(See confidential Part 2 report* at agenda item 17 (pages 166 to 172) of the Cabinet agenda of 7 March 2017)
DRAFT
RECOMMENDATIONS
1) That the Council approves the purchase of the property shown hatched black in appendix 1 on the terms set out in paragraph 4.7 of the report and that the Head of Commercial Services be authorised to conclude the purchase following completion of due diligence investigations.
2) That the Council approves the allocation of the sums in paragraphs 6.1 and 6.2 of this report from the Housing Investment Reserve to cover the costs of purchase, ancillary costs and the appointment of consultants to carry out a full options appraisal.
[Note *Paragraph 3 as stated in agenda item 17]
Minutes:
Mrs Purnell (Cabinet Member for Housing and Environment Services), seconded by Mrs Keegan, moved the recommendations of the Cabinet.
Mrs Purnell introduced the report. Since the introduction of the Welfare Act in 2015 there has been a significant rise in homelessness at both a national and local level. Registered providers have become increasingly commercial and risk adverse, withdrawing from supporting those most vulnerable. The Home Group has recently advised that they will be withdrawing from providing young persons’ services and closing the Chichester Foyer at the end of the year - a loss of 56 bed spaces for young vulnerable adults.
Westward House, the Council’s homeless hostel, has been operating at almost full capacity and in particular the Council is experiencing increasing demand for single person and larger family temporary accommodation. As a consequence the Council has become increasingly reliant on the use of bed and breakfast accommodation, which is both expensive and unlawful, unless in exceptional circumstances. There is an immediate need for additional temporary accommodation.
An opportunity has arisen for the Council to purchase a property considered to offer good value. An initial options appraisal indicates the building has the potential to enable the Council to expand our existing homeless service.
It is proposed that the property is purchased and bought immediately back into use to provide four one-bedroom flats as temporary accommodation. At the same time a full options appraisal is undertaken to evaluate the most effective use of the building in the longer term with a Project Implementation Document being presented to Cabinet outlining recommendations later in the year.
The purchase of this property will enable the Council to meet its statutory duty towards homeless households, providing additional temporary accommodation both in the short and longer term. It will reduce reliance on and the high cost to the Council of bed and breakfast accommodation.
Mr Plowman, Mr Hixson, Mrs Duncton all supported this initiative. To a question from Mr Oakley querying whether there were any encumberances or restrictive covenants on the site, Mr Over advised that completion of the purchase would be dependent on their being no unusual encumbrances or restrictive covenants.
Mrs Tull was concerned at the cost of professional fees and suggested that the council had many experienced in-house staff that could carry out this work. Mrs Purnell responded that the options appraisal would consider how the property could be best used, whether for larger families or single occupancy. If we had the experienced, available resources in-house we would use them.
On the recommendations being put to the vote, they were declared carried.
RESOLVED
1) That the Council approves the purchase of the property shown hatched black in appendix 1 on the terms set out in paragraph 4.7 of the report and that the Head of Commercial Services be authorised to conclude the purchase following completion of due diligence investigations.
2) That the Council approves the allocation of the sums in paragraphs 6.1 and 6.2 of this report from the Housing Investment Reserve to cover the costs of purchase, ancillary costs and the appointment of consultants to carry out a full options appraisal.