Report attached.

Cabinet:

4.1Approvedthe proposal to enter into an agreement for lease with National Housing Group for the sole use and occupation of Chesham House, a 55 unit building in Romford, under which the Council will be obliged to take a 10 year headlease of Chesham House upon completion by National Housing Group of agreed refurbishment works.

4.2Upon completion of the headlease referred to above, Cabinet approved that the Council may either:

4.2.1     grant an underlease of Chesham House to a wholly owned subsidiary of the Council (envisaged to be called Queens Letting and Management (“QLM”)) on a back to back basis; or

4.2.2     to manage Chesham House directly.

4.3 Approved deficit grant funding of up to £9.7m in total to QLM to cover the lease period (in event that QLM / Chesham House do not achieve housing benefit exempt status.)

4.4 Delegated to the Director of Living Well, in consultation with the Strategic Director of Resources, to take all steps, and to enter into all documentation, necessary to deliver the scheme as approved by recommendation (a) above including the discretion to decide which of options (b)(i) and (ii) shall be progressed.

1.    Noted we have already received cabinet approval to incorporate QLM Community Interest Company (CIC) on the 12 June 2024 – Establishment of a joint venture company to manage properties leased in partnership with Chalkhill.

2.    Noted Chesham House is a permitted development scheme where from a planning perspective would require prior approval to be obtained for change of use from retail with ancillary storage and offices.

3.    Noted the projected costs of leasing the property for the term outlined as well as the projected cost avoidance.