Agenda item

Report of Director of Regeneration and Planning

Lead Cabinet member: Councillor Ron Maskell

(Key decision):

(1) To agree that the Council makes a loan facility available of up to £10m on market terms to Lewes Housing Investment Company Ltd (LHICL) for the purpose of enabling the company to purchase residential accommodation for commercial purposes under a dedicated programme.

(2) To delegate authority to the Chief Finance Officer in consultation with the Lead Cabinet members for Housing and Finance to agree the whole scheme lending parameters (including overall programme(s), levels of development and individual loan tranches) for purchases by LHICL for the programme outlined at recommendation 1 of the report.

(3) To agree that the Council makes a loan facility available of up to £2.5m on market terms to Aspiration Homes LLP (AHLLP) for the purpose of enabling the company to purchase residential accommodation for affordable purposes under a dedicated programme.

(4) To delegate authority to the Chief Finance Officer, in consultation with the Lead Cabinet members for Housing and Finance to agree the whole scheme lending parameters (including overall programme(s), levels of development and individual loan tranches) for purchases by AHLLP for the programme outlined at recommendation 3 of the report.

(5) To authorise the Assistant Director for Legal and Democratic Services to ensure that a “Funding Agreement” pursuant to a “Deed of Entrustment” is entered into by AHLLP with the Council so that Right to Buy receipts are appropriated in accordance with legislative requirements and the retention agreement with Government in relation to “social housing”. To give delegated authority to the Director of Regeneration and Planning to determine the terms of such agreement(s).

(6) To note an increase in the planned pipeline of new build affordable housing acquisitions from private developers, as outlined in the April 2018 Cabinet Report entitled “Housing development update”.

(7) To approve as a Restricted Matter under the LLP Agreement, the making of a loan facility by Lewes District Council of up to £2.5m on market terms to Aspiration Homes LLP (AHLLP) for the purpose of enabling the company to purchase residential accommodation for affordable purposes under a dedicated programme.

The Cabinet considered the report of the Director of Regeneration and Planning, providing an update on the successful use of capital funds and sets out proposals for the Council’s established housing investment vehicles to allow those vehicles to purchase residential accommodation to assist the Council meet its strategic housing agenda and to note an increase in the pipeline of new build affordable housing acquisitions from private developers.

In response to a question from visiting member, Councillor Gardiner, Chair of Scrutiny Committee, the Director of Regeneration and Planning confirmed that rented accommodation purchased through Aspiration Homes would not be subject to “Right to Buy”.

(Note: Councillors Smith and Maskell declared a prejudicial interest in this item and withdrew from the room, along with visiting member Councillor Osborne, whilst the item was considered (see minute 44 above). Councillor Merry chaired the meeting for this item.

Resolved (Key decision):

(1) To agree that the Council makes a loan facility available of up to £10m on market terms to Lewes Housing Investment Company Ltd (LHICL) for the purpose of enabling the company to purchase residential accommodation for commercial purposes under a dedicated programme.

(2) To delegate authority to the Chief Finance Officer in consultation with the Lead Cabinet members for Housing and Finance to agree the whole scheme lending parameters (including overall programme(s), levels of development and individual loan tranches) for purchases by LHICL for the programme outlined at recommendation 1 of the report.

(3) To agree that the Council makes a loan facility available of up to £2.5m on market terms to Aspiration Homes LLP (AHLLP) for the purpose of enabling the company to purchase residential accommodation for affordable purposes under a dedicated programme.

(4) To delegate authority to the Chief Finance Officer, in consultation with the Lead Cabinet members for Housing and Finance to agree the whole scheme lending parameters (including overall programme(s), levels of development and individual loan tranches) for purchases by AHLLP for the programme outlined at recommendation 3 of the report.

(5) To authorise the Assistant Director for Legal and Democratic Services to ensure that a “Funding Agreement” pursuant to a “Deed of Entrustment” is entered into by AHLLP with the Council so that Right to Buy receipts are appropriated in accordance with legislative requirements and the retention agreement with Government in relation to “social housing”. To give delegated authority to the Director of Regeneration and Planning to determine the terms of such agreement(s).

(6) To note an increase in the planned pipeline of new build affordable housing acquisitions from private developers, as outlined in the April 2018 Cabinet Report entitled “Housing development update”.

(7) To approve as a Restricted Matter under the LLP Agreement, the making of a loan facility by Lewes District Council of up to £2.5m on market terms to Aspiration Homes LLP (AHLLP) for the purpose of enabling the company to purchase residential accommodation for affordable purposes under a dedicated programme.

Reasons for decisions:

(1) To provide residential accommodation to assist the Council meet its wider strategic housing agenda.

(2) To increase the variety, availability and accessibility of housing and home ownership.

(3) To generate additional income revenue streams to the Council through strategic property investment.

(4) For Aspiration Homes LLP to use Right to Buy receipts to fund new affordable housing the necessary legal agreements need to be in place to allow this and these must be used in accordance with the terms of our right to buy receipt retention agreement.

(5) To update on the successful use of approved funds and future capital requirements.