Issue - meetings

Minute 604 refers.

RESOLVED - that (A) £1m be allocated to support the LAMS scheme in East Herts and that the following parameters be set:

(1)       the Scheme to apply to all post code areas within East Herts; and

(2)       the maximum loan per property be set at £160,000;

(B)      the Executive Member for Finance be authorised to determine the allocation of the £1m in (A) above to either a cash backed or guarantee scheme, in the light of confirmed interest from local and national mortgage providers;

(C)      subject to the determination by the Executive Member of Finance in (B) above, approval be given in respect of Lloyds TSB Bank plc and Lloyds TSB Scotland plc for:

(1)       a Scheme Indemnity Deed as set out at Essential Reference Paper ‘E’ of the report submitted; and

(2)       an Officer’s Indemnity Deed as set out at Essential Reference Paper ‘F’ of the report submitted.

The Executive Members for Finance and Health, Housing and Community Support submitted a joint report seeking approval to provide £1m funding for house purchase mortgages within East Herts using the Local Authority Mortgage Scheme (LAMS) that had been developed by Sector, the Council’s treasury management advisers.

The Executive noted that the scheme had been proposed in the context of strategic housing policy and not as a treasury investment decision.  The Executive Members detailed the key features of the scheme, which would be administered by Sector and the banks.  In essence, LAMS allowed local authorities to help address a shortage of mortgage lending accessible to those with deposits of less than 25%.  The scheme gave access to funding to those with a deposit of 5% or more with the Council acting as guarantor for the balance of the usual deposit of up to 20%.

Various Members expressed support for the scheme.

The Executive recommended the proposals as now detailed.

RECOMMENDED - that (A) £1m be allocated to support the LAMS scheme in East Herts and that the following parameters be set:

(1)       the Scheme to apply to all post code areas within East Herts; and

(2)       the maximum loan per property be set at £160,000;

(B)      the Executive Member for Finance be authorised to determine the allocation of the £1m in (A) above to either a cash backed or guarantee scheme, in the light of confirmed interest from local and national mortgage providers;

(C)      subject to the determination by the Executive Member of Finance in (B) above, approval be given in respect of Lloyds TSB Bank plc and Lloyds TSB Scotland plc for:

(1)       a Scheme Indemnity Deed as set out at Essential Reference Paper ‘E’ of the report submitted; and

(2)       an Officer’s Indemnity Deed as set out at Essential Reference Paper ‘F’ of the report submitted.