Agenda and decisions

Minutes of the meeting held on the 8^th June 2021.

The officers consider that the following items contain exempt information as provided for in the Local Government Access to Information Act and that the public interest in maintaining the exemption outweighs the public interest in disclosing the information. Members are recommended to agree the necessary resolutions excluding the public from the meeting during consideration of this item. At the time this agenda is published no representations have been that this part of the meeting should be open to the public.

Report of the Interim Strategic Director (Place)

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  ...  view the full decision text for item 6.