32 Supported Housing Lease Agreements
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Report of Councillor N Barker, Leader of the Council and Portfolio Holder for Strategic Leadership and Finance
Decision:
RESOLVED that:
1. Cabinet noted and agreed to the intended use of the properties highlighted in this report.
2. Cabinet agreed for the properties to be leased under a full repairing and insuring arrangement, and at a peppercorn rent / lease charge.
REASONS FOR DECISION
To increase the amount of good quality supported housing in the district, exclusively to fulfil the needs of the Councils Housing Options service.
To fulfil the Councils housing strategy objectives in delivering supported housing and increasing the quality of housing in the district
To re purpose valuable Council social assets for the benefit of residents.
To further the Councils commitment to reduce the use of hotels for people at risk of or experiencing homelessness.
OTHER OPTIONS CONSIDERED AND REJECTED
Not to proceed would create a strategic weakness for the Council. Having no direct access supported housing is not sustainable in the short or long term.
Properties could be leased via the private sector. This is more costly. Using our own housing stock reduces costs, and allows us to regenerate homes, rather than losing them to the private market.
Not to charge peppercorn rent / lease charges. To not enter into this agreement would mean the Council and Rykneld Homes LTD having to carry out repairs and maintenance. This would create a resource burden. Therefore, the proposed arrangement necessary.
This was not a Key Decision and so can be implemented with immediate effect by officers.
Minutes:
Cabinet received a report which sought approval on the future use of The Spinner (formerly Arkam House), and two long term void properties, 167 Market Street, Clay Cross, and 60 John Street, Clay Cross.
The report explained that the properties would be leased to P3 under a full repairing and insuring lease (FRI) agreement at £nil consideration (a peppercorn rent). Approval was therefore required to facilitate the necessary pre-lease agreements whilst renovation works were on-going, and to agree for the properties to be leased at a peppercorn rent.
The report suggested that the granting of the leases at £nil consideration (peppercorn rent) would facilitate the delivery of this service through P3 Charity. In addition, the cost savings to the Council in terms of reduced need for temporary accommodation, emergency hotel placements, and failed tenancies, where people were not ready for independent living, would far out way lost rental income.
Cabinet considered the report. The existing support contract with P3 Charity was discussed.
RESOLVED that:
1. Cabinet noted and agreed to the intended use of the properties highlighted in this report.
2. Cabinet agreed for the properties to be leased under a full repairing and insuring arrangement, and at a peppercorn rent / lease charge.
REASONS FOR DECISION
To increase the amount of good quality supported housing in the district, exclusively to fulfil the needs of the Councils Housing Options service.
To fulfil the Councils housing strategy objectives in delivering supported housing and increasing the quality of housing in the district
To re purpose valuable Council social assets for the benefit of residents.
To further the Councils commitment to reduce the use of hotels for people at risk of or experiencing homelessness.
OTHER OPTIONS CONSIDERED AND REJECTED
Not to proceed would create a strategic weakness for the Council. Having no direct access supported housing is not sustainable in the short or long term.
Properties could be leased via the private sector. This is more costly. Using our own housing stock reduces costs, and allows us to regenerate homes, rather than losing them to the private market.
Not to charge peppercorn rent / lease charges. To not enter into this agreement would mean the Council and Rykneld Homes LTD having to carry out repairs and maintenance. This would create a resource burden. Therefore, the proposed arrangement necessary.
This was not a Key Decision and so can be implemented with immediate effect by officers.