Issue - meetings

Decision:

1.       Procurement of a suitably qualified company to carry out a review into the most effective governance structure of North Downs Housing Limited (NDH).

2.       That the review included a detailed options appraisal into the future operation of NDH – including options to wind up the company or to continue operations in a commercially viable manner.

Reason(s):

1.       NDH has experienced difficulties meeting its interest and debt repayments from its operating surpluses.  A review of the company’s viability is required.

2.       The Board of Directors of NDH have asked the Council to consider options for the future of the company, following an options review undertaken by NDH by Savills.

Other options considered and rejected by the Committee:

Do nothing.

Details of any conflict of interest declared by the Leader or lead councillors and any dispensation granted:

Councillor Angela Goodwin in respect of being a director sitting on the North Downs Housing Board of Directors.

North Downs Housing Limited (NDH) was a local housing company that was wholly owned by the council.  It was incorporated in 2016 to purchase and provide homes for rent.  In doing so, it was intended to increase the local housing offer and provide a financial return to the council. A previous appraisal report was commissioned by the NDH Board because the company was struggling to maintain viability.

The council needed to decide the future of NDH.  The company’s Board had provided exit recommendations in 2023.  In order to update market assumptions and to review options it was proposed the council procure an external expert to advise on future options and governance of NDH and to advise on its future financial viability. The Committee considered a report that sought permission to move forward with this procurement.

Cllr Goodwin vacated the council chamber for the duration of the discussion.

The Committee was content to approve the review and the procurement.

RESOLVED:

1.       Procurement of a suitably qualified company to carry out a review into the most effective governance structure of North Downs Housing Limited (NDH).

2.       That the review included a detailed options appraisal into the future operation of NDH – including options to wind up the company or to continue operations in a commercially viable manner.

Reason(s):

1.       NDH has experienced difficulties meeting its interest and debt repayments from its operating surpluses.  A review of the company’s viability is required.

2.       The Board of Directors of NDH have asked the Council to consider options for the future of the company, following an options review undertaken by NDH by Savills.