| Item | Description | Resolution |
|---|---|---|
| PART 1 - PUBLIC | ||
| MATTERS FOR RECOMMENDATION TO THE COUNCIL | ||
| CB 12/074 |
Local Authority Mortgage Scheme Initiative |
Further to Minute CB 12/052, the joint report of the Director of Health and Housing, Director of Finance and Chief Solicitor provided the additional information previously sought by Members in relation to the proposed Local Authority Mortgage Scheme (LAMS) . An update was given on the discussions to date with representatives of Kent County Council and Sector Treasury Services Limited clarifying a range of issues and the Cabinet considered a suggested way forward. It was acknowledged that the strategic objective of the scheme was to support housing policy and not to achieve financial return in accordance with the Council's Treasury Management Strategy. However, it was suggested that confirmation be sought about the return on offer compared with the financial risk prior to making a final commitment to launch the scheme. RECOMMENDED: That (1) the Local Authority Mortgage Scheme be adopted in principle in accordance with the details provided within the report; (2) the parameters set out in the report be adopted as the basis of the Council's policy and the finalisation of the precise wording of the policy be delegated to the Director of Health and Housing; (3) the Scheme be launched within Tonbridge and Malling only when the rate of return on offer from the Lender is endorsed by the Director of Finance in consultation with the Leader and Cabinet Members for Finance and Housing; (4) the following local criteria be approved for incorporation within the policy: • the maximum level of funding support for the scheme to be £1,000,000; • the maximum loan size (indemnity) to be £40,000; and • qualifying post codes - all within the Borough of Tonbridge and Malling; (5) it be noted that the final clarification regarding the accounting treatment for the deposit is awaited and the following be endorsed: • in the event that the deposit is to be treated as capital expenditure, the expenditure of £1million sit outside the Council's Capital Plan Review process; or • in the event that the deposit is to be treated as an investment, the investment of £1million sit outside the Council's Treasury Management and Investment Strategy counter party exposure limits and duration; and (6) the Chief Solicitor and Monitoring Officer be indemnified in respect of any personal liability in providing the Opinion Letter to the Lender. *Referred to Council |