Agenda item

To receive the report of the Cabinet Member for Housing, Health and Leisure concerning approval of the key terms of the Transfer Agreement, Development Agreement and consequential delegations to enable the transfer of the Council’s housing land, housing stock, and associated functions to Gloucester City Homes (GCH).

88.1      Council considered a report of the Cabinet Member for Housing, Health and Leisure concerningapproval of the key terms of the Transfer Agreement, Development Agreement and consequential delegations to enable the transfer of the Council’s housing land, housing stock, and associated functions to Gloucester City Homes (GCH).

88.2      Councillor Organ moved the recommendations set out in the report.

88.3      Councillor James seconded the motion.

88.4      Councillor Organ noted that this decision represented an important milestone for the Council and was the fulmination of a project that had evolved over several years. It was a journey based on the rationale that something was needed urgently to sustain the Council’s housing stock for the future and therefore ensure a decent standard of homes for the Council’s tenants across the City.

88.5      Despite the Council having invested £389 million in the stock it had become apparent that the existing delivery of decent homes was not viable financially into the future and a new mechanism had to be sought.

88.6      Councillor Organ noted that the Housing Futures Options Board had been formed from Councillors of all parties, tenants and management from Gloucester City Homes and the Council together with specialist consultants. The team had worked exceptionally well together and tenants had received communications at each stage of the process. The tenants had voted for a re-formed Gloucester City Homes as their chosen landlord and the new delivery model had been approved by the Government.

88.7      He noted that the decision before Members would affect the housing needs of thousands of people across the city now and for the future. The writing off of existing debt was the largest single investment made by Government to the City of Gloucester and would enable Gloucester City Homes to be re-formed and to build one hundred new homes. A re-investment of £292 million would be used for maintaining and regenerating the existing stock over the next thirty years.

88.8      He expressed his thanks to the members of the former Housing Options Board, Councillor Hilton, Councillor Smith, Councillor Noakes, Ashley Green and the Gloucester City Homes management team, consultants and legal advisors, Martin Shields and the Council’s management team, Officers and consultants and all Councillors.

88.9      Councillor S. Witts referred to paragraph (ii) (i) on Page 112 of the report and noted that it should refer to Gloucester rather than Salford.

88.10   Councillor Smith stated that she had not believed several years ago that she would be able to support any transfer of the Council’s housing stock but she believed that this proposal was the best possible future for the stock and for tenants. She noted that the proposal would not have progressed to this stage without the amazing amount of work that had been done by the tenants. She believed that they had demonstrated an incredible level of knowledge and had worked with Officers on complex issues. She thanked Ian Harries and the Officers involved for their work and she fully supported the transfer which she believed would be an excellent move for the City.

88.11   Councillor Hilton believed that the transfer would ensure good quality well maintained housing stock and new homes for the City. He noted that the Council would not need to borrow more or guarantee the quality of the housing stock for the next 20 or 30 years. He noted that 64 per cent of the 90 percent of tenants who voted, had voted in favour of the transfer and he believed that an important factor was that Gloucester City Homes had done and would continue to do an excellent job in managing the stock.

88.12   He noted that the Council would still hold one third of the Board seats and the transfer would not preclude the Council from considering building new homes for rent in the future. He stated that there was still a shortage of decent homes in the City and other Registered Social Landlords needed to build more new homes.

88.13   Councillor Patel believed that Gloucester City Homes did an excellent job in managing the Council’s stock and he thanked everyone involved.

88.14   Councillor Tracey congratulated every one involved and supported the possibility of the Council building more new homes in the future.

88.15   The Leader of the Council repeated the thanks recorded by Councillor Organ. He noted that Council Officers had dealt with a very technical subject; the Gloucester City Homes team had done a great job in managing the stock and had given tenants the confidence to vote for the transfer; the Council had been well served by its technical advisers; the tenants had demonstrated a great deal of knowledge. He thanked Councillors for the cross-party support for the transfer and he thanked Richard Graham MP for his support.

88.16   He stated that the write of existing debt would represent the largest single investment in the City and he recalled the moment when the Housing Minister had handed him the letter approving the proposals for the transfer. He believed that the decision before Members was about greater investment and building new homes. It represented an historic moment but the hard work was not yet over.

88.17   Councillor Organ stated that it had been a long haul and hard work. He hoped that the compliments would be accepted by those involved in the spirit in which they had been made. He believed that there would be some celebrations to mark 16 March as the transfer would be very important for the quality of life of thousands of people across the City.

88.18   RESOLVED –

(1)          That the Transfer be completed once the Secretary of State for Communities and Local Government has given consent;

(2)          That the terms of the Transfer Agreement and Development Agreement be approved;

(3)          That authority be delegated to the Corporate Director of Services and Neighbourhoods, in consultation with the Head of Legal and Policy Development, the  Head of Finance and the Cabinet Member for Housing, Health and Leisure  to resolve any matters that remain outstanding;

(4)          That the Head of Legal and Policy Development be authorised to sign and deliver the Legal Opinion as set out in section 13; and

(5)          That the Head of Legal and Policy Development be authorised to seal the Collateral Funders Warranty, Transfer Agreement, Development Agreement, the Property Transfer (TR5) and any other deeds that need sealing and to sign any ancillary documentation on behalf of the Council and to do whatever else is necessary or expedient to complete the Transfer.