Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: Yes
Salford City Council - Record of Decision
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.
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:
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.
Growth and Prosperity Scrutiny Panel
For Democratic Services use only
Publication date: 13/07/2021
Date of decision: 13/07/2021
Decided at meeting: 13/07/2021 - Cabinet
Effective from: 21/07/2021