The Housing Corporation is to reimburse some of the legal costs incurred by Clays Lane Cooperative in its fight to avoid takeover by another association.
The corporation had ordered the troubled cooperative to transfer its land to the Peabody Trust after repeated allegations of mismanagement.

Clays Lane applied to the High Court for permission to apply for a judicial review of the decision. The corporation has now agreed to settle out of court and pay £12,000 of Clays Lane's legal costs.

A corporation spokesperson said it had opted for the settlement to "limit costs to the public purse" and that the payment was "significantly less than the cooperative's claim", but declined to reveal by how much.

The corporation is waiting for the deputy prime minister to decide whether the transfer of Clays Lane's land to Peabody can go ahead.

Clays Lane would prefer to transfer to Scottish cooperative Tenants First.

Source

Housing Today