Decision status: Recommendations Approved
Is Key decision?: No
Is subject to call in?: No
The Director of Economic Development and Planning submitted a report providing an alternative option for the commuted sum monies that were collected from land at Chatburn Old Road, Chatburn; land at East of Clitheroe Road, Barrow; and land at Church Raike, Chipping.
At a meeting of this Committee in October 2023 a proposal was agreed to deliver an Assisted Purchase Scheme (formerly referred to as Equity Share) across the whole of the Ribble Valley, offering a loan towards the purchase of market properties. However, this was subject to obtaining legal advice as to whether the Council could properly exercise its powers in this manner.
It was noted that there were two issues with regard to the proposed scheme, namely the Financial Conduct Regulatory Position and the powers available to the Council. The legal advice concluded that it would not be possible for the Council to operate and Equity Share Scheme as originally proposed.
Members were advised of the potential option of using a form of shared ownership lease as an alternative mechanism for securing an equity stake in the purchase property. Details were provided as to how this could work and potential advantages and areas of concern. It was felt that this option would need further consideration.
However, if a shared ownership model was not a suitable option, approval was also sought to use the commuted sum monies to purchase additional affordable housing units
RESOLVED THAT COMMITTEE:
1. Authorise the Director of Economic Development and Planning to carry out further appraisal of the Share Ownership Lease Scheme; In the event that such a scheme appears suitable for the Borough a further detailed report will be brought back to Committee.
2. In the event that a Share Ownership Lease Scheme is identified as not being suitable for the Borough Committee approval is sought to
a. Approve the purchase of properties to be used as affordable rent properties in line with the recommendations in the report.
b. Delegate authority to the Director of Economic Development and Planning in consultation with the Chair of Health and Housing, to negotiate and purchase specific properties in line with the recommendations in the report.
c. Delegate authority to the Director of Economic Development and Planning to consider options for the use of the Chipping commuted sum money with a report brought back to this Committee.
Publication date: 01/02/2024
Date of decision: 18/01/2024
Decided at meeting: 18/01/2024 - Health and Housing