This decision relates to the 2016-17 budget.

The Heads of Housing and Property Services and Financial Services submitted a report to the City Executive Board on 9 February asking for authorisation for the transfer of 5 properties to the company.

The Board Member for Housing will present the report.

Recommendations: the City Executive Board recommends that Council:

1.    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.

2.    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.

Council considered a report submitted to the City Executive Board on 9 February asking for authorisation for the transfer of 5 properties to the company.

The Board Member for Housing explained that the low valuation reflected the proposed requirement that rent charged for the properties be set at the level of housing benefit payable in perpetuity.

Council resolved to:

1.    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.

2.    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.

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

Recommendations: That 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 in consultation with the Council’s Chief Finance Officer and Monitoring Officer 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

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