Agenda item

WV Living detailed business plan phase 1

[To approve Phase 1 of the WV Living (the Council’s Housing Company) detailed business plan to commence trading and delivering new housing for sale and market rent]

Minutes:

Cllr Peter Bilson presented a report seeking approval to phase 1 of the WV Living (the Council’s Housing Company) detailed business plan to commence trading and delivering new housing for sale and market rent. 

 

Resolved:

  1. That Council be recommended to approve an increase to the Council’s Capital Programme by up to a maximum of £40 million for loans to WV Living to be repaid to the Council in accordance with the provisions of the business plan.

 

  1. That the detailed business plan for WV Living (the Council’s Housing Company) for 2016 – 2017 be approved, including:

i.      The detailed financial plan

ii.     The updated risk register

iii.    The key terms of the shareholder agreement between the Council and WV Living

iv.   The key terms of the Loan agreement between the Council and WV Living

 

  1. That loans from the Council to WV Living up to a total value of £40 million to cover the acquisition/land costs of the first phase of development secured by a legal charge be approved.

 

  1. That a loan from the Council to WV Living up to £1 million to cover the company’s running costs over the initial few years of operation to be funded from the efficiency reserve or through equity funding be approved.

 

  1. That Housing Services incur pre-acquisition costs on behalf of the company until March 2017 up to £750,000 funded from the Regeneration Reserve.

 

  1. That the detailed Shareholder Agreement between the Council and WV Living be delegated to the Cabinet Members for City Assets and Housing and Resources in conjunction with the Managing Director and the Director of Finance (Section 151 Officer).

 

  1. That detailed loan agreements and the execution of any loan agreements or other financial instruments between the Council and WV Living be delegated to the Cabinet Members for City Assets and Housing and Resources in conjunction with the Managing Director and the Director of Finance (Section 151 Officer).

 

  1. That the entering into of any ancillary agreements or documents between the Council and WV Living arising out of the funding to WV Living be delegated to the Cabinet Members for City Assets and Housing and Resources in conjunction with the Managing Director and the Director of Finance (Section 151 Officer).

 

  1. That the Council will act as guarantor for contracts entered into by WV Living where appropriate.

 

  1. That the Council bids for Help to Buy grant funding, along with delegated authority to the Cabinet Member for City Assets and Housing in consultation with the Strategic Director for Housing to enter into a contract with the Homes and Communities Agency to accept the grant funding, and bid for future phases of Help to Buy grant funding as necessary.

 

  1. That the authority to approve the final financial strategy for providing loans and equity to the Company be delegated to the Cabinet Member for Resources in conjunction with the Director of Finance.

 

  1. That it be noted that in accordance with the resolution of Cabinet following its meeting on 20 July 2016 WV Living would commence trading as soon as possible after the approval of the detailed business plan, subject to that business plan continuing to be viable.

 

  1. That it be noted that further detailed business plans for future years would be brought before the Council for consideration and approval.

 

  1. That it be noted that the impact of the report on Treasury management, prudential indicators and MRP policy would be reflected in the Treasury Management activity monitoring 2016/17 mid-year review report to Cabinet in November 2016.