Six Town Housing Contract Extension
A report from the Cabinet Member for Finance and Housing is attached.
Minutes:
The Cabinet Member for Finance and Housing submitted a report providing details
Of the current Housing Management Contract between the Council and Six Town Housing. This contract expires on the 30th September 2018. The tenure of the Chair of Six Town Housing Board also ends on this date.
The contract was previously extended in November 2017, at which time a review of the Housing Management arrangements was undertaken by Savills (UK) Ltd. This review has now been completed and Cabinet, approved the implementation of the recommendations.
To allow compliance with local and statutory timescales relating to the implementation of some of the recommendations, approval is sought to extend the agreement and the Chair appointment for up to a further seven months; until 30th April 2019, or until a revised management agreement between the Council and Six Town Housing has been prepared and implemented.
Delegated decision:
Cabinet approves:
1. An extension to the current Housing Management Contract between Bury Metropolitan Borough Council and Six Town Housing Limited, on the same terms, until up to 30th April 2019.
2. An extension of the tenure of Six Town Housing’s Board Chair until up to 30th April 2019.
3. That during this extended contract period:
· There will be a freeze on the Management Agreement Fee provided to Six Town Housing Limited
· And that, without prior written permission from the Council, Six Town Housing will not:
o Utilise reserves/surpluses of Six Town Housing Limited or the Housing Revenue Account
o enter into any new contracts
o enter into any new business areas
o undergo any restructures or staffing restructures
Reason for the decision:
The Council require the contract to be fulfilled in the interim period, prior to the implementation of the recommendations of the review of the housing management service.
Other options considered and rejected:
Option 2
Cabinet do not approve an extension of the contract and the related aspects