Contact your Parish Council


Issue - meetings

Property Acquisition 1

Meeting: 16/09/2020 - Policy and Resources Committee (Item 43)

Property Acquisition 1

Additional documents:

Minutes:

The Housing Delivery Manager introduced the report and referenced the Housing Development and Regeneration Investment Plan that was agreed by the Committee in July 2017.

 

The Committee were informed that of the properties 12 would have two

bedrooms and 2 would have one bedroom and parking facilities were available for all properties. Upon completion, the properties would be managed by Maidstone Property Holdings Ltd (MPH). The predicted internal rate of return calculated on the total Net Market Rental Income meets the financial hurdle rate set for such investments.

 

Several Members of the Committee expressed doubt in the suitability of the proposed acquisition as they felt that the investment may not necessarily bring about new supply of housing in the market place, as they were homes that would otherwise be available for market sale. Concerns were raised about the lack of social and affordable housing provided and it was clarified that this investment was in accordance with the agreed investment plan which did include affordable housing on other sites.

 

The Committee considered the investment opportunity and predicted income generated for the Council, as opposed to other methods of increasing income that included an increase in fees and charges and Council Tax. The Committee felt that as the Council’s housing company, Maidstone Property Holdings would become the landlord, it would be in a strong position to offer tenancy longevity and a high-quality service.

 

RESOLVED: That

 

1.  The financial returns for the scheme shown at Exempt Appendix2, which support the Housing Development and Regeneration Investment Plan, be noted;

 

2.  The Director of Finance and Business Improvement be granted delegated authority to enter into a land transaction and development agreement with the developer, together with any related appointments, legal actions, deeds and agreements which may be required to facilitate the purchase;

 

3.  The Head of Mid-Kent Legal Services be authorised to appoint the Solicitors required to complete the necessary contract documentation, heads of term, deeds and agreements associated with the purchase on the terms as agreed by the Director of Finance and Business Improvement;

 

4.  The Director of Finance and Business Improvement be granted delegated authority to appoint a management organisation on agreed terms to manage the property and the market rental apartments and to procure and award such contracts for any services, including repairs and maintenance contracts as necessary; and

 

5.  The Director Finance and Business Improvement be granted delegated authority to grant such lease(s) of the Property as necessary on terms to be agreed, and authorise the completion of such lease(s) and all ancillary deeds and agreements and the Head of Mid Kent Legal Services be authorised to complete the necessary legal formalities for such lease(s) in due course.