Issue - meetings

That Cabinet:

a)        approve, in principle, the equity loan model detailed at Appendix 1 to the report, with delegated authority being granted to the Director - Housing, Health & Wellbeing in consultation with the Section 151 Officer and the Assistant Director - Legal & Democratic Services to finalise the final terms and form of agreement;

b)        delegated authority be given to the Director - Housing, Health & Wellbeing, in consultation with the Director – Resources and Section 151 Officer, to enter into individual equity loan agreements in accordance with the principles detailed in the Appendix; and

c)        re-confirm that delegated authority is granted to the Director of Housing Health and Wellbeing, in consultation with the Director of Resources and the Assistant Director Legal & Democratic Services, to acquire privately owned properties, or enter into option agreements for their acquisition, where essential for land assembly to deliver the Yorke Drive regeneration project.

The Business Manager – Regeneration & Housing Strategy presented a report which sought approval for an equity loan model as part of the decant strategy to facilitate the Yorke Drive regeneration scheme. As part of the scheme the Council had committed to provide a shared ownership option for existing homeowners on the estate whose property fell within the demolition zone. The model proposed (set out at Appendix 1 to the report) was an equity loan model whereby the Council would loan the homeowner the difference between the cost of their new (like for like) property and the value they had realised from the sale of their existing property (including a 10% home loss compensation).

AGREED (unanimously) that Cabinet:

a)         approve, in principle, the equity loan model detailed at Appendix 1 to the report, with delegated authority being granted to the Director - Housing, Health & Wellbeing in consultation with the Section 151 Officer and the Assistant Director - Legal & Democratic Services to finalise the final terms and form of agreement;

b)        delegated authority be given to the Director - Housing, Health & Wellbeing, in consultation with the Director – Resources and Section 151 Officer, to enter into individual equity loan agreements in accordance with the principles detailed in the Appendix; and

c)        re-confirm that delegated authority is granted to the Director of Housing Health and Wellbeing, in consultation with the Director of Resources and the Assistant Director Legal & Democratic Services, to acquire privately owned properties, or enter into option agreements for their acquisition, where essential for land assembly to deliver the Yorke Drive regeneration project.

Reasons for Decision:

To continue the delivery of the Yorke Drive Regeneration Programme, a key action within the Community Plan and delivering overarching transformation for the Bridge Ward.

Options considered:

A range of alternative shared ownership/ equity models were considered and consulted upon with residents. Details on the alternative options considered were set out in section 2.3.3 of the report.

It remains an option for each homeowner to agree a straightforward sale to the Council, and this will still be offered to homeowners as an alternative to the equity loan arrangement, including provision for ‘option agreements’ – which allow the homeowner and Council to enter into a legally binding arrangement for the sale to be finalised at an appropriate time in the future.

If the Council fails to reach agreement with any homeowner the alternative is compulsory purchase.