Decision details

Following the decision of the Council on the 21^st January 2015, the Housing Company has now been established and is ready to begin its work. In order to do this the Council would need to authorise its financing and the transfer of resources to that body to allow it to begin this task in earnest. The Executive has previously agreed through decision EX16/2015 to apply through the Growth Deal for Lancashire to formally request a discounted rate through the Public Works Loan Board. 

The Executive agreed the recommendations as outlined above namely:

1. To authorise the Director of Resources to: -

• Draw down the funding offered in the Growth Deal of £26m from the Public Works Loans Board (as outlined in previous decision EX16/2015) or from another source if that is more favourable.

• To transfer money for or pay resources for the company to carry out the duties it will take over on behalf of the Council such as Blackpool Lets. 

• Transfer £1.6m of earmarked resources to the company.

• Put in place a quarterly monitoring system and allow the transfer of the above-mentioned Public Works Loan Board resources to be transferred to the company over a period of 3 years at a rate of not more than £10m per year.  Also to set a commercial loan interest rate for this money that is greater than that at which is being borrowed and meets state aid legislation but permits the activity to take place.

2. To agree in principle to transfer any property that was acquired for purposes that have now passed to the Housing Company and note that the terms of each transfer will be subject to a decision of the relevant Cabinet Member.