Council homes to be leased to charity
Author: Local Government Chronicle - Sep 11, 2009
An innovative approach to refurbishing hundreds of council homes is being claimed by Brighton and Hove City Council.
The council is in talks with a major high street bank to provide up to £45m to a ‘local delivery vehicle’ (LDV) - said to be the first time a local authority has leased its own housing to a charity.
The unnamed bank is said to have written to DCLG of a “strong commitment” to back the scheme and it carrying out due diligence.
The LDV - the Brighton & Hove Seaside Community Homes Limited - will use the rent from 499 homes to repay the bank while the council retains the freehold on the land.
In 2007, local people voted in a referendum against a voluntary transfer of the housing stock but backed an LDV scheme.
The initiative, which has cross-party support and means the council retains nomination rights to the homes, will see the leased homes house residents with special needs, including disabled tenants or victims of domestic violence.
The company will be managed through a 12-strong project board that will be made up equally of three groups: tenant representatives, councillors and independents.
Councillor Maria Caulfield, cabinet member for housing, said: “In the absence of government consent to raise the money needed to improve our homes, the council is determined to press ahead and has identified an alternative route.
“Leasing these homes to the new not-for-profit company means the council remains as the landlord but now has access to the money needed to modernise all of its homes.”
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