Agenda item

RESOLVED: That the Committee agree all the recommendations in

      the report; and also added an additional recommendation:

·         “With the level of uncertainty and associated risks at the present time, a ‘break clause’ should be considered so both parties can review the agreement at a later date.”

4.1      Jeff Endean (Housing Programmes and Strategy Team Manager) presented the report to the meeting. The key points to note were:

·         A new Management Agreement is an opportunity for the Council to shape the future of Lewisham Homes, empower it to deliver more services on behalf of the Council, and to assume a more prominent role in the Council’s delivery of new affordable homes.

·         It is common for the negotiation of contracts of this type to commence up to 18 months in advance of the expiration of the contract, to allow for full consideration of the options available and to ensure that decisions fit in with wider strategies.

·         Lewisham Homes is a strongly performing Arm's-length management organisation (ALMO) which as well as delivering on Decent Homes works and providing high quality housing management services to residents, is also now delivering the Council’s house-building programme and its temporary accommodation acquisition programme. Furthermore, processes are already underway for the potential transfer of both the estate-based grounds maintenance service, and for an enhanced housing management service in Sheltered Housing, to Lewisham Homes.

·         As part of the management agreement negotiation process, it will also be possible to explore the potential that Lewisham Homes might further evolve the role it plays on behalf of the Council and its tenants, by registering with the Homes and Communities Agency (HCA) as a Registered Provider of affordable housing in its own right.

·         Initial legal advice received by the Council and Lewisham Homes as part of the management agreement review process has also indicated that Lewisham Homes could establish a subsidiary as a non-registered charity. This could perform a similar role to the Registered Provider model described above, but may provide a key risk management benefit in separating the day to day activities for existing tenants from the new activities and risks associated with the new build developments.

4.2       In response to questions from the Committee, the following was noted:

·         The Council’s objectives in the negotiation process for the new agreement is to ensure that Lewisham Homes can better assist in delivering the Housing Programme.

·         The Council is still looking at options to lead the Self-Build project.

·         The implications of the proposed Government Housing Bill that will include an extension of the Right-To-Buy to Housing Associations properties, and the Budget announcement of a 1% year-on-year reduction in social rent will have an impact on housing providers. In these circumstances, it could be sensible to have some flexibility in the new contract.

·         The Council will be looking at the legal implications of creating an ‘arms-length’ organisation in the new Lewisham Homes contract.

·         The Committee would like an update on the impact of the Government Housing Bill on Registered Housing Providers and Lewisham Homes at the October meeting.

4.3      RESOLVED: That the Committee agree all the recommendations in

      the report; and also added an additional recommendation:

·         “With the level of uncertainty and associated risks at the present time, a ‘break clause’ should be considered so both parties can review the agreement at a later date.”