Agenda item

1. That the business case referred to in the report (noting the general approach previously approved by the Cabinet on 18^th April 2011), for the purposes of section 95 of the Local Government Act 2003, and the commencement of trading activities on the part of H&F Development Limited (HFD) and H&F Housing Limited (HFH) in accordance with the provisions of Section 95 of the Local Government Act 2003 be approved.

2. Subject to satisfactory outcome of consultation and equalities assessments that approval is given to develop new affordable housing on the sites specified in section 4 of the report, and to transfer on long leases at nil consideration the relevant sites to HFD and enter into agreement with HFD regarding the use of the land; where relevant, disposal being subject to the Secretary of State’s approval, or where the Secretary of State’s approval is not required, where the Cabinet is satisfied that the purpose of the disposal is likely to contribute to the promotion or improvement of economic, social or environmental well-being in respect of the whole or part of the Council’s area or of any people in the area, having regard to the Council’s community strategy.

3. That approval is given for expenditure of £2.7 million for the purposes of undertaking development of new affordable housing on the sites specified in section 4 of the report from the Decent Neighbourhoods Fund; and that approved funds be expended directly by the Council and as a loan to HFD at a commercial interest rate (loan amount to be determined based on detailed appraisal of the development sites to the maximum amount of £2.7 million), provided that:

(a) where such funding is pursuant to the Council’s powers under  section 2 of the Local Government Act 2000, the Cabinet is satisfied that the new build housing to be developed by HDF will assist in improving or promoting the environmental, social or economic well-being of the area, considering the objects and priorities contained in the Council’s community strategy and how the proposed  outcomes for the project fit in with that strategy, and

(b) where such funding is pursuant to section 24 of the Local Government Act 1988, the Secretary of State’s consent is obtained.

The loan is to be drawn down by HFD based on the approval of development appraisals for each site by the Executive Director of Housing and Regeneration and by the Deputy Director of Finance as part of the project governance structure.

4.That approval is given for £37k per annum funding for a half time development finance officer to be employed by the Council and recharged to HFD.

5.That approval is given to appoint solicitors Browne Jacobson and accountants Grant Thornton at a total cost of up to £30,000 for the Council to seek legal and tax advice in relation to disposal of the sites which will be funded from the Decent Neighbourhoods Fund.

6. That authority be delegated to the Cabinet Member for Housing in conjunction with the Executive Director of Housing & Regeneration to:

(a) Make any changes to the selected sites for the pilot phase following due consideration by them of the outcome of consultation and equalities assessment and detailed feasibility and financial appraisals.

(b) Appoint specialist consultants for additional services through a competitive procurement process to undertake due diligence work prior to transfer of land and approve the funding of these consultants from the Decent Neighbourhoods Fund.

(c) Consider and take into account the results of all such consultation and equalities assessments (reporting back to Cabinet only if they consider necessary).

7. That authority be delegated to the Cabinet Member for Housing, in conjunction with the Leader, the Executive Director of Housing & Regeneration, the Executive Director of Finance and Corporate Governance, and the Assistant Director (Legal and Democratic Services) to determine (prior to vesting of sites to HFD) the final legal and financial development structure (including any necessary documentation, either generally or for particular cases) and agree submission of applications for Secretary of State’s consent to transfer agreed sites into HFD at nil consideration.