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 extension to the 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 July 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. This 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.

Due to COVID the service has not be able to progress work at the pace originally anticipated. By extending the exception period the service will be able to undertake all necessary checks and balances as required.

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: Commercial Team

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: Kathryn Saldanha

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, Tel. 0161  ...  view the full decision text for item 3a