in line with the administration’s commitment to work with council housing residents to give them ownership of the land their homes are on, the commission was set up.  He highlighted the following key issues:

 

·               The bold and radical nature of the recommendations to proceed with a stock transfer,

·               Setting up a resident owned and run independent housing association,

·               Changes in central government policy since the commission commenced its work,

·               Changing the ownership structure was the only way of maintaining the  level of investment in council housing stock,

·               A comprehensive stock appraisal report was produced as part of the work,

·               The Commission undertook its deliberations in the full glare of publicity and reported back within a record 6 months.

 

He thanked the Commissioners for their commitment and dedication to the Commission’s work.

 

Lorna Wynter (Vice Chair) noted that there were robust processes in place which looked thoroughly at all the options affecting both tenants and leaseholders.  She acknowledged the support of the housing officers and independent professionals who assisted them to look at the housing options, financial appraisals and the best possible options available.  All the members had endorsed the report’s recommendations.

 

On a personal note, John Ghazi Quick (Vice Chair), found the whole process like going through University with the commissioners as tutors who had lived and breathed housing.  It was immensely intense but a beneficial journey.  It was a rewarding opportunity to sit on the commission. He noted that the interview process was rigorous. The report he said was detailed covering every possible area.  The recommendations are forward looking with generational impact.  There are no limits restricting a housing association activities but the council was limited in its reach and ideas.  He was of the view that council housing residents will be supporting the proposals.

 

The Leader thanked the speakers for their contributions and opened the floor to a question and answer session.  The following issues were raised:-

 

·               Concerns were raised about where sheltered housing would sit due to the specialised nature of services provided to its clients.

·               An explanation on how housing services will be improved was requested.

·               How will the borrowing requirements be met?

·               Had the Hammersmith and Fulham Member of Parliament been engaged in the conversations?

·               How would special needs and disability housing be provided in the future?

 

In response, Councillor Homan acknowledged that sheltered housing required specialised services and support. The Council was working with Adult Social Care to improve services. If the transfer goes ahead, the links will be transferred over and better services will be provided.  Regarding improvements, the commission had produced a blueprint for improving services.  A report will be considered later in the evening on this issue.  Councillor Schmid noted that conversations with the Department of Communities and Local Government (DCLG) will commence to persuade them to write off the existing debt.  This was in line with the Government’s devolution policy.

 

The Leader noted that Mr Andy Slaughter MP was aware of the proposals.  He strongly supports the proposal and believes that every tenant deserves the right to run their own home.  The proposals are line with government policy.  Councillor Homan said that special housing needs and disability housing services would operate in the same way.  There will be a standard nomination agreement between the council and the housing association.  The Council will be able to determine the client groups.

Councillor Phibbs also asked some questions.  A summary of the issues are:-

·               Seeking confirmation if the stock transfer would go ahead where the majority of the leaseholders were opposed to the scheme in a ballot.

·               Where will the estate redevelopments take place within the Borough?

·               Seeking assurances that under the community gateway nobody would lose out if redevelopment takes place and redevelopment could be blocked by leaseholders.

·               Whether motions by individual estates could stop estate redevelopments?

 

Councillor Homan informed the meeting that the government’s guideline require the council to seek approval of the proposal by a ballot of tenants.  The legislation required the leaseholders to be consulted upon any proposals.  Councillor Cowan stated that the council will:

·               take the most democratic approach regarding consultation of tenants. 

·               go further than the government legislation.

·               not differentiate between tenants and leaseholder.

·               seek a ballot of all residents living on the estates as a constituent group.

·               consider a report at a Policy and Accountability Committee meeting outlining options for a ballot.

 

Regarding estate development, Councillor Cowan noted that the Council would not repeat the previous administration’s error of forcing residents out of their homes and estates.  The new organisation will decide estate redevelopment proposals in consultation with the tenants and leaseholders.  The governance structure will safeguard the tenants’ interest by putting residents in charge of the redevelopment of the communities they live in.   There will be checks and balances in place to stop any group of people imposing undemocratic proposals.

 

Some residents in the audience expressed their anger that a member of the opposition was being divisive. They noted that the report was written and produced with the consensus of the tenants and leaseholders on the commission.  Many difficult questions had been asked.  The recommendations would not have been supported if all the voices had not been consulted and heard.  This was not about tenants vs leaseholder.

 

The Leaders invited another round of questions.  The following questions were asked:-

 

·         will residents be allowed to monitor the ballot?

·         what will happen to the bed sitters in sheltered accommodation?

·         Would a ballot of leaseholder take place?

 

Councillor Homan noted that the residents would be invited to monitor the ballot. The commissioners will be invited to continue to work with the council on this. She understood the concerns of the residents of Underwood House. There were no plans on the agenda for it to be part of this arrangement.  The Leader reiterated his previous response that the Council would go further than the government legislation and a report would be considered by a Policy and Accountability Committee outlining options for a ballot.

 

Councillor Phibbs asked another set of questions:-

 

·         £1.25 million had been spend to date and the Council was earmarking an extra 1.25 million. What was the extra money for?

·         Would the Chancellor write off the council’s housing debt?

·         Are there commercial lender who would be prepared to finance this new arrangement?

·         What guarantees would there be to control rent increases?

 

Councillor Homan was delighted to note that there was an underspend in the previous budget.  The next tranche of funds would be released in phases.  Both Durham and Gloucester councils had their debts written off.  The Council will work with the government to also achieve this.  Housing associations must be financially prudent and have the ability to repay money borrowed from the money market.  The government had recently imposed a 1% rent decrease on councils.  Residents will be the masters of their own destiny in determining rent levels.

 

The Leader thanked the Chair and the Commission members for producing the report and contributing to civic life.  He stated that the council will work with the government to ensure that the debt was written off as part of the process. Going forward, the current status quo was not a sustainable option.  Residents will be faced with a choose; a democratic ballot.  The council will work out how it can work beyond the government’s legislation to provide a ballot for all.  Unless a majority backs the proposals, it would not go ahead. 

 

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 the Cabinet 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.