Issue - meetings

Issue - meetings

Housing Development Company

Meeting: 31/01/2019 - CORPORATE RESOURCES OVERVIEW & SCRUTINY COMMITTEE (Item 75)

75 Housing Development Company pdf icon PDF 51 KB

 

To consider and comment on the report that sets out the rationale for the creation of a wholly owned Housing Company as part of a proactive approach to increase and influence the supply of new homes in Central Bedfordshire and  help to address the shortfall.

 

Additional documents:

Minutes:

 

The Executive Member for Assets and Housing Delivery introduced the Housing Development Company report that set out proposals and rationale for a Central Bedfordshire Housing Development Company.   The proposals would enable the Council to influence and provide a supply of new affordable homes for residents of all age groups.

 

The advantages and disadvantages of all options had been outlined and legal advice had been sought as to the most appropriate model.   The preferred option was the wholly owned company proposal that required separate governance arrangements and a ten year  business plan.  Consideration of new housing development sites would be considered through the normal planning processes. 

 

The Director of Community Services advised it was expected to take approximately nine months to create the Company.

 

The Committee welcomed the report and discussed the following:-

·         The Committee favoured the wholly owned company and the governance model option that would provide limited conflicts of interest for the Director of Resources and Director of Community Services amongst others.

·         Sought assurances from the Director of Resources that the set-up fund was adequate.  In response it was regarded as an appropriate amount to start up the Company and pay for initial legal fees and salaries.  Permission and funding for construction costs and site development would be considered at the appropriate time.

·         Whether the Right to Buy scheme rules would be applied to the properties that were constructed.  In response the Director of Community Services advised this would depend on the schemes brought forward.

 

RECOMMENDED

 

1.    That the Committee welcomed and endorsed the recommendations to Executive for the creation of a housing company wholly owned by the Council.

2.    That the Committee endorsed the proposed governance arrangements and delegated authorities.

3.    That the Committee endorsed the proposal that £250,000 be loaned to the Housing Company by the Council by way of a set-up fund.

4.    That the Committee receive an update in six month on the progress to establish the Housing Development Company.