Councillor
Clare Cummins, Cabinet Member for Housing Services, presented the
report which consists of two parts seeking approval for the
necessary post transition actions and transactions to complete
arrangements for Six Town Housing to continue its reduced social
housing activities after it ceased to be the Council’s
ALMO.
Part 1
explains and recommends approval for
- the
revision and amendment of the Six Town Housing (STH) Articles of
Association to provide the governance arrangements for delivery of
its reduced activities following the termination of its ALMO role
on 31st January 2024 and;
- recommends
appointment of a new Chair of the newly composed Six Town Housing
Board.
Part 2
explains and recommends approval of:
- A new
Intra-Group Agreement (IGA) with STH to govern and record the
corporate relationship between the Council and the Company. To
provide assurance to STH and the Regulator that the Council will
support STH to deliver and protect its social housing and not
impede STHs compliance with the Regulators Regulatory
Standards
Decision:
Cabinet:
- note
reasons, power, and process for the Council to amend STH Articles
of Association and appoint new Chair.
- To approve
the Sole Member (Council) Special Resolution amending Articles of
Association and appointing the new Chair.
- To delegate
to the Cabinet Member for Housing Services the signing of the Sole
Member Special Resolution to give effect to the Resolution as
appended to this report.
- Delegate to
the Monitoring Office the notifying of Companies House and the
Regulator of Social Housing of the amendments of the Articles of
Association.
- To
note
- The
background and reasons explaining the need to approve the terms of
the following instruments, and approve and direct the completion
following instruments with STH:
- Intra-Group Agreement.
- Council Services Operation Plans & SLA.
- Data
Processing Agreement
- Termination &Transition Agreement 1/2/24 minor
amendment.
- delegate to Director of Law and Democratic Services the power to
execute each of the above instruments (for later mutual exchange of
signed instruments with STH)
Reasons for
recommendation(s):
- STH no
longer performs the ALMO function for the Council but it continues
as an active Private Registered Provider of Social Housing company
owning and leasing just 149 social housing homes which it lets and
sublets to its own social housing tenants. STH no longer employs
staff, is managed solely by its Board, and wholly relies on the
Council for services.
- Consequently,
STH Articles of Association need changing to provide the governance
arrangements appropriate to enable STH to efficiently deliver
services to its small number of tenants.
- Furthermore,
the Council and STH are advised to enter into the agreements
recommended by this Report to ensure compliance with the law,
regulatory requirements, and good governance practice so that the
restructured STH may continue with its reduced social housing
activities relying on the support of the Council.
Alternative
options considered and rejected:
- The option
to “do nothing” is not appropriate since STH corporate
governance arrangements must provide for and align with STHs
significantly reduced role and activities. And the additional
agreements recommended in this Report shall ensure that both
parties act lawfully and compliantly as set out in the body of the
report