Decision

Salford City Council - Record of Decision

I Paul Dennett, City Mayor, in exercise of the powers contained within the City Council Constitution do hereby:

1. Approve in principle, the disposal of 25 properties to Dérive RP Limited at Tully Street (10 units) and Bridgewater Street (15 units).
2. Approve the provisional lending to Dérive RP Limited of £2.046m, to fund the acquisition of the completed scheme.
3. Approve the proposed capital expenditure of £5.052m for the Council construction of the 25 units before the tender is let (subject to approval of Procurement Board).
4. Note the previously approved award of £2.052m Single Homelessness Accommodation Programme grant funding, towards the delivery of this scheme.
5. Note progress to date on the Homes England Affordable Housing Programme grant funding bid of £0.700m.
6. Authorise the Shared Legal Service to prepare all necessary documentation and to take all steps which are required to give effect to the above recommendations.

The Reasons are:  Following the successful application for Single Homelessness Accommodation Programme (SHAP) funding in November 2023 the City Mayor in May 2024 has previously approved the council entering into a grant agreement with Homes England to deliver 18 move on homes for young people at risk of homelessness.  Provision was made within the capital programme to develop a detailed design for the scheme, obtain planning approval and appoint a contractor to provide firm scheme costs.

The report updates the Deputy City Mayor on the proposed scheme costs and that a separate Procurement Board report seeks approval to enter in to contracts to deliver the scheme.

Options considered and rejected were: none

Assessment of Risk:

·         Failure to enter into a construction contract before 31st March 2025 will put the draw down of SHAP funding at risk

·         Failure to secure AHP funding from Homes England

The source of funding is:

·         Capital Programme 2024/25

·         Homes England Single Homelessness Accommodation Programme grant funding

Legal Advice obtained: Kathryn Saldanha, Shared Legal Team

Financial Advice obtained: Grace Rogerson, Capital Finance Manager

Procurement Advice obtained: n/a the award of the contract to Seddon Construction to build the affordable homes was subject to a separate Procurement Board approval.

HR Advice obtained: n/a

Climate Change Advice obtained: Mike Hemingway - Principal Officer - Climate Change

The following documents have been used to assist the decision process:

Public/briefing report submitted to Property/Regeneration Briefing on 10th March 2025

Report to Cabinet on 13th July 2021 - Housing Delivery – Approval Of Matters Relating To Dérive RP’s Application to the Regulator for Social Housing and Business Plan

Contact Officer:  Dylan Vince, Service Manager Assets and Developments

-       This decision is not subject to consideration by another Lead Member.

-       The appropriate scrutiny to call-in the decision is the Growth and Prosperity Scrutiny Panel                       

Signed: Paul Dennett         

City Mayor

Dated: 10th March 2025

This decision was published on Monday 10th March 2025                                            

This decision will come in force at 4.00 p.m. on Monday 17th March 202 unless it is called-in in accordance with the Decision Making Process Rules.