Agenda item

The Head of Law provided an addendum setting out an amendment to

 the Legal Implications to correct typographical and minor errors.  At

 Paragraph 12.4, the reference in the first sentence to “Section 1 of the

 Local Government Act 2011” should have read “Section 1 of the

 Localism Act 2011”.

at 12.9 under the heading “Procurement” should have read “As Lewisham Homes is a wholly owned subsidiary and as all of its turnover currently relates to activities for the Council, it is exempt from the EU Procurement Regime. Any new build activity will not jeopardise this as Lewisham Homes will continue to deliver a substantial housing management and maintenance service to the Council.  Case law suggests that 90% of turnover should be for the controlling authority. The new draft Public Contract Regulations 2015 which will transpose the 2014 EU Procurement Directive into UK law and are shortly to be introduced, reduces this percentage to 80%.  The proposed value of the new build works is around 10% of Lewisham Homes turnover and will not breach the EU Legislation as it stands with greater scope to be given to it once the new Regulations are in force”.

Having considered an officer report together with the addendum provided, and a presentation by the Cabinet Member for Housing, Councillor Damien Egan:

(i)            the continuing extreme levels of demand faced by the Council from homeless households in the borough, and the progress in previously agreed measures that have been implemented to meet that demand be noted;

(ii)           the previously agreed budget for capital works for Hamilton Lodge and 118 Canonbie Road, as set out in section 5 of this report be extended;

(iii)         the business case for an additional programme of property acquisition, to be carried out by Lewisham Homes, as set out in section 6 of this report be noted.

(iv)         the Council provide a loan of up to £20m to Lewisham Homes, on the terms set out at section 8 of the report, to enable Lewisham Homes to acquire up to 100 new units as an additional intervention to help manage homelessness demand, and that the authority to finalise the terms of the loan agreement be delegated to the Executive Director for Resources and Regeneration;

(v)        the proposed changes to the Management Agreement between the Council and Lewisham Homes and to Lewisham Homes’ Articles of Association as set out in section 9 of the report be agreed, to enable Lewisham Homes to acquire and own property, and to initiate discussions with the HCA regarding obtaining Registered Provider status, and agreed that authority to finalise and approve further minor amendments as a result of discussions with Lewisham Homes’ Board in this regard be delegated to the Executive Director for Customer Services; and

(vi)       the timetable and scope of the proposed project to review and consider an extension of Lewisham Homes’ Management Agreement after its expiry in 2017 be noted, including the potential ways in which Lewisham Homes might further evolve to help meet the Council’s housing  priorities, as set out at section 10 of the report.