Agenda and decisions

Salford City Council - Record of Decision

I, Councillor Kelly, Statutory Deputy City Mayor and Lead Member for Housing, in exercise of the powers contained within the Council Constitution, do hereby approve:

An exception to the Private Sector Housing Assistance Policy (PSHAP), as outlined in the report, to provide financial assistance to all qualifying applicants within the limits of the capital budget allocation until the 1^st January 2021.

The Reasons are: The pressing matter is for the Council to agree an “interim” solution to deal with new applications for loans made under the PSHAP that will allow the Council to continue to provide financial assistance to elderly and vulnerable residents to carry out home improvements which will allow them to remain living in their property safely.

Options considered and rejected were: To procure a new supplier of FCA regulated loan products without pause for review and consideration of current market demands. 

To stop providing financial assistance to older and vulnerable residents for home improvement works.

Assessment of Risk: Low

The source of funding is: Place, Home Improvement Capital Budget.

Legal Advice obtained: Kathryn Saldanha

The contractual arrangements between the Council and SUK have been longstanding and consumer credit legislation has evolved over this period so that most loans to individuals are now “regulated activities” that can only be carried out by FCA authorised bodies.  There are a limited number of Local Authority “exemptions” which enable Local Authorities to enter into certain forms of financial arrangements with individuals without requiring FCA Authorisation. Given the complexity of current consumer credit legislation and the FCA regulatory regime, the Council has sought specialist legal advice from DWF regarding its “historic” PSHAP Loans which have been entered into by SUK on behalf of the Council and new applications for PSHAP Loans which the Council has received since SUK exercised its right to terminate its contract with the Council in 19^th June 2020.  With regard to new applications for PSHAP Loans, the Council proposes that a change is made to the current PSHAP so that, in place of the “regulated Loans” that SUK offers, the Council will enter into repayable Grants in a form that complies with the relevant “LA” exemptions:

Financial Advice obtained: Natalie Birchall

The proposal to provide direct financial assistance in the form of a grant with conditions, will be funded from the approved Place, Home Improvement Agency capital programme.

The conditions would be that such assistance would be subject to a grant condition period of up to 20 years, during which time the grant would be required to be paid back to the council if the property had a change in ownership.

Procurement Advice obtained: Emma Heyes, Category Manager

There are no immediate procurement implications for this report for an exception to the change the PSHAP for the Council to provide direct financial assistance to residents, whilst future options are considered for a longer-term solution.

In due course the procurement team will  ...  view the full decision text for item 3a

Salford City Council - Record of Decision

I, Councillor Kelly, Statutory Deputy City Mayor and Lead Member for Housing, in exercise of the powers contained within the Council Constitution, do hereby approve:

THAT the Local Authority do not deem a care leaver as intentionally homeless.

The Reasons are:

The rationale for ending the practice comes from both anethical and practical standpoint.  As corporate parents, we should not be allowing care leavers to be without suitable accommodation at all (we know this would certainly not be the case if we were their real parents).  As mentioned above, being without a stable place to live can lead to a multitude of further problems.  From a practical point of view, the strain on the range of services supporting care leavers in these distressful situations is much greater (especially where they are placed in temporary accommodation outside Salford) and will often incur addition local authority expenditure in both the short and long term.  

By deeming care leavers as intentionally homeless, the Local Authority is failing in its statutory duties as corporate parents and restricting the opportunities for support being given to young people leaving care placements in our area - this is the advice provided by our Legal Team.

Options considered and rejected were: Not to take this action.

Assessment of Risk: No Risk

The source of funding is: Within Housing budget.

Legal Advice obtained: By deeming care leavers as intentionally homeless, the Local Authority is failing in its statutory duties as corporate parents and restricting the opportunities for support being given to young people leaving care placements in our area.

Financial Advice obtained: Not applicable.

Procurement Advice obtained: Not applicable.

HR Advice obtained: Not applicable.

Climate Change Advice obtained: Not applicable.

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

Report to the Statutory Deputy City Mayor and Lead Member for Housing

Contact Officer:        Phil Varghese/Jane Anderson                 

Telephone number: 607 1888// 607 1900

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

The appropriate scrutiny panel to call in the decision is the Growth & Prosperity Scrutiny Panel.

For Democratic Services use only

This decision was published on 29 June 2020.

This decision will come into force at 4.00 p.m. on 6 July 2020, unless it is called-in in accordance with the decision-making process rules.