Agenda item

Report of the Corporate Director of Regeneration and Economic Development – Marie Roe, Housing Stock Options Manager, Durham County Council.

The Chair introduced the Housing Stock Options Manager, Marie Roe who was in attendance to give Members an update as regards the Housing Stock Options Appraisal  (SOA) Project (for copy see file of minutes).

The Housing Stock Options Manager referred Members to the report setting out the key findings and recommendations of the SOA, as agreed by Cabinet on 12 December 2012.  Members noted that the consultation stage was completed and now the SOA was moving into the implementation stage.  Councillors were reminded that the option agreed was for the Large Scale Voluntary Transfer (LSVT) of all of the housing stock owned by DCC, those of Durham City Homes (DCH), Dale and Valley Homes (DVH) and East Durham Homes (EDH), totalling around 19,000 properties to a single Arms Length Management Organisation (ALMO), retaining local services.  The Housing Stock Options Manager informed Members that there was a legal requirement to have a Tenants’ Ballot and that there was a dedicated Stock Transfer “Prospectus” that would set out the reasons, economic impact, social impact, changes to Government finances and the DCC contribution.

The Chair thanked the Housing Stock Options Manager and asked whether there was any more information as regards the debt write-off. 

The Housing Stock Options Manager noted that it was still unclear from Government and that an update from the Department for Communities and Local Government (DCLG) following the Government’s “Autumn Statement”, which noted some funds had been set aside.  It was added that the HCA was in the process of amending its Stock Transfer Manual and that this was due imminently.  The Housing Stock Options Manager noted the debt write-off for DCC was £128 Million, adding that an agreed write-off for Bolton in 2009 was £300 Million. 

In respect of comments made by Mr A Kitching as regards the spend as set out in the report regarding moving to an ALMO, the Housing Stock Options Manager noted that the stock transfer option opened up a wealth of opportunities and added that the Authority would be aware of the HCA’s decision prior to moving forward with any spend.

Further to Councillor M Wilkes noting the concern of residents associated with the impact on rents and on their “Right to Buy” (RTB), the Housing Stock Options Manager noted that a newsletter would be going out to explain about rents and the change to RTB to “Right to Acquire”.  The Housing Stock Options Manager added that cost of delivering the transfer reflected all the necessary legally required processes including issuing Options documents to all those involved adding that consultation by the former City of Durham as regards housing stock had only got as far as a “test of opinion” and the response at that time was for the Council to retain the stock and management.  It was added that a large proportion of the amount allocated was effectively an “arrangement fee” and that if the move via LSVT takes place, then this could release approximately £71 Million from 2014 onward. 

Resolved:

(i)         That the information provided in the report identifying the preferred       option for future financing, ownership and management of the Council’s        homes be noted.

(ii)        That the Economy and Enterprise Overview and Scrutiny Committee   receive further progress updates in relation to the development, impact     and delivery of the new arrangements.