To propose selling 5 properties to Oxford City Housing Limited, provide the company with an additional loan facility and alter a previous delegated decision.

The Heads of Housing and Property Services; and Financial Services submitted a report which updated members on the progress of the housing company, to agree the transfer of 5 properties to the company and note the initial development programme.

Cllr Rowley, Board Member for Housing presented the report. He said the Government’s high value housing levy had been delayed till next year; however we don’t want to lose housing – so we are recommending moving 5 properties to the housing company.  This transfer won’t involve a loss of social housing, as a condition of sale is that they remain social housing in perpetuity.  Hence the low sale price.

The Director of City Regeneration and Housing said the report also recommends the Council loans the Housing Company the money to buy the properties. The loan is State Aid compliant, (meaning the money is lent to the Housing Company at a market rate).

The Board of Director’s Business plan is a working draft and is being checked by external advisors. The plan will go to the Housing Company’s shareholders (who are members of the executive board) for discussion and consideration in March.

The City Executive Board resolves to:

1.    Note progress with the establishment of the Oxford City Housing Company.

2.    Agree to the sale of the 5 properties detailed at section 3 for the sum of £730,000 subject to the conditions set out in this report and subject to the verification of the valuation prices.

3.    Recommend that Council make available in 2016-17, a state aid compliant loan facility for Oxford City Housing Limited to enable the company to purchase the 5 properties identified in this report; the loan being for £742,606 which includes the purchase price and the associated costs of acquisition.

4.    Recommend that Council include the provision of the loan facility mentioned above as an additional expenditure item in the 2016/17 capital programme, funded by the associated capital receipt received from the disposal.

5.    Delegate authority to the Chief Executive toagree the final decision on sale and amount of loan that needs to be made available to the company, should the final valuations vary from those contained in the report.

6.    Note the draft development programme detailed in appendix 1 and that City Executive Board will receive further reports with regard to land sales to facilitate the delivery of that programme