The report will set out the case for the establishment of a Council owned company to deliver additional affordable housing for Oxford.

The recent 1% social rent cut in the budget and the policy on extending the Right to Buy to housing associations paid for from HRA budgets has led to the deferment of the new build Council housing programme. Some of the detail of these policies have only recently emerged only now allowing a meaningful discussion of the options available and the potential impacts on the Council.

Council considered a a report to the City Executive Board on 17 March 2016 which presented the business case for the establishment of a Council owned housing company, and sought approval for the Council to enter into such agreements as are necessary to enable the company to acquire the affordable housing at Barton Park in place of the Council.

Council resolved to:

1.    amend the Treasury Management Strategy to enable the making of loans to the wholly owned Housing Company on State Aid compliant terms of up to £12,250,000 to fund its purchase of the Phase 1 affordable housing at Barton Park and to delegate to the Chief Finance Officer approval of the terms of the loan and the terms of the facility agreement(s) and any associated documentation;

2.    agree the inclusion of an amount of £12,250,000 in its General Fund Capital Programme in 2017/18 funded by Prudential Borrowing;

3.    agree the provision of a loan facility to the Company of up to £250,000 to fund the set up costs and provide initial working capital and delegate to the Chief Finance Officer approval of terms of the loan and the terms of the facility agreement;

4.    agree the adoption of the Local Authorities (Indemnities for Members and Officers) Order 2004 in respect of officers of the Council appointed to the Housing Board in accordance with paragraph 40;

5.    agree a General Fund revenue budget of £40,000 in 2016/17 for the setting up of the Company funded from reserves.