Decision details

This item was chaired by Diana Minns (Vice-Chair Tenant Representative).

 

Matter for Decision

The report provided background information about how service charges were levied against the Council’s Leaseholders and details the Council’s statutory obligation to provide interest-bearing loans to Leaseholders.

 

The Leaseholder Income Management Policy had been updated to reflect the statutory rights Leaseholders have under legislation if they meet the criteria.

 

Decision of Executive Councillor for Housing and Homelessness

      i.          Noted the Council’s statutory obligation to provide Service Charge Loans to Leaseholders as detailed in the officer’s report.

     ii.          Approved the offer of retrospective loans to be offered to a limited number of Leaseholders who would have been entitled to a loan in previous years.

   iii.          Approved the proposed amendments (as updated at Committee) to the Leaseholder Income Management Policy.

 

Reason for the Decision

As set out in the Officer’s report.

 

Any Alternative Options Considered and Rejected

Not applicable.

 

Scrutiny Considerations

The Committee received a report from the Housing Services Manager (City Homes).

 

The Housing Services Manager (City Homes) proposed the following amendments to the Policy published in the agenda (additional text underlined and deleted text struckthrough):

 

4.1         There are threewo potential options for paying charges:

 

·        To pay the full amount within 14 days.

·        To apply to pay by interest free monthly instalments over a period of up to 18 months.

·        To apply for an interest bearing loan, subject to eligibility, with repayment terms of between 3 and 10 years, depending upon value.

 

Additional paragraph 4.4 and then renumbering of old paragraph 4.4 to 4.5 and 4.6.

 

4.2         Interest bearing loans are available to any leaseholder who has acquired their property directly from the Council in the 10 years leading up to the service charge demand notice. A leaseholder must pay an initial contribution, with the value reviewed annually, before a loan can be awarded. There is a minimum and maximum loan value applicable each year, and the term of the loan is between 3 and 10 years, dependent upon the loan value. These annual values can be requested at any time from the Home Ownership Team.

 

The Committee unanimously resolved to endorse the amendments to the Leaseholder Income Management Policy.

 

The Housing Services Manager (City Homes) and the Assistant Head of Finance and Business Manager said the following in response to Members’ questions:

i.If the changes to the Policy were approved, the five members of the public identified as being affected by the policy changes would be contacted in the next couple of weeks and offered a loan based on the changes outlined in the Policy. Information regarding leaseholder loans would also be included in future service charge letters.

ii.Confirmed that the loans would be secured loans.

 

The Committee unanimously resolved to endorse the recommendations as amended.

 

The Executive Councillor approved the recommendations as amended.

 

Conflicts of Interest Declared by the Executive Councillor (and any Dispensations Granted)

No conflicts of interest were declared by the Executive Councillor.