(Cabinet Member with Special Responsibility Councillor Jackson)
Cabinet received a report from the Director for Communities and the Environment & Director for Economic Growth and Regeneration which asked Cabinet to note the progress in setting up the new Housing LATCo and to approve the new Housing LATCo structure, the arrangements that Cabinet members would become the sole members of the Shareholder Committee, approve the Shareholder Agreement and make budget provision through a loan facility from the Council to the LATCo once incorporated.
The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:
Option 1: Approve the report and proposed governance arrangements with Cabinet agreeing to become members of the Shareholder Committee and approve the loan provision to the LATCo.
Advantages: It allows the timely creation of the governance arrangements and scrutiny function that the Council is seeking to provide for the Housing LATCo. It streamlines the decision making process and administrative arrangements. The loan provision will allow the LATCo to become operational and be TECKAL compliant.
Disadvantages: Does create additional responsibilities for Cabinet members and additional administration and support from officers.
Risks: Could give rise to confusion about the role of Cabinet members and the Shareholder Committee.
Option 2: Do not approve the report and consider alternative arrangements.
Advantages: Could remove any confusion/overlap around distinct roles of Cabinet and the Shareholder Committee.
Disadvantages: It will create further delays in getting the Housing LATCo established and fully operational.
Risks: Loss of opportunity/reputational damage if delays are incurred.
The officer preferred option is Option 1. If the report is approved, it will allow the LATCo to be set up with appropriate governance arrangements in place. Thus, the Housing LATCo can become fully functional allowing the key housing and regeneration priorities already endorsed by Cabinet to be brought into fruition.
Councillor Jackson proposed, seconded by Councillor Dowding:-
“That the recommendations, as set out in the report, be approved”
Councillors then voted:-
Resolved unanimously:
(1) That Cabinet notes that the two distinct Housing Companies have been named Morehomes for the Bay (Investments) Limited and Morehomes for the Bay (Developments) Limited.
(2) That the Board of Directors for both Companies will, subject to appointment by the Shareholder Committee, comprise Executive Team officers.
(3) That Cabinet approves the amended structure of the Housing LATCo.
(4) That Cabinet agrees to become the sole members of the Shareholder Committee for both Companies.
(5) That Cabinet approves the Shareholders Agreement (and any minor modifications needed hereafter) for signing, upon agreement of the document with the Board of Directors.
(6) That Cabinet agrees to delegate to the Chief Finance Officer the negotiation of and arrangements for a loan up to a maximum value of less than £100,000 in order to cover the initial operating costs of the Company. The Loan will be established in a way that is compliant with both Council and Company financial policies and relevant legislation for a LATCo.
Officers responsible for effecting the decision:
Director for Communities and the Environment
Director for Economic Growth & Regeneration
Chief Finance Officer
Reasons for making the decision:
The decision is consistent with Council Priorities: Happy and Healthy Communities, a Sustainable District, an Inclusive and Prosperous Local Economy Local Plan and contributes towards the provision of housing to meet a locally identified need and opportunities to increase the choice and supply of good quality housing. The decision is also consistent with the Housing Strategy and directly aligns to the key actions identified in the Homes Strategy for Lancaster district 2020-2025. The financing arrangements put forward within the report will allow the Company to quickly establish itself and operate independently of the Council, whilst not breaching the regulations surrounding Teckal Companies.