Agenda item

(i)              Joint Report of the Assistant Chief Executive and the Corporate Director of Regeneration and Economic Development

(ii)             Presentation by the Housing Directions Manager, Regeneration and Economic Development

The Chairman thanked the Stock Transfer Project Manager, Marie Roe who was in attendance to give an update presentation in relation to the Housing Stock Transfer Project (for copy see file of minutes).

The Stock Transfer Project Manager noted that since the last update provided to the Committee in September there had been significant progress with DCC Cabinet having agreed on 30 October 2013 to: apply to the Homes and Communities Agency (HCA) to transfer homes; to establish a shadow Parent Board; and to maintain an alternative plan should transfer not be possible.  It was explained that Portfolio Holders for Housing and Finance and the Corporate Director of Regeneration and Economic Development were delegated to develop the application to the HCA and that Members had been made aware of the pressing timescales as regards moving forward.  It was explained that the application had been submitted on 3 December 2014, with an expected date of notification of consent to proceed to formal consultation being March 2014.  The Stock Transfer Project Manager set out the timescales that would lead up to a transfer, with: formal consultation ending in a ballot in Summer 2014; a temporary Managing Director being appointed to start to shape the shadow group of landlords; recruitment to the shadow Parent Board; and stock transfer would take place by 31 March 2015, subject to the approval of Government and Tenants.  It was noted that should approval for stock transfer not be forthcoming from Government or Tenants, the alternative would be for a single Arms-Length Management Organisation (ALMO) for all of the Council’s homes.

The Committee noted that the shadow “Parent” Board would operate such that it was overarching to the three existing landlords of Durham City Homes (DCH), Dale and Valley Homes (DVH) and East Durham Homes (EDH), which would become “Child” Boards, bound by legal agreements to ensure fair and equal treatment for all Council Tenants across the County.  Members noted the requirement of all organisations to become landlords, or “Registered Providers”, and for each organisation’s Board to be registered with the HCA.  It was added that to ensure this, robust governance arrangements were essential and existing Boards would be tested against regulatory requirements to ensure they were suitable for registration.

Councillors learned that the Parent Board would not be responsible for day-to-day running of the housing stock, however it would be responsible for:

·       Determining the overall strategy of the Group.

·       Monitoring and managing financial information and overall performance against plans and strategies.

·       Systems of internal control, audit and risk management.

·       Appointing and removing subsidiary board members, to show a formal relationship and overall control of the Group.

It was explained that the shadow Parent Board would be responsible for shaping the new Group of landlords, supporting transfer and taking decisions and that recruitment began in November 2013, based upon the skills required to lead and to satisfy the HCA and banks/potential lenders.  The Stock Transfer Project Manager noted the shadow Parent Board would comprise of 13 members: 4 independents; 3 Tenants from across the County; 3 Council nominees; and the Chairs of DCH, DVH and EDH.

It was added that the shadow Parent Board would, subject to stock transfer, eventually become the registered Parent Board, and the inaugural meeting of the shadow Parent Board was scheduled for January 2014.

Members noted that informal consultation would build upon that undertaken in summer 2013 and a transfer project “Your Home, Your Future, Your Choice” had been launched with newsletters to all Tenants, a dedicated stakeholder newsletter, and an internet “micro-site”.  It was explained that home visits to all Tenants had taken place throughout November 2013 and that the information from the 58% of the total amount of Tenants that had responded indicated that 73% were reasonable positive about the proposal, 4% reasonably negative and 23% remained uncertain.  The Stock Transfer Project Manager noted that while this was very encouraging, there was no place for complacency and key issues in moving to formal consultation would be to highlight the need for more money to invest in neighbourhoods, new services, new homes and localism.  It was noted that the response robustness would be tested via telemarketing and that regular contact with existing Tenants’ and Residents’ Panels would continue.  Councillors noted that the Customer Working Group had been extended, now including 30 members from across the County and that an Employee Focus Group had been established including all organisations and plans to expand.  Members learned that further communication and consultation was planned will all stakeholder groups including: more information being made available in a variety of formats; briefing sessions; Board and interim Managing Director road shows; and more home visits.

The Stock Transfer Project Manager informed Members of the information that was required to go into the Transfer Proposal, namely:

·       Transfer offers, as part of the consultation and ballot process.

·       Setting out what Tenants could expect if a transfer was to take place in comparison to if the Council remained as landlord.

·       Information on key issues determined during the informal consultation.

·       Governance arrangements. 

Members noted that if the process moved forward to a ballot, the a “Stage 1” notice would be issued first, to be followed by Ballot Papers issued separately, and independently of the Authority.

The Stock Transfer Project Manager explained that the next steps would be: to await the response to the application from Government, expected in March 2014; to provide update letters to all Tenants and Stakeholders in January 2014; for the shadow Parent Board to hold its inaugural meeting in January 2014; for a number of “meet the gang” roadshows to take place during January and February 2014; to continue to develop offer documents; and for the shadow Group of landlords to continue to take shape in terms of proposed structures and purpose.

The Chairman thanked the Stock Transfer Project Manager and asked Members for their questions on the report and presentation.

Councillors asked what the composition of the board would be, what the role of the local Councillors would be, and who had been appointed as interim Managing Director.

The Stock Transfer Project Manager explained that the Council could nominate an Officer, ex-Councillor or Resident, however most Local Authorities had nominated Councillors as they had a democratic mandate to act in the interests of local people, the environment and economy.  Members noted that the temporary Managing Director was Mr Bill Fullen, a former Director at Gateshead Council and former Chief Executive of The Gateshead Housing Company, one of only  “3*” rated housing organisations.

Resolved:   

(i)       That the information within the report and presentation be noted.

(ii)      That the Committee continue to receive further updates in relation to the           development, impact and delivery of new arrangements.