URL: https://democracy.croydon.gov.uk/ieDecisionDetails.aspx?ID=2372

Decision Maker: Executive Mayor

Outcome:

Is Key Decision?: Yes

Is Callable In?: No

Purpose: The Council is seeking to take on a long lease on 350 units across 5 sites being developed by Inspired Solutions. The report will detail the commercial structure of the arrangement which will help increase affordable homes available for discharge to the Council to meet increasing demand for Homelessness.    This Decision will simply be requesting that the Mayor Delegates to the Corporate Directors to enter into HoTs and Agreement for Leases. These will commit the Council to take on the units should Inspired Solutions successfully complete the developments in line with the HoTs. HoTs will be presented to decision makers before being entered into.   

Content: The Council is seeking to take on a long lease on 350 units across 5 sites being developed by Inspired Solutions. The report will detail the commercial structure of the arrangement which will help increase affordable homes available for discharge to the Council to meet increasing demand for Homelessness.    This Decision will simply be requesting that the Mayor Delegates to the Corporate Directors to enter into HoTs and Agreement for Leases. These will commit the Council to take on the units should Inspired Solutions successfully complete the developments in line with the HoTs. HoTs will be presented to decision makers before being entered into.    RESOLVED;   2.1 To agree in principle to proceed with the proposal from Inspired Solutions subject to confirmation of legal, financial and property due diligence.   2.2  To delegate authority to the Corporate Director of Resources & S151 Officer, in consultation with the Corporate Director of Housing, the Executive Mayor, Cabinet Member for Finance and Cabinet Member for Homes, to negotiate and enter into the following agreements on the 5 sites indicated within this report (or any sites that are agreed to be substituted), subject to final financial and legal due diligence:         i.         Heads of Terms, Agreement for Leases and eventual Leases with Inspired Structured Solutions (Inspired Solutions) or their Special Purpose Vehicle;      ii.         Heads of Terms, Agreement for Underleases and eventual Underleases with a company associated with Inspired Solutions;     iii.         Nomination Agreements for 100% nomination rights for all residential units for the period of the Underleases; and    iv.         Any other appropriate agreements with relevant parties to give effect to the proposals set out in this report.   2.3  To delegate authority to the Corporate Director of Resources & S151 Officer, in consultation with the Corporate Director of Housing, the Executive Mayor, Cabinet Member for Finance and Cabinet Member for Homes, to make any necessary changes to 5 sites to remove, add or substitute them with alternative suitable sites, subject to legal, financial and property due diligence.   2.4  To note that the proposals set out in this report can only be fulfilled once Inspired Solutions or their SPV receive necessary planning approvals and consents, and the developments have reached practical completion.   2.5  To note risks identified as part of this project detailed within section 8 of this report.   As per Part A & Part B reports. As per Part A & Part B reports.  

Date of Decision: December 20, 2024