The Head of Housing & Property and the Head of Financial Services have submitted a report which seeks approval for the Council to invest in a dedicated property fund in order to lever in additional funding to that provided by the Council, to procure accommodation that can be used to house homeless households in the private rented sector.

The relevant minute of the City Executive Board meeting on 30 July is attached later in the agenda.

The Board member will present the report and recommendations.

The City Executive Board resolved to:

1.    grant project approval for the ‘Real Lettings’ initiative as set out in this report to enable the Council to enter into agreements with Resonance and St Mungo’s Broadway;

2.    delegate authority to the Head of Housing and Property and the Head of Financial Services to enter into contractual agreements once these have been finalised and agreed by the Head of Law and Governance;

3.    delegate authority to the Head of Financial Services to publish a Voluntary Ex-ante Transparency (VEAT) Notice publishing the Council’s intention to enter into such a contract

and make recommendations to Council set out below.

Recommendations

The City Executive Board recommends Council to:

1.    include this type of investment (in a Directly Managed Property Fund) in its Treasury Management Strategy as part of non-specified investments and amend the Minimum Revenue Provision (MRP) policy in line with the principles outlined in this report;

2.    approve the £2.197 million balance on the Homelessness Property Acquisitions capital scheme be transferred to this investment; and

3.    approve a supplementary estimate of £2.803m; financed from internal borrowing, as a revision to the Council’s Capital Programme.

Council had before it a report seeking approval for the Council to invest in a dedicated property fund in order to lever in additional funding to that provided by the Council, to procure accommodation that can be used to house homeless households in the private rented sector and the recommendations of the City Executive Board meeting on 30 July 2015.

Council resolved to:

1.    include this type of investment (in a Directly Managed Property Fund) in its Treasury Management Strategy as part of non-specified investments and amend the Minimum Revenue Provision (MRP) policy in line with the principles outlined in this report;

2.    approve the £2.197 million balance on the Homelessness Property Acquisitions capital scheme be transferred to this investment; and

approve a supplementary estimate of £2.803m; financed from internal borrowing, as a revision to the Council’s Capital Programme.

The Head of Housing & Property and the Head of Financial Services

have submitted a report which seeks approval for the Council to invest in a dedicated property fund in order to lever in additional funding to that provided by the Council, to procure accommodation that can be used to house homeless households in the private rented sector.

Officer Recommendations: That the City Executive Board:

1.            Grants project approval for the ‘Real Lettings’ initiative as set out in this report to enable the Council to enter into agreements with Resonance and St Mungo’s Broadway;

2.            Delegates authority to the Head of Housing and Property and the Head of Financial Services to enter into contractual agreements once these have been finalised and agreed by the Head of Law and Governance;

3.            Delegates authority to the Head of Financial Services to publish a Voluntary Ex-ante Transparency (VEAT) Notice publishing the Council’s intention to enter into such a contract;

4.            Recommends that Council include this type of investment in its Treasury Management Strategy as part of non-specified investments and amend the Minimum Revenue Provision (MRP) policy in line with the principles outlined in this report;

5.            Recommends that Council approve the £2.197 million balance on the Homelessness Property Acquisitions capital scheme be transferred to this investment.

6.            Recommends that Council approve a supplementary estimate of £2.803m; financed from internal borrowing, as a revision to the Council’s Capital Programme.

The Head of Housing & Property and the Head of Financial Services

submitted a report (previously circulated, now appended) which detailed a

proposal for the Council to enter into an investment in a dedicated property fund with Real Lettings – comprising Resonance (a Fund Management Company) and St Mungo’s Broadway (a Homelessness Charity).  The Real Lettings model uses a property fund to lever in additional funding to that provided by the Council, to procure accommodation that can be used to house homeless households in the private rented sector.

Councillor Scott Seamons, Board Member Housing introduced the report explaining that the Council’s investment of £5M would be match-funded and would allow the purchase of 50 dwellings.

The Head of Financial Services briefed the Board on the financial elements of the investment proposals.  He said that the main risk to the Council related to any downward movement in property prices over the investment term.

In response to questions the Housing Strategy & Needs Manager explained that the contract allowed for a maximum 2 year timescale for property purchases and that he expected this to be delivered in a steady stream to avoid any distortion of the property market.  Properties would be purchased within the “Oxford locality” which would offer greater flexibility to get the best value and it was anticipated that many properties might be in neighbouring towns with efficient and cost effective commuter links to the city.

The Board welcomed the investment proposal and commended officers on presenting such a creative solution to mitigate the pressures of reduced supply and increased demand for affordable housing in the city.

The City Executive Board resolved to:

1.             Grant project approval for the ‘Real Lettings’ initiative as set out in this report to enable the Council to enter into agreements with Resonance and St Mungo’s Broadway;

2.             Delegate authority to the Head of Housing and Property and the Head of Financial Services to enter into contractual agreements once these have been finalised and agreed by the Head of Law and Governance;

3.             Delegate authority to the Head of Financial Services to publish a Voluntary Ex-ante Transparency (VEAT) Notice publishing the Council’s intention to enter into such a contract;

4.             Recommend that Council include this type of investment in its Treasury Management Strategy as part of non-specified investments and amend the Minimum Revenue Provision (MRP) policy in line with the principles outlined in this report;

5.             Recommend that Council approve the £2.197 million balance on the Homelessness Property Acquisitions capital scheme be transferred to this investment.

6.             Recommend that Council approve a supplementary estimate of £2.803m; financed from internal borrowing, as a revision to the Council’s Capital Programme.