To enter into agreements to invest £5m in the National Homelessness Property Fund.

Decision delegated to Stephen Clarke, Head of Housing & Property in consultation with Nigel Kennedy, Head of Financial Services

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.