To authorise the director of planning to agree to a Mortgagee in Possession (MIP) clause within the joint S106 agreement for the Malt Street redevelopment (17/AP/2773) and the Nyes Wharf redevelopment (planning ref 17/AP/4596).
The committee heard the officer’s introduction to the report in which he drew members’ attention to the addendum report. Members of the committee asked questions of the officer.
A representative of the community addressed the meeting and answered questions put by members of the committee.
The applicant’s representatives addressed the committee, and answered questions from the committee.
The committee put further questions to the officers and discussed the information presented to them. The Chair reminded the committee of the late GLA correspondence signed by two of London's Deputy Mayors for Regeneration and Housing, in particular the second sentence of the ninth paragraph which reads “(…) in the unlikely event that a MiP clause was ever triggered we would work with the Social Housing Regulator, LBS and other RPs to ensure that the affordable housing remained as such.”
A motion to agree the recommendation set out in the report and amended in the addendum report was moved, seconded put to the vote and declared carried.
That the director of planning be authorised to agree to the following Mortgagee in Possession (MIP) clause within the joint S106 agreement for the Malt Street redevelopment, that was considered by committee on 3 June 2019 (planning ref 17/AP/2773) and for the Nyes Wharf redevelopment that was considered by committee on 3 September 2018 (planning ref 17/AP/4596) and that committee were minded to approve subject to referral to the Mayor of London, the Secretary of State and completion of the S106 agreement.
“Prior to seeking to dispose of the Affordable Housing Units and any Additional Affordable Housing Units pursuant to any default under the terms of its mortgage or charge or any security documentation, the Registered Provider’s Mortgagee, Chargee or the Receiver shall give not less than three months written notice to the Council of its intention to complete the transfer of the Affordable Housing Units and any Additional Affordable Housing to the Council at the market rate for Affordable Housing PROVIDED THAT the consideration will not be less than the amount due and outstanding under the terms of the relevant security documentation including all accrued principal monies, interest and costs and expenses;
If the Council cannot, within three months of the date of the Registered Provider’s Mortgagee or Receiver’s notice, complete the transfer of the Affordable Housing Units and any Additional Affordable Housing, only then will other Registered Providers be entitled to complete the transfer pursuant to clause [below].
If the Council, cannot, within three months of the date of the Registered Provider’s Mortgagee, Chargee or Receiver’s notice, complete a transfer of the Affordable Housing Units and any Additional Affordable Housing then provided that the Registered Provider’s Mortgagee/ or Receiver shall have fully complied with its obligations above (in clause X), the Registered Provider’s Mortgagee or Receiver shall be entitled to dispose free of the restrictions set out in paragraph 1 of Schedule 3 (Affordable Housing) and set out in the Nominations Agreement which provisions in respect of the relevant Affordable Housing Units and any Additional Affordable Housing shall determine absolutely.”
Following this, the meeting adjourned for a comfort break from 8.47pm to 9pm.