Agenda item

To consider the report of the Cabinet Member for Finance & Assets

RESOLVED

(i)      To approve the acquisition by Horsham District Council of up to 16 properties using the funds earmarked for this initiative and to give effect to the same provided that any such acquisitions are undertaken in consultation with the Cabinet Member for Housing & Communities and the Cabinet Member for Finance & Assets.

RECOMMENDED TO COUNCIL

(ii)      The variation of the Shareholders Agreement for Horsham District Homes (Holdings) Limited as follows:

Clause 3. Insert the words “and/or to lease residential property from the Council or other third parties both” following the words ..”and other developers” and before the words “for onward rental through” so that the business of the company reads as follows,

          “The business of the Company (Business) shall be to purchase developed properties from Holdco and other developers and/or to lease residential property from the Council or other third parties both for onward rental through ASTs in accordance with any business plan then in force or as otherwise determined by the Council from time to time”.

          Reserved Matters clause 17. Insert the words …"For the avoidance of doubt (i) material assets shall be assets of a value in excess of £250,000, and, (ii) lease arrangements between the Company and the Council/other third parties to facilitate the provision of housing shall not constitute a reserved matter.”

so that the reserved matter reads as follows, “Agreeing to enter into or entering into any acquisition or disposal of any material assets by the company. For the avoidance of doubt, (i) material assets shall be assets of a value in excess of £250,000, and, (ii) lease arrangements between the Company and the Council/other third parties to facilitate the provision of housing shall not constitute a reserved matter.”

REASON

(i)      To ensure that suitable homes are acquired by Horsham District Council in an efficient and timely manner to give effect to this initiative.

(ii)      To avoid the requirement to seek Cabinet’s approval for the purchase by Horsham District Council of each individual property that would otherwise be required to give effect to this initiative.

(iii)     To ensure that Horsham District Homes (Holdings) Limited has the power to take a lease from Horsham District Council to be able to facilitate the provision of housing through Assured Shorthold Tenancies/Licences.

Councillor Paul Clarke, Cabinet Member for Finance & Assets, reminded Members that Council had approved a Cabinet recommendation to apply for a grant allocation from the Government’s scheme for local authorities to provide accommodation for those fleeing conflict in Ukraine and Afghanistan. Council had approved a capital spend to provide 16 homes by the deadline of 30 November 2023 (Minute No. CO/62 (22.02.23) refers). 

The Cabinet Member confirmed the capital spend was up to £5.866m rather than the sum printed in error in the executive summary of the Cabinet report.

To facilitate speedy acquisition and efficient management of the properties, a variation of the Shareholders Agreement for the Council’s affordable housing company, Horsham District Homes (Holdings) Limited, was recommended. 

Councillor Tony Hogben proposed, and it was unanimously agreed by Cabinet, that recommendation (i) should also be in consultation with the Cabinet Member for Finance & Assets.

RESOLVED

(i)     To approve the acquisition by Horsham District Council of up to 16 properties using the funds earmarked for this initiative and to give effect to the same provided that any such acquisitions are undertaken in consultation with the Cabinet Member for Housing & Communities and the Cabinet Member for Finance & Assets.

RECOMMENDED TO COUNCIL

(ii)    The variation of the Shareholders Agreement for Horsham District Homes (Holdings) Limited as follows:

Clause 3. Insert the words “and/or to lease residential property from the Council or other third parties both” following the words ..”and other developers” and before the words “for onward rental through” so that the business of the company reads as follows,

          “The business of the Company (Business) shall be to purchase developed properties from Holdco and other developers and/or to lease residential property from the Council or other third parties both for onward rental through ASTs in accordance with any business plan then in force or as otherwise determined by the Council from time to time”.

          Reserved Matters clause 17. Insert the words …"For the avoidance of doubt (i) material assets shall be assets of a value in excess of £250,000, and, (ii) lease arrangements between the Company and the Council/other third parties to facilitate the provision of housing shall not constitute a reserved matter.”

so that the reserved matter reads as follows, “Agreeing to enter into or entering into any acquisition or disposal of any material assets by the company. For the avoidance of doubt, (i) material assets shall be assets of a value in excess of £250,000, and, (ii) lease arrangements between the Company and the Council/other third parties to facilitate the provision of housing shall not constitute a reserved matter.”

REASON

(i)     To ensure that suitable homes are acquired by Horsham District Council in an efficient and timely manner to give effect to this initiative.

(ii)    To avoid the requirement to seek Cabinet’s approval for the purchase by Horsham District Council of each individual property that would otherwise be required to give effect to this initiative.

(iii)   To ensure that Horsham District Homes (Holdings) Limited has the power to take a lease from Horsham District Council to be able to facilitate the provision of housing through Assured Shorthold Tenancies/Licences