Purpose

Cabinet is recommended to
agree:
 

1.    
The use of a Dynamic Purchasing System (DPS)
(procured in October 2023) for the purposes of procuring large
Temporary Accommodation supply in continued partnership with the
London Boroughs of Enfield, Newham and
Redbridge.

2.    
To enter a joint venture (the second joint venture)
with Mears to procure up to 400 homes to provide more settled
accommodation for households who would otherwise be placed in
temporary accommodation.

Content

Cabinet:

 
(1)         
agreed to proceed with the second joint venture with Mears to
procure up to 400 homes to provide settled accommodation for
households currently owed a main housing duty and living in
temporary accommodation;

 
(2)         
delegated authority to the Strategic Director of Place, in
consultation with the Portfolio Lead Member for Housing and
Regeneration, the Strategic Director of Resources, and the
Corporate Director of Governance and Law, to:
 

·        
approve the updated financial model for the second joint venture
with Mears, and;

·        
agree terms and enter into legal agreements on behalf of the
council to set up and operationalise the joint venture;
 
(3)         
agreed to suspend operationalisation of the joint venture should
the council and Mears, not be able to secure a financially viable
bond rate   and enter into legal
agreements by 31 March 2025; and

 
(4)         
approved the procurement of temporary accommodation
through the Dynamic Purchasing System, established for that
purpose, to the value within the agreed budget.

 

Options & Alternatives Considered

The following options have been
considered:

Do Nothing: Should the council not set up the second
JV with Mears this would mean that 400 homes would not be available
for discharge of duty, the council would not achieve savings on the
General Fund temporary accommodation budget and would not benefit
from the residual asset value that would revert to the Council at
the end of the 40 year term of the scheme. With a shortage of
affordable properties in the borough, without the JV the council
will be under greater pressure to house families further away in
less desirable accommodation.

Proposed Option: This opportunity builds on the
successful partnership work on the first JV1 with Mears. Lessons
have been learned from the experience gained in delivering JV1,
which have been incorporated into the proposals for JV2. This
option will deliver good quality affordable homes for residents,
responding to the increasing demand for temporary accommodation,
whilst achieving revenue savings for the council.

Alternative Delivery Partner: Based on officers
working for several years on seeking and developing settled
accommodation schemes, there are few other schemes that could
potentially provide this number of homes with an asset value to the
council at the end of the scheme. A competitive procurement process
was followed to set up the original JV, and Mears were selected as
the preferred partner. Other potential partners and partnerships
that council officers have considered have not been able to offer
similar schemes in terms of costs and benefits and cannot
demonstrate a track record in acquisition, refurbishment and
management of properties.