1.    Approve the National Homelessness Property Fund 1 resolution, confirming the extension of the fund to 31st July 2026 to be signed by the Director of Housing Services on behalf of the Council as a limited partner of the Fund;

2.    Authorise the entering in to of any required agreements on behalf of the Council required to give effect to the resolution, subject to legal review.

In July 2025 Cabinet approved the moving of the Council’s investment of £10m in National Homelessness Property Fund 1 (NHPF1) which was due to expire, into a new “evergreen” property fund, and gave necessary delegations to the Director of Housing to enable this reinvestment.

Officers have been working with Resonance to facilitate the reinvestment since that date, working closely with other LA investors. In December, the new fund was not yet ready to launch, with legal work ongoing, so Resonance as managers of the fund asked all investors to support a resolution to extend the current fund until April 2026 to give more time. This was approved on 8^th December 2025 via urgent officer decision.

Resonance have now approached the Council confirming that while progress has been made, the new fund is not ready to launch by the end of April, and have requested another short extension to the 31^st of July 2026 to allow all preparatory work to be completed so the new fund can launch.

It is considered that the current delegation enables the resolution to extend NHPF1 falls within the delegation as, without taking this step, the Council will be unable to reinvest in line with the decision of Cabinet on the 9 July 2025, once a new fund is ready and established.

On this basis the report therefore recommends to the Director of Housing to support this resolution to enable the extension, agreeing to enter into any required agreements to facilitate it. Without an extension the fund would close, risking that the fund may sell its housing assets, which may not be at an optimal time to maximise the Councils investment return, and result in the end of us being able to nominate homeless households to this accommodation and prompt the eviction of the current tenants.

Not supporting the resolution was considered but brings no advantages, and would expose the Council to considerable risk if the fund was to close with no successor fund in place.