Purpose

Cabinet will be asked
to approve arrangements to enter into two 10+ year lease agreements
in order to secure 95 units of affordable temporary
accommodation.

Decision

 
Cabinet:
 
4.1Approvedthe
proposal to enter into an agreement for lease with National Housing
Group for the sole use and occupation of Chesham House, a 55 unit
building in Romford, under which the Council will be obliged to
take a 10 year headlease of Chesham House upon completion by
National Housing Group of agreed refurbishment works.
 
4.2Upon completion of the headlease
referred to above, Cabinet approved
that the Council may either:
 

4.2.1    
grant an underlease of Chesham House to a wholly owned subsidiary
of the Council (envisaged to be called Queens Letting and
Management (“QLM”)) on a back to back basis; or
 

4.2.2    
to manage Chesham House directly.
 

4.3 Approved deficit grant funding of up to £9.7m in total
to QLM to cover the lease period (in event that QLM / Chesham House
do not achieve housing benefit exempt status.)
 
4.4 Delegated to
the Director of Living Well, in consultation with the Strategic
Director of Resources, to take all steps, and to enter into all
documentation, necessary to deliver the scheme as approved by
recommendation (a) above including the discretion to decide which
of options (b)(i) and (ii) shall be progressed.
 
1.   
Noted we have
already received cabinet approval to incorporate QLM Community
Interest Company (CIC) on the 12 June 2024 – Establishment of
a joint venture company to manage properties leased in partnership
with Chalkhill.
 
2.   
Noted Chesham
House is a permitted development scheme where from a planning
perspective would require prior approval to be obtained for change
of use from retail with ancillary storage and offices.

 
3.   
Noted
the projected costs
of leasing the property for the term outlined as well as the
projected cost avoidance.