Council faces more costs as it exits homes scheme
ROSSENDALE council remains liable for further legal costs despite moving to finally exit its failed Empty Homes Scheme, it’s been confirmed.
The council was granted nearly £5m by the Homes and Communities Agency to bring 474 homes back into use.
However, Rossendale taxpayers effectively became landlord for hundreds of homes across the region after Haslingdenbased AAAW went into liquidation in 2015.
Budget risk analysis papers submitted to the council’s Overview & Scrutiny Committee earlier this month stated: “During 19/20 the council has continued to face a significant capacity challenge as it worked to recover and finally exit the HCA Empty Homes programme. The 20/21 budget assumes that the majority of day to day operational costs and opportunities now vest with Calico, the Council’s housing partner.
“Some residual legal challenge costs and their risk are likely to remain with council.”
At a full council meeting last March, council leader
Coun Alyson Barnes said the scheme had cost £5.3m up to December 2018, describing it as “an utter scandal” which “appeared to involve a complex fraud”.
She had said: “We didn’t know enough about it.
“We do know plenty about what goes on with this council, but with this particular project we just didn’t know.
“It’s very difficult to say that you could’ve stopped it if you don’t know, how can you?”
Lancashire Police has confirmed that an investigation remains ongoing.
Rossendale council said all scheme costs are reported through the appropriate channels.
A spokesperson for Calico Homes said: “Calico Homes manage some of the properties for Rossendale Borough Council.”