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Minutes:
Matter for
Decision
The Equity Share policy is proposed as an addition to the City Council’s housing ‘offer’ at this time as it is a form of tenure that may be attractive to leaseholders of City Council flats that would be required to move under the Council’s new build housing programme.
Decision of Executive Councillor for Housing
The Executive Councillor resolved to:
(i)
Approve
the Equity Share Policy attached as Appendix 1 of the officer’s report.
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 Head of Strategic Housing who highlighted the
following errors in the figures noted under the ‘Financial implications’ (page
3 of the officer’s report):
(amendments in bold, errors struck through)
There is likely to be an additional capital
cost to the Council as any move facilitated under the Equity Share policy is
likely to result in the resident moving to a property of a higher value. This
capital cost will be recovered at the end of the lease or when the resident
chooses to move in the future. Any capital cost will be considered as part of
the project approval for the specific Council new build scheme.
The following is an example of the financial
impact of an Equity Share move.
Assumptions;
Resident moves from one bedroom one person
flat to one bedroom two person flat.
Value of current flat - £100,000
Value of new flat - £150,000
Home Loss Payment – £100,000 (current flat
value) plus £10,000 (10% of current value) less £4,700 (compensation equivalent
to tenant) = £105,300 £115,300.
Capital outlay by Council on new flat (the
Council’s equity) - £150,000 (value of new flat) less £105,300 £115,300
(the resident’s equity) = £44,700 £34,700.
In this example the resident has an 70.2% 77% equity share
in the new flat.
The Committee made the following comments in response to the report:
(i)
Felt that is should be made clearer that Equity Share
was also available to non-resident leaseholders.
Councillor Price read out a statement of behalf of a resident of Aylesborough Close. The Director of Customer and Community
Services confirmed that the Council were in discussions with the resident to
address the issues, and the Head of Strategic Housing agreed to write a formal
response and copy Councillor Price in.
The Committee resolved (by 4 votes to 0) to endorse the recommendations.
The Executive Councillor approved the recommendation.
Conflicts of Interest
Declared by the Executive Councillor (and any
Dispensations Granted)
No conflicts of interest
were declared by the Executive Councillor.
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