Issue - meetings

To consider the call-in of executive decision ED1332.

The Committee was informed that the Executive at its meeting on 5 September 2011 had given approval to entering into the Homes and Communities Agency (HCA) Affordable Homes Framework Agreement subject to a mechanism being put in place which allowed the conversion of Council housing on relet to affordable rents.  The Executive further gave approval to the entering into of agreements with the Accent Group and Stockport Homes to deliver affordable homes and manage the new build development respectively.

The Committee noted that approval had also been given to a conversion cap of 282 properties (10 per cent of total relets) to be relet at 80% of market rent to facilitate building 56 homes, with the potential to build additional homes subject to additional HCA funding.   Relets at the affordable rent level, would, initially be limited to 5%, which had been deemed sufficient to fund the 56 unit programme, with additional homes relet at 70% of market rent, subject to HCA agreement, up to the 10% cap, only being progressed if further funding from the HCA became available.

The Executive had further requested that a policy be developed in consultation with the Executive Councillor (Communities) to ensure that relets at an affordable rent were made in a fair and equitable manner.

The decision of the Executive had been called in by Councillors Sheila Bailey, Tom Grundy and Philip Harding.  Councillor Harding explained his reasons for ‘calling-in’ the decision, namely that there had been insufficient consultation on the proposals prior to the decision being taken by the Executive and nor had there been an opportunity for the Scrutiny Committee to consider the matter.  Concern was further expressed in relation to the legal robustness of the proposals and the implications of the decision for those on the waiting list for social housing given the increase in rents on certain properties that would result from it.

The following comments were made/ issues raised:-

·         The Executive Councillor (Communities) responded that the pressure to get an agreement in place had meant that there had not been an opportunity to bring the proposals before the Scrutiny Committee prior to its consideration by the Executive and the signing of the agreement with the HCA prior to the deadline at the end of September.

·         It was confirmed that the legal framework for the agreement was clear and robust.

·         It was acknowledged that the agreement would result in the transfer of properties from social to affordable housing and that members may have reservations in relation to this principle; however the alternative would have meant that there would be no further new build properties in Stockport.

·         The Council had already expressed its concern to the HCA at the expedited nature of the process which had added to those already expressed by other local authorities and housing associations.

It was then

RESOLVED – That no further action be taken.