Issue - meetings

The report proposes to convert a further 122 Temporary Accommodation (TA) units to alternative tenures during 2017/18, of which at least 72 properties will be let at Affordable Rents and the balance at Discounted Market Rents.  It is also anticipated that all remaining TA units, as at March 2018, will be converted to Discounted Market Rent during 2018/19.

RESOLVED:

      i.        Cabinet noted the £40 per week rent reduction for Temporary Accommodation units which are included in the PFI contract from April 2017.

    ii.        Cabinet approved the variable rent increases for Discounted Market Rent units which are included in the PFI contract from April 2017.

   iii.        Cabinet noted the current position with regard to the first tranche of tenancy conversions, to be completed by March 2017.

   iv.        Cabinet agreed during 2017/18 to convert up to 122 units of Temporary Accommodation which are included in the PFI contract to alternative tenures, of which at least 72 properties shall be let as Affordable Rent equivalent units and the balance shall be Discounted Market Rent units, as set out in the report

    v.        Cabinet delegated authority to the Strategic Director Community Wellbeing, in consultation with the Chief Finance Officer and the Chief Legal Officer, to issue to Brent Coefficient Limited a schedule setting out the units to be allocated as Affordable Rent/Discounted Market Rent units in accordance with the PFI contract.

Councillor Harbi Farah, Cabinet Member for Housing and Welfare Reform,  declared a personal and prejudicial interest and left the room for this item.

Councillor Muhammed Butt, Leader of the Council, introduced the report stating that the council’s Housing Private Finance Initiative (PFI) project provides 364 units of Temporary Accommodation (TA) for homeless households and 20 units of residential care accommodation through contractual arrangements running until 2028. 

He stated that the financial viability of the project has been affected adversely by a number of external factors including the Government’s welfare reforms. 

Councillor Butt stated that the council is required to reduce the rents for all remaining TA units within the PFI, by £40 per week from 1 April.  Rent increases will be applicable to some Discounted Market Rent properties from April 2017.

RESOLVED:

      i.        Cabinet noted the £40 per week rent reduction for Temporary Accommodation units which are included in the PFI contract from April 2017.

    ii.        Cabinet approved the variable rent increases for Discounted Market Rent units which are included in the PFI contract from April 2017.

   iii.        Cabinet noted the current position with regard to the first tranche of tenancy conversions, to be completed by March 2017.

   iv.        Cabinet agreed during 2017/18 to convert up to 122 units of Temporary Accommodation which are included in the PFI contract to alternative tenures, of which at least 72 properties shall be let as Affordable Rent equivalent units and the balance shall be Discounted Market Rent units, as set out in the report

    v.        Cabinet delegated authority to the Strategic Director Community Wellbeing, in consultation with the Chief Finance Officer and the Chief Legal Officer, to issue to Brent Coefficient Limited a schedule setting out the units to be allocated as Affordable Rent/Discounted Market Rent units in accordance with the PFI contract.