Issue - meetings

Issue - meetings

OCHL - Strategic direction for Housing Group (incl Registered Provider status)

Meeting: 25/09/2019 - Shareholder and Joint Venture Group (Item 5)

The future strategic direction of the Council's Group of Housing Companies (draft Business Plan) [Private]

Purpose of report: to introduce the first draft of both the OCHL Strategic Plan and 10 year indicative Business Plan and to seek shareholder endorsement.  At this stage the draft Business Plan is provided within the Strategic Plan, to establish an indicative ‘envelope’ within which the OCHL Group may progress to the detailed Business Plan for the Shareholder on 19 November 2019.

 

Recommendations: the Shareholder and Joint Venture Group is asked to:

1.  Review and endorse the first draft of both the OCHL Strategic Plan and indicative Business Plan at Appendix 1.

2.  Consider the specific points raised in the report, to inform the progress of the Strategic Plan and detailed Business Plan for the Shareholder meeting on 19 November 2019.

 

The report and appendices are private as they include matters considered to be commercially sensitive and relating to the finance or business affairs of the Council, the company, and other third-parties.

 

Additional documents:

  • Restricted enclosure 2

Minutes:

The Group considered a report introducing the first draft of both the OCHL Strategic Plan and 10 year indicative Business Plan and seeking shareholder endorsement before presentation of the detailed Business Plan for the Shareholder on 19 November 2019.

 

The Shareholder and Joint Venture Group agreed to endorse the first draft of both the OCHL Strategic Plan and indicative Business Plan at Appendix 1 to the report, subject to their comments.

 


Meeting: 19/09/2019 - Companies Scrutiny Panel (Item 4)

4 Reports from the Council's Group of Housing Companies [Part private]

Minutes:

Councillor Simmons arrived at the commencement of this item.

 

The Interim Managing Director of OCHL introduced a report on the activity of OCHL, particularly focusing on the strategic direction of OCHL, draft business plan, and project delivery.

 

Within OCHL the structure of the company was explained to the Panel as comprising the Investment Company, whose primary role was in regards to the purchase of properties on behalf of the Council on the Barton Park development, whilst the Development Company’s purpose was the building of social housing for the purpose of purchase by the Council.

 

The decision by central government to relax significantly the borrowing cap on councils for the building of social housing was identified as the key driver in enabling sufficient scale to deliver the Councils ambitions for OCHL. A ten year draft strategic plan and business plan had been developed to chart how OCHL intended to realise the opportunity afforded to it.

 

Following the presentation of the report the Panel sought further clarification regarding ensuring a developable land supply, the degree to which OCHL’s strategic plan accorded with the Council’s own strategic priorities, mitigation against Brexit risks, auditing arrangements, the commercial relationship with other Council-owned companies and the rate of progress  made to date.

 

Strong challenge by the Panel was made in relation to the 70% carbon reduction housing designs in light of the Council’s April motion to become carbon neutral by 2030 at the latest. The Panel were reminded of the constraints under which the Company operated in needing to make a commercial return on challenging site whilst maintaining a 50% level affordable housing in developments.

 

The Panel welcomed the progress made at Rose Hill, Elsfield Cumberlege and Between Towns Road but questioned the speed of progress. It was recognised by the Company that there had been delays, which was largely down to the challenges of developing within a medieval city. It was also suggested that the performance of delivery should be judged against the fact that the company had been working from a standing start, whilst it now had a pipeline of work for delivery and had momentum behind it.

 

Mr Richard Connolly, Mr Alan Wylde and Mr David Watt left the meeting at this point.


Meeting: 30/05/2019 - Shareholder (Item 29)

29 The future strategic direction of the Council's Group of Housing Companies pdf icon PDF 278 KB

 

To consider and approve changes to the arrangements between the Council’s Group of Housing companies and the Council’s Housing Revenue Account for the delivery of affordable housing in response to recent government policy changes and to agree to a review of future Housing Group development with a view to expanding activity and accelerating affordable housing delivery.

 

Recommendation(s):

1.       The Shareholder is asked to approve the change in company policy as recommended in paragraph 8.

2.       The Shareholder is asked to agree the objectives of the review of the future role of OCHL group of companies as detailed at paragraph 10 of the report.

3.       The Shareholder is asked to agree the revised Oxford City Housing Limited business plan as detailed at Appendix 1.

Minutes:

Discussed in private session.

 


Meeting: 28/05/2019 - Companies Scrutiny Panel (Item 62)

62 The future strategic direction of the Council's Group of Housing Companies pdf icon PDF 278 KB

The Panel is invited to consider the report on “The future strategic direction of the Council's Group of Housing Companies” and to identify any recommendations for the Shareholder meeting on 30 May 2019.

Minutes:

Stephen Clarke, Oxford City Housing Limited (OCHL) Company Director and Board Chair, explained that the Council agreed to set up a group of housing companies to be wholly owned by the Council with the aim of building and owning social housing in 2016. This was in response to changes in Government policy; namely the introduction of four years of rent reductions and a high value asset levy, which taken together severely restricted the Council’s ability to continue with its council house building programme funded from the Housing Revenue Account (HRA).

 

More recent government policy changes had however removed restrictions on the Council’s ability to borrow within the HRA. This necessitated a review of the approach previously adopted by the Council and OCHL with respect to affordable housing delivery and subsequent on-going management. A six month review of the Company’s operations was being undertaken to feed into the 2020/21 budget setting process. There may be opportunity to look at new housing products in the future, for example, such as rent to buy or the affordable private rented sector.

 

Councillors noted the ambitious projected completion dates for the development sites set out in the report, but heard that successful contractor appointments had already been made on early sites. Penalties for late completion owing to contractor delays were in place. Councillors commented that it was important for the credibility of OCHL that the completion dates for projects that already had planning permission were met and that the timetables for other projects seeking planning permission were realistic. Stephen Clarke said that delays were however possible as OCHL tended to take on sites that were more complicated in nature than most open market sites. It was clarified that alternative tenure such as assured shorthold tenancies could only be undertaken through OCHL and not the HRA.

 

As a result of the lifting of the HRA cap, it was proposed that the HRA would now take on more housing stock through sales from OCHL, in turn increasing capital receipts for OCHL. The change in the delivery model would mean that financial benefits to the Council were realised much sooner than they would otherwise be received through long term repayments. This was summarised as moving from a revenue to a capital model of repayment. In response to detailed questioning, it was explained that the overall risk to the Council through the new approach would not change, and the principal risk and liability remained with OCHL. A key risk, for example, was the future availability of a pipeline of schemes for development.

 

The Panel agreed that there could be greater clarity about how the new, and previous, approach to property acquisitions and sales had changed the overall budget sheet for the Council. The Chair remarked that greater clarity could be given around the phasing of payments and dividends between OCHL and the Council, and how the early sale of properties to the Council leads to more favourable returns to OCHL. A table format of projected payments would be useful  ...  view the full minutes text for item 62


Meeting: 28/05/2019 - Companies Scrutiny Panel (Item 63)

Confidential appendices - The future strategic direction of the Council's Group of Housing Companies

The Panel is invited to consider the confidential appendices to the report on “The future strategic direction of the Council's Group of Housing Companies” and to identify any recommendations for the Shareholder meeting on 30 May 2019.

 

Additional documents:

Minutes:

Two appendices to the report on the future strategic direction of the Council's Group of Housing Companies were exempt from publication under the terms of Paragraph 3, Part 1 of Schedule 12A of the Local Government Act 1972. Accordingly, to consider this item, the Panel resolved to pass a resolution that members of the public be excluded from the meeting on the grounds that their presence would involve the likely disclosure of exempt information.

 

For the purposes of openness, a public summary has been provided of the discussion held in private.

 

The Panel noted that the Business Plan Re-fresh Financial Statements still needed to take account of appreciation in property values, once a greater portfolio of properties had been acquired. It was noted that all sales in the current medium term plan were expected to be completed before 2022/23. Whilst detailed questioning and scrutiny was undertaken of the proposals, there were no objections to the proposed new approach, following the lifting of the HRA cap.

 

 

 

 


Meeting: 22/01/2019 - Shareholder (Item 14)

The future strategic direction of OCHL

Stephen Clarke, Director and Chair of the OCHL Board, has submitted a report to inform the OCHL Shareholder of the current financial performance of the Housing Group of companies and recent implemented changes to Government housing policy and potential outcomes of recent Government consultations that could impact on OCHL’s operating environment and strategic purpose.     

Recommendation:

That the OCHL Shareholder resolves to:

1.     Note OCHL’s current financial performance

 

2.     Note Government’s recent changes and consultations associated with its housing policy and to request a further report examining options for the future direction of OCHL together with a revised business plan for approval. 

Additional documents:

  • Restricted enclosure 17

Minutes:

The Shareholder had before it an updated report which detailed both implemented changes to Government housing policy and potential outcomes of recent Government consultations that could impact on OCHL’s operating environment and strategic purpose.

 

The Shareholder considered the report in private session.


Meeting: 17/12/2018 - Shareholder (Item 9)

The future strategic direction of OCHL

Stephen Clarke, Director and Chair of the OCHL Board, has submitted a report to inform the OCHL Shareholder Group of both implemented changes to Government housing policy and potential outcomes of recent Government consultations that could impact on OCHL’s operating environment and strategic purpose

Recommendation:

That the OCHL Shareholder resolves to:

1.       Note the Government’s recent changes and consultations associated with its housing policy and to request a further report examining options for the future direction of OCHL together with a revised business plan for approval. 

Minutes:

The Shareholder had before it a report which detailed both implemented changes to Government housing policy and potential outcomes of recent Government consultations that could impact on OCHL’s operating environment and strategic purpose.

 

This report was considered in confidential session.


Meeting: 12/12/2018 - Companies Scrutiny Panel (Item 50)

The future strategic direction of Oxford City Housing Limited (OCHL)

To consider a report which has been submitted to the Housing Group Shareholder detailing implemented changes to Government housing policy and potential outcomes of recent Government consultations that could impact on OCHL’s operating environment and strategic purpose.

 

The report will be considered by the Housing Group Shareholder on 17 December 2018.

 

Recommendation:

The Companies Scrutiny Panel is invited to consider the report and make any comments or recommendations as appropriate to the Housing Group Shareholder.

 

Minutes:

For the purposes of providing a public minute, a summary of the discussion had in private session is provided here.

 

Directors explained the impact of changes (including those out to consultation) in Government policy and funding for affordable housing, including the abolition of the Council’s Housing Revenue Account (HRA) borrowing limit altogether and changes to policy on allowable rents.

This required a change in the OCHL’s business plans and the Council’s plans to make best advantage of the new freedoms and constraints provided by the changes in policy.

However, there was some uncertainty as government policy could be rapidly changed, so the company provided a measure of continuity and contingency in the Council’s long term planning.  Also some development was best carried out by OCHL.

So it was deemed prudent to retain OCHL as a going concern but revise its business plan to allow the Council and the company to take the opportunities created by these policy shifts.

 

The Panel recommended to the Scrutiny Finance Panel:

as the business plan impacted on the Council’s medium term financial plan and its budget, the Scrutiny Finance Panel should look carefully at OCHL’s proposals and the Council’s own housing programme, reviewing proposed borrowing and the impact on long term finances for both the Council and the HRA.