reportofthecorporatedirectorofhousingandenvironment.docVIP

Report of the Corporate Director of Housing and Environment To The Executive Mayor On 3 June 2014 COUNCIL HOUSING DEVELOPMENT COMPANY 1.0 INTRODUCTION 1.1 This report provides a summary of the state of the housing market and assesses a number of options for accelerating house building in Mansfield. The report also sets out the proposal for developing a Council owned housing development company to build new homes on Council owned land for market sale, private, affordable and social rent. 1.2 This is a key decision as it will incur revenue expenditure in excess of ￡50,000 and capital expenditure in excess of ￡250,000 and first appeared on the list of Key Decisions on 14 October 2013. 2.0 RECOMMENDATIONS To be resolved by the Executive Mayor That a Council owned housing development company is created to build houses for sale and rent; That the company be incorporated once the business plan is approved; That approval of the business plan be delegated to the Head of Finance, Revenues and Property Services; Any loan requirement as set out in the business plan be repaid to the Council at a rate of interest to be approved by the Head of Finance, Revenues and Property Services; That the form of the Articles of Association for the Housing Company be approved (appendix 1); That the land at Brownlow Road (appendix 2) is transferred to the Housing Company under a building licence; That the Corporate Asset Manager be instructed to agree the terms and conditions of the transfer of the land to the Housing Company; That ￡95,000 is vired from existing budgets to provide an initial loan to the Housing Company to cover its operating costs for 2014/15. Recommendation to Council That upto three officers of the Council (Corporate Director of Housing Environment, Head of Finance, Property and Revenue Services and the Strategic Housing Manager) are appointed as initial Subscribers and Directors of the Housing Company; That subject to the approval of the bus