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Review of Delegations for Writing off HRA Debt and for the Purchase and Disposal of HRA Property

Meeting: 10/03/2015 - Housing Scrutiny Committee (Item 53)

53 REVIEW OF FINANCE, PROPERTY AND HUMAN RESOURCES DELEGATIONS pdf icon PDF 199 KB

Minutes:

This item was chaired by Councillor Todd-Jones

 

Matter for Decision.

To consider changes to officers’ delegation on property matters, finance delegations and powers to buy and sell some property.

 

Decision of the Executive Councillor for Housing:

 

     i.         Approved the amended revised limits for writing off bad debts set out in paragraph 3.1 of the Officer’s report.

    ii.        Delegated powers to the Director of Customer and Community Services, in consultation with the Head of Finance, Head of Property and the Executive Councillor for Housing, to purchase vacant properties for the HRA subject to the availability of resource (including right to buy capital receipts) for this purpose, and provided that the acquisition meets the criteria set out in any acquisition policy set by the Executive Councillor for Housing.

   iii.        Noted the request to the Leader:

 

To clarify that the Executive Councillor for Housing has responsibility for decisions on:

 

"the freehold or leasehold disposal and the terms for disposal, of Right to Buy dwellings sold under the Housing Act 1985, properties in shared equity schemes and other land or property held for housing purposes or for the provision of facilities and amenities for local residents or tenants".

 

Scrutiny Considerations.

 

The Committee received a report from the Head of Legal Services.

The report referred to the Strategy and Resources Committee who would consider aspects of delegated powers to officers to make decisions about finance, human resources and property matters. It proposed some changes to finance delegations and to powers to buy and sell some property.

 

The changes to finance delegations proposed include increases in the delegated authority to officers to write off bad debts and to acquire assets for rental. The proposed changes would include Housing Revenue Account debts issues around the acquisition and disposal of housing assets.

 

In response to the Committees’ comments, Officers, the Director of Community and Customer Services stated the following:

 

     i.        Increasing the delegation to £25,000 would allow debts to be processed without delay. A report would come back to the Committee every June for discussion and consideration.

    ii.        £25,000 was the delegated write off debt level agreed at South Cambridgeshire District Council

   iii.        Agreed to the proposal that a report be brought to Committee when the acquisition or disposal of a property had taken place.

  iv.        The delegation of powers to the Director of Customer and Community Services for the acquisition or disposal of a property would speed up the process but would still be transparent.

   v.        It would be very unlikely that a domestic dwelling rent debt would exceed £10,000.

  vi.        Any debt higher than £10,000 would be in relation to a commercial property within the Housing Revenue Account, such as a lease of a shop at £10,000 per quarter.

 vii.        To the knowledge of the Principal Accountant / Business Manager there had only been one occasion where a debt of £20,000 had been written off in relation to a HRA commercial property in the last ten years.

viii.        The reporting process to the Committee would remain the same.

 

The Committee:

 

Councillor Blackhurst proposed and Councillor Pitt seconded an amendment to the recommendation of 3.1 of the Officer’s report (additional text underlined)

 

 

 

 

 

 

 

 

HRA Debt

Business Rates, Council Tax and Housing Benefit.

Other Debts

Decision-maker

 

Up to £2,500

 

Head of Revenues and Benefits

Up to £25,000

Over £2,500 to £25,000

Up to £25,000

Head of Finance (in consultation with the Executive Councillor)

Over £25,000

 

 

Scrutiny Committee (Housing) and Executive Councillor

 

Over £25,000

Over £25,000

Scrutiny Committee and Executive Councillor for Finance and Resources)

 

 

Resolved (5 votes to 2 votes) in favour of the amendment to 3.1 of the Head of Legal Services’ report.

 

Resolved (unanimously) in favour to endorse the recommendations.

 

The Executive Councillor for Housing approved the recommendation.

 

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

 

No conflicts were declared by the Executive Councillor.