Agenda item

Housing Revenue Account Residential Stock Portfolio Acquisition

To receive and consider the attached report and recommendation from Cabinet held on 28 November 2023.


Please note that Appendices 1, 4 and 7 (circulated within the separate exempt annex to this agenda) contain exempt information as specified under Paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972 (as amended):

'Information relating to the financial or business affairs of any particular person (including the authority holding that information).'


Council Agenda item 11 (Cabinet Minute 98)


Housing Revenue Account Residential Stock Portfolio Acquisition


The recommendations contained in minute 98 of the Cabinet meeting held on 28 November 2023 were approved unopposed.


RESOLVED that Full Council:


(i)       Subject to the approval of the recommendations below, delegated authority to the Director for Housing, Neighbourhood and Building Services; Director of Finance & Resources and Section 151 Officer, taking advice from the Council's externally appointed legal advisors, and in consultation with the Leader of the City Council and Cabinet Member for Housing and Tackling Homelessness, to acquire Lot 1a;


(ii)       APPROVED that the 'Residential Stock Portfolio Acquisition' scheme be added to the Housing Revenue Account (HRA) section of the Council's Capital Programme with a budget set out in Appendix One to cover the purchase of the housing portfolio, associated fees and planned refurbishment works, and financed by borrowing, subject to the satisfactory completion of:


                                               i.        The outstanding due diligence; and


                                             ii.        A financial appraisal, approved by the Director of Finance & Resources and S.151 Officer that demonstrates (based on the completed due diligence) that the financial impact and risks are affordable and manageable by the Council; and


(iii)    APPROVED the following amendments to the Treasury Management Limits, to facilitate the additional capital expenditure for this acquisition:


                                               i.        To increase the authorised limit for external borrowing to £1,176m; and


                                             ii.        To increase the operational boundary to £1,143m; and


(iv)    That in order that advance treasury management preparations can be made for the transaction should the acquisition proceed:


                                               i.        The sector limit for investments in money market funds be temporarily increased to £105m.


(v)     NOTED that in approving the temporary changes to the treasury management limits, no obligation to acquire the housing portfolio Lot 1a had been entered into and no long-term financial liabilities had been incurred. The changes simply enabled the Council to accumulate the necessary funding in a risk managed and cost-efficient manner and have funds available should the transaction be completed; the risks are considered negligible; and


(vi)  NOTED that the acquisition was subject to Clarion completing a successful formal stock transfer consultation of Clarion residents and Clarion Housing Group Board approval.

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