{meta} Decision - Affordable Housing Programme - Housing Delivery: Approval of matters relating to Derive RP's application to the regulator for social housing and business plan

Decision details

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: Yes

Decision:

Salford City Council - Record of Decision

 

I, Paul Dennett, City Mayor , in exercise of the powers contained within the City Council Constitution do hereby:

 

1.    Approve the submission of a detailed application to the Regulator of Social Housing to register Derive RP as a Registered Provider and to delegate any further negotiations to the Interim Strategic Director of Place.

2.    Approve Derive RP’s Business Plan and the lending of £8.485M to Derive RP with the drafting of the legal agreements and any associated documentation delegated to the City Solicitor.

3.    Approve the disposal of the 104 properties across the three sites to Derive RP subject to Derive RP being registered as a Registered Provider.

4.    Approve the shareholders agreement setting out the relationship between the City Council (as shareholder) and the Derive companies.

5.    Approve the appointment of the 2 independent Board Members to the Derive RP Board.

6.    Approve the appointment of the third council member as a member of the Derive RP Board. 

 

The Reasons are: To enable Salford City Council to take direct action to increase the provision of affordable housing within the city. The setting up of a Derive RP within a 100% owned Derive housing group structure will enable the council to lead that programme of intervention and hold the properties moving forward.

 

Options considered and rejected were: Legal advice was sought on the different options available with the recommendation that a new corporate group structure to include a registered provider subsidiary was established.

 

Assessment of Risk: Low

 

The source of funding is: SCC capital and Homes England grant funding.

 

Legal Advice obtained: Peter Hassett – Shared Legal Services & Matthew Waters Bevan Brittan LLP

 

The power to appoint to external bodies is a function exercised by the Elected City Mayor.

 

The Council has the power to provide funding under a range of powers including s.1 Localism Act 2011 and s.24 Local Government Act and s.24 Local Government Act 1988 (1988 Act), the latter providing the power to provide financial assistance for privately let housing. S.25 1988 Act requires that s.24 1988 Act (or any similar power) is not exercised without the consent of Secretary of State. Consent C of the 2010 General Consents provides a broad consent for financial assistance which would cover the proposed loans.

 

Financial Advice obtained: Chris Mee – Strategic Finance Manager – SCC

 

The capital and revenue cost implications for Derive RP are set out within the Part 2 report. There is provision within the councils approved 2021/22 capital programme for the proposed loan to Derive of £8.485m

 

Procurement Advice obtained: Not applicable at this stage.

 

HR Advice obtained: Not applicable.

 

Climate Change Advice obtained: In consultation with Mike Hemingway – Principal Officer – Climate Change SCC

 

The intention is for the homes owned and managed by Derive RP to make a positive contribution to the city’s efforts in relation to climate change and the low carbon agenda.? The planned homes are being designed and built to achieve a low carbon/low energy standard, using a fabric first low carbon/low energy approach helping to support policy priorities at a city and GM level for all new builds and ensuring on-going low energy costs for residents.?

The procurement of contractors to date has also included reference to social value which allows contractors to consider positive environmental impacts.??

 

The following documents have been used to assist the decision process:

 

The relevant documents contain exempt or confidential information and are not available for public inspection.

Contact Officer:        Andrew Leigh                      

Telephone number: 0161 793 2155

 

(Please delete from the list below any which are not relevant.)

 

This decision is not subject to consideration by another Lead Member.

The appropriate scrutiny to call-in the decision is the

 

Growth and Prosperity Scrutiny Panel                

 

 

Signed:        Paul Dennett                                             Dated:     20.07.21                                               .

                        Paul Dennett  - City Mayor

 

For Democratic Services use only

 

This decision was published on                                              

This decision will come in force at 4.00 p.m. on 20.07.21                                                   unless it is called-in in accordance with the Decision Making Process Rules.

 

Publication date: 13/07/2021

Date of decision: 13/07/2021

Decided at meeting: 13/07/2021 - Cabinet

Effective from: 21/07/2021

Accompanying Documents: