The Mayoral Executive Decision made on Friday 10th November 2017 in respect of the unrestricted report on the Acquisition of Affordable Homes has been “called in”.

The Overview and Scrutiny Committee received a “Call In” signed by 5 Councillors regarding the report on the “Acquisition of Affordable Homes” that had been considered by the Mayor as an individual Decision on 10th November, 2017.

The Committee noted the Call-in requisition stated that:

• Decision came out Friday night, 10th November, 2017, 7.31pm to spend £119 million;
• This was 7 hours after the deadline to submit questions and motions for the full Council on the 22nd November, 2017;
• There will be no opportunity at 22nd November, 2017 Council meeting to ask questions of officers;
• Previous experience of Council meetings suggests that there will be little or no time to debate properly such an important issue; and
• While individual components of this proposal have been discussed in the past (some as far back as 2015), many of the values have changed and the first time we have seen in aggregate.

However, the main questions raised were as follows:

1. How do we ensure that the £119 million buys us the best quality homes for the greatest number of people for the longest period of time;
2. What is the average age of properties bought from Poplar Harca and others?
3. How many years of life do they have left? What happens if estate redeveloped?
4. Particular concern over life cycle cost i.e. is it better to pay more upfront for quality new build which will be cheaper over next 60 years then pay less for something that may last only 20 years?;
5. Poplar Harca bought properties - comment made by officer was that they had not sold at auction but we then bought them, background required;
6. What are the reasons for this not to go through the normal Cabinet and Overview and Scrutiny Committee process;
7. Who will manage the properties bought under S.106 Agreements and others? MHS will own but who will do day to day management? What is financial impact of this?
8. How much Right to Buy receipts are at risk if no decision are made this year?
9. New Homes Bonus - will this be used as unclear?
10. £648 million infrastructure funding gap identified in the Local Plan 2031. How will we fill this gap if we are spending money on new homes?

The questions and comments from Members of the Committee on the report may be summarised as follows:

The Committee:

• Indicated that it would wish to know if the properties referred to are suitable for long term lets and would therefore wish to have more detail on their condition and age;
• Felt that in respect of the condition and age of these properties as the Poplar HARCA had been unable to sell them at auction would not new build have been a more cost effective option;
• Indicated that it wished LBTH to get the best value from any expenditure e.g. why not lease these properties through HARCA?
• Felt that given the debate on developing non-profit, community-based organizations designed to ensure community stewardship of land (e.g. community land trusts) would it not be better to have considered the purchase of such homes through a Land Trust?
• Wished that there had been more time to discuss at last night’s Full Council the suitability of this process;
• Noted that a detailed list of questions had been submitted by councillors on the age and condition of properties referred to above;
• Considered that the aforementioned options would be a positive direction of travel and whilst it would be good to have had a fuller debate at Full Council it had been decided not extend meeting time;
• Was reminded that the original report sets out the reasons as why LBTH should purchase these properties;
• LBTH needs to urgently find suitable properties so as to address local housing needs and the Mayors decision on 10th November, 2017 was a step forward and aims to deliver homes on a timely manner;
• Also welcomed the opportunity to look at the technical and convoluted way Councils have to go through so as to spend RTB receipts; 
• Noted that the Mayoral decision is part of the Housing Strategy to deliver new homes;
• Asked if consideration had been given to buying blocks on Blackwall Reach instead of private sales?
• Noted that the Lead Member would be happy to organise a Members Workshop on the Acquisition of Affordable Homes.

As a result of a full and wide ranging discussion on this report the Committee

RESOLVED by a majority of 5 to 4 not to refer the matter back to the Mayor for reconsideration.

However, the Chair indicated his intention to raise those issues highlighted by the Call In with the Mayor and Cabinet (The responses received are set out in Appendix 1).