Purpose

To agree to use of a fixed loan interest rate in respect of LAHF loans to the Council’s housing company, in order to simplify administration of loans across the properties being acquired under the LAHF scheme. This requires an update to the loan facility agreement by a legal side letter to reflect the change from using varying PWLB interest rates for each property purchase.

Decision

To agree that the interest rate in respect of each Tranche B Loan advanced in connection with the LAHF Programme is fixed at 5%.

Alternative options considered

Do nothing – this would lead to various interest rates being charged for each loan making the administration of the portfolio of loans more complex.