Decision details

Knights Walk – Phase 1 – Loan Agreement

Decision Maker: Strategic Director: Sustainable Growth and Opportunity

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: No

Purpose:

On 30th March 2020 the Cabinet Member Delegated Decision Report ‘HFL Delivery Plan and HFL Corporate Plan’ delegated authority to the Strategic Director of Sustainable Growth and Opportunity in consultation with the Director of Legal Services and Governance to agree the terms of Agreements to Lease, Lease and such other legal agreements as are required to undertake the projects included in the HFL Business Plan.

This report seeks approval for the Council to enter into various legal agreements with Homes for Lambeth (‘HfL’) to enable a loan to be granted to HfL Homes Ltd to enable HfL Homes Ltd to purchase the 16 new homes

Decision:

(1)        To authorise Council officers to instruct solicitors to complete a loan agreement to lend £1,750,000 to HfL Homes Ltd.  This loan will be used by HFL Homes Ltd to fund the purchase of Knights Walk Phase 1 from HfL Build Ltd.

 

(2)          To authorise Council officers to instruct solicitors to complete a security agreement and any other legal agreement necessary to enable the completion of the loan agreement.

 

(3)        To note that completion of the purchase by HFL Homes will be dependent on:

-        a loan facility of £1,750,000 being made available by the Council, which will be the subject of a separate decision by the s151 officer under delegated authority; and

-        payment by the Council to HFL Homes of £960,000 of Affordable Housing Grant received by the Council from GLA for the project

 

Publication date: 24/09/2021

Date of decision: 04/10/2021

Accompanying Documents: