Salford City Council is expected to give the green light on an official application for Derive – a development company wholly owned by the council – to become a registered social landlord (RSL).
On Tuesday 13 July, the council’s cabinet will be asked to approve the submission of a detailed application to the Regulator of Social Housing, a business plan for the new organisation, and the transfer of 104 properties once registered provider status has been granted.
Derive RP would deliver 129 homes for social rent across four sites between January and August 2022 under the proposed business plan, according to a report issued ahead of next week’s meeting.
A group structure for Derive RP has already been established, with the new organisation becoming a subsidiary of Derive Group, a wholly owned subsidiary of the council.
The regulator approved a preliminary application on this earlier this year.
The next stage of the process will see the regulator approving the business case and other arrangements for the management of the new organisation.
Among other benefits of becoming an RSL, Derive would gain access to more funding from public bodies such as Homes England.
An £8.48m loan from the council would be issued to help Derive to get up and running.
The document makes the following recommendations for next week’s meeting:
- Approve the submission of a detailed application to the Regulator of Social Housing to register Derive RP as a Registered Provider and to delegate any further negotiations to the Interim Strategic Director of Place
- Approve Derive RP’s Business Plan and the lending of £8.485m to Derive RP with the drafting of the legal agreements and any associated documentation delegated to the City Solicitor
- Approve the disposal of the 104 properties across the three sites to Derive RP subject to Derive RP being registered as a Registered Provider
- Approve the shareholders agreement setting out the relationship between the City Council (as shareholder) and the Derive companies
- Approve the appointment of the two independent Board Members to the Derive RP Board
- Approve the appointment of the third council member as a member of the Derive RP Board
Are you a social housing professional? Sign up for a FREE MEMBERSHIP to upload news stories, post job vacancies, and connect with colleagues on our secure social feed.