Agenda item
Report Called In - Leasehold Policy Review
(Time allocated – 30 minutes)
Minutes:
At the request of the Chair, Councillor Marc Francis on behalf of the Call-in Members referred to the reasons in their requisition and highlighted the main issues that they held with the Cabinet’s provisionally agreed decision that the Leasehold policies be approved subject to a number of revisions. Cllr Francis praised the decision to retain the £10,000 cap on major works recharges for some older leaseholders on very low incomes. However there were a number of concerns, particularly in respect of the independent audit report of leasehold service charges which had not been signed off from the Project Steering Group.
Councillor Francis outlined the alternative course of action proposed and circulated a copy of the Housing Services Committee report, dated 3rd February 1998, highlighting the decision of that Committee to reduce charges for ground floor leaseholders. In addition to the alternative course of action proposed, Councillor Francis asked that a summary of responses of leaseholders be made available and numbers of legal challenges made in respect of the charge. In conclusion, Councillor Francis felt that the decision needed to be better informed and asked that it be referred back to the Cabinet.
Councillor Francis then responded to questions from the Committee and expanded on the concerns about the draft Beevers and Struthers Audit report. He felt that it had been premature to make an assumption about the results of the audit.
The Cabinet Member for Housing, Councillor Rabina Khan was of the view that there were some moral grounds for not charging ground floor leaseholders. However, legal advice had stated that the view was incorrect. Councillor Khan advised that the Beevers and Struthers Audit would be signed off at the Project Steering Group in March and therefore the Policy would be revisited if necessary. Ms Jill Bell, Head of Legal Services, Environment, advised that Case Law made it clear that service charges should be shared equally and that one lease cannot be changed without the agreement of all other leaseholders.
Councillor Khan, Ms Bell and Ms Jackie Odunoye, Service Head Strategy Regeneration and Sustainability, responded to questions from Members regarding the rationale for bringing the report forward before the Audit report had been signed off; and clarification of technical and legal issues. Ms Bell advised that Counsel’s opinion could not be released as it could prejudice any legal action against the Council. However a briefing note summarising the opinion could be produced for Members.
The Cabinet Members present at the meeting who had also been present when the Cabinet decision was made left the room. A significant part of the subsequent debate surrounded the rationale for bringing the report forward to Cabinet and whether a decision could have waited for the outcome of the Beevers and Struthers Audit. Concerns were also expressed about the consultation exercise carried out. Members felt that the legal opinion should have been made available in order to scrutinise the decision properly.
After considering the views and comments made by the Member presenting the call-in; the Cabinet Member for Housing and officers; and after a comprehensive debate, the Committee voted on whether to refer the item back to Cabinet and it was
RESOLVED
That the Cabinet Member for Housing urgently convenes the final Project Steering Group meeting to “sign off” the report of the independent audit;
That the Mayor and Cabinet suspends the decision agreeing to the fundamental changes to leasehold policy contained in Paras 9.1 and 9.5 until the independent audit report is published and consultation on these specific proposals is undertaken with leaseholders and councillors; and
That the Mayor publishes Counsel’s Legal Opinion in relation to these changes to help inform consideration of them.
Supporting documents:
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Call-in cover report, item 6.1
PDF 72 KB
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LPR Cab Rep, item 6.1
PDF 90 KB
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1Copy of Alt Draft Lhold Policy V0 8 LF2701110955am, item 6.1
PDF 85 KB
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2MWks Draft Lhold Policy V0 10 LF2701110955am, item 6.1
PDF 113 KB
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3Method Draft Lhold Policy V0 8 LF2701110955am, item 6.1
PDF 121 KB
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4Various Draft Lhold Policy V0 7 LF2701110955am, item 6.1
PDF 84 KB