Decision

Cabinet agreed to recommend to Council approval:

a. To allow Ermine Street Housing (ESH) additional borrowing from the Council of up to £20 million to take advantage of new investment opportunities where viability assessments provide a positive return with an interest rate of 1% above base rate. This arrangement is to be reviewed annually.

b. To allow ESH to purchase single person properties for homeless people to prevent the use of expensive temporary accommodation, using the interest rate applying to ESH (currently 4.25%). This rate recognises the initiative as a ‘spend to save’ investment, providing savings to homelessness budgets.

c. To allow the Head of Housing, in consultation with the Lead Cabinet Member for Housing, to authorise individual purchases (and therefore borrowing) up to the value of £2 million as per the current arrangements.

d. To note that this proposal is subject to the agreement of the Ermine Street Housing Board.