Purpose

This report seeks to obtain approval to
completion the acquisition of 368 properties for us as Temporary
Accommodation

Decision

Cabinet approved the
following recommendations:

·      
Approves the acquisition of the Portfolio, as listed in Exempt
Appendix A, from A2Dominion, into the Council and the disposal by
on-sale and/or grant Page 288 (as applicable) from time to time of
leasehold titles to homes within the Portfolio or (as applicable)
other homes owned by the Council which satisfy the funder’s
criteria, to Council owned entities established for the funding
structure.

·      
Approves the incorporation of a Limited Liability Partnership (the
LLP) and other associated limited companies to create a funding
structure satisfying the funder’s criteria (the Funding
Companies which, for the avoidance of doubt, includes the LLP),
bank accounts and administrative and legal matters required for the
establishment of the Funding Companies and approves the governance
arrangements, in line with Exempt Appendix C.

·      
Approves entering into the arrangements to secure the funding,
including the Council providing the required guarantee to the
funder and the Funding Companies granting security to the funder
over the Portfolio.

·      
Approves the Council's acceptance of a lease(s) back of up to 368
properties of the Portfolio granted by the relevant Funding
Companies, following the acquisition by the relevant Funding
Companies.

·      
Approves the authorisation of the Council’s Section 151
Officer and Monitoring Officer to issue certificates to the funder,
in the form to be agreed with the funder, to certify compliance
with applicable financial requirements and legal requirements
(amongst other things) respectively and further authorises that
both officers be indemnified (to the fullest extent allowed) in
connection with the giving of such certificates

·      
Delegates authority to the Executive Director of Finance and
Resources and the Strategic Director of Housing and Commercial
Partnerships, in consultation with the Cabinet Member for Housing
and Finance & Council Reform, to confirm satisfactory
completion of due diligence regarding the Portfolio, to confirm
satisfactory completion of the negotiation and finalisation of the
structure, terms and arrangements for the portfolio acquisition and
the funding transaction such that the Council can reasonably
proceed with the Portfolio acquisition and the funding transaction,
and to approve the entry into all legal agreements and associated
documents, and undertake all other necessary actions to secure the
acquisition of the Portfolio and enter into the funding
transaction, including the settlement of the rent dispute between
the Council and A2Dominion and the other legal and financial
arrangements.
 
Reasons for Decision: The Council has
been using the Portfolio as temporary accommodation for over 15
years and has now been asked to acquire this stock. If the
Portfolio was lost, it would inconvenience TA residents and result
in a significant financial pressure to the Council. This
acquisition also supports the Council’s longer term aims to
acquire more directly owned TA and reduce its reliance on nightly
booked accommodation.