Decision status: Recommendations Approved
To gain approval to lease three properties from the Council’s housing stock to Roundabout Limited, a homeless charity, to enable them to provide support services to vulnerable individuals.
It is recommended that:-
(a) Sheffield City Council grants a lease of three properties to Roundabout Limited for the purpose and on the terms outlined within the report for a term of 7 years at a peppercorn rent subject to consent from the Secretary of State.
(b) The Chief Property Officer be authorised to negotiate and agree Heads of Terms and instruct the Director of Legal and Governance to complete the necessary legal documentation.
Granting leases for three properties on the terms and conditions outlined within the report best meets with the objectives of the Council for the following reasons.
It will help provide young people the necessary training to access full-time, sustainable employment to help them avoid the cycle of repeat homelessness.
1. Bring into general letting - this would require a considerable amount of capital investment which would need to be funded from the HRA. This would result in the net expenditure being higher than the income. With the proposed option the properties will be brought up to a decent standard and returned to the Council in a better condition than they are currently in.
2. Disposal of freehold or long term leasehold – Whilst the Council would receive a capital receipt from the disposal of these properties, their condition is such that it will be reflected in the value. The benefits of leasing them to Roundabout will not adversely affect the Council financially and the benefits the project will provide to young people are of more benefit to the Council.
Publication date: 06/06/2019
Date of decision: 06/06/2019
Effective from: 13/06/2019
Accompanying Documents: