Meeting documents

THE HOUSING POSITION - MOUNT BEACON LODGE

There are two key housing issues to be considered in respect of the proposed lease of Mount Beacon Lodge to Bath Housing Co-operative.

Firstly, Bath Housing Co-operative is not a Registered Social Landlord (RSL) and there is, therefore, no mechanism for Bath Housing Co-operative to apply directly to the Council or to the Housing Corporation for grant assistance or other public subsidy, such as property or land at below market value.

Under the umbrella of the sub-regional HomesWest partnership there are four RSLs that are the Council's principal partners for the development of new affordable housing. In addition, each of the Local Authorities in the sub-region has "local" RSL partners for the management of affordable housing. This structure is in line with best practice and enables the Council and the Housing Corporation to apply clear standards for both the development and on-going management of affordable housing. It also establishes a clear audit trail for the provision of public subsidy.

Both the strategic and local HomesWest partner RSLs were appointed following a rigorous selection process. It would not currently be possible for Bath Housing Co-operative to achieve the criteria for appointment as either a strategic or a local HomesWest partner.

In order to become a RSL the Housing Co-operative would need to apply to the Housing Corporation. Organisations wishing to apply must form a constitution that will meet the statutory requirements of Section 2 of the Housing Act 1996 and be: a registered charity, a society registered under the industrial and Provident societies Act 1965 or a registered company under the Companies Act. As part of the registration process business plans and financial projections will be considered. The organisation will then undergo a series of checks and assessments and if granted RSL status will be required to provide an annual return to the Housing Corporation, to provide audited accounts annually and provide information to be held on the Public Register.

It appears unlikely that the Housing Co-operative would be in a position to, or indeed would wish to, go through the process to become an RSL in order to take over the freehold or leasehold of Mount Beacon Lodge at a below-market valuation.

It might be possible for the Housing Co-operative to operate under the umbrella of an RSL. However, RSLs are not normally able to purchase the lease or freehold of a property that is occupied. Also, any form of legal partnership with an RSL would take time to put in place. Consequently this is unlikely to be a feasible solution for the Housing Co-operative in relation to the occupancy of Mount Beacon Lodge, albeit this will be for them to determine.