Agenda item

The report provides an update on i4B Holdings Ltd (i4B) and First Wave Housing Ltd’s (FWH) performance and progress in implementing their respective business plans.

Following this item, the order of the agenda was amended as set up below.

Martin Smith(Chair ofi4BandFirstWaveHousing)introducedtheitemwhichprovidedmembers withanupdateoni4BHoldingsLtdandFirstWaveHousingLtdperformanceonprogressinimplementingtheirrespective businessplans.Henotedthatbothcompanies wereingoodpositionbutstronger focusonvariance requiredtoensureoptimizationofassets.

SpotlightingfirstlyonFirstWaveHousing(FWH), MrSmithexplainedthatthiswasa virtualcompany allofwhichfunctionswerecarried bytheCouncil.Assuch FWHwasa valuableresource intacklinga numberofhousingissues.Thebusinesswasmature withstable performanceanda currentpropertyportfolioof45market rentproperties.Areaswherefurtherworkwasrequired includedrent rationalisationandbetterassetmanagement andmaintenance schedule.A numberofpropertieswereexpected to be sold over the next few months.

Invest4 Brent(i4B) ontheotherhandwasa relativelynewcreation, operatingforapproximately18months andestablishedspecifically toreduce theCouncil’sspending ontemporaryaccommodation.Atitsheartwastheprincipleofprovidinggoodqualityaccommodationtoresidents ataffordableprices.Whilstalsoa virtualcompany, unlikeFWH,i4Bwaslimitedbyshares andborrowedmoney fromtheCouncilinordertoacquireproperties.Todatei4Bownednearly240properties,which was a sizable viability given the short period of time the company had been in existence.Futureplansfori4Bincludedfurtherfocusongrowthinordertoensurethe financialstability of the company as well as morediversification of properties.

Members welcomedthepresentationandinthediscussionwhichfollowedraised the followingmain points.

A numberof optionsseeking toexplore the potentialbenefits of aligning the i4B andFWHhadbeenexplored.However,followinganalysisoftheseoptions,ithadbeenagreedthatmerger plansbetweeni4BandFWHbesuspended atthisstage duetodifferencesinlegalentitiesandlackofa mutuallybeneficialgroundsbetweenthetwo companies. Members were informed that amerger was also not currently viable for theCouncilasdoingso wouldentailtransferringofpropertiesandpaymentsofenhancedvalues. Thedecisionwouldbekept undercontinuous reviewandberevisited again at an appropriate time in the future.

TheCommitteesought clarificationontenancytypesandwhatinformationwasgiventoresidents. FivedifferenttenanciesexistedwithinFWHwithnoplanstochange therent oragreementsatthisstage. Withregards toi4B,Mr Smithexplainedthatalli4Bpropertieswerededicatedtoreduction oftemporaryaccommodationandalltenantswereinformedthattheywouldbeconsidered tenantstoa privatelandlord.Upontakingonthetenancyresidents wereadvisedofwhotheirmanagement agentwasandprovidedaninformationpack.ShouldtheyweretobecomehomelesstheywouldhavetoapplytotheCouncilandgoontothehousing register or declare themselves homeless.

Offersofi4Bpropertiestohomelessfamiliesweremade througha dischargeofcouncil duties.Somepropertieswereturnedawayduetotypeofpropertyorareatheyweresituated in.A numberofofferswerealsoturneddownduetoa preferenceoversocial housingaccommodationorduetoreservations fromprivatetenancies.Thiswastoanextenta commonmisconception, despitethefactthati4Btenantswereconsidered counciltenants.Itwasintendedthatovertimethegoodreputations ofcompanies likei4Bwouldhelpresolve someofthescepticism tenantsmay be having.

Longtermplansforrefurbishment ofblockswerefactoredinthefinancialplan.Needforrefurbishment hadalsobeenidentifiedfromdirectvisual evidenceduringinspectionsaswellastherecently carriedstock conditionsurvey. Atotalof20homes,includingGranvilleandCanterburyHousesinSouthKilburn,hadbeenidentified in need of major works (Section 20 of the Landlord and Tenant Act 1985).

Respondingtoa queryonroads andpavementsnearGrunwickClose,partofa privatedevelopmentownedbyFWH,a Memberenquiredabouttheissueswithpavementparkingandlackofparkingenforcementandwhethertherewasa possibilityfortheCounciltoconsider adoptingthese.Whilsta specificresponse couldnotbeprovidedatthemeeting, officersagreedtoinvestigatethematter further.

Rentcollection wasfundamentalintherunning andmaintenance ofi4BandFWHproperties.Addressingtheaccumulatedrent arrears,however,Members heardthat,unlikeFWHwhichhada steadyandstable rentcollection mode,insufficienttimehadbeenspent ondesigningtheprocessofsigning uptenantsfori4B,thusmaking the process inefficient and cumbersome. Some improvements throughBHMhad been made and current rentcollection was just under the90% target.

Anareaofconcern forbothofficersandcommittee wastheupcomingrollout ofUniversalCredit(UC) anditspotentialimpactoni4B/FWHrent collection.A highproportionofresidents werenewtenantswhowerealsoinreceipt ofUC,whichinturnwaslikelytoleadtodelaysinpaymentprocessing.Officersadvisedthatinsituations wherepaymentscould notbeobtained,theCouncilwouldseek enforcement action in the form of warnings and court orders.

Intermsofevictionrates, theCommitteethatwasassuredthattheseweregenerallylowandtendedtobeinpropertiesoutsideofBrent.Therehadbeennoevictions in FWH properties and only 5voids in the last two years.

Spotlightingonkey workershousing,members soughttoascertainhowthiswasdefinedinBrentandwhatarrangementswereinplacetosecure suitableaccommodation. Officersadvised that Cabinet had given approval for the Council to negotiatethepurchaseofpropertieswithintheQuintainestateportfolioata discountedrate andthiswasinprogress.Thegeneralcontrol ofthepurchasedproperties,however,wouldsit underi4Bandsince i4Bwasa privatecompany, exactallocationofpropertiescould notbefollowedandavailabilityspecifically tokey workers could not guaranteed.

The Chair thanked Mr Smith for his presentation tothe Committee.

RESOLVED:

      i.        That the contents of the i4B Holdings Ltd andFirst Wave Housing Ltd updatereport and accompanying presentation be noted.