Issue - meetings

To seek approval of Cabinet, in principle, to enter into a management agreement with Lawford Housing Enterprise Trust (LHET) to manage houses on their behalf.

That Cabinet agrees in principle to the Corporate Director (Operational Services) and Corporate Director (Corporate services) to undertake negotiations and agree the terms of a management arrangement with Lawford Housing Enterprise Trust, the final details of which to be further reported and approved by Cabinet.

Councillor G V Guglielmi had earlier declared a Non-Pecuniary interest in respect of item A.6 by virtue of the fact that he was a Director of Lawford Housing Enterprise Trust, a not for profit organisation. Councillor G V Guglielmi withdrew from the meeting whilst Cabinet considered this item and reached its decision.

There was submitted a report by the Portfolio Holder for Housing (A.6), which sought Cabinets approval, in principle, to enter into a management agreement with Lawford Housing Enterprise Trust (LHET) to manage houses on their behalf.

It was reported that a Section 106 affordable housing contribution for a site in Lawford had been made by way of gifting eight units of accommodation to a specially formed housing enterprise trust (planning application reference 13/00452/OUT).

Cabinet was informed that Lawford Housing Enterprise Trust had proposed to offer up the dwellings as affordable accommodation on fixed term tenancies and that the properties would be owned by them and let to tenants drawn from the Council’s Housing Register who had a local connection to Lawford.

Cabinet was made aware that given the intended use of the eight houses, Lawford Housing Enterprise Trust had approached the Council to consider managing the properties on their behalf as they did not have any experience in this area, providing terms could be agreed.

It was reported that whilst management agreements had existed elsewhere in the country the circumstances surrounding the creation of the arrangement with the Lawford Housing Enterprise Trust were thought to be unique and arose as a consequence of the affordable housing market situation at that point in time.

It was further reported that following a financial and resource analysis officers had believed that it would be viable to enter into a management arrangement with Lawford Housing Enterprise Trust and had calculated a management fee. The fee would include costs associated with allocation and identification of potential tenants, all aspects of tenancy management, rent collection and management of the maintenance of the dwellings.

Following consideration of the report, it was moved by Councillor Honeywood, seconded by Councillor M J D Skeels and:

RESOLVED that Cabinet agrees in principle to the Corporate Director (Operational Services) and Corporate Director (Corporate services) to undertake negotiations and agree the terms of a management arrangement with Lawford Housing Enterprise Trust, the final details of which to be further reported and approved by Cabinet.