Decision details

Welland Homes Business Plan Update

Decision Maker: Cabinet

Decision status: Recommmend Forward to Council

Is Key decision?: Yes

Is subject to call in?: Yes

Purpose:

To present to the Council, as sole shareholder for Welland Homes Ltd, an updated Welland Homes Business Plan and a proposal from the Company to purchase four houses for the purposes of market rental investment.

Decision:

DECISION:

 

1)    To approve the business case for the acquisition by Welland Homes Ltd of four houses, for the purposes of a market rental investment.

 

2)    That, subject to the refreshed business plan and budget being approved by the Council in accordance with recommendation 3 below, delegated authority be granted to the Executive Director - Commercialisation (the S151 Officer), to (i) approve the terms of any loan agreements required; (ii) approve the value and the profile of any periodic cash flow payments to be made to the Company; as required to support the Company in the acquisition of the proposed investment properties.

 

RECOMMENDED TO COUNCIL:

 

3)    That the updated Welland Homes Business Plan be approved, and included as an amendment in the SHDC Quarterly report to members for quarter 1 2021/22.

 

4)    To reaffirm the delegated authority, granted by Council on 25th March 2015, to the Executive Director – Commercialisation (the S151 Officer), to approve the final mix of use of reserves and borrowing in line with the business plan and Council Treasury Management Strategy.

 

 

 

Reasons for the decision:

·         Supports the delivery of the wider Welland Homes Business Plan, which will in turn support the delivery of savings targets set out in the Council’s Medium Term Financial Plan;

·         Increases housing supply to address demand;

·         Boosts to the local economy;

·         Improves the quality of rented sector accommodation; and

·         Generates income for the Council

 

Alternative options considered:

Do nothing – without the approval of the shareholder, Welland Homes would be unable to proceed with the proposed investment which would in turn limit the delivery of housing from Welland Homes under the existing Business Plan and leave the Company unable to deliver forecasted returns.

 

Interests and Nature of Interests Declared:

None

Reason Key: Incurring expenditure above £75,000 threshold in respect of revenue/£180,000 in respect of capital;

Wards Affected: (All Wards);

Conflict of Interest: None

Dispensation Granted: None

Contact: Caroline Hannon, Strategic Housing Manager Email: Caroline.Hannon@breckland-sholland.gov.uk, Katie Nicol, Housing Development Programme Manager Email: Knicol@sholland.gov.uk.

Report author: Caroline Hannon

Publication date: 18/02/2021

Date of decision: 16/02/2021

Decided at meeting: 16/02/2021 - Cabinet

Effective from: 26/02/2021

Current call-in Count: 0

Accompanying Documents: