Issue - items at meetings - Brighton & Hove Seaside Community Homes Ltd – funding options and consent

Joint report of the Director of Adult Social Care & Housing and the Director of Finance & Resources (copy attached).

(1)         That Cabinet notes the outcome of the recent discussions with officials at CLG and for the reasons set out in paragraph 3.12 approves the adoption of the general consents route as the basis for securing the benefits from the LDV.

(2)         That Cabinet notes the method for determining best consideration for the property leases.

(3)         That Cabinet notes the latest capital receipt projections and the reasons for the reduction since the September 2008 report as set out in paragraphs 3.18 to 3.21 and appendix 3.

(4)         That Cabinet approves the risk sharing matrix as set out in appendix 5 as the basis for a financial offer to the LDV.

(5)         That Cabinet approves additional resources of up to £0.2m temporarily funded from General Fund reserves as detailed in paragraph 3.25 needed to further develop and finalise the general consents route and to allocate an appropriate budget to the LDV Board to undertake relevant work to deliver the project including negotiating with funders.

(6)         That Cabinet notes that Cabinet and Full Council have already agreed that the Director of Adult Social Care & Housing be authorised, after consultation with the Cabinet Member for Housing, to take all steps necessary or incidental to the formation of the LDV and implementation of the proposals generally save as to decision on funding options.

(7)         That Cabinet authorises the Director of Adult Social Care & Housing to take all steps necessary or incidental to implement the proposals in this report.

(8)         That an offer be taken to the LDV Board within four weeks of this decision and that a letter be written to Board members for their meeting on 18 January confirming the timetable.

156.1                The Cabinet considered a joint report of the Director of Adult Social Care & Housing and the Director of Finance & Resources advising Members of the latest position and progress with regard to funding options and consents for Brighton & Hove Seaside Community Homes Ltd (the LDV) (for copy see minute book).

156.2                Councillor Caulfield reported that, following an informal meeting of the Housing Management Consultative Committee, tenants had given their support to the proposals within the report and requested that a timetable be attached, with financial remodelling to be completed within two weeks and an offer to be put to the LDV within four weeks. Tenants wished to go with the Leader of the Council and Opposition Spokesperson for Housing to meet with the Secretary of State to ask why the required consent had not been forthcoming. Tenants had also requested that Members set politics aside in dealing with the issue of tenants’ homes.

156.3                In response to queries from Councillor Hawkes about deferring the report until the financial modelling had been completed, the Chairman explained that the council had responded to all requests for information from the Secretary of State, including providing information during the party conference, however, as consents had not been forthcoming, the council was obliged to consider other options.

156.4                Councillor Randall agreed with the proposals in principle given that the council was not permitted to borrow against its assets. He raised concerns on behalf of the LDV Board about their disappointment at the length of negotiations with Communities and Local Government (CLG) and the increasing cost of consultants’ fees. He advised that the tenants and the Board needed a clear understanding of how the additional £200,000 would be spent and highlighted concerns over the ongoing use of Savills. He added that the success of the LDV was important to the whole city and that he hoped the council was successful in obtaining specific consents.

156.5                In response to a statement from Councillor Watkins reminding Members that the Liberal Democrat Group had not been included in discussions on the LDV and had therefore not expressed a view on the proposals, the Chairman stated that she welcomed the views of all political groups.

156.6                Councillor Caulfield confirmed that the only decision sought by the report was to authorise the additional £200,000 for financial remodelling. Tenants had already given their approval for the proposal, subject to putting a timetable in place.

156.7                In response to questions from opposition councillors, the Chairman stated that it was important for tenants to know that Members took the matter seriously and that misleading reports in the media were unhelpful. She agreed that it was important to keep the cost of consultants low, however, CLG and the Government Office for the South East (GOSE) continued to ask for further information and that this had pushed costs up.

156.8                Councillor Caulfield made a commitment to keep all Members informed of any progress and offered to provide information sessions on the remodelling and the offer to the LDV.

156.9                The Chairman confirmed that a further report would be considered by the Cabinet and explained that an additional recommendation had been added to the report to deal with the request made by tenants to include a timetable for action.

156.10            RESOLVED – That, having considered the information and the reasons set out in the report, the Cabinet accepted the following recommendations:

(1)         That the outcome of the recent discussions with officials at CLG be noted and, for  the reasons set out in paragraph 3.12, the adoption of the general consents route as the basis for securing the benefits from the LDV be approved.

(2)         That the method for determining best consideration for the property leases be noted.

(3)         That the latest capital receipt projections and the reasons for the reduction since the September 2008 report as set out in paragraphs 3.18 to 3.21 and appendix 3 be noted.

(4)         That the risk sharing matrix as set out in appendix 5 as the basis for a financial offer to the LDV be approved.

(5)         That additional resources of up to £0.2m temporarily funded from General Fund reserves as detailed in paragraph 3.25 be approved to further develop and finalise the general consents route and to allocate an appropriate budget to the LDV Board to undertake relevant work to deliver the project including negotiating with funders.

(6)         That it be noted  that Cabinet and Full Council had already agreed that the Director of Adult Social Care & Housing be authorised, after consultation with the Cabinet Member for Housing, to take all steps necessary or incidental to the formation of the LDV and implementation of the proposals generally save as to decision on funding options.

(7)         That the Director of Adult Social Care & Housing be authorised to take all steps necessary or incidental to implement the proposals in this report.

(8)         That an offer be taken to the LDV Board within four weeks of this decision and that a letter be written to Board members for their meeting on 18 January confirming the timetable.