Statutory Deputy City Mayor
Salford City Council - Record of Decision (Cabinet)
1. Note the summary of the external legal advice (“the Report”) set out in this report.
2. Note the steps for implementation set out in Schedule 4 of the Report.
3. Note that the report provides proposals as to the creation of a legal structure and focuses on a proposed legal structure for the delivery of the Council’s housing delivery model. It does not consider the financial elements of individual developments or purchase proposals or the financial viability or sustainability of the proposed structure/delivery model and consider whether it is appropriate to implement the proposed model until the financial viability of proposals to bring properties within that structure are proven.
4. Approve, subject to consideration of the point raised in 3
(a) the principle of the establishment of a new corporate group structure (“the Group”), to be wholly owned and directed by the Council as detailed in the report and
(b) as a priority work to bring forward an application for registration of a subsidiary Registered Provider.
5. Note the further key decisions which will be required as part of implementation of the proposed new corporate structure.
(a) confirmation of viability and funding approach for each development/purchase scheme proposal
(b) Specifics of the initial 101 and 3 site schemes, including structure and transfer to Derive Group (discussed in outline in the Report)
(c) Agreement on the detail of the governance arrangements for the Group.
6. Note the indicative costs set out by Bevan Brittan in Schedule 4, with final costs proposals to be negotiated and agreed if approval to the principle of the Group is given.
The proposals outlined in this report form part of my commitment to tackle the affordable homes crisis that we have in the City and the desperate need to deliver significant numbers of additional affordable housing for Salford people. The implementation of the proposed new Derive structure and initially the Derive Registered Provider (RP) element of it, is critical to the Council’s proposals to deliver, hold and manage more affordable housing across the City. The establishment of Derive RP will take around 12 months with any delay having implications for the delivery of new affordable homes.
Whilst Derive is already committed to the delivery of around 150 affordable properties, the City Council is looking at the direct delivery of an additional 400 properties that are scheduled on site in 2021. The ambition remains to deliver a far higher number of affordable properties over the next 5-10 years.
Officers are looking at all potential opportunities to deliver on this ambition and individual proposals will be considered over the coming months.
Assessment of Risk: Low
Legal Advice obtained: Yes
Financial Advice obtained: Yes
HR Advice obtained: N/A
Climate Change Advice obtained: N/A
The following documents have been used to assist the decision process:
the documents disclose exempt or confidential information, they
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and are not available for public inspection)”: -
Telephone number: 07766 550136
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