Decision - Housing Delivery Options - Living Wage Joint Venture

(1)          That the Housing & New Homes Committee recommends the report to the Policy, Resources and Growth Committee  as set out in paragraph 2.2, as amended.  

(2)          That  officers be instructed to take a report to Policy, Resources & Growth Committee addressing the issues raised in the Conservative draft amendment.

(3)          That officers arrange a briefing before Policy Resources & Growth Committee to which Housing & New Homes Committee members are invited to ensure members are fully briefed on the answers to the Conservative draft amendment.  

(4)       That the following amendments be made to the recommendations listed under point 2, so that the document reads as follows:

2.2 That the Policy, Resources and Growth Committee:

ii) Give delegated authority to the Executive Director of Economy, Environment and Culture following consultation with the Executive Lead Officer for Strategy, Governance & Law, the Executive Director of Finance & Resources, the Estate Regeneration Board and the Strategic Delivery Board to:

a. Develop and negotiate the deal with Hyde; in which the following are sought:

1)    100% of nominations for Living Wage Rented Housing are provided only for households from the BHCC waiting list, for whom specifically, the market rent for housing in the private sector exceeds 50% of their income.

This is estimated at an annual gross income of:

- £36,000 for a three-bed
- £31,000 for a 2 bed,
-£22,500 for a one bed
-£16,000 for a studio

2)    That 100% of nominations for shared ownership properties are achieved for residents with a local connection to Brighton and Hove, as defined in the Housing Allocations Policy

3)    That a ‘first refusal’ option is agreed in the event Hyde become bankrupt; and/or that in the event that Hyde should separately dispose of their stake in the partnership, that their stake be sold to the council or to a charitable housing association, with charitable objectives;

4)    That the rent levels set are reduced to the levels modelled in the 30% of living wage rent  sensitivity test, (made possible by lowering the rate of return in the base model)

b. agree and authorise execution of the Heads of Terms and subsequently the documentation required to implement the proposed Joint Venture;

b. the final terms of the agreement be put forward and agreed by full meeting of Council, prior to the completion of the deal;

c. Make appointments from the Council to the management board;

(5)                   That the following addition be made to the recommendations listed under point 2, section (iii), so that the document reads:

iii) Note that the reserved matters (as detailed in 3.30) will come back to committee for approval including any business plans which are to be delivered through the Joint Venture, and the disposal of land/sites to the JV


iv) That reserved matters for the Joint Venture should include:

(a) An option to veto any future rent increases that exceed increases in the National Living wage;

(b) An option to veto any future rents increases that raise combined rents and service charges above the Local Housing Allowance;

c) An option to increase allowances for maintenance of properties after year 10 in the model

(6)                That the following addition be made to the recommendations listed under point 2, section (iii), so that the document reads:

iii) Note that the reserved matters (as detailed in 3.30) will come back to committee for approval including any business plans which are to be delivered through the Joint Venture, and the disposal of land/sites to the JV.

iv) That should the business model exceed its projected rate of return, all surplus monies be ring fenced exclusively to provide additional council owned emergency accommodation for homeless people and additional living wage rented housing.