DECISION

1. To note that a ten-year lease with Relta Ltd for the use of 34 properties within Tower Hamlets, currently used as temporary accommodation for homeless households is due to expire on 1 June 2015.

2. To agree to a renewal of the lease for a period of five years at an estimated gross cost of £3.7million, with the option to extend for a further five years, and subject to agreement on Heads of Terms.

3. To authorise the Head of Service, Housing Options to agree revised Heads of Terms or, if satisfactory Heads of Terms cannot be agreed, to return vacant possession of the 34 properties to Relta Ltd.

Action by:

CORPORATE DIRECTOR, DEVELOPMENT AND RENEWAL (A. DALVI)

(Service Manager, Housing Options and Procurement (C. Cormack)

Councillor Rabina Khan, Cabinet Member for Housing and Development, introduced the report. She highlighted the difficulty in finding temporary accommodation but stated that these properties were habitable. She called on the government to improve its support in this area.

The Mayor welcomed the report. He proposed one amendment to the recommendations stating that any decision for a further five year extension must be in consultation with the Mayor and Lead Member.

RESOLVED

1. To note that a ten-year lease with Relta Ltd for the use of 34 properties within Tower Hamlets, currently used as temporary accommodation for homeless households is due to expire on 1 June 2015.

2. To agree to a renewal of the lease for a period of five years at an estimated gross cost of £3.7million, with the option to extend for a further five years (in consultation with the Mayor and Lead Member), and subject to agreement on Heads of Terms.

3. To authorise the Head of Service, Housing Options to agree revised Heads of Terms or, if satisfactory Heads of Terms cannot be agreed, to return vacant possession of the 34 properties to Relta Ltd.