The Executive Director of Neighbourhoods and Communities submitted a report that previously on the 29th July, the Executive Sub Committee for Property had approved four Council-owned properties within Gresham which were to be leased to the Middlesbrough Community Land Trust (CLT) for a period of 5 years at nil consideration and brought back into use as affordable housing using Government funding available to community groups for empty homes.
Further to this decision, an issue had arisen regarding the Government funding. The purpose of this report was to set out a proposal to resolve the funding issue and facilitate the leases as originally approved.
It had transpired that CLT did not caveat its original bid for Government empty homes funding as recommended by the Council, that was, that any lease would be for 5 years. The submitted bid assumed a 30-year lease period.
Although the CLT board had accepted the 5 year term as approved by the committee, the funding body, Tribal (acting on behalf of the Homes and Communities Agency), had indicated that without a guarantee that the four properties would be available as affordable housing for 30 years, investment could not be approved.
The report outlined in further detail, that there were two options available:
Option 1 - 5-year lease to CLT with 30-year affordable housing commitment; and
Option 2 - Council refurbishment.
That 132 Princes Road, 219 & 239 Union Street and 6 Enfield Street be available for 30-years as affordable housing, be agreed.
That the decision was supported by the following reason:
The commitment will ensure Middlesbrough Community Land Trust (CLT) is in a position to draw down empty homes funding to bring these properties back into use.