The report was moved by Councillor Whelton and seconded by Councillor Allison.

Councillors Gretton and Crowe also spoke on the item.

The Liberal Democrat amendment was moved by Councillor McGrath and seconded by Councillor Kohler.

The amendment was put to the vote and fell. Votes in favour – 6, votes against: 45, abstentions: 4.

The substantive report was then put to the vote and was carried. Votes in favour – 28, votes against: 23, 4 abstentions.

RESOLVED:

That Council noted that Cabinet resolved the following recommendations at their meeting on 6th September 2021:

A. To note that the programme-level viability deficit of identified by Clarion Housing Group (Clarion) in April 2020 in relation to their proposed regeneration of the High Path, Ravensbury and Eastfields estates represents a significant barrier to delivery; B. To agree that the Council remains supportive of Clarion’s delivery of the Merton Estates Regeneration Programme (MERP) and the objectives of Merton’s Estates Local Plan 2018 to improve the lives of existing residents and provide new homes;

C. To agree to support the proposed adjustment of the Sales Clawback mechanism in the Stock Transfer Agreement to suspend the Council’s eligibility to the 5% Sales Clawback mechanism so long as MERP is in the course of being delivered and remains in a deficit position at programme-level. The mechanism will be triggered only if MERP’s financial performance reaches or exceeds a break-even position.

D. To agree to support an amendment to the Stock Transfer Agreement to commit Clarion to delivering Decent Homes Standard upgrades linked to any failure to achieve regeneration delivery milestones to ensure these works are guaranteed to be delivered within a specified timeframe irrespective of the status of MERP;

E. To agree to support an amendment to the Stock Transfer Agreement to specific partnership working arrangements between Clarion and the Council to include open book business plan progress updates and monitoring and regular identification, management and mitigation of risks to viability and deliverability with forums to be established at operational (Officer) and strategic (Senior Officer and Member) levels with Clarion counterparts. This approach is proposed to ensure proactive management and monitoring of future risks.

F. To delegate authority to the Director of Environment and Regeneration in consultation with the Cabinet Member for Housing Regeneration, and the Climate Emergency, to conclude any documentation, including, without limitation, amendments to existing agreements between the Council and Clarion, necessary to implement the recommendations C-E above on the best terms which in their view are reasonably achievable .

G. To agree that the 2010 Nominations Rights Deed will be preserved and that the council will continue to receive 100% nominations to true voids but that a protocol between Clarion Housing Group and the council be drawn up so as to assist Clarion in meeting its regeneration ambitions and ensuring that the council can continue to discharge its statutory housing duties and protect the public interest. Any such protocol will be jointly prepared between the council and Clarion Housing Group  ...  view the full minutes text for item 10