board agenda 19 february 2014 @ 5.30pm venue: hhp …€¦ · venue: hhp boardroom, creed court,...

BOARD AGENDA 19 FEBRUARY 2014 @ 5.30pm

VENUE: HHP BOARDROOM, CREED COURT, STORNOWAY

No Item Action Page No Time

PRELIMINARY PROCEDURAL MATTERS -

1 Attendance & Apologies Noting 3

5:30pm -

5:40pm

2 Declaration of Interest Noting

3 Minute of Board Meeting 27 November 2014

Approval 4

4 Action Sheet Approval 10

5 Date of Next Meeting 28 May 2014

Approval

6 Membership Update Noting 12

7 Health & Safety Verbal Update

Noting

FINANCE

8 Budgets 2014/15 Report by Director of Resources

Approval 13

5:40pm -

6:10pm

9 Annual Financial Strategy Report by Director of Resources Approval

21 Appendix to

Follow

10 Business Plan Monitoring Report Report by Chief Executive

Approval 22

11 Management Accounts to 31 December 2013 Report by Director of Resources

Noting 39

12 Treasury Report to 31 December 2013 Report by Director of Resources

Noting 58

MANAGEMENT

13 Review of Registers: Payments & Benefits, Membership, Gifts & Hospitality Report by Director of Resources

Noting 65

6:10pm -

6:30pm

14 Tenants Satisfaction Survey – Action Plan Report by Director of Operations

Approval 67

15 Welfare Reform Report by Director of Operations

Noting 73

16 Grounds Maintenance/Garden Assistance Scheme Report by Director of Operations

Approval 82

DEVELOPMENT

17 Development Programme 2013/14 Report by Chief Executive

Noting 85 6:30pm -

6:45pm 18 Development Programme 2012-18 Report by Chief Executive

Decision 96

INVESTMENT

19 Investment Programme 2013/14 Report by Director of Operations

Approval 100

6:45pm -

7:00pm

20 Investment Programme 2014/15 Report by Director of Operations

Approval 106

21 Investment Programme 2015-19 Procurement Update Report by Director of Operations

Noting 126

POLICIES

22 Draft Payments & Benefits Model Policy Consultation Update Report by Director of Resources

Noting 129

7:00pm -

7:20pm

23 Asbestos Policy Report by Director of Operations

Approval 148

24 Development Handover Policy Report by Chief Executive

Approval 161

25 Equal Opportunities Policy Report by Chief Executive

Approval 169

26 Gas Management Policy Report by Director of Operations

Approval 178

27 Health & Safety Policy Report By Chief Executive

Approval 194

28 Openness & Confidentiality Policy Report by Director of Resources

Approval 213

29 Void Management Policy Report by Director of Operations

Approval 228

MEETING GOES INTO PRIVATE SESSION

Board Members Notes 29-May-13 26-Jun-13 04-Sep-13 12-Sep-13 27-Nov-13 19-Feb-13

Mairi BremnerGeorge Lonie Special LeaveJane MacKinnon Special LeaveDavid BlaneyNorman M MacleodJohn A Maciver 3

Donald J MacraeKevin PatersonAngela Quail 1

Daniel CoyleAlasdair MackenzieCalum MackayIain Macmillan 2

Member present at meeting

1 - Resigned at AGM 12 September 2013

2- Appointed as Co-optee at Board Meeting on 27 November 2013 Member not present at meeting3 - Resigned at Board Meeting 27 November 2013

Cancellation of travel due to weather/ technical problems

Special Leave Special Leave granted by Board

Board Meetings 2013/14Agenda Item 1

HEBRIDEAN HOUSING PARTNERSHIP Board Minutes of Meeting held in the Cabarfeidh Hotel on Wednesday 27 November 2013 @ 5.00pm

ITEM DISCUSSION

PRELIMINARY PROCEDURAL MATTERS

1 Attendance & Apologies

Present Apologies Staff & Consultants In Attendance

David Blaney (Chair) Jane MacKinnon Angus Lamont Kevin Paterson Iain MacMillan Dena MacLeod Norman M MacLeod George Lonie (Vice-Chair) John MacIver Calum MacKay Iona France Alasdair MacKenzie Angela C Smith John A MacIver Peter O’Donnell DJ MacRae Laura-Jayne Davis Daniel Coyle (via Skype) Katrina Palmer Mairi Bremner (via Skype) Angus MacNeil Stephen Nicol The Chair advised the Board that Cllr John A MacIver had tendered his resignation and would be standing down from the Board with this Board meeting. On behalf of Board and Officers, Mr Blaney thanked Cllr MacIver for his contribution to HHP and wished him well for the future.

2 Declaration of Interest

Kevin Paterson declared an interest in Item 20 as he is a member of Positive Action in Housing.

3 Minutes of Board Meeting of 4 and 12 September 2013

4 SEPTEMBER 2013

Items 20 & 22

The Director of Resources advised that a response had been received from WIFTRA in respect of the Gifts and Hospitality Policy and the Membership Policy consultations that took place in September 2013, and a response would be compiled and returned to WIFTRA in due course.

The minute of the Board meeting of 4 September 2013 was submitted and approved as a true and accurate record of the proceedings of that meeting.

12 SEPTEMBER 2013

The minute of the Board meeting of 12 September 2013 was submitted and approved as a true and accurate record of the proceedings of that meeting.

4 Action Sheet

A suggestion was made to send Membership packs to RTOs.

The Action Sheet was approved.

5 Date of Next Meeting

The date and time of the next meeting will be 19 February 2013 at 5:30pm.

6 Membership Update

The Board noted the Membership update.

7 Health & Safety

There were no items to report.

DEVELOPMENT

8a Development Programme 2013/14

The Chief Executive updated the Board on HHP’s Development Programme. Gibson Gardens was handed over and there was currently no development on site.

Members queried unit costs and the Director of Resources responded to say that reports would be made available to Board members accordingly.

Agenda Item 3

Members also asked if any problems had been encountered with heating systems at Gibson Gardens. The Investment Manager advised that some issues had been encountered with tenants not using the controls correctly, but Clerks of Works were addressing them.

It is agreed that:

a) Progress with the Development Programme 2013/14 at Appendix 1 be noted; and

b) The Programme forecast spend to 30 September 2013 at Appendix 2 be noted.

8b ITEM TAKEN IN PRIVATE

FINANCE

9 Business Plan Monitoring Report

The Chief Executive provided an update on the Business Plan Monitoring Report. The Development aspect of the Business Plan would be picked up later in the meeting.

It was agreed that:

a) The updated monitoring report be noted; and

b) A revised Business Plan 2014/15 – 2016/17 to include the resource implications of the new build assumptions submitted to the Funder be reviewed at the February Business Planning Day and by the Board at the February 2014 meeting.

10 Budget Timetable 2014/15

The Director of Resources advised that this was a standard timetable for rent setting, and the Finance Working Group would meet in January 2014 to go through the budgets in detail.

It was likely that RPI would be less than shown in the report. The last RPI for October 2013 was 2.6% and it was expected to drop further.

Members stated that they felt that a longer consultation period was desirable and that January 2014 was not the ideal time to consult with tenants on rent setting.

The Director of Resources advised that the consultation period could start earlier as there were already good indications available of what RPI was likely to be.

Calum Mackay felt that a more in-depth discussion was required on rent setting at a later date.

The Board approved the:

a) Budget timetable for 2014/15 as at Appendix 2; and

b) Consultation process for 2014/15 rent setting.

11 Management Report to 30 September 2013

The Finance Manager took the Board through the Management Report to 30 September 2013. The Budget was approved in February 2013 and there is currently a £2.8m surplus. Expenditure is behind budget in respect of development but should be up to budget by the end of the year. A high level Income and Expenditure account and key ratios were included at Appendix 1 for reference. The Covenants are currently well covered.

The Board agreed to note the management information at 30 September 2013 as detailed in Appendix 1.

12 Treasury Report to 30 September 2013

The Director of Resources updated the Board on the Treasury Management activities in the second quarter of 2013/14 and advised that a report had been prepared by Michael Leslie, of JC Rathbone, in respect of hedging options. Once Members have had a chance to consider the report in detail, Mr Leslie will be invited up to address the Board again, potentially at the February 2014 Board meeting.

The Board agreed to:

a) Note the quarterly report on the Analysis of Investment and Borrowing as shown at Appendix 1;

b) Note the outstanding loans at 30 Sept 2013 of £5.202m;

c) Note the cash balance at 30 Sept 2013 of £1.800m; and

d) Review and consider hedging options as detailed in the report prepared by Michael Leslie of JC Rathbone at Appendix 3 with a view to taking a decision at February 2014 Board meeting.

13 Funder’s Valuation

The Director of Resources advised that this report followed on from the last Board meeting, where the Board had been assured that a copy of the Funder’s Valuation would be made available to them once it arrived. The existing value of stock at 31 March 2013 was £19,096,000.

The Board noted the:

a) Existing Use Value at 31 March 2013 of 2,217 units is £19,096,000; and

b) Valuation report for 2013 as at Appendix 1.

MANAGEMENT

14 Update to Financial Regulations

The Director of Resources advised that the Board’s approval was being sought in respect of an operational amendment to the Financial Regulations, which were approved by the Board in February 2013.

It was agreed that Para 6.3.10 of the Financial Regulations be replaced with the following:

“Properly authorised invoices are paid within suppliers’ terms or within 30 days of date of invoices whichever is the earliest.”

15 Anti-Social Behaviour and Estate Management

The Director of Operations advised the Board that this was a standard report which gave an update to the Board in respect of Anti-Social Behaviour and Estate Management.

The Chief Executive advised that a meeting is due to take place with the Police on 5 December 2013, in respect of a previous Anti-Social Behaviour case, and he will update the Board on the outcome.

The Board agreed to note the Report.

16 Repair and Maintenance Contract – 6 Month Service Review

The Assets and Contracts Manager introduced the Board to the fifth mandatory Repairs and Maintenance Contract 6 month review on performance. The score for this review is 110, which is lower than the previous score of 113. The scoring of these reviews will be the leading factor as to whether the contract will be extended beyond the initial 5 year term.

Members requested that a copy of the FES FM Ltd staffing structure, in relation to HHP, be made available to them.


17 Repair and Maintenance Contract 13/14 Update

The Assets and Contracts Manager provided an update on Planned and Cyclical Maintenance for 2013/14 and identified some emerging issues in the management of these, with particular regard to the cleaning of flues. The Board was advised that reports had been received that many flues were not being cleaned by tenants with open fires and some of them were in a very poor condition. This is considered a Health & Safety risk, and it was felt appropriate to include the cleaning of flues in the annual cyclical maintenance programme.

The repair and maintenance issues affecting the properties at Cnoc Mòr, Breasclete, were highlighted. Options to address these were being investigated and discussions had taken place at the Investment Working Group.

It was agreed that the Repairs and Maintenance Policy (June 2009) be amended to include the following paragraph:

“Flues in properties with solid fuel heating systems will be cleaned on an annual basis. This will be included in the annual cyclical maintenance programme.”

18 Welfare Reform Update

The Service Development Manager gave a report to the Board on the implications of the Welfare Reform Act for HHP.

The main update was in respect of the “Bedroom Tax”. At the time of writing the report, HHP tenants in receipt of DHP amounted to 87, however, the actual figure was now c. 129 but it is still undersubscribed. The main reason given by those who have not applied for DHP is that they do not want to transfer. Arrears had increased from £11,923 at the September 2013 Board meeting to £16,806 currently.

Norman Macleod stated that there was a concern that if all monies were not used there may be less made available in future years. In addition, it was suggested that it should be made clear to tenants that DHP does not have to be paid back if a tenant does not accept a transfer.

Kevin Paterson also stated that there was a feeling amongst many tenants that HHP’s Allocations Policy gave them a property that was deemed suitable for their needs at one point, but they were now being forced to move out of these properties as a result of Welfare Reforms. It was felt that if the need to apply for a transfer was removed then more eligible tenants would apply for DHP.

The Chief Executive advised the Board that two attempts had been made to contact Mr Alexander MP, and neither letter had been acknowledged. The Board suggested that a further reminder be sent and HHP should “keep pushing”. The Board was also advised that Mr Angus Campbell, Leader of CNES, has a meeting with Mr Mundell, Under Secretary of State for Scotland, and he will put forward the case for an exemption for the islands.

The Director of Operations advised that a small number of DWP offices across the country had rolled out a Universal Credit pilot, Inverness being one of the offices, and the Board would be updated in respect of how it was progressing.

The Board noted the Report and the implications of the changes for HHP.

19 Tenant Satisfaction Survey

The Service Development Manager gave an update in respect of the Tenants’ Satisfaction Survey that had been carried out in September/October 2013. A 20% written response rate had been returned, and a further telephone survey of 441 tenants was carried out in order to achieve the 40% minimum response rate. The overall satisfaction level for the 2013 survey is 73% with 16% of tenants dissatisfied. The full results will now be analysed and a further report will go to the February 2014 Board meeting on actions required as a result of the

survey.

The Board noted the Report.

20 Board Training Plan 2013-15

The Corporate Governance Manager updated the Board on the results of the Training Needs Analysis that had been carried out earlier in the year, in order to compile a Board Training Programme for 2013-15. The Assessment of Training Needs identified that the Board sought training in the following areas:

Self-Assessment;

Welfare Reform;

Scottish Social Housing Charter; and

HHP’s Business Plan.

Several training providers had been contacted and it was estimated that the cost of providing this Training Programme would be c. £6,450. It is anticipated that the Programme will get underway in February 2014.

It was agreed that:

a) the Assessment of Training Needs at Appendix 1 be approved; and

b) the Breakdown of Costs at Appendix 2 be approved.

21 Charter Progress Report

The Corporate Governance Manager gave an update on progress towards readiness for the Scottish Social Housing Charter. There are still some technical issues to be worked out regarding system readiness but they are being addressed in conjunction with MIS. A Mock Annual Return on the Charter (ARC) was completed to 31 October 2013 by staff and the results, in unchecked format, were at Appendix 2 to the report. The Board was asked to note the report and to approve a consultation process with tenants and partner organisations in respect of some aspects of the Charter.

It was agreed that:

a) progress against preparation for the implementation of the Scottish Social Housing Charter be noted;

b) consultation in respect of “locally agreed targets” with tenants and other partner organisations be approved; and

c) consultation in respect of how the ARC will be reported to tenants and stakeholders be approved.

22 Regulator’s Visit

The Chief Executive gave an update on the Regulator’s recent visit and drew the Board’s attention to the minute of the meeting which had been issued as an additional paper. There were 3 main aspects touched on: the Business Plan, Welfare Reform and SHQS. In conclusion, the regulation plan would be focused on fewer areas.

The verbal update in respect of the Regulator’s visit was noted.

23 Gas Installations

The Investment Manager advised the Board that a decision was being sought in respect of arrangements for the installation and management of propane/butane gas cylinder installations in HHP properties.

It has come to light that gas appliances are being fitted into HHP properties and there is concern that they may not be installed properly and not be receiving annual safety checks. It was recommended that HHP take a proactive approach to such installations to ensure safety.

It was agreed that:

a) The forthcoming internal gas audit be expanded to corroborate the HSE guidance on propane/butane gas cylinders and appliances to allow the Gas Safety Policy and Procedures to be updated; and

b) The Gas Safety Policy be amended to include:

“Tenants who wish to use appliances that require the use of propane/butane cylinders must obtain permission from HHP before they are installed. The installations must be carried out by Gas Safe registered engineers and appropriate certification must be provided to HHP. These must subsequently be serviced on an annual basis failing which permission will be withdrawn”.

INVESTMENT

24 Investment Programme 2013/14

The Assets & Contracts Manager gave an update on the current Investment Programme. Two lots had been completed and another two are to complete before Christmas.

One of the recommendations to the report was to approve an additional reserve list, and another was to replace Murray Place with Morison Avenue in respect of window replacement, owing to planning issues in the conservation area surrounding Murray Place.

Members queried the situation with some gas fires which had been shut down and not repaired.

The Director of Operations advised that HHP was trying to find replacement parts for fires that had parts

condemned, but that was proving difficult for some fires due to their age. If any fires were disconnected, HHP was ensuring that radiators in living rooms were of a sufficient size to heat the room. This was also the most economical way for tenants to heat rooms.

Members were advised that a report on options would be brought forward at a later date if it proved impossible to source parts for fires.

It was agreed that:

a) Progress with the Investment Programme as at Appendices 1 and 2 be noted;

b) The substitution of window replacement at Murray Place (24 units) with Morison Avenue (19 units) be approved;

c) The properties at Appendix 3 be approved for inclusion in the 2013/14 programme if required in substitution for any refusals which are encountered; and

d) To utilise the DECC grant income as it is received.

25 Investment Programme 2015-19

The Assets & Contracts Manager presented to the Board proposals to commence the procurement process for the next 4 year Investment Programme. The current framework is due to expire in March 2015 so the procurement process will have to commence soon. There are a number of changes to Scottish and EU procurement and as legislation is new and unchallenged, it is recommended that a consultant be appointed to guide HHP through the process.

The Corporate Governance Manager will make information available to the Board via email in respect of Scottish and EU procurement.

It was agreed that:

a) the Investment Programme for 2015–19 be procured via a 4 year framework contract; and

b) consultancy support be procured to provide support and guidance on the procurement project.

26 SHQS Update

The Investment Manager updated the Board in respect of the current position regarding progress towards achieving compliance with the Scottish Housing Quality Standard (SHQS). The final Stock Condition Survey concluded that 84% of HHP’s stock was compliant. A refinement exercise was then carried out to look at the failures and these would be re-classified where appropriate or would be addressed in the Investment Programme during 2014/15.


POLICIES & STRATEGIES

27 Members’ Expenses Policy

The updated Members’ Expenses went to the Audit & Risk Committee earlier in the day where a recommendation for approval was made to the Board. The Board further reviewed the Policy and recommended that it be approved.

Following a recommendation from the Audit & Risk Committee the Board approved the Members’ Expenses Policy at Appendix 1.

28 Staff Expenses Policy

The updated Staff Expenses Policy went to the Audit & Risk Committee earlier in the day where a recommendation for approval was made to the Board. The Board further reviewed the Policy and recommended that it be approved.

Following a recommendation from the Audit & Risk Committee the Board approved the Staff Expenses Policy at Appendix 1.

29 Control of Payments and Benefits Policy

The updated Control of Payments and Benefits Policy went to the Audit & Risk Committee earlier in the day where a recommendation for approval was made to the Board. The Board further reviewed the Policy and recommended that it be approved.

Following a recommendation from the Audit & Risk Committee the Board approved the Control of Payments and Benefits Policy at Appendix 1.

30 Recruitment Policy

The updated Recruitment Policy went to the Audit & Risk Committee earlier in the day where a recommendation for approval was made to the Board. The Board further reviewed the Policy and recommended that it be approved.

Following a recommendation from the Audit & Risk Committee the Board approved the Recruitment Policy at Appendix 1.

31 Allocations Policy

The updated Allocations Policy went to the Audit & Risk Committee earlier in the day where a recommendation for approval was made to the Board. The Board further reviewed the Policy and recommended that it be approved.

Following a recommendation from the Audit & Risk Committee the Board approved the Allocations Policy at Appendix 1.

32 Rent & Service Charges Policy

The updated Rent & Service Charges Policy which included the Rental Policy for New Build went to the Audit & Risk Committee earlier in the day. The Committee felt that the Board should further discuss the Policy with particular regard to the ‘Mortgage to Rent’ (MTR) element included at 8.7 in the updated Policy.

In terms of the MTR applications that had been received to date, HHP had been unable to make the financing work – borrowings would have to increase or the Government’s recommended assumed rent levels would have to be used. Implications for both scenarios were discussed and it was concluded that it would be desirable and enabling to try to utilise the MTR scheme, but each property acquired under this scheme should be treated on an individual basis.

The Board agreed that:

a) the Rent and Service Charges Policy at Appendix 1 be approved subject to an amendment at 8.7 in respect of recommendation ‘b’; and

b) to enable HHP to participate in the Government’s Mortgage to Rent (MTR) scheme, each MTR application will be assessed on an individual basis. Where the private finance requirement exceeds 35% of the price the rent charged will be derived from the Government’s assumed rent and will remain for the next 30 years or until the applicant vacates the property permanently.

33 Cycle to Work Scheme

The Finance Manager introduced the Cycle to Work Scheme to the Board and advised that it was a Government tax exemption initiative introduced to promote healthier journeys to work and reduce pollution. Several Housing Associations were already running the scheme and employees benefited, via a monthly salary sacrifice, through which a bike and cycle equipment could be purchased.

It was agreed that the Cycle to Work Scheme be approved.

MEETING WENT INTO PRIVATE SESSION

Chairperson Mr David Blaney

SIGNED ……………………………………………………….

DATE ……………………………………………………….

Action Point

MINUTE NUMBER ACTION TO BE TAKEN ACTION BY PROGRESS

1 27 Nov 13

(3)

Response to WIFTRA to be prepared in respect of their response to consultations on Membership Policy and Gifts & Hospitality.

Corporate Governance

Manager

Responded on 23 December 2013.

2 27 Nov 13

(8a)

Development costs to be made available to Board members – unit costs re Gibson Gardens.

Director of Resources

To be reported in May 2014.

3 27 Nov 13

(9)

Business Plan Monitoring Report Appendix 1 to be made available to Board Members.


Manager

Made available via iPads.

4 27 Nov 13

(14)

Financial Regulations to be updated at Para 6.3.10. Director of Resources

Updated.

5 27 Nov 13

(16)

FES FM Ltd staffing structure in relation to HHP to be made available to the Board.

Director of Operations

Emailed to Board members on 21 January 2014.

6 27 Nov 13

(18)

A further letter to be sent to Mr Alexander, MP in respect of Welfare concerns.

Chief Executive Reminder sent by Chair.

7 27 Nov 13

(19)

Report to return to Board on Tenants’ Satisfaction Survey once full results analysed.


On Agenda.

8 27 Nov 13

(21)

Consultations in respect of Scottish Social Housing Charter to be progressed. Corporate Governance

Manager

To be discussed with Executive Team.

9 27 Nov 13

(24)

Removal of focal point gas fires – options to be brought to future Board meetings if parts cannot be sourced.


Parts sourced for a number of properties and search continuing.

10 27 Nov 13

(25)

Scottish and EU procurement information to be made available to Board via email.


Manager

Hyperlinks emailed to Board.

Board Action Sheet

Agenda Item 4

Action Point

MINUTE NUMBER ACTION TO BE TAKEN ACTION BY PROGRESS

11 27 Jun 12

(14)

Further report to the Board on rent structure once financial implications for Business Plan have been reviewed and agreed.


On hold due to Welfare Reform Implications.

12 27 Jun 12

(15)

Report back to Board re the use of HHP’s subsidiary for factoring purposes. Director of Resources

Draft Business Plan prepared and presented to Board in May 2013. Bank account set up, awaiting reports on options.

13 24 Jun 08

RES (12)

The Chief Executive be given delegated authority to reduce or write off the outstanding sundry debts invoice from the Comhairle and report back the outcome to the September 2013 Board Meeting.

Chief Executive Awaiting action from Comhairle Chief Executive.

It was agreed on 20 February 2013 that HHP’s Chair, David Blaney, would make an approach to CNES’ Chief Executive to try to progress this item.

14 26 Apr 07

(13)

The updated Right To Buy Sharing Agreement to be submitted to Members following its review by Communities Scotland.


Discussed at Meeting on 6 November 2008. Awaiting response from Scottish Government. Discussed with Regulator in October 2011.

Angela C Smith Page 1 of 1 30/1/14

Agenda Item 6

BOARD 19 February 2014

MEMBERSHIP UPDATE

Report by Director of Resources

PURPOSE OF REPORT

1.1 To update the Board in respect of HHP’s Membership.

SUMMARY

2.1 The Partnership has three categories of Membership:

Tenant;

Community; and

the Council member.

2.2 There are currently 121 active members in the Partnership, broken down as follows:

Category As at 27 Nov 13 Movement As at 19 Feb 14

Lewis Tenant Members 21 +1 22

Harris Tenant Members 9 - 9

Uist & Barra Tenant Members 16 - 16

Council Members 1 - 1

Community Members 73 - 73

COMPETENCE

3.1 There are no legal, financial or other constraints to the recommendations in this report being implemented.

RECOMMENDATION

4.1 It is recommended that the Board note the Report.

Background Papers HHP Rules

HHP Standing Orders

Writer of Report Angela C Smith Tel: 0300 123 0773

Dena Macleod Page 1 of 10 6/2/14

Agenda Item 8


BUDGETS 2014/15


PURPOSE OF REPORT

1.1 To present for consideration and approval the proposed 2014/15 charges for rents, garages and services to the Board for approval.

SUMMARY

2.1 At the Board meeting in November 2013 the budget strategy for 2014/15 was approved based on the approved 30 year Business Plan. The draft budgets based on the rental income from the Rent Guarantee are at Appendix 1.

2.2 A four year Rent Guarantee that the maximum rent increase would be RPI+1%, was put in place in February 2012. A consultation exercise for 2014/15 was undertaken as per Para 8.3 to 8.4.

2.3 The Finance Working Group met on 24 January 2014 to review the budgets and a note of their meeting is at Appendix 2.

2.4 RPI at November 2013 was 2.6%.

COMPETENCE

3.1 The legal and financial implications are detailed in paragraph 5.1 to 6.1 of this report.

RECOMMENDATIONS

4.1 It is recommended that:

a) the rent increase for houses be set at 3.6% being RPI+1% increasing the average rent by £2.38 per week to £68.40 a week.

b) garage rents and garage site rents be increased by 3.6% being RPI+1%;

c) all other services and charges as shown at Appendix 3 be increased by RPI for 2014-15; and

d) budgets at Appendix 1 for 2014/15 are approved.

APPENDIX 1 Proposed Budgets for 2014/15

APPENDIX 2 Note of Finance Working Group 24 January 2014

APPENDIX 3 Services and Charges

Background Papers None

Writer of Report Dena Macleod Tel: 0300 123 0773

DML Page 2 of 10 6/2/14

COMPETENCE

Financial 5.1 The report considers the resources the Partnership requires for 2014-15 in line with the

30 year Business Plan approved by the Board in September 2012 and the Budget Strategy in November 2012.

Legal 5.2 The Partnership’s Rule 71 states that “The Partnership must keep proper books of

account to cover its income, expenditure, spending, assets and liabilities in line with sections 1 and 2 of the Friendly and Industrial Provident Societies Act 1968. It must also set up and maintain a suitable system for controlling its books of accounts, its cash and its receipts and invoices”.

5.3 The Board has ultimate responsibility for the Partnership’s finances and in accordance with the Financial Regulations the Board has the responsibility to approve the annual budgets.

RISKS

6.1 The major risk to setting the rents is that the requirements of the current borrowing arrangements are broken resulting in the facility being re-negotiated and the interest rates increased.

REPORT DETAILS

Background

7.1 Budgets are set each year which identify the income available to the Partnership and the funds required to deliver the promises made in the Transfer Business Plan. Budgets are set in the context of the 30 year Business Plan making amendments as required to ensure the Partnership is still in a position to repay the funds borrowed by Year 29 of the Plan i.e. 31 March 2035, keeps borrowing within the approved facility, and meets financial covenants.

7.2 A strategy and timetable for completing the 2014-15 budgets was approved by the Board in November 2013.

Rent Increase

7.3 The cash planning limits assumed that the rent increase would be RPI +1% based on November RPI. This assumption is in line with the 30 Year Business Plan.

7.4 RPI at 30 November 2013 was 2.6% which gives a rent increase of 3.6%.

7.5 Detailed budgets showing the areas where funds will be spent are at Appendix 1.

Consultation Exercise

8.1 Tenants are being consulted on the proposed rent rise through a survey on the HHP web page and the views of WIFTRA will also be sought. An update will be provided at the Board meeting.

DML Page 3 of 10 6/2/14

Finance Working Group

9.1 The Finance Working Group met on 24 January and reviewed the budgets in detail. A note of the meeting is at Appendix 2 and a brief review of the items discussed will be given at the meeting of the Board.

DML Page 4 of 10 6/2/14

APPENDIX 1: PROPOSED BUDGETS

2013/14 2013/14 2014/15 CashINITIAL REVISED INITIAL CHANGE % CHANGE Planning CHANGEBUDGET BUDGET BUDGET Limit

Income & ExpenditureDwelling Rent (Net) £7,599,160.00 £7,599,160.00 £7,850,604.00 £251,444.00 3.31% £7,720,510.00 £130,094.00Non Dwelling Rent (Net) £10,290.00 £10,290.00 10,290.00 £0.00 0.00% 10,290.00 £0.00Right to Buy Sales £25,060.00 £25,060.00 25,060.00 £0.00 0.00% 100,500.00 -£75,440.00Grant Funding £420,000.00 £725,000.00 420,000.00 £0.00 0.00% 420,000.00 £0.00Other Income £43,280.00 £43,280.00 42,580.00 (£700.00) (1.62%) 36,100.00 £6,480.00

---------------------- ---------------------- ---------------------- --------------------- --------------- ------------------- -----------------

1 Total Income 8,097,790.00 8,402,790.00 8,348,534.00 250,744.00 3.10% £8,287,400.00 £61,134.00=============== =============== ============= ============== ========== ============ ===========

2 Supervision & Management 2,060,357.00 2,097,527.00 2,026,950.00 (£33,407.00) (1.62%) 2,215,500.00 -£188,550.003 Response Repairs 1,178,314.00 1,178,344.00 1,178,454.00 £140.00 0.01% 1,073,200.00 £105,254.004 Planned Maintenance 549,390.00 551,190.00 572,105.00 £22,715.00 4.13% 604,900.00 -£32,795.004 Estate Works 96,650.00 94,650.00 151,850.00 £55,200.00 57.11% 119,200.00 £32,650.00

---------------------- ---------------------- ---------------------- --------------------- --------------- ------------------- -----------------

Total Operating Expenditure 3,884,711.00 3,921,711.00 3,929,359.00 44,648.00 1.15% 4,012,800.00 -£83,441.00---------------------- ---------------------- ---------------------- --------------------- --------------- ------------------- -----------------

Operating Surplus/(Deficit) 4,213,079.00 4,481,079.00 4,419,175.00 206,096.00 4.89% 4,274,600.00 144,575.00---------------------- ---------------------- ---------------------- --------------------- --------------- ------------------- -----------------

Interest & Depreciation 877,200.00 877,200.00 1,637,600.00 760,400.00 86.68% 958,400.00 £679,200.00---------------------- ---------------------- ---------------------- --------------------- --------------- ------------------- -----------------

Surplus/(Deficit) 3,335,879.00 3,603,879.00 2,781,575.00 (554,304.00) (16.62%) 3,316,200.00 -534,625.00=============== =============== ============= ============== ========== ============ ===========

Capital Investment5 Housing Investment Programme 3,655,800.00 3,762,770.00 3,482,300.00 (383,910.00) (10.17%) 3,482,300.00 £0.006 Aids & Adapations 120,000.00 425,000.00 120,000.00 0.00 120,000.00 £0.007 Non-Housing Investment Programme 132,000.00 143,000.00 26,000.00 83,900.00 63.56% 0.00 £26,000.008 Development Programme 1,245,300.00 1,317,100.00 715,786.00 31,404.00 2.52% 719,500.00 -£3,714.009 LIFT 0.00

---------------------- ---------------------- ---------------------- --------------------- --------------- ------------------- -----------------5,153,100.00 5,647,870.00 4,344,086.00 (268,606.00) (5.21%) 4,321,800.00 22,286.00

=============== =============== ============= ============== ========== ============ ===========

DML Page 5 of 10 6/2/14

COMMENTARY ON BUDGET V 2013/14 BUDGET

1 Total Income Rents increased by RPI+1% (3.6%)53 week rent yearNew build units added.

2 Supervision & Management Net Reduction of £33.4K and the key reasons area) £13.4K increase in staff costs to cover inflationary & incremental increases.b) £65K for consultants for Investment Frameworkc) £83.7K Increase in internal fees for development

3 Response Repairs Income from Week 53 used to maintain Repairs budget at current level. Supportinginformation will be available at Board

4 Planned Maintenance & Increase of £77.9K reflecting the slippage on the 2013-14 sewage works programme (£64K)Estate Works

5 Housing Investment Decrease of £173.5K in line with stock condition survey and CPL's

6 Non-Housing Investment Implementation of the IT Strategy7 Development Programme Decrease of £529K reflecting the current development programme and the change in timing

of receipt of Scottish Government Grant.

COMMENTARY ON BUDGET V Cash Planning Limits

1 Total Income BRIXX caculated rent based on 365 days. HHP charge on weeks so every 4 years 53 weeks rent is due.

2 Supervision & Management Below CPL by £199K which is a combination of delivering efficiency savings andnot incorating inflationary increases across all management costs. There is alsoan increase of fee income expected from the new build developments.

3 Response Repairs £105K above CPL funded from Week 53 rent

4 Planned Maintenance & In LineEstate Works

5 Housing Investment In Line

6 Non-Housing Investment In Line (included with management costs in BRIXX)7 Development Programme In Line

DML

PPage 6 of 10 6/2/144

DML Page 7 of 10 6/2/14

S

HEBRIDEAN HOUSING PARTNERSHIP

Finance Working Group

Note of Meeting held on Thursday 24 January 2014 @ 5:00pm in Chief Executive’s Office, Creed Court, Stornoway

ITEM / DISCUSSION

Attendance & Apologies

PRESENT APOLOGIES STAFF & CONSULTANTS IN ATTENDANCE

Iain MacMillan Angus Lamont Calum MacKay Dena MacLeod George Lonie John MacIver Gordon Murray Iona France

Purpose of Working Group

Several Working Groups comprising of Board members and officers were set up to look into specific working areas, in order to enhance the understanding of these areas, and facilitate decision making. The Finance Working Group is one of these groups.

Discussion

The Director of Resources went through the draft 2014/15 high level budgets including the proposed charges for 2014/15 rent. The Budgets have been prepared based on the 30 Year Business Plan approved by the Board in September 2013 and incorporate the second year of the rent guarantee. Several points of discussion are detailed below.

The Director of Resources wanted to highlight that the RPI figure at November 2013 was lower than expected at 2.6% and that adjustments to the Development Programme profile would have an impact on borrowing for 2014/2015.

The increase in income is due to the impact of the rent rise and the change in stock numbers. The voids and bad debt were trimmed back last year but put back up this year so the assumptions are identical to the Business Plan.

Operating Costs increasing by 1% is well below the rate of inflation. Employee costs will increase for 2014/15 by 1% in line with nationally agreed salary increases.

The Director of Resources emphasised that the Depreciation and Interest line was a book entry only and is as a result of releasing credit back into reserves. There is no impact to cash flow as a result of the increase in Depreciation charge.

It was agreed that this could cause some confusion to the untrained person and Iain Macmillan asked if there was any way of showing this separately, in presentation format, so that it was very clear to everyone. The Director of Resources agreed that this could be done.

Calum Mackay asked if it was anticipated that Right to Buy figures and Grants would remain at the same level for next year. The Director of Resources confirmed that the Grants are guaranteed and that although there had been no Right to Buy applications received so far in 2014, they have been steady throughout the year. The Finance Manager advised that whilst there is usually an increase in applications in the final quarter, completions remain the same. The Director of Resources confirmed this is an area that would be monitored due to assumptions made.

Gordon Murray queried why the void losses had increased and the Director of Resources advised that this was an assumption for long term financial planning. The Director of Operations confirmed that this was an area that HHP usually performed well in, but that there was always a potential for external factors, such as Bedroom Tax and the economy, to influence this, therefore it was advisable to be prudent in terms of budgeting.

The Director of Resources advised that the increase in responsive repairs reflected development whilst recoverable expense remained steady. The budgets for Planned Maintenance were kept more or less the same with planning limits added in.

Calum Mackay asked why, with more plastic windows and doors being used, the figure for painterwork had increased. The Director of Operations advised that all painterwork was included in the figure, including cyclical planned maintenance for fencing, etc. Calum Mackay asked if there was any provision for the figures for planned maintenance to be increased and if any line was underspent, how is it decided which budget it is allocated to. The Director of Resource advised that a certain amount of virement due to underspend was delegated but above that amount it would go before the Board.

In regard to the Unadopted Infrastructures, the Director of Operations advised that this was in relation to the septic tanks that HHP are hoping that Scottish Water will adopt, although this is proving difficult and is now into the second year of negotiations. Calum Mackay asked if an update would be going before the Board and the Director of Operations confirmed that there would be a report to the May 2014 Board.

The Director of Resources confirmed that the reason the Interest figure has increased is owing to the interest on RTB

APPENDIX 2

DML Page 8 of 10 7/2/14

receipts not being required until this becomes a loan in 2035/36. This is a book entry only.

The Capital Investment amount is in line with the 30 year Business Plan and the Stock Condition Survey.

The Non-Housing Investment Programme for 2013/14 included the implementation of the IT strategy so this budget has now been reduced.

The Development Programme shows the amount of Private Finance required to implement the 2014/15 Development programme – this is less due to the change in when the Scottish Government grants are paid. Following a question from Calum Mackay on the status of the Development Programme, the Chief Executive confirmed that a full report on the progress of the Development Programme would be going before the Board on 19 February 2014.

The Director of Resources then introduced the Rent Consultation paper, which, if the Group approves, will go to WIFTRA and other Tenants Associations and also be published on HHP’s website on Monday 27 January 2014, with responses to be returned by 12 February 2014

The consultation paper outlines the rent guarantee and the proposed rent increase of 3.6% (RPI + 1%) for 2014/15.

Calum Mackay asked when the rent structure would be reviewed and the Director of Resources stated that HHP are committed to RPI + 1% for 5 years, however, the review process for the period following the guarantee period would commence next year.

Iain Macmillan requested that the Consultation paper be amended to show Interest & Depreciation on one line.

The Director of Operations confirmed that he is happy to attend any Tenants Association meetings to discuss the rent increases and the Investment Programme.

Members were happy to recommend the high level budgets to the Board and for the Rent Consultation paper to be issued on Monday 27 January 2014 with the recommended amendment.

DML Page 1 of 2 7/2/14

Agenda Item 9


ANNUAL FINANCING STRATEGY 2014/15


PURPOSE OF REPORT

1.1 To present for consideration and approval the 2014/15 Annual Financing Strategy.

SUMMARY

2.1 An Annual Financing Strategy has been prepared and is at Appendix 1. The Strategy shows that there is no new borrowing required during 2014/15; the Business Plan approved in September 2013 showed there would be a requirement to utilise the overdraft facility, but having updated the September plan for the revised Development Programme there is now no requirement to borrow in 2014/15.

2.2 A decision has to be taken on whether to place hedging instruments in place for the fixed loan of £1.5 million as the current fixed rate of interest expires in October 2014. A session will be held prior to the Board meeting to fully explain the various hedging instruments available.

COMPETENCE

3.1 There are no legal, financial or other constraints to any recommendations in this report being implemented.

RECOMMENDATIONS

4.1 It is recommended that the Board:

a) review and approve the Annual Financing Strategy 2014-15 at Appendix 1; and

b) consider and approve proposals for renewing fixes on current long term borrowings presented at the Treasury Management briefing session by Michael Leslie of JC Rathbones.

APPENDIX 1 Annual Financing Strategy 2014-15

Background Papers JCRA Report on Interest Rate Hedging Alternatives dated 13 Nov 13


Jackie Macleod Page 1 of 2 6/2/14

Agenda Item 10


BUSINESS PLAN MONITORING REPORT

Report by Chief Executive

PURPOSE OF REPORT

1.1 To enable the Board to monitor progress with the 3 year Business Plan 2013/14 – 2015/16 and update the Business Plan Action Plan for 2014/15 – 2016/17.

SUMMARY

2.1 The Board approved a 3 year Business Plan 2013/14 – 2015/2016 in March 2013. The Plan includes a table of action against approved strategic objectives. The actions have been monitored at each Board meeting since March 2013.

2.2 The Board held a Business Planning session in September 2013 to review HHP’s Key Business Planning Assumptions and in particular the capacity to deliver a development programme beyond 2015. A second Business Planning session was arranged for 4 February 2014. The session primarily focussed on a self assessment of HHP’s performance in the field of Quality Management. However the Action Plan 2013/14 – 2015/16 was also reviewed.

2.3 The draft Action Plan for the Business Plan 2014/15 – 2016/17 will also be reported to this meeting for approval. An accompanying narrative for the Business Plan 2014/15 – 2016/17 will be written up and circulated to Board Members.

2.4 A note of the Business Planning Day will be circulated prior to this meeting.

COMPETENCE

3.1 There are no legal, financial or other constraints to any recommendation to this report.

RECOMMENDATIONS


a) The updated monitoring report is noted;

b) The note of the Business Planning session held on 4 February 2014 including the outcome of the self assessment of HHP’s performance in the field of Quality Management is approved; and

c) The draft Business Plan Action Plan 2014/15 – 2016/17 is approved.

APPENDIX 1 Updated Monitoring Report

APPENDIX 2 Note of Business Plan Session held on 4 February 2014 (To Follow)

APPENDIX 3 Draft Business Plan Action Plan 2014/15 – 2016/17 (To Follow)


Writer of Report Angus Lamont Tel: 0300 123 0773


COMPETENCE

Financial 5.1 Each task identified in the Business Plan Action Plan requires to be resourced. The Board

has undertaken a review of key Business Plan assumptions including new build. This has required the Treasury Management Strategy in relation to the timing of draw down of finance against the facility which is in place with our Funder.

Legal 5.2 There are no legal implications arising directly from consideration of this report.

RISK

6.1 The Business Plan has a section on managing risk. A review of the Risk Register was undertaken at the Business Planning session on 4 February 2014 and the revised Register is subject of a report to the Audit & Risk Committee.

BUSINESS PLAN – OBJECTIVES AND ACTIONS REQUIRED 2013/14 – 2015/16

OPERATIONAL

OBJECTIVE

ACTION REQUIRED MILESTONES

TIMEFRAME LEAD OFFICER PROGRESS /

COMPLETION

Objective 1

Placing tenants at the centre of everything we do

Corporate Governance Team to attend Tenant Conferences and encourage membership. Forms to be sent out Rent Setting.

5 new members by the next AGM

31 August 2013 Corporate Governance Manager

Issued 1 new member pack since last Board meeting

Identify skills gaps on the Board and speak to suitable candidates with a view to being co-opted.

List prepared by 2013 AGM 31 August 2013 Corporate Governance Manager

No suitable candidates identified to date

Review key service areas from a tenant perspective and re-design these where necessary to provide quality delivery for customers.

• Review investment programme arrangements

• Review repair service

• Review allocation process

• Review Estate Management Procedures

• IT systems in place to support customer centered delivery

30 June 2014

30 June 2014

31 May 2013

31 March 2015

31 December 2013

Investment Manager

Contract & Asset

Manager

Area Manager

Team Leader Service Delivery

Service

Development Manager

Planned

Planned

Completed

Planned

In Progress

APPENDIX 1

OPERATIONAL

OBJECTIVE



COMPLETION

• Review specification for new houses

31 March 2014

Investment Manager

Completed

Provide opportunities for tenants to engage in service review and re-design

• Agree process with WIFTRA & Board Working Groups

30 June 2014 Director of Operations

Discussion still to take place

Continue to support and work with WIFTRA to ensure tenants voices and views are heard

• Review Tenant Participation Strategy

• Hold tenant events in Stornoway, Tarbert, Barra, Balivanich and North and South Uist

• Complete satisfaction survey

01 June 2013

Annually

31 October 2013


Area

Manager/Service Development

Manager

Service Development

Manager

Completed

Completed Lewis, Harris, Balivanich and Barra

Completed

Engage wider community

• Contribute actively to Community Planning Partnership Management & Outcome Groups

Ongoing


Membership in place for Health & Wellbeing and Communities group. Also Membership of Community Safety Partnership, Older People’s Planning Partnership Domestic Abuse Forum,

OPERATIONAL

OBJECTIVE



COMPLETION

• Identify opportunities to build partnerships which improve life outcomes for tenants and residents

• Seek funding opportunities to support service development

Ongoing

Ongoing


Investment Manager & Service

Development Manager

Emergency Planning and Energy Forum Liaison ongoing with CPN service, Housing Benefit team and membership of Early Years Collaborative 2 unsuccessful bid submitted for Advice and Support monies for Welfare Reform. Further opportunities being sought. Joint working in place with CAB on income maximisation.

Bid supported via CNES for domestic abuse funding

OPERATIONAL

OBJECTIVE



COMPLETION

Better understand the needs of our tenants by improving the collection and use of customer profile data and thereby target efforts to assist in maximising benefit uptake ahead of the introduction of Universal Credit

Customer profiles for tenants affected by Bedroom Tax

• Profiles for impact of Universal Credit

30 April 2013

30 September 2013

Service Development

Manager

Service Development

Manager

Tenants affected identified and being updated on ongoing basis.

Take up of Discretionary Housing Payment (DHP) being promoted Work in progress. Introduction of Universal Credit significantly delayed

Objective 2

Investing income in a sustainable way

Work with partners to deliver the affordable warmth strategy for our tenants

• Strategy is supporting document to Business Plan

31 March 2015 Investment Manager

Membership of Energy Forum

Identify further works to improve energy efficiency of homes and seek to fund a programme to deliver this.

• Develop and cost proposals for next stage of insulation work

30 September 2014 Investment Manager

Work in progress

OPERATIONAL

OBJECTIVE



COMPLETION

Bring properties to SHQS by 2015 and identify exemptions where this is appropriate

• Identify abeyances

• Identify exemptions and justify reasons for this

31 March 2015

Investment Manager

Work in progress. Stock Condition Survey informing position. Report to Board November 2013. SHQS works included in 2014/15 investment programme.

Continue to strengthen partnership working with CNES, TIG, NHS, Greenspace, community organisations etc

• Active member of local energy and fuel poverty groups

• Develop data sharing with partners

Ongoing Investment Manager & Asset

& Contract Manager

Work in progress. Membership of Energy & Fuel Poverty Group in place

Engage with CNES and other Community Planning Partnership partners to identify housing requirements for future population demographic projections

Contribute to development of Local Housing Strategy and highlight HHP priorities

01 April 2014 Director of Operations

Attendance at CNES MOWG in place and regular Officer meetings taking place

Review capacity to develop new housing past 2013-15 programme

Business planning session 2013 and Report to Board in 2014

01 April 2014 Executive Team Business Planning Session 4 February 2014

OPERATIONAL

OBJECTIVE



COMPLETION

Objective 3

Delivering continuous improvement

Complete Self Assessment Plan. Prepare report on changes to be made before full Self Assessment is implemented.

Self Assessment Plan 2013/14 Corporate Governance Manager

Report to November Board Meeting addressed Self-Assessment trials and how we are going to progress. Self Assessment for Charter reporting has commenced and will be discussed at Business Planning Day on 4 February 2014

Implement new performance measures agreed by Finance Working Group linking performance with resources.

New P.I Report Corporate Governance Manager

Arrange to visit 2 of the top performing RSL’s in peer group to benchmark X P.I

Benchmarking report revised targets

Corporate Governance Manager

Not feasible with staff changes this year. Hope to still do this in future.

Improve core service performance on range of indicators to achieve top quartile performance

• Arrears > 3% of gross debit (to be reviewed as Welfare Reform develops)

31 March 2015

Area Manager & Service Delivery Team Leader

Currently on target

OPERATIONAL

OBJECTIVE



COMPLETION

• Void loss > 0.8%

• Average re-let > 28 days

• Repairs on target > 95%

31 March 2015

31 March 2015

31 March 2015



Asset & Contracts

Manager

Ahead of target Ahead of target Ahead of target

Develop customer centered culture in individuals and teams

Executive Team

Improve customer access to information and service

Improve website to provide better information, improve accessibility to services

SMS System to inform tenants

31 March 2014

31 March 2014

Corporate Resources Manager

Website has been rebuilt. Awaiting content requests SMS system being tested

Empower individuals to deliver for customers

Improve performance reporting and management systems to provide a tool to drive performance


Manager/Service Development

Manager

Working on IT system reporting to enable more effective control of accessing month-end data.

OPERATIONAL

OBJECTIVE



COMPLETION

Objective 4

Providing efficient effective housing services of high quality

Improve services to factored properties and transparency of charges

• Map process for charging and ensure robust methodology

• Review information provision to owners

30 September 2013 Service Development

Manager

• Work in progress

• Factoring notice issued to all owners

Develop measures/definitions of effectiveness and efficiency

Publish service standards and targets as part of Charter reporting

30 April 2014 Service Development Manager & Corporate

Governance Manager

Will be done once Charter reported on

Publicise quality standards for customers

To be incorporated into above

Service Development Manager & Corporate

Governance Manager

Identify cost of implementing proposed rent structure

Decision taken on whether implementation is affordable


On hold

Consult on proposed rent structure To be determined by above Director of

Operations As above

Objective 5

Being a good employer that attracts and retains high quality staff

Appraisals and training needs request to be completed.

All SDA’s completed on time Chief Executive Appraisals 13/14 underway

Training Plan to be prepared.

2013/14 Training Plan 31 March 2013 Admin Officer (Corporate Resources)

Training Plan in place some training has been organised.

OPERATIONAL

OBJECTIVE



COMPLETION

Awaiting training needs from Autumn series of Staff Development Appraisals.

Review of the layout of the Stornoway offices including Board Room.

Option appraisal report for office

30 September 2013 Director of Resources

Works 99% complete

Staff survey Survey undertaken 31 March 2014 Executive Team

Undertake review to link to Scottish Joint Council (SJC) pay & conditions framework. Determine whether to move to EVH.

Review undertaken with consultancy support

June – October 2014

Chief Executive

Objective 6

Delivering Value for Money

Business Plan assumptions review Business Plan updated 30 September 2013 Director of Resources

Complete.

Identify overhead costs v direct service delivery and benchmark these

Define overhead v direct identifying benchmarking partners

31 March 2014 Director of Resources

Work to commence with budget work

Develop peer review against top quartile RSLs

Partners identified and information obtained

Corporate Governance Manager

OPERATIONAL

OBJECTIVE



COMPLETION

Identify duplication and inefficiencies in processes and streamline these

Detailed process maps developed for key areas including:

• Investment

• Factoring

• Repairs

31 March 2014

Service Development

Manager

Mapping of Investment and Factoring work in progress. Repairs to follow

Identify costs/unit in investment and repair programmes and identify implications of reducing these

30 September 2014

Asset & Contract Manager & Service

Development Manager

Work in progress

Explore opportunities with partners to achieve savings

Deliver new build programme in a more cost effective way reducing per unit cost

2013-15 SLP – affordable houses for rent programme approach

June 2013 initial report

March 2015 programme complete

Chief Executive Progress report with update beyond 2015 on September Board Meeting Agenda

Agree financing arrangements of Subsidiary including bank and VAT arrangements

Funding Agreement in place

VAT registration in place

31 March 2013 Director of Resources

Loan documents in place awaiting Bank approval

Undertake review of impact of LIFT properties in the Stornoway area

Survey successful applicants. Carry out market analysis to ascertain demand

2014-15 following LIFT projects at

Anderson Road and Mackenzie Park

Chief Executive & Tighean Innse

Gall

OPERATIONAL

OBJECTIVE



COMPLETION

Undertake review of demand/need for 3+ bedroom houses in some rural areas e.g South Lochs, Bragar & South Uist

Undertake review one year after introduction of ‘Bedroom Tax’

30 June 2014 Director of Operations

Planned

Put agreements in place between HHP and HHP Community Housing to enable staff to work for Subsidiary

Legal Agreement in place 31 March 2013 Director of Resources

Timesheets in place

Objective 7

Delivering excellent services to homeless and potentially homeless persons

Provide temporary accommodation to CNES as required

Review of allocations to homeless applicants as required by CNES

Annual Review

Annual Review

31 March 2013

& Annually


Completed

Review SLA with CNES on a regular basis

Actively contribute to CNES strategy on homelessness

Annual Review Annually Director of Operations

Ongoing

Work to prevent homelessness amongst HHP tenants through tenancy breakdown

• Joint working arrangements in place with partners e.g CPN Team, CAB and Social Work

• Tenancy sustainability after 1 year > 90%

• Eviction rate < 0.15%

Ongoing

Annually


Work in progress On target

OPERATIONAL

OBJECTIVE



COMPLETION

Provide advice and assistance to housing applicants on options and ensure effective signposting

• Explore formal accreditation on advice and assistance

• Develop housing options information for applicants to support advice provision

30 September 2014

30 September 2014

Service Development

Manager

To be progressed

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The Director of Resources then demonstrated various scenarios using BRIXX and the impact that they would have on the peak debt.

Asset Management Strategy

The Director of Operations presented an overview of the issues relating to Asset Management which is based on the following criteria:

No agreed definition; Regulator Guidance 2012; Integrally linked to Business Plan; Core Business for Governing Bodies; Whole Organisation Approach; Understanding Customers; Risk Based and Proportionate; Good Information; Joined Up Planning; Looking After Core Stock; Compliance with Standards; Dealing with ‘Cause for Concern’ Stock; New Developments; Value for Money; and Strategy Review.

The Director of Operations gave a brief outline of the criteria and how they related to the Asset Management Strategy and advised that the Board need to be aware of the issues and how they all combine to assist in producing a Strategic Planning framework in line with the Business Plan.

Vision Milestones

Board Members and Management Team, in mixed teams, then identified at least one key significant milestone to be addressed in each of the next five years, taking into account the strategic issues presented earlier. The milestones identified were:

Increasing tenant satisfaction; Reducing arrears; Secure finance to continue new build; Achieve SHQS standards; Develop improvements in staff relationships; Tackle fuel poverty; Increase investment in stock; Increase engagement with communities/partnerships; and Achieve Stage 1 of ‘Committed to Excellence’ and work towards Gold Standard.

Discussions took place on how some of these milestones could be achieved, including engaging with younger/future tenants, through schools and colleges, working with tenants to reduce arrears and carrying out studies on the benefits of solar panels.

Risk Management

Due to time constraints the Risk Register will now be reviewed at the next Audit & Risk meeting.

0.00

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Stephen Nicol 1 of 2 30/1/14

Agenda Item 11


MANAGEMENT REPORT TO 31 DECEMBER 2013


PURPOSE OF REPORT

1.1 To present the management report for the month ended 31 December 2013 for the Board to review.

SUMMARY

2.1 This is the third management report for the year 2013/14 and the information is presented in full in compliance with regulations and to provide Board Members with assurance that expenditure is within approved budgets and income collected is on target. A copy of the report is at Appendix 1.

2.2 Management reports for the remainder of the year will follow the format prescribed by regulations.

COMPETENCE

3.1 The legal, financial or other constraints to any recommendation in this report are contained in Paragraphs 5.1 to 6.1.

RECOMMENDATIONS

4.1 It is recommended that the Board notes the management information at 31 December 2013 as detailed in Appendix 1.

APPENDIX 1 Management Report to 31 December 2013


Writer of Report Stephen Nicol Tel: 0300 123 0773

Stephen Nicol Page 2 of 2 30/1/14

COMPETENCE

Financial 5.1 The Board approved budgets for 2013/14 in February 2013 which projected a surplus for

the year of £3,336,879. The current forecast out-turn figure is £3,161,263.

Legal 5.2 There are no legal matters arising from the consideration of this report.

RISK

6.1 The key risk is that HHP does not meet its Financial Covenants on an on going basis. The covenant for 2013-14 has been set at £1,841,180.

REPORT DETAILS

7.1 A high level Income and Expenditure Account has been prepared and shows that with the exception of depreciation, due to the changes required by component accounting, figures are within the profiled budget. Income is favourable to budget across all income streams.

7.2 Capital Expenditure is currently £1,247K behind the budget for the period. All planned works are expected to be complete by year end with an expected budget underspend, not yet quantified, which is attributable to savings on contracts. Development expenditure is under budget by £216K due to delays in the new developments getting underway.

7.3 There has been a £500k movement in Fixed Assets, mainly due to Development Expenditure of £1.1m less depreciation of £500k. Debtors have decreased by £230k with a corresponding increase in cash balances of £150k. Reserves have increased by £500k.

7.4 Key Ratios give a comparison, of current actual spend to the previous year actual spend and to forecast spend, of significant figures from the management accounts and allows an immediate contrast to be made of important indicators. On the whole, we are performing well within budget for the current financial year.

7.5 As highlighted above the key risk to HHP is that we do not meet our financial covenants going forward. Therefore, this has been included in the report to highlight the effect that continuing operations has on this highly significant figure. The report shows that we are currently very well covered in relation to the covenants.

Hebridean Housing Partnership Management Reports

1

Hebridean Housing Partnership Registered Scottish Charity SCO 35767

2013/14

Management Reports To 31 December 2013

aglsmi

Typewritten Text

APPENDIX 1


2

Introduction.........................................................................................................................................3

Summary of Performance....................................................................................................................3

Commentary on Income and Expenditure...........................................................................................4

Ratios....................................................................................................................................................5

Income and Expenditure Account........................................................................................................6

Supervision and Management………………………………………………… ……………………………………………………….8

Repairs and Maintenance.....................................................................................................................9

Estate Works........................................................................................................................................10

Aids & Adaptations …………………………………………………………………………………………………………………………11

Investment Summary……………………………………………………………………………………………………………………...12

Development Programme………………………………………………………………………………………………………………..13

Non Housing Capital Programme…..…………………………………………………………………………………………………14

Balance Sheet......................................................................................................................................15

Financial Covenants.............................................................................................................................16

Right to Buy Details………………………………………………………………………………………………………………………….17


3

Introduction The December Management Reports are enclosed and if Board Members have any areas of concern

or would like further information they should contact the Finance Manager or the Director of

Resources who will provide the information.

Performance is monitored using a traffic light system and the key is below:

Red indicates that targets are not being met currently and it is forecast that they will not be met by the year end. Urgent action is required. This could mean a projected overspend on a budget or slippage in performance

Amber indicates that targets are not currently being achieved but that they will be met by the year end.

Green indicates that targets are currently being met or exceeded. This could mean projected efficiency savings on expenditure, additional income and/or planned work is ahead of schedule

Summary of Performance

Budget Performance

Income

Rental Income

Right to Buy

Other Income

Expenditure

Staff Costs

Other Management Costs

Repairs & Maintenance

Investment

Development

Financing Interest Payable

Overall


4

Director of Resources Commentary on Performance

Income and Expenditure – Overall Position

Overall the forecast out-turn for 31 March 2014 is showing there will be a requirement to draw

down a further £500k from Reserves to cover the forecast depreciation charge was has been revised

to take full account of the changes resulting from implementing component accounting.

The Investment Programme is expected to deliver efficiency savings due to the tendering process

and the Board approved the bringing forward of work planned for 2014-15. This will be covered by

the existing budgets and will not require further funding.

There will be slippage on the Development programme mainly due to a delay in transferring sites

from CNES to HHP. This will impact on the timing of any borrowing for the year and will result in

savings in interest charges for the year.

Income and Expenditure

£

Initial approved Deficit (438,921)

Carried Forward from 2012/13 (146,300)

Virement/Adjustment (30,290)

Revised Deficit (615,511)

Changes identified this financial year

Additional Income 29,700

Cost (increases)/decreases 26,684

Depreciation (500,000)

Forecast Deficit to 31 March 2014 (1,059,127)

Increase in funds required to meet forecast out-turn 443,616


5

Ratios

Financial Covenants

The facility agreement with our Funders has one Financial Covenant, Interest Cover. Where a deficit

is projected in any financial year, the covenant is based on an absolute sum rather than a percentage

so the covenant for 2013-14 is a maximum cash flow deficit of £1,841,180. The covenant is being

monitored by the Bank on a quarterly basis via the management accounts and then tested at the

end of each financial year. As at the end of December 2013 the covenant is being met (as detailed at

page 16 of this report) and it is considered that the covenant will be met at the end of this financial

year.

Key RatiosCurrent Forecast 2012/13

Current Ratio 1.30 0.76 1.01

(Current Assets/Current Liabilities)

Net Debt Per Unit

Borrowing/ stock units £2,320.44 £2,770.64 £2,392.82

Voids% 0.61% 0.99% 0.62%

Voids as % of Rental Income Due

Bad Debts % 0.36% 0.99% 0.62%

Bad Debts written off as % of Rental Income Due

Staff Cost/Turnover % 15.21% 17.06% 14.03%

Gross Surplus 21.49% 3.72% 37.06%

Operating Surplus/Turnover

Net Surplus 7.87% -1% 34.10%

Net Surplus/Turnover


6

Income and Expenditure Account

For the nine months ended 31 December 2013

Finance Manager’s comments

Spend v Budget

Line 6 Total Income – Income received is £91K ahead of budget and can be seen in all categories of Income. A virement has been issued to adjust the forecast out-turn for Other Income. Line 12 Total Operating Expenditure-Expenditure is £1.7m below budget largely due to a delay on the Investment Programme to allow HHP to apply for grants. Works have now been issued and are fully expected to be completed by the end of the financial year. Line 14 Interest received is higher than budget as the cash required for Development and Investment expenditure has remained in the bank accounts thus achieving higher interest receipts. Line 15 Interest paid is lower than budget. Due to slippage on Development and Investment programmes the requirement to borrow has been delayed. Any savings will be carried through to 2014/15. Line 17 Depreciation is greater than budget. This is due to the impact of Component Accounting. A virement has been issued to adjust the forecast out-turn

Line BUDGET ACTUAL

Initial Revised to Spend to Budget Budget to Revised Revised Over/ at

Budget Budget 31 Dec 13 31 Dec 13 to date date Budget Budget (under) 31 Mar 14

£ £ £ £ £ % £ % £ £

1 Dwelling rents (net) 7,599,160 7,599,160 5,848,530 5,876,783 (28,253) 0% 1,722,377 22.67% - 7,599,160

2 Non Dwelling rents (net) 10,290 10,290 8,638 10,189 (1,551) -18% 101 0.98% - 10,290

3 Right to Buy Sales 25,060 25,060 15,520 20,635 (5,115) -33% 4,425 17.66% 25,060

4 Grant Funding 420,000 725,000 461,100 503,790 (42,690) 0% 221,210 30.51% 725,000

5 Other Income 45,670 45,670 36,150 49,809 (13,659) -38% (4,139) -9.06% 25,000 70,670

6 TOTAL INCOME 8,100,180 8,405,180 6,369,938 6,461,206 (91,268) -1% 1,943,974 23.13% 25,000 8,430,180

7 Supervision & Management 2,056,787 2,093,887 1,624,679 1,367,240 257,439 16% 726,647 34.70% 5,000 2,098,887

8 Response Repairs 1,178,049 1,179,949 896,171 788,410 107,761 12% 391,539 33.18% 35,000 1,214,949

9 Estate Works 96,770 94,770 72,705 16,350 56,355 78% 78,420 82.75% (64,000) 30,770

10 Planned/Cyclical Maintenance 549,495 549,495 492,025 434,190 57,835 12% 115,305 20.98% 2,316 551,811

11 Investment Programme 3,775,800 4,220,390 3,713,498 2,466,640 1,246,858 34% 1,753,750 41.55% - 4,220,390

12 Total Operating Expenditure 7,656,901 8,138,491 6,799,078 5,072,829 1,726,249 25% 3,065,662 37.67% (21,684) 8,116,807

13 Operating Surplus/(Deficit) 443,279 266,689 (429,140) 1,388,377 (1,817,517) 424% (1,121,688) -420.60% 46,684 313,373

14 Interest received 2,000 2,000 1,500 4,399 (2,899) -193% (2,399) -119.94% 4,700 6,700

15 Interest paid 404,200 404,200 302,900 188,523 114,377 38% 215,677 53.36% (5,000) 399,200

16 Surplus/(Deficit) 41,079 (135,511) (730,540) 1,204,253 (1,934,793) 265% (1,339,764) 988.68% 56,384 (79,127)

17 Depreciation 480,000 480,000 360,000 696,066 (336,066) -93% (216,066) -45.01% 500,000 980,000

18 Transfer to/from provision - - - - - - - -

19 Surplus/(Deficit) (438,921) (615,511) (1,090,540) 508,187 (1,598,727) 147% (1,123,698) 182.56% (443,616) (1,059,127)

CURRENT YEAR BUDGET BUDGET VARIANCE BUDGET REMAINING FORECAST OUT-TURN


7

Income for the nine months ended 31 December 2013

The profiling of the rental income budget was based on the assumption the majority of new build

units would be completed towards the beginning of the financial year, however due to delays on site

the majority of units were not received until September which has resulted in a shortfall in rental

income for the year. The shortfall in rental income will be met from the voids budget which is

significantly underspent due to the continued improvement in the management of void properties.

BUDGET ACTUAL

RENTAL INCOME Initial Revised to Spend Budget Budget to Revised Revised Over/ at

Budget Budget 31 Dec 13 31 Dec 13 to date date Budget Budget (under) 31 Dec 13

£ £ £ £ £ % £ % £ £

Dwelling Rent Gross 7,753,200 7,753,200 5,964,000 5,934,148 29,852 1% 1,819,052 23.46% (10,000) 7,743,200

Non Dwelling Rent Gross 11,370 11,370 9,430 11,317 (1,887) -20% 53 0.46% 1,000 12,370

Voids-Dwelling (77,060) (77,060) (57,735) (35,998) (21,737) 38% (41,062) 53.29% 10,000 (67,060)

Voids-other (1,080) (1,080) (792) (1,128) 336 -42% 48 -4.42% (1,000) (2,080)

Bad debts (76,980) (76,980) (57,735) (21,367) (36,368) 63% (55,613) 72.24% (76,980)

TOTAL 7,609,450 7,609,450 5,857,168 5,886,972 (29,804) 39% 1,722,478 23% - 7,609,450



8

Supervision and Management


Finance Manager’s comments

As can be seen above there is a budget underspend across the whole spectrum of the Supervision

and Management Costs. The most significant underspends are:

Line 6 Employee Costs-Spend is £107K below budget which is reflected in all employee costs. Line 8 IT and Telecoms are underspent by £39K. The main underspend has been in relation to timing

of Software Support and Licenses.

Line 18 General Admin costs remain well controlled and overall are underspent by £76K. This

remains due to continued savings in respect of postages, printing & stationery, low utilization of

training budgets and Tenants survey costs being tendered lower than budget.

Line 27 Corporate Expenses also remain well controlled with an underspend of £140k.

Line 28 Fees charged to Capital-Fees will be charged as jobs are completed and are currently

expected to be in line with budget at the year end.

Line Heading BUDGET Actual

Initial Revised to Spend to Budget Budget Revised Revised Over/ at

Budget Budget 31 Dec 13 31 Dec 13 to date to date budget Budget (under) 31 Mar 14

£ £ £ £ £ % £ % £ £

1 Salaries & Wages 1,067,870 1,077,870 799,605 746,543 53,062 7% 331,327 31% 1,077,870

2 National Insurance 85,910 85,910 64,230 54,369 9,861 15% 31,541 37% 85,910

3 Pension costs 193,030 193,030 144,750 127,472 17,278 12% 65,558 34% 193,030

4 Other Employee Costs 42,967 46,367 38,244 27,411 10,833 28% 18,956 41% 46,367

5 Travel & Subsistence 35,040 35,040 30,915 14,361 16,554 54% 20,679 59% 35,040

6 Employee Costs 1,424,817 1,438,217 1,077,744 970,156 107,588 10% 468,061 33% - 1,438,217

7 Premises Costs 56,260 56,660 43,915 25,912 18,003 41% 30,748 54% 56,660

8 IT & Telecoms 199,390 188,390 159,020 120,231 38,789 24% 68,159 36% 188,390

9 Area Offices 24,000 24,000 18,000 23,400 (5,400) -30% 600 3% 7,200 31,200

10 Payroll & Cashdesk 24,500 24,500 16,500 5,471 11,029 67% 19,029 78% (7,200) 17,300

11 Supplies & Services 304,150 293,550 237,435 175,013 62,422 21% 118,537 40% - 293,550

12 Postage, printing & stationery 57,160 56,760 44,376 26,732 17,644 40% 30,028 53% 56,760

13 Admin, Furniture & equipment 2,200 2,200 2,200 378 1,822 83% 1,822 83% 2,200

14 Training 32,700 32,700 26,942 4,952 21,990 82% 27,748 85% 32,700

15 Community Support 45,000 45,000 41,250 14,274 26,977 65% 30,727 68% 45,000

16 Health & Safety 10,500 10,500 8,530 2,082 6,448 76% 8,418 80% 10,500

17 Recruitment costs 4,400 4,900 3,515 1,894 1,621 46% 3,006 61% 4,900

18 Administration Costs 151,960 152,060 126,813 50,312 76,501 60% 101,748 67% - 152,060

19 Professional Fees 187,700 213,700 179,400 87,859 91,541 51% 125,841 59% 213,700

20 Insurance 168,220 168,220 125,190 121,156 4,034 3% 47,064 28% 168,220

21 Affiliation Fees 46,400 46,150 41,147 28,183 12,964 32% 17,967 39% 46,150

23 Charitable Donations 2,000 2,000 2,000 (2,000) - 2,000

24 Governance 30,240 38,240 31,800 9,953 21,847 69% 28,287 74% 38,240

25 Bank Charges & Fees 9,500 9,500 7,140 5,623 1,517 21% 3,877 41% 5,000 14,500

26 Public Relations/Marketing 16,800 17,250 12,870 2,761 10,109 79% 14,489 84% 17,250

27 Corporate Expenses 460,860 495,060 397,547 257,535 140,012 35% 237,525 48% 5,000 500,060

28 Fees charged to capital (255,000) (255,000) (192,360) (59,786) (132,574) 69% (195,214) 77% (255,000)

29 Services Provided to Comhairle (30,000) (30,000) (22,500) (25,990) 3,490 0% (4,010) 13% (30,000)

30 Recharges (285,000) (285,000) (214,860) (85,776) (129,084) 60% (199,224) 0% - (285,000)

31 TOTAL SUPERVISION & MGT COSTS 2,056,787 2,093,887 1,624,679 1,367,240 257,439 16% 726,647 35% 5,000 2,098,887

CURRENT YEAR BUDGETS BUDGET VARIANCE BUDGET REMAINING FORECAST OUT-TURN


9

Repairs and Maintenance


Budget Managers Comments

Responsive repairs have been under pressure throughout the Christmas period due to inclement weather. This considered, damage and insurance work has been moderate and the budget is expected to manage any additional cost. Void numbers are as expected although spending is being tightly controlled. However, there has been a significant level of rechargeable repairs that can be attributed to voids. Minor Aids and Adaptations remain at a very low spend as the works instructed are being recovered from OT HAG allocation. Insurance repairs expenditure is expected to increase due to the inclement weather experienced over the Christmas period. Communal lighting has not experienced any repair issues and the spend is in line with standard servicing. Some additional work may be carried out, however this will be restricted due to shared tenure issues in common areas. Painterwork is proceeding to programme. The general programme is expected to be completed by mid February. Gas Servicing is projected to be underspent and part of this budget will be vired to Heating Servicing for servicing to renewable heating systems. Gutter Cleaning forms part of the general planned maintenance.

Line Heading BUDGET ACTUAL

Initial Revised to Spend to Budget to Budget to Revised Revised Over/ at

Budget Budget 31 Dec 13 31 Dec 13 date date Budget Budget (under) 31 Mar 14

£ £ £ £ £ % £ % £ £

1 Responsive Repairs 679,000 679,000 518,900 493,740 25,160 5% 185,260 27% 679,000

2 Void Repairs 176,600 176,600 132,480 88,603 43,877 33% 87,997 50% 176,600

3 Handymen 155,174 155,274 116,906 109,694 7,212 6% 45,580 29% 155,274

4 General Repairs 1,010,774 1,010,874 768,286 692,037 76,249 10% 318,837 32% - 1,010,874

5 Decoration Allowance 49,000 49,000 36,360 22,847 13,513 37% 26,153 53% 49,000

6 Furnished Units 600 600 450 - 450 100% 600 100% 600

7 Council Tax empty Properties 3,060 3,060 2,340 654 1,686 72% 2,406 79% 3,060

8 Minor Aid & Adaptations 11,020 11,020 8,470 937 7,533 89% 10,083 91% 11,020

9 Compensation 3,200 3,200 2,560 - 2,560 100% 3,200 100% 3,200

10 Specific Items 66,880 66,880 50,180 24,439 25,741 51% 42,441 63% - 66,880

11 Rechargeable Repairs 43,500 43,500 32,830 60,204 (27,374) -83% (16,704) -38% 40,000 83,500

12 Rechargeable Repairs recoverable (10,700) (10,700) (7,920) (12,810) 4,890 -62% 2,110 -20% (5,000) (15,700)

13 Insurance Repairs 55,000 55,000 41,130 17,413 23,717 58% 37,587 68% 55,000

14 Insurance Claims recoverable (17,000) (17,000) (12,420) 701 (13,121) 106% (17,701) 104% (17,000)

15 Recoverable Expenditure 70,800 70,800 53,620 65,509 (11,889) -22% 5,291 7% 35,000 105,800

16 Commercial Properties 1,200 1,200 900 - 900 100% 1,200 100% 1,200

17 Communal Lighting 28,395 28,395 23,185 6,425 16,760 72% 21,970 77% 28,395

18 Non dwelling repairs 29,595 29,595 24,085 6,425 17,660 73% 23,170 78% - 29,595

19 Painterwork 438,050 438,050 426,590 356,338 70,252 16% 81,712 19% 438,050

20 Gas Servicing 75,100 75,100 37,600 48,487 (10,887) -29% 26,613 35% (10,000) 65,100

21 Estate Management 8,700 10,700 8,140 4,602 3,538 43% 6,098 57% 10,700

22 Heating Servicing 15,080 15,080 9,800 21,050 (11,250) 0% (5,970) -40% 10,000 25,080

23 Stair Lifts and Door Entry Systems 1,765 1,765 1,755 1,496 259 0% 269 15% 1,765

24 Gutter Cleaning 9,300 9,300 6,840 - 6,840 0% 9,300 100% 9,300

25 Sewage Pumps - - 2,216 (2,216) 2,216 2,216

26 Energy Costs - - - 100 100

27 Contract Cleaning + Storage 1,500 1,300 1,300 - 1,300 1,300 100% 1,300

28 Cyclical Maintenance 549,495 551,295 492,025 434,190 57,835 12% 119,321 22% 2,316 553,611

29 TOTAL REPAIRS & MAINTENANCE 1,727,544 1,729,444 1,388,196 1,222,600 165,596 12% 509,060 29% 37,316 1,766,760



10

Finance Manager’s Comments

Line 4 General Repairs –The budget is £76K (10%) behind profiled budget. This underspend is across the board in this heading and a major part of this underspend can be attributed to lower spend on void properties. Line 15 Recoverable Expenditure-rechargeable repairs are overspent due to uncollectable invoices of £22k being written off. A virement has been identified to cover this overspend. Line 28 Planned Maintenance – Planned Maintenance is underspent by £58K, being 12% of the budgeted figure and is due to the profiled budget being ahead of actual works. It is expected that works will be completed later in the year.

Estate Works



Delays in obtaining the necessary instructions/approvals from Scottish Water has resulted in the spend on unadopted infrastructure falling behind budget. The budget for unadopted infrastructure will be carried forward into 2014/15 budgets. Grounds maintenance is continuing to incur planned expenditure.


As can be seen from the chart there appears to be little spend on Estate Works, however, we are

spending on Grounds & open space maintenance but this appears lower due to an over-accrual

carried forward from last year.




£ £ £ £ £ % £ % £ £

1 Garage Repairs 3,110 3,110 2,280 - 2,280 100% 3,110 100% 3,110

2 Unadopted infrastructure 64,000 64,000 48,105 - 48,105 100% 64,000 100% (64,000) -

3 Grounds & open space 29,660 27,660 22,320 16,350 5,970 27% 11,310 41% 27,660

4 Paths - - - - - - -

5 Fencing - - - - - - -

6 TOTAL ESTATE WORKS 96,770 94,770 72,705 16,350 56,355 78% 78,420 83% (64,000) 30,770



11

Aids & Adaptations



Aids and Adaptations referrals are still being received and instructed. The budget is expected to be spent by the end of the year.


The works completed within the investment programme are performing close to budget with the

relevant grant funding applied for after works have been completed. This timing difference creates

an imbalance between expenditure and income.




£ £ £ £ £ % £ % £ £

Revenue Repairs

1 Minor Aids & Adapations 11,020 11,020 8,470 1,545 7,533 89% 10,083 11,020

Investment Programme -

2 Aids & Adapations 120,000 425,000 247,400 237,945 9,455 4% 187,055 425,000

- -

Grants - - - - - - -

3 Received (120,000) (425,000) (161,100) (198,790) 37,690 -23% (226,210) (425,000)

4 To be claimed - - - - -

5 TOTAL AIDS & ADAPTATIONS 11,020 11,020 94,770 40,700 54,677 (29,073) - 11,020



12

Investment Summary



The majority of programme works have been completed or are near completion. All planned works are expected to be complete by the year end. It is expected there will be a budget underspend at the year end due to savings achieved on contracts.


Elements of the Investment Programme were delayed to allow grant to be applied for with the result that the budget is currently underspent by £1,247K. The programme is being stepped up and the current budget variance is expected to dissipate by the end of the financial year. Line 4 The overspend shown for kitchens reflects, in part, the impact of stepping up the Investment programme. The final spend for the year will be in line with budgeted figure. Line 9 – The contract for Heating is an area where the installation programme is being accelerated following the award of grants from the Energy Trust. The increase in the revised budget reflects the additional heating installations to be undertaken.




£ £ £ £ £ % £ % £ £

1 Roofs & Chimneys 327,360 298,860 298,860 291,934 6,926 2% 6,926 2% - 298,860

2 Insulation 188,364 188,364 170,112 110,483 59,629 35% 77,881 41% - 188,364

3 Roofs 515,724 487,224 468,972 402,416 66,556 14% 84,808 17% - 487,224

4 Kitchens 381,850 402,860 336,250 367,666 (31,416) -9% 35,194 9% - 402,860

5 Bathrooms 234,630 273,570 273,570 197,243 76,327 28% 76,327 28% - 273,570

6 OT adaptations 120,000 425,000 247,400 237,945 9,455 4% 187,055 44% - 425,000

7 Bathrooms & Heating - - - - - - - -

8 Showers 154,050 178,750 178,750 129,000 49,750 28% 49,750 28% - 178,750

9 Heating (inc specific grants) 1,037,300 1,320,785 1,149,485 604,156 545,329 47% 716,629 54% - 1,320,785

10 Fire & CO Detection 67,353 67,353 67,353 - 67,353 100% 67,353 100% - 67,353

11 Internals 1,995,183 2,668,318 2,252,808 1,536,010 716,798 32% 1,132,308 42% - 2,668,318

12 Windows 783,840 893,560 820,430 505,613 314,817 38% 387,947 43% - 893,560

13 Doors - - - - - - - -

14 Rooflights - - - - - - - -

15 Windows & Doors 783,840 893,560 820,430 505,613 314,817 38% 387,947 43% - 893,560

16 Roughcast house & walls - - - - - - - -

17 Porch cladding - - - - - -

18 Renewable Pilot Scheme - 10,000 10,000 4,478 5,522 55% 5,522 55% - 10,000

19 Fencing - - - - - - - -

20 HMO Licence - 50 Macaulay Rd/76 Keith St - 19,720 19,720 18,122 1,598 8% 1,598 8% - 19,720

21 Security Lighting 42,713 42,713 42,713 - 42,713 100% 42,713 100% - 42,713

22 Unallocated expenditure 438,340 98,855 98,855 - 98,855 100% 98,855 100% - 98,855

23 Sewers - - - - - - - -

24 Externals 481,053 171,288 171,288 22,600 148,688 87% 148,688 87% - 171,288

25 TOTAL INVESTMENT 3,775,800 4,220,390 3,713,498 2,466,640 1,246,858 34% 1,753,750 42% - 4,220,390



13

Development Programme (New Build)




Three new developments were due to start during the year but delays were encountered with

planning and title issues. Slippage on the budgets will be carried forward into 2014-15 as part of the

2014-15 budgeting exercise.

Line BUDGET ACTUAL

Initial Revised Budget to Spend to Budget to Budget to Revised Revised Over/ at


£ £ £ £ £ % £ % £ £

1 New Build 1,673,600 2,348,450 1,672,055 1,186,853 485,202 1,161,597 49% 2,348,450

2 Retentions - - - -

3 Shared Equity - - - 660 (660) (660) -

4 Total Development Costs 1,673,600 2,348,450 1,672,055 1,187,513 484,542 29% 1,160,937 49% - 2,348,450

Housing Association Grant

5 New Build (428,300) (617,980) (268,400) (268,400) 100% (617,980) 100% (617,980)

6 Retentions - - - - - - -

7 Shared Equity - - - - - -

Other Grants & Sales proceeds

8 New Build - ACTISH (265,100) - (265,100) 100% - (265,100)

9 Retentions - - -

10 Shared Equity - - - - - -

11 LIFT Sales - - - - - -

12 Energy Grants -

13 Total Grants (428,300) (883,080) (268,400) - (268,400) (883,080) 100% - (883,080)

Private Finance required

14 New Build 1,245,300 1,465,370 1,403,655 1,186,853 216,802 15% 278,517 19% - 1,465,370

15 Retentions - - - - - - -

16 Shared Equity - - 660 (660) (660) -

17 Private Finance required 1,245,300 1,465,370 1,403,655 1,187,513 216,142 15% 277,857 19% - 1,465,370

BUDGET REMAINING FORECAST OUT-TURNBUDGET VARIANCECURRENT YEAR BUDGET


14

Non-Housing Capital Programme




There will be a requirement to increase the budget for the alterations to the Stornoway Office to

reflect the tender prices returned. This will be funded initially from the savings forecast on interest.




£ £ £ £ £ % £ % £ £

6 Total Uist Office - - - - - - - -

7 Fixtures & Fittings 50,000 50,000 50,000 28,800 21,200 42% 21,200 42% - 50,000

8 IT equipment 82,000 93,000 93,000 48,060 44,940 48% 44,940 48% 93,000

11 Total Stornoway Office 132,000 143,000 143,000 76,860 66,140 46% 66,140 46% - 143,000

12 Total 132,000 143,000 143,000 76,860 66,140 46% 66,140 46% - 143,000



15

Balance Sheet

At 31 December 2013


Fixed Assets – There has been a £500k increase in fixed assets which is mainly due to the

development spend of £1.1m less the current housing stock depreciation to December of £500k.

Current Assets – There is a slight reduction in this balance which is attributable to receiving payment

from year end debtors that, in turn, can be linked to the increase in cash and deposit balances. There

is also an increase in the Loan to subsidiary balance which relates to payment of Invoices on behalf

of Hebridean Community Housing Ltd.

Current Creditors – have reduced by £650k and is mainly due to year end accruals being reversed.

Long term Creditors have increased by £600k, which can be attributed to the increase in RTB

receipts that will be payable to CNES in the future.

31 Dec 13 31 March 2013

£ £

Notes

1 Tangible Fixed Assets

2 Housing Stock 20,874,377 21,597,270

3 Development Programme 1,180,706 -

4 Other tangible fixed assets 866,838 827,374

5 Investments 1 1

22,921,921 22,424,645

6 Debtors due after more than one year 10,485,584 10,485,583

7 Current Assets

8 Stock 15,567 15,567

9 Debtors due within one year 529,884 750,538

10

11 Short-term deposits 1,259,776 1,225,905

12 Cash at bank and in hand 839,470 720,853

13 Loan to subsiduary 9,437

2,654,134 2,712,863

14 Creditors: amounts falling due within one year (2,037,921) (2,686,967)

15 Net current assets 616,213 25,896

16 Total assets less current liabilities 34,023,718 32,936,124

17 Creditors: amounts falling due after more than one

year (6,784,526) (6,179,915)

27,239,192 26,756,209

18 Provisions for liabilities and charges (10,396,564) (10,396,565)

19 Net Assets 16,842,629 16,359,644

20 Capital and Reserves

21 Share Capital 193 192

22 Designated Reserve 2,024,120 2,024,120

23 Capital Reserve 178,607 178,607

24 Revenue Reserve 14,639,709 14,156,725

16,842,629 16,359,644


16

Financial Covenants

NET OPERATING CASHFLOW

DECEMBER 2013

Current position Budget Change in Budget Forecast

Total Income £ £ £ £

Rental Income General Needs Total stock rents 5,876,783 7,599,160 7,599,160

Garage Rents Total stock garage rents 10,189 10,290 10,290

Rent from Commercial Properties Shops, offices etc 49,809 45,670 45,670

Developments Sale of LIFT - -

Revenue Grants Deficit Funding Grant 300,000 300,000 300,000

Revenue Grants OT/Energy Grants 115,182 120,000 315,000 435,000

Grants HAG - 428,300 454,780 883,080

Sale of Properties Gross receipts for RTB etc 480,218 433,000 433,000

Opening Balances Working capital movement 428,392 - -

-

-

-

7,260,574 8,936,420 769,780 9,706,200

Operating Costs

Management costs Supervision & Management Costs 397,083 631,970 28,700 660,670

Cash paid to employees Supervision & Management Costs 970,156 1,424,817 13,400 1,438,217

Expenditure on other activities Supervision & Management Costs -

Routine Maintenance Routine Repairs 804,760 1,272,819 (28,900) 1,243,919

Planned Maintenance Planned Repairs 434,190 549,495 4,116 553,611

Major Repairs Investment works (net of fees) 2,466,640 3,775,800 334,290 4,110,090

Other Costs Purchase of Office Building + FA 48,060 143,000 82,000

Stock Cost of LIFT properties -

Acquistion & Construction of Properties Development 1,187,513 1,673,600 674,850 2,348,450

-

-

Working Capital Adjustment Drawdown of loan -

6,308,402 9,471,501 1,026,456 10,436,957

Net Operating cashflow 952,172 (535,081) (256,676) (730,757)

Loan interest 188,523 404,200 (5,000) 399,200

Commitment Fees -

Extension Fees -

Facility Fees -

Total Financing Costs 188,523 404,200 399,200

Annual Cash flow Surplus/ (Deficit) 763,649 (939,281) (251,676) (1,129,957)

Interest cover Ratio 5.05 -1.32 -1.83

Target 0.00 0.00 0.00

Financial covenant (1,841,180) (1,841,180) (1,841,180)

Tolerance 2,604,829 901,899 711,223


17


The number of RTB applications, that have been received to 31 December, are around 30% higher

than had been received to December in the previous 2 years. However, the applications that have

been completed to sale, for the year up to December, are comparable to sale completions up to

December for the previous 2 years.

RIGHT TO BUY No of applications received

Full Year Full Year To 31 Dec

2011/2012 2012/2013 2013/2014

28 34 32

No of applications completed to sale

Full Year Full Year To 31 Dec

2011/2012 2012/2013 2013/2014

15 15 12

Dena Macleod Page 1 of 2 31/1/14

Agenda Item 12


TREASURY REPORT TO 31 DECEMBER 2013


PURPOSE OF REPORT

1.1 To inform the Board of the Treasury Management activities in the third quarter of 2013/14.

SUMMARY

2.1 The quarterly Analysis of Investment and Borrowing report required by the Treasury Management Policy is at Appendix 1.

COMPETENCE

3.1 The legal, financial or other constraints to any recommendations in this report being implemented are detailed in paras 5.1 to 6.1.

RECOMMENDATIONS

4.1 It is recommended that the Board:

a) note the quarterly report on the Analysis of Investment and Borrowing as shown at Appendix 1;

b) note the outstanding loans at 31 December 2013 of £5.202m; and

c) note the cash balance at 31 December 2013 of £2.364m.

APPENDIX 1 Analysis of Investment and Borrowings

APPENDIX 2 Quarterly Income and Expenditure profiles

Background Papers


DML Page 2 of 2 31/1/14

COMPETENCE

Financial 5.1 This report deals entirely with the cash resources utilised over the third quarter of

2013/14.

Legal 5.2 Rule 19.1 to 20.1 details the Partnership’s borrowing powers. 5.3 The effecting of borrowing and lending money is in accordance with the Partnership’s

borrowing and lending policies and CIPFA’s “Treasury Management in Housing Partnerships: a Code of Practice” and has been delegated to the Director of Resources.

5.4 The Treasury Management Policy requires that as a minimum a quarterly report is

provided to the Board in the form “Analysis of Investment and Borrowing”. 5.5 The Treasury Management Policy requires that if the cash balances exceed £2.5m the

funds should be spread over no fewer than three interest bearing accounts. The cash balances are in a special interest account with Royal Bank of Scotland (RBOS). The remainder is held in the current accounts with the RBOS.

RISK

6.1 There are a number of risks highlighted in the Risk Register in relation to Treasury Management. The risk scored as “high” is the impact of increases in the interest rate and inflation rate and this has been addressed in Appendix 1.

REPORT DETAILS

7.1 There were no borrowings during the third quarter. This is not in line with the Annual Financing Strategy for 2013/14 due to slippage on Development projects.

7.2 The third quarter of the year saw £2.216 million of expenditure of which just only £0.106 million related to new build.

7.3 The income for the third quarter was just over £2.678 million and comprised Rental Income (77.2%) and Government grants (4.7%). There were no grants received for new build in the third quarter.

7.4 Appendix 2 summarises the income and expenditure profiles for the third quarter.

7.5 The cash balances at 31 Dec 2013 increased to £2.364 million. The cash balances are expected to reduce towards the end of the final quarter of 2013/14 as the Investment Programme completes and new build programmes get underway. It is unlikely that borrowing will now be required in 2013/14 due to the delay in incurring development expenditure.

31 DEC 2013

ANALYSIS OF INVESTMENTS AND BORROWINGS

1

INVESTMENTS

BORROWINGS

CompliancewithCashFlowForecastsThe Annual financing Strategy for 2013/14 forecast there would be a short term requirement to

borrow £2 million during 2013/14 to fund new build and investment works. However, following the

update of the Business Plan and cash flow any borrowing required will be short term and can be

contained with the approved overdraft. The reason for the change is due to efficiency savings and

grants received on the investment programme, updating the plan to reflect the most up to date

stock condition survey and take account of the changes in grant available for new build.

The covenants included in the Facility Agreement have been updated to take account of when the

Partnership is in a deficit position. A deficit was forecast for 2013‐14 so the Interest Cover Covenant

for the year will be based on a deficit position rather than a ratio. To be compliant with the financial

covenant the Partnership’s deficit in 2013/14 must not exceed £1,841,180. Covenant are monitored

on a monthly basis and included with the management reports.

InterestRatesThe Interest Rate that applies to the Partnership is LIBOR plus an agreed margin. LIBOR (London

Inter Bank Offer Rate) is the interest rate banks borrow funds from each other in the London

Interbank Market.

Mar‐13 Jun‐13 Sep‐13 Dec‐13 Average

Cash Holdings £000's £000's £000's £000's

Invested at:

Royal Bank 1,460.00£ 1,407.22£ 1,304.98£ 1,854.75£ 1,506.74£

CWS 3.69£ 10.33£ 10.33£ 10.33£ 8.67£

BOS 107.00£ 477.42£ 488.56£ 499.33£ 393.08£

Abbey ‐£ ‐£ ‐£ ‐£ ‐£

Total 1,570.69£ 1,894.97£ 1,803.87£ 2,364.41£ 1,732.83£

Required Number of holdings 3 3 3 3 3

Actual Number of holdings 3 3 3 3 3

Core Funding Facility £m

Estimated debt outstanding (per Business Plan) Yr 7 6.22

Actual amount outstanding 5.20

Difference 1.02

APPENDIX 1

31 DEC 2013

ANALYSIS OF INVESTMENTS AND BORROWINGS

2

Base Rate has remained at 0.500% during the past quarter. 3 month LIBOR has remained steady at

0.52% as at 19 December 2013.

Borrowings Mar‐13 Jun‐13 Sep‐13 Dec‐13 Average

£000's £000's £000's £000's £000's

Facilities arranged 10,000 10,000 10,000 10,000 10,000

Loans outstanding 5,209 5,202 5,202 5,202 5,202

Variable/Fixed analysis‐amounts

Variable amount 1.24% 209 202 202 202 202

Fixed amount 3.73% to 5.49% 5,000 5,000 5,000 5,000 5,000

Other Hedging ‐ ‐ ‐

5,209 5,202 5,202 5,202 5,202

Variable/Fixed analysis‐Percentages

Variable 4.01% 3.88% 3.88% 3.88% 3.88%

Fixed 95.99% 96.12% 96.12% 96.12% 96.12%

Other Hedging Products

100% 100% 100% 100% 100%

Lenders amounts

Core Facility (RBS) 5,209 5,202 5,202 5,202

Other Borrowings ‐ ‐ ‐

5,209 5,202 5,202 ‐ 5,202

Average cost of borrowing

Amount £000's Interest Type Annual Cost

5,000.00 4.88% Fixed 243,851

202.00 1.19% Variable 2,400

5,202.00 246,251

Average cost of funds 4.73%

Anticipated level of borrowing over next 5 years

Updated AFS

Year Estimate Forecast Variance

£m £m £m

2013/14 5.459 7.479 (2.020)

2014/15 5.209 7.200 (1.991)

2015/16 5.209 6.523 (1.314)

2016/17 5.209 7.406 (2.197)

2017/18 5.746 6.695 (0.949)

31 DEC2013

3

0

1

2

3

4

5

6

7

C ANA

0.00%

1.00%

2.00%

3.00%

4.00%

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ALYSIS O

OF INVEST

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OR

s Plan

31 DEC 2013

ANALYSIS OF INCOME AND EXPENDITURE PROFILES

1

EXPENDITURE

Overall the expenditure for the third quarter of 2013‐14 is £0.400m less than initially forecast for

quarter 3 due to a combination of development and investment projects being delayed for a number

of reasons:‐

a) Title issues

b) Planning permission

c) Applications for heating grants

Investment will complete by the end of the financial year but there will be slippage on Development

which will be required to be carried into 2014/15.

‐

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4

2013/14 FORECAST 2013/14 ACTUAL

Expenditure

New Build Expenditure net of New build

APPENDIX 2

31 DEC2013

2

INCOM

Income

drawdow

Rightt

RTB rec

discount

‐

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

C ANA

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Agenda Item 13


REVIEW OF REGISTERS: PAYMENTS & BENEFITS, MEMBERSHIP, GIFTS & HOSPITALITY


PURPOSE OF REPORT

1.1 To assure Board Members that HHP’s registers are functioning in accordance with the Partnership’s constitutional documents, regulatory and legal requirements, and that they are fully up to date.

SUMMARY

2.1 In order to ensure good governance, probity and transparency, HHP must keep a number of registers recording business transactions and working practices across a number of areas.

2.2 Registers are updated regularly and reviewed annually to ensure compliance in accordance with Rule 67.1.

2.3 This report is concerned with the following registers and seeks to give assurance to the Board that they are functioning appropriately:

Membership Register;

Payments & Benefits Register; and

Gifts & Hospitality Register.

COMPETENCE

3.1 There is no financial constraint to the recommendation in this report being implemented. Legal aspects are detailed at 5.4.

RECOMMENDATIONS

4.1 It is recommended that the Board notes this review.

Background Papers HHP Rules and Standing Orders

Guidance Note 5: Regulatory Standards of Governance and Financial Management

Writer of Report Angela Smith Tel: 0300 123 0773

ACS Page 2 of 2 31/1/14

COMPETENCE

Financial 5.1 There are no financial constraints to the recommendation in this report being

implemented.

Legal 5.4 There is a legal and regulatory requirement to ensure that registers are kept by the

Partnership.

RISK

6.1 The risks of not keeping and reviewing registers could lead to the Partnership being in breach of statute and regulation. It could also lead to a perceived lack of transparency and probity from tenants and other stakeholders.

REPORT DETAILS

Membership Register

7.1 The Membership Register is fully up to date in accordance with Rule 67.1. Members names and addresses are detailed in addition to the names and addresses of the Office Bearers of the Partnership, their positions, and the dates they took and left office.

Control of Payments & Benefits Registers

7.2 Payments and Benefits to employees and connected persons were formerly controlled by Schedule 7, and recorded on the Schedule 7 Register and the Schedule 7 Special Exceptions Register.

7.3 Schedule 7 was abolished in 2012 and eventually replaced with Guidance Note 5: Regulatory Standards of Governance and Financial Management which does not prohibit payments and benefits, but requires that RSLs manage them within a clear policy framework to ensure transparency, honesty and propriety.

7.4 In November 2013, the Board approved the revised Payments and Benefits Policy, in which HHP retained the principles of Schedule 7 as they were felt to be good practice.

7.5 The Schedule 7 Register and Schedule 7 Special Exceptions Register that HHP had operated from inception were used up until, and including that meeting, and they are fully up to date.

7.6 A new Control of Payments & Benefits Register and Payments & Benefits Special Exceptions Register was appended to the approved Payments & Benefits Policy, and is now operational. The registers are fully up to date.

Gifts & Hospitality Register

7.7 Gifts and hospitality to and from the Partnership are controlled by the Gifts & Hospitality Policy and are in turn recorded on the Gifts & Hospitality Register.

7.8 Gifts to the Partnership are raffled and the proceeds are donated to local charities throughout the year.

7.9 The Gifts & Hospitality Register is fully up to date.

Katrina Palmer Page 1 of 2 31/1/14

Agenda Item 14


TENANT SATISFACTION SURVEY

Report by Director of Operations

PURPOSE OF REPORT

1.1 This report is to update the Board on the action being taken following the Tenant Satisfaction Survey.

SUMMARY

2.1 The Tenant Satisfaction Survey was carried out in September/October 2013 by BMG Research.

2.2 A draft report was submitted to the Board on 27 November 2013.

2.3 It was agreed at the Board meeting on 27 November 2013 that an action plan would be brought forward.

COMPETENCE

3.1 Legal, financial or other constraints are listed at paragraph 5.

RECOMMENDATIONS

4.1 It is recommended that the Board approve the Action Plan at Appendix 1.

APPENDIX 1 Action Plan


Writer of Report Katrina Palmer Tel: 0300 123 0773


COMPETENCE

Financial 5.1 HHP’s chosen method of survey was within the approved budget.

Legal 5.2 There are no legal implications arising directly out of consideration of this report.

RISK

6.1 There are no risk implications arising directly out of consideration of this report.

REPORT DETAILS

Background

7.1 The introduction of the Scottish Social Housing Charter (The Charter) has placed an obligation on landlords to undertake regular tenant satisfaction surveys and submit the resultant data to the Scottish Housing Regulator.

7.2 In May 2014 the first Annual Return on the Charter (ARC) will be made and replaces the current Annual Performance and Statistical Return (APSR). The return is divided into Charter Indicators and Contextual Indicators. The Contextual Indicators are broadly similar to the old APSR questions on stock, turnover, rent arrears etc. The Charter Indicators are questions about tenant satisfaction.

Tenant Survey 2013

7.3 All fieldwork was carried out during September 2013 with a full report provided in October 2013.

7.4 The draft report was presented to the Board on 27 November 2013. The final report has now been received and has been circulated separately to members. There are no significant changes from the draft report.

Action Plan

7.5 The tenant survey has now been considered by the Management Team. Specific meetings were held for Customer Services, Uist, and Property & Housing Services teams to discuss the results and to agree actions to improve satisfaction. The action plan can be found at Appendix 1. This will continue to be developed as we seek to improve services and the customer experience further.

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January 2014

January 2014

January 2014

January 2014

December 2013

December 2013

Appendix 1

PROGR

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In place J201

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Appendix 1

ACTION DETAILS AREA TIMESCALE PROGRESS

Improve tenant consultation on Investment priorities

Undertake tenant consultation to agree priorities prior to updating Investment Programme in 2015.

Property Services Summer 2014

Increase percentage of home visits Home visits enable HHP to resolve tenant issues face to face and also to monitor condition of housing stock.

Housing Services Summer 2014

Review telephone system and answering system

Review the use of the telephone and answering system to answer incoming enquiries. The Tenant Satisfaction survey shows that most callers answered by an answering machine choose not to leave a message.

Customer Services February 2014

Use of appointments for Handyman Service

Increase the number of appointments offered and give more accurate timescales for completions. Monitor outstanding orders and keep tenants informed of progress.

Housing Services February 2014

New Tenant Questionnaire Review questions with an immediate follow‐up where appropriate.

Housing Services/Allocations

February 2014

Accompanied Viewings Carry out accompanied viewings where possible. Housing Services/Allocations

May 2014

Improve information on Heating Systems

Improve information provided on heating systems for new tenants and carry out follow up visits where required.

Property Services/Allocations

May 2014

Review Move In Pack Develop range of information provided to new tenants.

Allocations May 2014

Utility Debt to be checked & any issues resolved if possible before sign up

Explore process and options with utilities for clearing debt on pre‐payment meters.

Property Services May 2014

Tenants contact details Clerk of Works to confirm correct phone contact details for tenants when on site visits and feedback to Customer Services.

Property Services

January 2014

Appendix 1


Use of Texting and Social Media Introduce texting service to keep tenants informed. Review use of social media communication with tenants.

IT To be confirmed

Condensation Advice Prepare checklist for house inspections and tenant advice pack and contact details for TEAS.

Property Services March 2014

Condensation Advice Arrange meeting with CnES Environmental Services/ Social Work to ensure joined up approach and advice (Social Work or Health input to be sought where appropriate).

Property Services March 2014

Review Repairs, Planned Maintenance and Investment processes

Repairs – review tasking and continuous monitoring, response and action. Daily look up of tasks by team leaders. Planned Maintenance – review programming and information sharing with tenants to provide more information; monitor programmes and provide updates to tenants as soon as delays become apparent. Regular Clerk of Works interface with tenants during the works. Investment – monitor programmes and ensure updates to tenants as soon as delays become apparent. Regular Clerk of Works interface with tenants during the works. Investment – ensure on site branding for site signage, clothing is prominent to raise awareness of site presence. Investment – review Contractor Code of Conduct.

Property Services/ Housing Services/ Customer Services

Property Services

Property Services

Property Services

Property Services

January 2014

February 2014

March 2014

March 2014

March 2014

Appendix 1


Aids and Adaptations Review communication process on to tenants. Weekly programme updates to be provided by Contractor. Advise tenant of delays as soon as they become apparent. Carry out phone call or site visit to tenant the week prior to works commencing.

Property Services

Property Services

Property Services

January 2014

January 2014

January 2014


Agenda Item 15


WELFARE REFORM UPDATE


PURPOSE OF REPORT

1.1 This report is to update the Board on the impact of the Welfare Reform Act on HHP.

SUMMARY

2.1 The Welfare Reform Act 2012 introduces several changes to the benefit system. Of particular concern to HHP is the bedroom tax which was introduced from 1 April 2013 and Universal Credit which was expected from 1 October 2013. There are also concerns about the sanctions introduced by the Act and the report provides further information on these.

2.2 Housing Officers are working to assist the 223 HHP tenants (10%) affected by the bedroom tax, particularly those whose accounts are developing new arrears or where existing arrears are escalating. Arrears attributed to the bedroom tax alone are estimated at £12,992.33.

2.3 Following the increased funding for DHP, there has been an increase in DHP claims and

those already in receipt of DHP have had their claims extended to 31 March 2014. 2.4 Work is ongoing to prepare for the changes introduced by Universal Credit although the

timing of this is unclear at present. There is a particular focus on developing knowledge of tenant’s circumstances and support needs.

2.5 The changes will have significant resource implications and provision is being made for

this.

COMPETENCE

3.1 The financial, legal or other constraints are detailed at paragraph 5.

RECOMMENDATIONS

4.1 It is recommended that the Board note the report and the implications of the changes for HHP.

APPENDIX 1 Bedroom Tax and DHP Tables

APPENDIX 2 Sanctions Guidance Tables




COMPETENCE

Financial 5.1 The Welfare Reform changes will present financial challenges for HHP as rental income is

becoming more difficult to collect and the costs of collection are higher. The unpredictability of payments under Universal Credit in particular will also impact on cashflow.


RISK 6.1 Rent arrears levels are likely to continue to increase as tenants’ incomes reduce and as

the bedroom tax continues to impact on them. Some tenants are receiving Discretionary Housing Payments (DHP) until 31 March 2014. It is uncertain what will happen once this current policy and funding runs out. HHP income will become less predictable under Universal Credit as tenants will be required to make payments individually.

6.2 Void turnover and costs may increase as tenants attempt to downsize to reduce the

impact of the penalties on their rent account. 6.3 Void periods are likely to increase as applicants on benefits refuse to accept properties

too large for their needs and wait for suitably sized properties resulting in hard to let properties.

REPORT DETAILS Background

7.1 The Welfare Reform Act 2012 introduced many changes to the benefit system. Universal Credit (UC) is being introduced in place of a number of existing benefits, including Housing Benefit, Working Tax Credit and Income-based Jobseekers Allowance. Claims will be made per household rather than individuals and both members of a couple will be required to claim.

7.2 Universal Credit will include a housing element and payments will be made monthly in

arrears direct to the claimant. Only in exceptional circumstances will payments be made to the landlord.

7.3 Claims are expected to be made online and subsequent contact between recipients and

the delivery agency will also be conducted online. There will be less local contact and assistance.

7.4 While roll out of Universal Credit has started this is on a very limited basis. There is no

information at present as to when the rollout will reach the Outer Hebrides. It appears unlikely that there will be a major expansion until after the 2016 election but this is not certain.

Issues and Actions

7.5 An HHP working group is preparing for these changes and key workstreams are:

identifying and supporting tenants affected by bedroom tax; increasing our knowledge of tenants;


communication with tenants and applicants; research; and staff training.

Bedroom Tax

7.6 Tenants affected by bedroom tax have seen a reduction in their Housing Benefit take place from 1 April 2013.

7.7 The information on the housing benefit notification letter that we receive from the

Comhairle as a landlord is limited. Although the notification shows the full eligible rent and the tenant’s housing benefit entitlement award, there is nothing distinguishing the shortfall as the bedroom tax.

7.8 Discussions are ongoing with Housing Benefit and they are now able to provide us with

weekly notifications electronically showing amounts deducted due to the bedroom tax. We are now working to get DHP figures and to import these figures to our rent accounting system to allow improved reporting and analysis of trends.

7.9 As at week ending 29 December 2013, it is estimated that there were 223 HHP tenants

(10%) affected by the bedroom tax, which is an increase on the 8% as at 6 October 2013. Appendix 1 provides information available on the situation at present.

7.10 There are 102 tenants in credit or with a zero balance and a further 27 tenants whose arrears have improved or stayed the same since March 2013. As at 6 October 2013 the figures were 75 and 22 respectively. There are 94 tenants affected by Bedroom Tax whose arrears have increased since March 2013.

7.11 Housing Officers are continuing to contact and offer support to all tenants who are yet to make or who have failed to keep to a repayment agreement.

7.12 There are very few tenants who are not engaging with the Housing Officers.

Discretionary Housing Payments

7.13 Many tenants currently affected by the bedroom tax have successfully made applications for DHP to cover the shortfall in Housing Benefit due to the bedroom tax. There are still a large number of tenants choosing not to apply for DHP. The main reasons given to Housing Officers are that they do not wish to apply for a transfer as they do not wish to move or that they do not wish to divulge the detailed information on their income and expenditure required in the application. Housing Officers continue to encourage them to apply for DHP, particularly where their arrears are increasing.

7.14 All tenants in receipt of a short-term award of DHP for bedroom tax as at 30 June 2013 have had their claim extended to the end of March 2014 following approval of a revised policy by CnES on 12 September 2013. However, they will not be backdated unless there are extenuating circumstances.

7.15 To be eligible for these DHP awards tenants must be able to prove that they are actively seeking alternative housing e.g. be placed on HHP’s transfer list.


7.16 Awards of up to 52 weeks will be considered where an applicant is unable to move to a

smaller property due to illness or disability of someone in the household and where the property has been significantly adapted.

7.17 As at 26 September 2013, 87 tenants have made successful applications for DHP and are currently in receipt of DHP payments totalling £20,166.50 for the year to date. More up-to-date information is hoped to be available for the Board meeting. IT staff are working on the data transfer from CnES to HHP.

Sanctions

7.18 New sanction rules for Job Seekers Allowance (JSA) claimants were introduced from 22 October 2012 and for Employment and Support Allowance (ESA) claimants who are in the Work Related Activity Group (WRAG) from 3 December 2012. Failure to comply with job seeking requirements will result in a loss of benefit for a period of 1 week for ESA first failure up to 156 weeks for a 3rd failure. Appendix 2 shows the sanction levels in more detail.

7.19 The tenant may still receive housing benefit during this period, however, they will have to provide evidence that they have no other income and are still entitled to receive housing benefit.

7.20 Information on exact numbers of HHP tenants sanctioned is not available, however numbers to date are believed to be low.

PREPARATION FOR UNIVERSAL CREDIT

Internet Access

8.1 Data is being collected on whether households have a bank account and access to the internet.

8.2 Touch screen terminals in the reception area have been included in the layout of the office restructure. This will allow tenants internet access to assist them to make applications for Universal Credit.

8.3 We will provide information to tenants on where internet access may be available in their local areas. Information to Tenants

8.4 Housing Officers continue to make numerous phone calls and visits to affected tenants.

8.5 An article in the winter newsletter provided updated information for tenants and urged those affected to get in touch with HHP or agencies such as Western Isles Citizens Advice Service for advice and assistance. Tenants were encouraged to make an application for DHP. This will be repeated in future newsletters


8.6 Housing staff were available at the Barra Tenant Event on 6 November 2013 and the

Harris Tenant Meeting on 28 November 2013. A number of tenants took the opportunity to speak to the Housing staff at the events. Resources

8.7 Resources for the fundamental changes which affect HHP’s income need to be considered. Under Universal Credit all working age tenants will now be required to pay money directly to HHP. Many of these will have limited budgeting abilities, may have other debts and will certainly require assistance. It is critical that we know what tenant’s requirements are and are able to support them to ensure rent payments are made and sustained. In order to work with applicants and tenants to plan for the introduction of Universal Credit, additional staffing resources will be required. The increased pressure on existing resources has been recognised in the budget strategy. An additional 2½ posts may be required to meet the operational needs following the introduction of Universal Credit, particularly over the first 18 – 24 months of the changes. At this stage it is not known exactly when Universal Credit will be introduced in this area.

8.8 The pathfinder for Universal Credit in Inverness commenced in November 2014. HHP will closely monitor updates from this pilot. The numbers included in this are very small at around 5 per week. Funding Bids

8.9 A funding bid approved by the Board on 29 May 2013 was submitted to the Scottish Legal Aid Board (SLAB) for assistance with the provision of advice services to tenants. The funding would have allowed HHP working in partnership with the Western Isles Citizens Advice Service (WICAS) to employ an additional 3 members of staff for the 18-month period of the grant. The funding bid was unsuccessful and feedback has been requested on the reasons for this. The Director of Operations has also written to SLAB expressing concern at their failure to provide support in this Local Authority Area. Feedback on the bid has still not been received.

8.10 A similar bid was also made to the Big Lotto Fund, Support and Connect programme. The application was unsuccessful as they were only able to support 60 out of the 170 applications. Again no feedback has been received to date.

8.11 WICAS obtained some SLAB funding which will provide some benefit to HHP.

Partnership Working

8.12 HHP’s Director of Operations is part of the Poverty Action Group and an Officers Group established by the Community Planning Partnership (CPP). These groups are working to publicise the impact of poverty in the islands and to develop partnership approaches to mitigate its effects as far as possible.


8.13 The Poverty Action Group has arranged a Poverty Awareness Event in Stornoway Town Hall on Thursday 24 April 2014. HHP will actively participate in this event and will provide some financial support from existing budgets.

8.14 The Citizens Advice Service has employed 2 Welfare Reform Officers, one based in Stornoway and one based in Balivanich. A funding requirement of these posts is that they work in partnership with HHP. The Director of Operations and Housing Services staff met with the WICAS Manager, Service Development Manager, Legal Adviser and the 2 Welfare Reform Officers on Wednesday 15 January 2014 to discuss the referral process and issues arising for HHP tenants due to Welfare Reform.

8.15 On Tuesday 14 January 2014, HHP’s Chief executive, Director of Operations and Service Development Manager attended a local seminar organised by WIFTRA on Welfare Reform. The main speaker was Mike Dailly, Principal Solicitor and CEO of Govan Law Centre. He provided an overview of the impact of Welfare Reform in the Western Isles as well as a presentation on Payday Loans, which are reportedly more commonplace since the introduction of Welfare Reforms such as the Bedroom Tax. The seminar was attended by other partners such as Health Board, WICAS, CnES Homeless Service, Trading Standards and the Foyer Project. 1996 ‘Loophole’

8.16 A ‘loophole’ has been identified which exempts some tenants from the Bedroom Tax due to a piece of transitional legislation operating from 1 January 1996.

8.17 The criteria for this are:

must have been continuously entitled to HB since at least 1 January 1996; breaks for less than 4 weeks count as continuous for this purpose; breaks of 52 weeks can be ignored also if they or their partner are a welfare to

work beneficiary; or have occupied the same property since that date save for any period where a fire,

flood explosion or other natural catastrophe has rendered the property uninhabitable.

8.18 The DWP are working on bringing in legislation to close this loophole.

8.19 Any tenant affected who has been in receipt of DHP to make up the shortfall in rent as a result of the Bedroom Tax will be required to repay the DHP as they would have received more than their rent liability.

8.20 HHP and CnES staff are working to identify tenants who may be affected by this legislation.

Appendix 1

BEDROOM TAX, DHP AND TRANSFER APPLICATION TABLES

Table 1: Current Arrears Increase Due to Bedroom Tax

Payment Situation Lewis Harris/Uist & Barra

Total Previous Total

Increase in current rent arrears due to Bedroom Tax

£7,776.48 £5,225.85 £12,992.33 £16,806.88

% of Total 60% 40% 100% Note. (excludes arrears for tenants that are no longer affected by Bedroom Tax or are former tenants)

Table 2: Arrears Situation

Arrears Situation Lewis Harris/Uist & Barra


None or Minimal 123 61 184 152

Over £250 19 15 34 28

Over £1000 3 2 5 2

Total 145 78 223 182

Table 3: DHP

DHP Situation Lewis Harris/Uist & Barra


Current Tenants in Receipt of DHP 56 31 87 73

Amount of DHP received by tenants £12,227.97 £7,938.53 £20,166.50 £10,341.96 Note. (excludes arrears for tenants that are no longer affected by Bedroom Tax or are former tenants). Figures are as at 26

September 2013.

Table 4: Transfer

Transfer Situation Lewis Harris/Uist & Barra


On Transfer or Mutual Exchange list 58 24 82 62

Appendix 2

Table 1 – Job Seekers Allowance Sanctions

Source: DWP

Notes

o 3 year sanctions will apply only in the most extreme cases where claimants have serially and deliberately breached their most important requirements, and they have not changes their behaviour after receiving previous sanctions;

o Higher level sanction durations will be shorter if: a. the failure relates to pre-claim employment expected to last less than the standard sanction period; or b. the failure occurs before a claim and the individual doesn’t claim JSA immediately.

o The loss of benefit period for Intermediate level sanctions will deduct any period for which the claimant was not paid benefit or during which they were not claiming benefit. There are some exceptions to Intermediate level sanctions.

1 The 52 week rolling period begins from the date of the sanctionable failure took place and not the date the sanction is applied.

Revised sanction regime from October 2012: Sanction Level Description 1st Failure 2nd Failure 3rd+ failure

Higher Failure to comply with the most

important jobseeking requirements

13 weeks 26 weeks If within 521 weeks but not within two weeks of previous

failure

156 weeks If within 52 weeks-but not within two weeks-of previous failure that resulted 26 or 156 week

sanction.

Intermediate Failure to be available for work

Disentitlement then up to 4

weeks loss of benefit

Disentitlement then up to 13 weeks loss of benefit If within 52 weeks-but not two weeks-of previous entitlement ceasing

Lower Failure to attend/participate in

an adviser interview/training

scheme

4 weeks 13 weeks if within 52 weeks-but not two weeks-of previous failure which resulted in

a 4 or 13 week sanction

Appendix 2

o For all levels, if a claimant commits multiple failures within the same two weekly signing period then the sanction will not escalate to the next level. Therefore, lengthy sanctions won’t accumulate over short periods.

o Prior to 22ndOctober 2012, JSA claimants could have a 26 week sanction lifted for failing to participate in the Employment, Skills and Enterprise (ESE) scheme (i.e. Work Programme, Skills Conditionality etc) after they have served at least 4 weeks of that sanction if they re-comply. This will no longer apply from 22 October. From this date, once a sanction is imposed on a claimant for failing to participate in the ESE scheme, it will continue to run regardless of whether or not the claimant recompiles.

Table 2 – Employment Support Allowance Sanctions

Source: DWP

Description 1st Failure 2nd Failure 3rd+ failure Failure to

attend/participate in an mandatory

interview or failure to undertake Work

Related Activity

100% of the prescribed ESA amount open-ended until re-engagement followed by a fixed period of

1 week 2 weeks If within 52 weeks-but not two weeks of-previous failure

4 weeks If within 52 weeks-but not two weeks-of

previous failure which resulted in a 2 or 4 week sanction

If an ESA claimant complies within one week of the failure, only the relevant fixed period element of the sanction will apply.


Agenda Item 16


GROUNDS MAINTENANCE/GARDEN ASSISTANCE SCHEME


PURPOSE OF REPORT

1.1 To agree the procurement of Ground Maintenance and the Garden Assistance Scheme.

SUMMARY

2.1 Grounds Maintenance to open areas within Hebridean Housing Partnership ownership is currently being carried out by Comhairle Nan Eilean Siar who contract to Golders Landscaping. This HHP service has been affiliated with the Comhairle since transfer.

2.2 This contract ends in March 2015 and cannot be extended. Comhairle Nan Eilean Siar will therefore be carrying out a procurement exercise during 2014/15.

2.3 The Garden Assistance Scheme commenced during 2013/14 and operates separately from Grounds Maintenance. This service provides a garden grass cutting and hedge trimming service to tenants who are unable to cut their own gardens due to age and/or disability. This service was contracted to Staran (Third Sector Hebrides) whilst longer term options were reviewed.

2.4 An initial meeting has taken place with the Comhairle to discuss options and whether it would be advantageous to HHP to be part of this procurement exercise. It is proposed that this be fully explained prior to final decisions being taken on the longer term arrangements for Grounds Maintenance.

COMPETENCE

3.1 The financial and legal implications are set out in paragraph 5.

RECOMMENDATIONS


a) Ground Maintenance for 2014/15 continue to be carried out through Comhairle Nan Eilean Siar;

b) The Garden Assistance Scheme continues to be carried out by Staran for 2014; and

c) Discussions take place with Comhairle Nan Eilean Siar to determine whether procuring grounds maintenance work and garden assistance works would be the best option for HHP.


COMPETENCE

Financial 5.1 The cost of Grounds Maintenance and the Garden Assistance Scheme are met from the

Grounds Maintenance budget.

Legal 5.2 The Garden Assistance works have not been competitively procured and it is proposed

that this be addressed during 2014. The current arrangement with Staran has been in place since HHP was established.

RISK

6.1 The review of procurement arrangements and establishment of long term arrangements will reduce any risk to HHP in terms of challenges to tendering.

REPORT DETAILS

Grounds Maintenance – Comhairle Nan Eilean Siar

7.1 Currently we have 32 sites included in the Grounds Maintenance contract. These include grassed areas, hard areas and areas of shrubs. There are 4 recently completed developments which also need to be added to the contract and also pipeline developments which are either still within a Defects Liability Period or are in various stages of development.

7.2 The current Grounds Maintenance contract with the Comhairle, is due to expire on 31 March 2015. It cannot be extended beyond this.

7.3 The value of Comhairle Nan Eilean Siar’s Grounds Maintenance contract will exceed EU

Procurement Thresholds and will require EU tendering. 7.4 It is likely that better value for money will be achieved by being affiliated with the

Comhairle and their re-procurement process. It is therefore proposed that this be explored prior to any longer term discussion being taken.

7.5 We will discuss with Comhairle Nan Eilean Siar the specifications and packaging of the

HHP element of the contract in order to determine whether HHP’s specific requirements can be best delivered through a new contract.

Garden Assistance Scheme – Staran (Third Sector Hebrides) 7.6 Last year we received 69 applications out of which 55 applicants qualified. Applicants

have to re-apply for next year in order to assess any changes in circumstances. 7.7 The service was run as a pilot across the Western Isles in 2013. The Board agreed on 20

February 2013 to proceed with the programme and the qualification criteria. It was agreed to continue to carry out the work via Staran until longer term options were reviewed.

7.8 Whilst the service was largely successful there were some performance issues in the

Southern Isles where Staran had some labour resourcing issues.


7.9 It would seem sensible to examine the delivery of this service in conjunction with Grounds Maintenance works to maximise value for money. It is therefore proposed to continue the current arrangement with Staran until the discussions with Comhairle Nan Eilean Siar regarding future procurement are completed.


Writer of Report Angus E MacNeil Tel: 0300 123 0773


Agenda Item 17


DEVELOPMENT PROGRAMME 2013/14


PURPOSE OF REPORT

1.1 To advise of the progress with the development programme including spend to 31 December 2013.

SUMMARY

2.1 The final account for Gibson Gardens is now completed and the summary of the outcome is included in the report at Appendix 1. HHP had grounds to withhold L & A damages (estimated at £14k) and Lewis Builders had sufficient grounds to submit a claim for loss and expense (estimated at £14k). It was agreed to set one claim against the other with neither party pursuing a claim.

2.2 Cal Max have gone on site at Leurbost (Phase 1) and Melbost (Phase 3) and are expected to spend in the region of £173k and £443k respectively. Appendix 2 includes a summary of the projects at Leurbost and Melbost. Appendix 3 gives details of development spend for 2013/14 to 31 December 2013.

COMPETENCE

3.1 The legal and financial implications are detailed at paragraph 5.

RECOMMENDATIONS


a) the final account for Gibson Gardens at Appendix 1 be noted;

b) progress with the Development Programme 2013/14 at Appendix 2 be noted; and

c) programme forecast spend to 31 December 2013 at Appendix 3 be noted.

APPENDIX 1 Final Account for Gibson Gardens

APPENDIX 2 Progress with Development Projects

APPENDIX 3 Development Spend to 31 December 2013




COMPETENCE

Financial 5.1 The final report on Gibson Gardens has been received. The Director of Resources is

carrying out a detailed financial analysis of the project and will report to the May 2014 Board meeting.

5.2 There will be abortive costs incurred in the Balivanich and Craigston projects. The

feasibility work did not pick up on the additional costs of the road layout required by the Comhairle or the inadequate site capacity for 6 houses at Craigston.


RISK

6.1 Development is an inherently risky activity. Abortive costs are inevitable unless extensive feasibility studies are carried out at high cost. Officers at HHP and the Comhairle are reviewing the scope of the feasibility reports which were undertaken by Tighean Innse Gall to determine whether changes need to be made in instructing further feasibility work.

Development Report –NOTING

Projects in Progress –Post Approval

HHP/TIGHEAN INNSE GALL

1. Melbost 3, Sandwick, Isle of Lewis

Key Project Information:

Contractor: Calmax Construction Ltd

Form of Contract: Design and Build Competition

Contract Term: 18 Month Contract

Funding as Approved

Total Project Cost: £3,745,436

Subsidy: £1,885,616

CNES: £89,698

Private Finance: £711,922

Equity Sales: £1,058,200

Project Stage:

Acquistion March 2010

Tender: October 2013

Current Status:

Pre contract

Progress:

The preferred Contractor has been selected and a planning application has been submitted to the Council.

Spend to Date : £25,718.76

Spend to Date Subsidy:

Spend to Date Private Finance:

Spend to Date CNES: £25,718.76

RECOMMENDATION: Committee to note report

APPENDIX 2

Development Report –NOTING

Projects in Progress –Post Approval

HHP/TIGHEAN INNSE GALL

2. Kennedy View, Phase 1, Leurbost, Isle of Lewis

Key Project Information:

Contractor: Calmax Construction Ltd

Form of Contract: Design and Build Competition

Contract Term: 20 Weeks

Funding as Approved

Total Project Cost: £425,000

Subsidy: £272,000

Private Finance: £153,000

Project Stage:

Acquistion TBC

Current Status:

Contract Commenced: January 2014

Completion Date: June 2014

Progress:

The Contractor has commenced on site

Total spend to date: £16,636

Spend to Date Subsidy: £

Spend to Date Private Finance:£16,636

RECOMMENDATION: Committee to note report

Development Programme PROGRESS TO 31 DECEMBER 2013

Amend toBudget 31 Dec 13 Remaining Out-turn Budget 31 Dec 13 Remaining Out-turn Budget 31 Dec 13 Remaining Out-turn Private Finance

Ref AREA £ £ £ £ £ £ £ £ £ £ £ £ £1 New Build 1,061,036 1,089,617 (28,581) 1,448,850 - (6,807) 6,807 (304,977) 1,061,036 1,082,810 (21,774) 1,143,873 82,8372 Retentions 158,740 106,312 52,428 158,740 - - - - 158,740 106,312 31,746 158,740 -3 Shared Equity - 660 (660) 660 - - - - - 660 (660) 660 6604 Mortgage to Rent - - - - - - - - - - - - -5 Land banking - - - - - - - - - - - - -

TOTAL 1,219,776 1,196,589 23,187 1,608,250 - (6,807) 6,807 (304,977) 1,219,776 1,189,782 9,312 1,303,273 83,497

OVERALL COMMENT ON PROGRESS OF PROGRAMME PROGRAMMES WITH TIME DELAYS

Melbost Farm Phase 3 (rent & lift) Planning application in December 2013 Leurbost on site in January 2014Crowlista-Dec 2013 Scottish Government consent approved & planning application Balivanich Planning application in January 2014submitted

Slippage on the overall programme due to title and planning issues.

PROGRAMMES WITH PROJECTED BUDGET OVERRUNS PROPOSALS FOR BRINGING PROGRAMME WITHIN BUDGET

COST GRANTS & SALES PROCEEDS PRIVATE FINANCE

Development to 31 December 2013 1 29/01/2014

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Typewritten Text

APPENDIX 3

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Typewritten Text


Approved Revised COST Original Revised GRANTS Date availableBudget Budget 31 Dec 13 Remaining Out-turn Budget Budget 31 Dec 13 Remaining Out-turn Budget 31 Dec 13 Remaining Out-turn for rent

Ref NEW BUILD Units Area 2013-14 £ £ £ £ £ £ £ £ £ £A8521 Gibson Hostel 24 Lewis 548,600 1,061,036 967,933 93,103 1,061,036 - 1,061,036 967,933 93,103 1,061,036 Sep-14A8530 Melbost Site (2) Phase 2 4 Lewis - - 57,667 (57,667) 57,667 - - 57,667 (57,667) 57,667 Apr-14

Melbost Site (3) 16 Lewis - - - - - - Nov-15A8531 Leurbost 4 Lewis 16,956 (16,956) 221,752 (221,752) - 16,956 (16,956) - Mar-14

Crowlista 4 Lewis - 19,152 (19,062) - - - 90 Mar-14C8505 Balivanich 4 Uist 22,058 (22,058) 27,854 (27,854) - 22,058 (22,058) - Mar-14D8504 Craigston 6 Barra 11,389 (11,389) 11,389 (11,309) - 11,389 (11,389) 80 Sep-14

- - - -E8110 Feasibility Studies 13,614 (13,614) 50,000 (6,807) 6,807 (25,000) - 6,807 (6,807) 25,000

- -62 548,600 1,061,036 1,089,617 (28,581) 1,448,850 - - (6,807) 6,807 (304,977) 1,061,036 1,082,810 (21,774) 1,143,873

PRIVATE FINANCE


DEVELOPMENT PROGRAMME Progress to 31 December 2013

Approved Revised COST Original Revised GRANTSBudget Budget 31 Dec 13 Remaining Out-turn Budget Budget 31 Dec 13 Remaining Out-turn Budget 31 Dec 13 Remaining Out-turn

Ref RETENTIONS Units Area 2013-14 £ £ £ £ £ £ £ £ £ £A8528 Mackenzie Park Phase 1 15 Lewis 26,294 26,294 23,894 2,400 26,294 - - 26,294 23,894 2,400 26,294A8530 Mackenzie Park Phase 2 4 Lewis 640 640 640 640 - - 640 - 640 640A8525 Manor Drive 30 Lewis 25,000 25,000 25,000 25,000 - - 25,000 - 25,000 25,000A8527 Cnoc a Runaire (Tolsta) 4 Lewis 14,674 14,674 11,276 3,398 14,674 - - 14,674 11,276 3,398 14,674B8500 Bunnavader 8 Harris 10,299 31,730 30,264 1,466 31,730 - - 31,730 30,264 1,466 31,730C8504 Claddach Kiribost 6 Uist 21,758 39,720 40,878 (1,158) 39,720 - - 39,720 40,878 (1,158) 39,720

- - - -A8800 Manor Drive LIFT 12 Lewis 10,000 10,000 10,000 10,000 - 10,000 - 10,000A8802 Mackenzie Park Phs 2 LIFT 6 Lewis 10,682 10,682 10,682 10,682 - 10,682 - 10,682

- -- -- -- -

85 119,347 158,740 106,312 52,428 158,740 - - - - - 158,740 106,312 31,746 158,740

Retentions provided at 31 March 2013 on balance sheet 119,347Retentions now required 158,740Budgets funded from carry forward 2012-13 39,393Budgets to be funded in 2013-14 -

PRIVATE FINANCE

Retentions 29/01/2014


Approved Revised COST Original Revised GRANTS & SALE PROCEEDS Amend to Date availableBudget Budget 31 Dec 13 Remaining Out-turn Budget Budget 31 Dec 13 Remaining Out-turn Budget 31 Dec 13 Remaining Out-turn Private Finance for sale

Ref SHARED EQUITY Units ContractoArea £ £ £ £ £ £ £ £ £ £ £

Melbost Phase 3 6 CalMax Lewis 0 - 660 (660) 660 - - - - 660 (660) 660 660- - - -- - -

6 - - 660 (660) 660 - - - - - - 660 (660) 660 660

PRIVATE FINANCE


HHP DEVELOPMENT PROGRAMME 2010-11


Ref Mortgage to Rent Units £ £ £ £ £ £ £ £ £ £ £ £ £- - - - - -- - - - - - -- - - -

- - - - - - - - - - - - - -


Ref Landbanking Units £ £ £ £ £ £ £ £ £ £ £ £ £- - - - - - - -- - - - - -- - - - - -

- - - -- - -

- - - - - - - - - - - - - -

COST HAG PRIVATE FINANCE

COST HAG PRIVATE FINANCE

29/01/2014


Agenda Item 18


DEVELOPMENT PROGRAMME 2012 - 2018


PURPOSE OF REPORT

1.1 To provide an update on progress on delivering the Comhairle’s Strategic Local Programme 2012-15 and on preparations for putting a development programme in place for 2015-18.

SUMMARY

2.1 Delivering the 2012-15 development programme has been adversely affected by legal and planning problems particularly in relation to land transfer from the Comhairle to HHP.

2.2 Since the November 2013 Board meeting there has been considerable progress in the proposed developments at Leurbost, Melbost and Allt Na Broige. Cal Max are on site (at their own risk) at Leurbost and at the time of writing this report it is expected that they will be on site at Melbost prior to this Board meeting. A name for the latest phase of Melbost will require to be determined by the Board.

2.3 Planning applications have been submitted for Balivanich and Crowlista. Scottish Government approval has been given for both these developments although a partial resubmission will be required for Balivanich given the change of site. A cost approval submission has been made to Scottish Government for Allt Na Broige following a cost savings exercise. There has also been a cost approval submission for Leurbost Phase 2.

2.4 Scottish Government officials have indicated that they will support landbanking by HHP consistent with the Comhairle’s Local Housing Strategy. Acquisitions are planned and feasibility work is being undertaken for Comhairle owned sites at the former Barvas School and Habost Business Unit. Further acquisitions are being looked at in Stornoway and rural site. Updates will be available at this meeting.

COMPETENCE


RECOMMENDATIONS


a) progress with preparing a development programme for 2015-2018 be noted; and

b) the outcome of the community consultation on naming the latest phase of Melbost Farm be considered and a name or names be selected.


COMPETENCE

Financial 5.1 The Comhairle’s Resource Planning Assumption 2012-15 is £3.969 million. Any underspend

in the programme can be allocated to land acquisition to enable future programming in 2015-18 to be undertaken.

5.2 Provision has been made in HHP’s Business Plan for development through to 2018 with a

total of £3.028m in private finance earmarked.

Legal 5.3 There are no legal implications arising directly from consideration of this report.

RISK

6.1 Development is risky. To minimise risk to HHP it is important that competent feasibility work is undertaken to ascertain the suitability and capacity of potential sites for development.

REPORT DETAILS

7.1 The latest position with each development is as follows:

7.2 Leurbost

7.2.1 Cal Max are on site using an alternative access and working at risk. No contract is in place.

7.2.2 The Comhairle has still to conclude Missives with the Estate for the purchase of the access site. The corrective conveyancing is still being held up because of the objection to the resumption from crofting tenure. Indications from the Estate who are speaking to the Comhairle are that the objection to the resumption has been withdrawn. Land Court should now process the resumption from crofting tenure.

7.2.3 The second phase of Leurbost for four units will overlap with phase one should planning permission be granted in February 2014. Approval of the costs for Leurbost Phase 2 has been received from Scottish Government. An update will be available at this meeting.

7.3 Balivanich

7.3.1 The Baile Na Cille site for which planning permission was granted has issues in relation to the ownership of the parking bays. A number were sold by the MOD on a pro indivisio basis which would have meant seeking permission from the objectors to the development to enable the contractor to cross the car parks to develop the site.

7.3.2 An alternative site on HHP land has been identified at Winfield Close to the rear of HHP’s offices in Balivanich. Initial discussions with Planning have been positive and it is hoped that the cost of the development will be in line with the approval received from Scottish Government. There have however been reports of uncertainty in relation to ground condition. This may result in a slight increase in costs which will need to be submitted to Scottish Government.


7.4 Crowlista

7.4.1 This is progressing well. There has been approval on costs from Scottish Government. Planning permission has been submitted and Scottish Water has included the required upgrade in the sewage services in the 2014/15 financial year. At the time of writing this report the land transaction had not taken place and the resumption from crofting tenure has to be processed. There will be an update at this meeting.

7.5 Melbost 3

7.5.1 Approval of costs for both rented and LIFT elements of the development have been given by Scottish Government.

7.5.2 It is expected that by the time of this meeting that Planning Permission for the 32 houses will have been granted and Cal Max will be on site.

7.5.3 A consultation has taken place with the community with regard to street names for these houses. The following is the outcome of the consultation.

7.5.4 Parkend and Holm Residents Association’s preferences are:

Mackenzie Park Square; MacKenzie Park Crescent; and MacKenzie Park Lane.

7.5.5 Sandwick Community Association’s preferences are:

MacKenzie Square; MacKenzie Crescent; and MacKenzie Circle.

7.5.6 Parkend and Holm Residents Association felt that the area is locally known as MacKenzie

Park and always will be so they wanted to keep the MacKenzie Park name. Sandwick Community Association felt that it was a bit awkward and were happy to drop the Park.

7.6 Allt Na Broige

7.6.1 The LIFT development came in significantly higher than what could be supported by Scottish Government and the Comhairle.

7.6.2 A cost cutting exercise was undertaken looking at some of the design aspects and reduction in fees.

7.6.3 At the time of writing this report reductions in costs had been sufficient to enable submission for approval to Scottish Government.

7.7 Scottish Government Town Centre Fund

7.7.1 The joint bid for Scottish Government Town Centre Fund to redevelop the old Co-op shop on Cromwell Street Stornoway was unsuccessful although the bid received a high score in the assessment that was undertaken by a panel of civil servants on behalf of Government.


7.8 2014–2018 - Landbanking

7.8.1 Positive discussions have taken place with Scottish Government and the Comhairle about potential landbanking to help sustain development programme to 2018 and beyond. An update on progress will be given at this meeting.

7.9 Rural

7.9.1 The Comhairle have offered the former school at Barvas and the Habost Business Unit to HHP. Both areas have significant demand for rented housing. Valuations are being sought on a cleared site basis. Desktop feasibility studies are being undertaken to determine whether there are any significant problems with either site.

7.9.2 The West Harris Trust is planning a community facility at Horgabost which will have sites for social housing within the overall development. Discussions have taken place with the Chair and Chief Executive of the West Harris Trust.

Broadbay

7.10 A number of sites are being looked at in Stornoway. Any expressions of interest are commercially sensitive and will be discussed at Development Workgroup meetings prior to being prioritised and progressed.




Agenda Item 19


INVESTMENT PROGRAMME 2013/14


PURPOSE OF REPORT

1.1 To present to the Board an update on the 2013/14 Investment Programme.

SUMMARY

2.1 The Investment Programme for 2011/12 to 2015/16 was agreed by Operations Committee on 25 November 2010. A procurement exercise was subsequently carried out to establish a Framework Agreement to deliver the 4 year programme.

2.2 The Investment Programme for 2013/14 was agreed by Board on 20 February 2013 subject to budgets being approved.

2.3 The priority of works has been compiled using the data from the previous stock condition survey.

COMPETENCE


RECOMMENDATIONS

4.1 It is recommended that drainage works at Bruach Gorm and Pol An Oir be approved with a budget of £12,000 vired from the unallocated budget for 2013/14 to meet the costs.

APPENDIX 1 Procurement/ Works Programme

APPENDIX 2 Financial Report




COMPETENCE

Financial 5.1 The programme has been prepared as part of a 4 year budget programme. 2013/14 is the

third year of the programme. 5.2 The budget for 2013/14 has been set at £3.776m. 5.3 The profile of spend for 2013/14 based on projected framework costs is:

Legal 5.4 There are no legal implications to this report.

RISK

6.1 The framework contract continues to deliver efficiency savings on the per unit cost which is anticipated to continue. The risk of the prices increasing during the year is considered low. However the loss of UBC from the framework has had an adverse impact by lessening competition but to a limited extent.

REPORT DETAILS

LVST Stock and Former RSL

7.1 The Investment Programme has been planned to factor in the following:

a) Scottish Housing Quality Standard – the standard covers a number of different types of criteria. The criteria of most importance to HHP and which presents the biggest challenge is achieving the Energy Efficiency standard;

b) Stock Transfer Commitments – a number of promises were made to tenants at transfer such as choice of kitchens, decoration, floor coverings. Similar promises were given for bathrooms and external lighting which will also form part of the SHQS criteria for safety and security;

c) Business Plan Targets - a number of different commitments are given in the Business Plan to achieve delivery of specified number of windows, kitchens, heating and bathrooms, within years 1 to 5 and 6 to 10 from the date of transfer; and

d) Stock Condition Survey – the data from the most recent Stock Condition Survey is now available and is being used to inform decision making.

7.2 A more detailed copy of the programme is available for Board Members upon request. The detailed programme contains a scheme by scheme programme over the 4 years from 2011 - 2015. This has previously been approved and is available in booklet form split by scheme

Year 2013/14

Investment Programme Works 3,449,724

Investment Other 274,050

Investment 5 RSLs 52,026

Additional OT 305,000

Total 4,080,800


into Council Wards. These booklets have also previously been circulated to Board members, tenants and Councillors.

Progress of the 2013/14 Programme

7.3 An overview of progress is attached as Appendix 1.

7.4 The only outstanding lots to be tendered are electrical works. This will be informed by the new Stock Condition Survey. This work consists of replacement of carbon monoxide, smoke detectors and installation of external security lights.

7.5 The Framework contract is split into lots. The lots are divided into 2 areas: Successful contractor

Lewis & Harris Window and doors Lot 1 Alex Murray Construction Heating Lot 2 Alex Murray Construction

Bathroom/showers Lot 3 Alex Murray Construction Kitchens Lot 4 O’Mac Construction Roofing/ roughcasting Lot 5 Alex Murray Construction Electrical works Lot 6 out to tender

Uists & Barra Window and doors Lot 7 no works 2013/14

Heating Lot 8 Alex Murray Construction Bathroom/showers Lot 9 no works 2013/14 Kitchens Lot 10 Alex Murray Construction Roofing/roughcasting Lot 11 no works 2013/14 Electrical works Lot 12 no works 2013/14

7.6 There are no works programmed for Lots 7, 9 and 11 this year. 7.7 Appendix 1 shows progress to date. Lots 1 and 2 are on site and are progressing well and

within programme. All are anticipated to be completed within the current year. 7.8 Lots 3, 4, 5, 8 and 10 are complete. 7.9 Lots 6 and 12 Electrical Works; this work consists of replacement of carbon monoxide,

smoke detectors and installation of external security lights. The assets identified in the tender will be in rural areas. In rural Lewis this will be from the Harris boundary working North toward Stornoway, and the remainder of North Uist and Benbecula will be completed. South Uist and Barra are already done.

Lot 1 Windows: Lewis and Harris 7.10 Previously the Board approved the substitution of Murray Place (24 units) windows with

Morrison Avenue (20 units) windows. Queensland Road (3 units) have been brought forward from the approved 2014/15 programme to match the expenditure available. The estimated cost is £16k and will be funded from unallocated savings.

Lot 2 Heating: Lewis and Harris, and Lot 8 Heating: Uists and Barra

7.11 The Board approved the addition of assets to the Heating Investment Programme on 27 November 2013 due to refusals on the approved programme. Further refusals have been encountered and as a result Vatisker Park, Lios Na Glib and Gead Gorm will also be progressed from the reserve list.


Unallocated Budget

7.12 There are some estate related works required to be carried out to the following areas:

a) Bruach Gorm – land drainage - £6k; and

b) Pol An Oir – land drainage - £6k.

7.13 Alteration works are required to existing drainage to address significant flooding issues

within garden areas of some of the properties in these schemes. 7.14 The costs will be funded from unallocated budget within the Investment Programme.

Investment Programme 2013/14 Appendix 1

Task Name Tender Start Tender Finish Comments

Work Lot

Commencement Date 01 April 2013 28 February 2014

Lewis & Harris 01 April 2013 31 March 2014

Lot 1 - Windows 01 April 2013 28 February 2014 On Target

Lot 2 - Heating 01 April 2013 31 March 2014 On Target

Lot 3 - Bathrooms 01 April 2013 20 December 2014 Complete

Lot 4 Kitchens 01 April 2013 28 October 2013 Complete

Lot 5 - Roofing/ roughcast 01 April 2013 01 November 2013 Complete

Lot 6 - Electrical Works 01 November 2013 31 March 2014 Tendered

Uists & Barra 01 April 2013 28 February 2014

Lot 8 - Heating 01 April 2013 22 November 2013 Complete

Lot 10 Kitchens 23 September 2013 30 November 2013 Complete

Lot 12 - Electrical Works 01 November 2013 31 March 2014 Tendered

Note:

Insulation works are tendered outwith framework

Total Programme 2013/14

Page 1 of 1


Agenda Item 20


INVESTMENT PROGRAMME 2014/15


PURPOSE OF REPORT

1.1 To present the 2014/15 Investment Programme to the Board for approval.

SUMMARY

2.1 The Investment Programme for 2011/12 to 2015/16 was agreed by Operations Committee on 25 November 2010. A procurement exercise was subsequently carried out to establish a Framework Agreement to deliver the 4 year programme.

2.2 A substantive part of the 2014/15 programme has therefore already been approved as part of this programme. However, elements of the programme have previously been brought pulled forward due to efficiency savings and tenant refusals.

2.3 The Stock Condition Survey has also highlighted a number of properties which fail various criteria of the Scottish Housing Quality Standard (SHQS). These failures have been included in the 2014/15 programme to be remedied.

2.4 Social landlords are expected to bring all their properties to the SHQS unless there are legitimate reasons for exemption. This is therefore the final year for outstanding works to be completed.

COMPETENCE


RECOMMENDATIONS

4.1 It is recommended that the Investment Programme 2014/15 as set out in Appendix 1 be approved.

APPENDIX 1 Investment Programme 2014/15




COMPETENCE

Financial 5.1 The budget for 2014/15 has been provisionally set at £3.6m in line with cash planning

limits. This may be subject to amendment dependant on the overall budget setting process for 2014/15.

Legal 5.2 There are no legal implication to this report.

RISK

6.1 The current framework contracts expire on 31 March 2015. The rates are expected to deliver cost saving across a number of Lots as part of the mini competition tendering.

REPORT DETAILS

LVST Stock and Former RSL

7.1 The Investment Programme has been planned to factor in the following:

a) Scottish Housing Quality Standard – Social landlords are expected to bring all properties to the SHQS by 2015. The 2014/15 programme is therefore the final opportunity to carry out works prior to that target. A detailed report on progress against the SHQS was presented to Board in November 2013 and works identified as being required are now including in the 2014/15 programme. There will still be properties which will not meet the standard but which are considered to be exempt or in abeyance for a variety of reasons. The standard covers a number of different types of criteria. The criteria of most importance to HHP and which presents the biggest challenge is achieving the Energy Efficiency standard;

b) Stock Transfer Commitments – a number of promises were made to tenants at transfer such as choice of kitchens, decoration, floor coverings. Similar promises were given for bathrooms and external lighting which will also form part of the SHQS criteria for safety and security;

c) Business Plan Targets - a number of different commitments are given in the Business Plan to achieve delivery of specified number of windows, kitchens, heating and bathrooms, within years 1 to 5 and 6 to 10 from the date of transfer; and

d) Stock Condition Survey – the data from the most recent Stock Condition Survey is now available and is being used to inform decision making.

7.2 A more detailed copy of the programme is available for Board Members upon request. The detailed programme contains a scheme by scheme programme over the 5 years from 2011 - 2015. This has previously been approved and is available in booklet form split by scheme into Council Wards. These booklets have also previously been circulated to Board members, tenants and Councillors.

2014/15 Programme

7.3 The proposed Investment Programme is attached as Appendix 1.


7.4 Works are currently being tendered through January and February. The tender return dates are staggered which affords the Contractors the opportunity to adjust their subsequent tender submissions. Providing a de-brief on each tender has proved successful and delivered more financial savings to HHP.

7.5 The Framework contract is split into lots. The lots are divided into 2 areas: Successful Contractor

Lewis & Harris Window and doors Lot 1 out to tender Heating Lot 2 to be issued

Bathroom/showers Lot 3 to be issued Kitchens Lot 4 O’Mac Construction Roofing/roughcasting Lot 5 out to tender Electrical works Lot 6 out to tender

Uists & Barra Window and doors Lot 7 no works 2014/15

Heating Lot 8 to be issued Bathroom/showers Lot 9 to be issued Kitchens Lot 10 to be issued Roofing/roughcasting Lot 11 no works 2014/15 Electrical works Lot 12 out to tender

7.6 Lots 7 (windows/doors) and 11 (roofing/roughcast) will not apply during this year as there

are no works programmed within the area. 7.7 Lots 2 and 8 (heating) will be the subject of a separate report to be presented to Board in

May 2014. The financial income which may be realised from the Renewable Heating Initiative will go into general accounts to offset the additional costs of installing.

7.8 The long term affordability of installing renewable heating systems will be outlined in detail in the report to be presented to Board in May 2014.

Scottish Housing Quality Standard

7.9 There are a number of SHQS related works included in the programme. The Stock Condition Survey highlighted some failures which were reported to the Board in November 2013. Failures which had not been included in the previously approved 4 year programme have been added to this programme.

The broad areas of work are:

a) Kitchens – Safe Working Arrangements: alterations to layout including worktops and cooker locations;

b) Kitchens – Storage: the provision of some additional units to achieve minimum storage standards;

c) Kitchens – Sockets: the provision of some additional sockets to achieve the minimum number;

d) Kitchens and Bathrooms – Mechanical Ventilation: the installation of extract fans; e) Heating – SAP and full central heating requirements: heating installations where

only partial heating installed; f) Windows – component failures; g) Common Areas – lighting and security; and h) External works – drying areas.


7.10 Item g) is likely to be problematic as most flatted blocks have a mixed tenture. Private owners will require to agree to the works and to meeting their share of the costs. If they do not agree these would be re-classified as abeyances under the SHQS.

7.11 On completion of the SHQS related works and replacement programme for 2014/15, 100% of the HHP stock will be compliant. There will be some works which will qualify for abeyances or exemptions.

2014/15 Programme Details

7.12 Specific issues to note in the programme are detailed below:

Roofing and Roughcasting - as per previously approved programme;

Kitchens is as per approved - as per previously approved programme;

Bathrooms and Showers - as per previously approved programme;

The originally approved heating programme has been completed. Further properties were identified and approved by the Board as a reserve list on 27 November 2013. These properties are predominantly solid fuel heating systems. The current policy position is to replace these with air source heating systems unless mains gas is available. However, this is not affordable in the context of the Business Plan unless significant grant funding is available. The UK Government is introducing the Renewable Heating Incentive (RHI) in the Spring to support the installation of renewable systems. The implications of this for HHP are still unclear and there will be a further report on this in May to seek to finalise the heating programme at that time;

Windows – this is substantially the same as the approved 4 year programme. However there is scope for adding additional properties as a number of schemes were previously brought forward into 2013/14 with Board approval. The Stock Condition data is currently being reviewed to determine whether further properties should be added to the programme;

Insulation - as per approved 4 year programme. The cost effectiveness of using Icynene will be assessed prior to further installations being carried out;

Smoke detectors - as per approved 4 year programme. The replacement programme is continuing in areas of rural Lewis working towards the Stornoway area;

Carbon Monoxide Detectors - as per approved 4 year programme;

Security Lighting - as per approved 4 year programme;

Common Areas and External Areas are SHQS failures highlighted from the Stock

Condition Survey in paragraph 7.8 g) and h) above; and

Aids/Adaptations – this work is 100% grant funded by Scottish Government.


Agenda Item 21


INVESTMENT PROGRAMME 2015-2019 PROCUREMENT UPDATE


PURPOSE OF REPORT

1.1 To update the Board on progress on procuring the Investment Programme from 2015 to 2019.

SUMMARY

2.1 The Investment Programme for 2011 to 2015 was procured on a 4 year term framework agreement. 2014/15 will therefore be the final year of this arrangement. Work now needs to commence to procure investment works from 2015 onwards.

2.2 Currently, public procurement legislation in both Scotland and the EU are undergoing review and changes are due to be implemented in 2014. The changes will directly affect the procurement process.

2.3 The Board agreed on 27 November 2013 to engage consultancy support to assist in the framework design and procurement process for the period 2015-2019.

2.4 An advert for consultancy support was issued in December 2013 and 11 expressions of interest were received and tender packs were issued with returns due on 24 January 2014.

COMPETENCE


RECOMMENDATIONS

4.1 It is recommended that the Board note the report.

APPENDIX 1 Project Plan




COMPETENCE

Financial 5.1 The Investment Programme for 2015-2019 will be prepared in line with Business Plan

provision. 5.2 The costs of the procurement exercise are estimated at £40k. These costs have been

provided for in the 2014/15 consultancy budgets and will be recovered through the fees charged to investment projects 2014/15.

Legal 5.3 The method of procurement is in line with the current Policy for Procurement for Building

Works.

RISK

6.1 There are no specific risks associated with this report.

REPORT DETAILS

7.1 The Board approved use of Consultancy support for the procurement of the Investment Programme 2015-2019 on 27 November 2013.

7.2 An advert was posted on the Scottish Federation of Housing Associations (SFHA) website pre Christmas. Expressions of interest were invited and the closing date was 13 January 2014.

7.3 11 expressions of interest were submitted and tender documents were issued to all firms with a tender return date of 24 January 2014.

7.4 Since the tender was issued one consultant has declined to proceed.

7.5 Scoring and Evaluation is scheduled to be carried out and concluded in the week commencing 27 January 2014.

7.6 An update will be provided to the Repairs and Investment Work Group on 4 February 2014 and a further verbal update will be provided to the Board thereafter.

7.7 After the appointment of a consultant, a full project plan will be developed. A draft has been prepared and is attached at Appendix 1 to this report. A schedule of regular meetings will be developed and it is intended that the Repairs and Investment Work Group will oversee the project.

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Agenda Item A&R - 10 Board 22

AUDIT & RISK 19 February 2014


DRAFT PAYMENTS & BENEFITS MODEL POLICY CONSULTATION UPDATE


PURPOSE OF REPORT

1.1 To present to the Board a response to the SFHA’s Draft Payments & Benefits Policy for noting.

SUMMARY

2.1 HHP’s Control of Payments & Benefits Policy was approved by the Board in November 2013.

2.2 At the same time, the SFHA were in the process of agreeing a Draft Model Control of Payments and Benefits Policy with the Scottish Housing Regulator. Their Draft Policy was made available for consideration in November 2013. This is attached at Appendix 1.

2.3 Following a consultation period, HHP compiled a response to send to the SFHA. This was returned in early January 2014 and is attached at Appendix 2.

2.4 It is anticipated that the SFHA will finalise their Model Policy in February 2014 and issue it to member RSLs. At that point HHP’s Control of Payments & Benefits Policy may have to be further amended in accordance with recommendations from the SFHA and the Scottish Housing Regulator.

COMPETENCE

3.1 There are no legal financial or other constraints to the recommendations in this report being implemented.

RECOMMENDATION

4.1 It is recommended that the Board note the response to the SFHA.

APPENDIX APPENDIX

1 2

SFHA Draft Payments & Benefits Policy

HHP Response to SFHA Draft Payments & Benefits Policy

Background Papers Scottish Housing Regulator Guidance Note 5 Regulatory Standards of Governance and Financial Management

Regulatory Advice Note: Payments & Benefits, 9 August 2012

OSCR Guidance for Charity Trustees


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ed to (Namas outlined

s) contractoeration, and

enefits andh are and w

ransactioname of Orgormal letter ployment (

t of out of pance) to a with the tepose of thiments mus

Name of Od by this po

y a propertyame of Orgthe transa

nt contract[or a mem

f Organisaces to a co

ontract of e

policy froms, or could n to (Named by any incould reaso

me of Organd above. ors/supplied is covere

gifts are dwhich are n

between aganisation)

of appoint(in the case

pocket expmember o

erms of ous policy bust be follow

Organisatioolicy y (other thaganisation)ction, to so

t of employber of the

ation)or a monnected p

employmen

m any be perceiv

e of Organdividual wh

onably be p

nisation) h

ers by a ed under S

defined as not permitt

a connecte[or a mem

tment (in the of a mem

penses (or of the goveur agreed put (Name owed.

on) [or a me

an through) [or a memomeone af

yment (inclGroup] to

member of person or a

nt or equiva

ved to be isation) [orho, or perceived t

as an

ection

ted):

ed mber of he mber of

other rning

policies of

ember

h mber of ffected

uding

the a

alent

r a

to be

SFHA

6

6. Gen6.1 Meexpensimportareceiveand cothat, froand/or demonpartnerScottislavish o

6.2 Cowith usby theiand in

6.3 No consideresponwill be or staffGovernaware

7. Wha7.1 Forpersondeclare

7.1Paybe in aand the 3 Closelydaughtegrandpadependegoverninregular cthe mem

Draft Mode

6 Revised

seeking, amember o

neral Prinembers of oses incurreant that pee proper traonferencesom time tohold even

nstrate our rs. Any suc

sh Charity] or over-ge

nnected pes. At the sar connectiothe best in

connectedering the te

nsible for eregarded af) and will tning Body of the term

at Is Permr the avoid

n, or peopleed and rec

yments (allaccordancee amounts y connected

er; stepson; sarent; grandcents; anyoneng body has contact eg a

mber socially

el Policy: P

d Draft Nov

a relationshof the Grou

nciples our governed as a reseople who aaining for t, some of w

o time and ts or otherappreciati

ch activitieand will benerous.

eople shouame time, on with us nterests of

d person serms of thinsuring thaas a breactherefore band staff a

ms of this p

mitted ance of doe they are corded in a

of these pe with our a paid/value means fami

stepdaughterchild; uncle; ae on whom tha close assofriend, collea

Payments a

vember 20

hip with or p] to some

ning body asult of their are respontheir roles (which mayin accordar activities ton of the cs will reflece consisten

uld never bwe want toand that wour custom

hould acceis policy. Aat the termch of the rebe a Notifiaare individupolicy.

oubt, the foclosely conccordance

payments magreed pole of payme ly members r; partner’s chaunt; nephewhe governingociation woulague, neighb

and Benef

13

connectioneone affect

are entitledr voluntary nsible for o(which incl

y involve anance with ato promote

commitmenct our role nt with our

benefit inapo ensure thwe are ablemers.

ept a paymAll connect

ms of this pelevant Codable Event ually respo

ollowing pannected3 w

e with our p

must icy ents

(

(e.g. a spoushild; brother;

w; niece; the g body membld also includbour, busines

fits

n to (Nameted by this

d to be reimeffort on our governaludes attenn overnigh

agreed polie our aims nt and supas a regisagreed po

ppropriatelhat no onee to conduc

ment or bented personolicy are mde of Condto the SHR

onsible for

ayments anwith, are peprocedure:

(1) Paymeallowanpaymen

se or partner; sister; brothpartners of a

ber depends;de anyone wss contact/as

e of Organpolicy

mbursed foour behalf. ance and wndance at mt stay). It icy, we willand objectport of ourtered socia

olicy; we w

y from the is unfairlyct our busi

nefit withouns are indivmet. A breaduct (i.e. foR . All memaking the

nd benefitsermitted b

nt of statutnces (eg hont)

r; parent; parher or sister oany of these someone with whom thessociate or s

isation) [or

or out of po Similarly,

who work fmeetings, is approprl offer hosp

ctives and/or people anal landlord

will not be u

eir connecty disadvantness effici

ut first vidually ach of this or GB memmbers of teir close fa

s to a connbut must be

tory grantsome loss

rent-in-law; sof partner; people and

with whom thee member is someone kno

r a

ocket it is

for us events iate pitality or to nd [and a

unduly

tion taged ently

policy mbers he

amily

nected e

s or

son;

any e in

own to

SFHA

7

to the caccord

7.2 Ben

4 Close fstepsongrandch

Draft Mode

7 Revised

connected ance with

nefits

family memb; stepdaught

hild; uncle; au

el Policy: P

d Draft Nov

person muthe policy)

ber in this poter; partner’sunt; nephew;

Payments a

vember 20

ust be in )

licy means a child; brothe niece; the p

and Benef

13

(

(

(

(

(

(

(

a spouse or per; sister; bropartners of an

fits

(2) Paymeor servour polallowan

(3) Paymegovernaccordaovernigconfereimburseexpensetc))

(4) Sale ofOrganispropertLIFT, Mequival

(1) Grantinperson allocatithe conpart in tallocati

(2) Carryinimproveour resor factoimprovepropertconnecconnecundue

(3) Grantinto a conclose famembeemployrecruitmand wilmanageperson

(4) Grantinto a conclose famembewhere t

partner; pareother or sisteny of these p

nt of allowice users iicy (eg re-dnces or vount of allowing body mance with o

ght allowanence attendement of o

ses for trav

f all or part sation’s) inty through Mortgage toent to a co

ng a tenancin accordaons policy

nnected pethe assessons proces

ng out repaements in ponsibilitie

or, or as paement progty which is cted personcted personpriority)

ng a contrannected peamily memer of our stayee plays nment or sell not have ement resprecruited)

ng a contrannected peamily memer of the gothe GB me

ent; parent-iner of partner; people and a

wances to ten connectidecorationuchers)

wances to members inour policy

nces for dance; re-

out of pockvel, subsist

t of(Name onterest in aRight to Bo Rent or onnected pcy to a conance with o (provided

erson playssment or ss)

airs or accordanc

es as a lanart of a plagramme, toccupied

n (providedn has rece

act of emplerson who

mber of a caff (provid

no part in thlection proany line ponsibility

act of emplerson who

mber4 of a foverning boember has

n-law; son; dagrandparen

any depende

enants on with

n

n (eg

ket tence

of a uy,

person nnected our that

s no

ce with dlord nned o a by a d the ived no

oyment is a

current ed the he

ocesses

for the

oyment is a

former ody, left

aughter; t; nts

SFHA

8

8. Rec8.1 Anymust bpaymeexpens

8.2 Payappropregisteof the c

8.3 BenBenefit(loans proces

8.4 A Baccordapplicaapprovgrantinour usu

8.5 A bconnec

Draft Mode

8 Revised

cording Py payment

be declaredent of out oses (this is

yments aspriate] and er entry shoconnected

nefits musts, apart froto staff as

sses.

Benefit as dance with

ation must ved by the ng of the teual reportin

benefit as dcted to a cu

el Policy: P

d Draft Nov

Permitted t or benefitd and recorf pocket ex because t

describedrecorded i

ould includperson an

t be declarom those dpermitted

described our agreedhave no co[insert as a

enancy shong requirem

described aurrent staff

Payments a

vember 20

Paymentt that is marded in thexpenses (7there is a s

d at 7.1.1, 7in the Regie details o

nd the relev

red and recdescribed aby contrac

at 7.2.1(grd allocationonnection appropriate

ould be repments for t

at 7.2.3 (grf member)

and Benef

13

(

(

(

(

(

ts and Beade in accoe Register 7.1.3) madseparate re

7.1.2 and 7ister in adv

of the paymvant policy

corded in tat 7.2.2 (rect) – these

ranting a tens policy. to the appe]; the file

ported to ththe Registe

ranting a c must be a

fits

during t(5) Agreein

accordaloans a

(6) Acceptaconnecan evencelebraanniver

(7) Acceptaby a corelevanworking

(8) Acceptaevent torelevan

(9) Acceptafrom a businescelebraservice

enefits ordance wiof Paymene in accordecording p

7.1.4 mustvance of pa

ment (includy reference

the Registeepairs and are subjec

enancy) mStaff invollicant and should be

he Governier.

contract of as a result

the last 12ng a loan toance with o

and salary aance of ho

cted personnt to mark

ation(eg anrsary) ance of mo

onnected pnt to our bug/networkinance of hoo mark ach

nt to our buance of a sconnectedss to mark ation (eg re, wedding

th Section nts and Bedance withrocess for

be authorayment beding the vae.

er of Paymimprovem

ct to separ

ust be appved in assthe decisionoted accng Body in

employmeof an open

2 months o an emploour policy advances

ospitality fron or businean occasio

n opening o

odest hospperson thatusiness (egng lunch) ospitality athievement usiness (sesmall gift b

d person ork an occasietirement, letc)

7 of this pnefits, apa

h our policysuch paym

rised by [ineing made.alue), the id

ments and ments) and rate record

proved in sessing theon should

cordingly. Tn accordan

ent to a pen recruitme

oyee in on

om a ess at on or or

pitality t is g

t an that is

ee 9.2) by or r on or long

policy art from y on ments).

sert as The dentity

7.2.4 ding

e be The nce with

rson ent

SFHA

9

procesmembethe supin acco[insert PaymeGovernRegisteof staff

8.6 A bconnecas a reestablisestablisgovernwith ouappropBenefitin accoconnecrecorde

8.7 Bensenior in the cthe autthe ReThe en

8.8 WhRegiste

9. Valu9.1 Cohospitamaximdo not from thgifts, bbe dele

9.2 Ocaccept ceremo

Draft Mode

9 Revised

ss in which er must happort or suordance wias approp

ents and Bening Body er. The cof should be

benefit as dcted persoesult of an oshment or shing. The

ning body mur normal rpriate]. Thets as soon ordance wiction betweed in the n

nefits descstaff memcase of stathorising pegister, eith

ntry should

here a beneer as desc

ue of Giftnnected pe

ality (such um of £50normally r

he same soenefits andeted, and 3

casionally,hospitality

onies. The

el Policy: P

d Draft Nov

the currenave no respupervision oth our normriate]. Theenefits as in accorda

onnection be recorded

described an who is a open recruto a new p

e recruitmemember rerecruitmente appointm

as the offeth our usueen the nenew staff m

cribed at 7ber) (for G

aff. Detailserson (i.e.

her in adva identify th

efit is offercribed abov

ts, Hospiteople shouas lunch o). [Benefitsrequire to bource withid hospitalit3.5 and the

, (Name ofy in the forme costs of a

Payments a

vember 20

nt staff memponsibility (of the postmal recruit appointmesoon as th

ance with obetween thin each in

at 7.2.4 (grclose fam

uitment exepost that thent exercissigned. Tt requireme

ment shoulder is madeal reportingw member

member’s fi

.2.5 – 7.2.8Governing bs of the ben

Chair/staffnce, or no

he donor an

red but decve, with rea

tality anduld not noror dinner) ths with a vabe recorden a twelvety to be dee table at 9

f Organisatm of invitatattendance

and Benef

13

mber has p(even of a t in questiotment requent should

he offer is mour usual rehe new medividual’s f

ranting a cmily membe

ercise to a he former Gse should nhe decisioents and sd be recorde and shoug requiremr of staff anle.

8 must be body Membnefit must ff) must ent later thannd recipien

clined, thisasons for r

d Benefitsrmally accehat exceedlue of up tod unless m

e month peeclared, in 9.4 also am

tion) may otions to atte should no

fits

played no temporary

on. The deirements a

d be recordmade and eporting rember of stfile.

contract of er of a form

vacancy wGB membenot have con to appoin

should be aded in the Rld be repo

ments for thnd the form

authorisedbers) and tbe recordesure that t

n [ten] worknt and the v

should alsrefusal.

s ept benefitsd a value oo (insert va

more than oriod. (Indivwhich case

mended ac

offer and ctend speciaot normally

part. The y or occasioecision to aand shoulded in the Rshould be

equirementaff and the

employmemer GB mewithin the eer was not ommencednt must beapproved bRegister ofrted to the he Registermer GB me

d by the Chthe [insert ed on the rehe relevanking days fvalue of th

so be reco

s in the forof (insert vaalue not grone such bvidual RSLe this final cordingly)]

connected al events sy exceed (i

current staonal nature

appoint mud be approvRegister ofreported to

ts for the e current m

ent to a mber) musexisting staparty to

d before the in accordaby [insert af PaymentGoverning

r. The ember sho

hair (and/oas approp

relevant fornt entry is mfollowing re

he benefit.

orded in the

rm of gifts oalue up to reater thanbenefit is reLs may req

sentence ].

people masuch as awinsert max

aff e) for

ust be ved by f o the

member

st be aff

he ance

as s and g Body

uld be

or priate] rm and made in eceipt.

e

or

n £20) eceived uire all should

ay wards ximum

SFHA

10

not excOrgani

9.3 Fordescribvalue, wUnder

9.4 The

Type oSmall g(unlessa 12 mGifts orto recoAttendaOrganiceremo

9.5 In tguidanacceptrelevanthe entthis de

10. Wh10.1 Thgovern

11. A C11.1 Wtimes intime tocautiouimpres

5 There where th

Draft Mode

0 Revised

ceeding £5sation), a s

been nomattendancebusiness dit can be dfurthering

r the avoidbed in this will be metno circums

e following

of Gift/Bengift/benefit s more tha

month perior Hospitalit

ord in regisance at Spsation’s) aonies)

the event nce shouldting or decnt threshotry in the ecision.

hat is Nothe employ

ning body [o

CautiousWe recognis

n the intereo time, situaus approacssion to be

are some cirhis occurred

el Policy: P

d Draft Nov

500) per pesubsidiary

inated to re is in recodevelopmedemonstratour aims a

ance of dosection (ott directly bstances wi

g table sum

nefit and Rwith no ren one rece

od) ty (e.g. lunter

pecial Evenaims and o

that any od be sougclining. Inold above register s

t Permitteyment of a of any mem

s Approacse the impests of andations maych to any ccreated th

rcumstancesthe GB mem

Payments a

vember 20

erson. Thisor one of

eceive an ognition of ent or ted that attand objecti

oubt, coststher than oy [Name oll a connec

mmarises th

Requiremeequirementeived from

nch or dinn

nt that furthbjectives (

of the abovght from thn most casshould behould rec

ed close famimber of the

ch ortance of d for the bey arise whiccircumstanchat a conflic

s where this mmber would b

and Benef

13

s will only its partner

award or iachievem

tendance oives.

s associateout of pockof Organisacted perso

hese thres

ents t to record the same

er) with re

hers (Name.g. award

ve threshhe Chair ases the ofe refused,

cord the sp

ly membere Group] b

ensuring tenefit of ouch are not ces where ct of intere

may be unavbe required t

fits

be approps has, for e

s otherwisent or in p

or participa

ed with atteket expenseation] or byon be reimb

holds:

in register source in

quirement

e of d

olds are liand seniorffer of a g, but wherpecial circ

r of a curreby (Name o

that we areur tenants aclear-cut. there is th

est (real or

voidable eg ato resign

riate whereexample:

e involved ursuit of ap

ation is dire

endance ates), up to t

y an approvbursed suc

ThreshoINSERTEXCEEDELETEINSERTEXCEEINSERTEXCEE

ikely to ber staff memift/benefit re the offecumstance

ent membeof Organisa

e seen to band servic We will al

he potentiaperceived

as the result

e (Name o

in the eveppropriate

ectly relate

t events the prescrived third pch costs.

old T VALUE NDING £20E ROW T VALUE NDING £50

T VALUE NDING £50

e exceedember befoexceedin

er is accepes that jus

er of the ation) 5

be acting ace users. Flways adop

al for an ) may

of a TUPE tr

of

ent

ed to

ibed party.

NOT 0 OR

NOT

NOT 00

d, ore

g the pted, stified

at all From pt a

ransfer –

SFHA

11

comprofollow ewe can

11.2 W

11.3 Inpartiesthat ansteps w

11.4 Inmembeconnechoweve

(a) (b)

Draft Mode

Revised

omise our extra to thon demonstr

We will be e

Granting aEntering inwith a conAgreeing t

n these situs or our advn inapproprwill be take

11.3.1 Appreported to

11.3.2 In tprovision, out the reaconnectedproposed perceived

11.3.3 All procureme

11.3.4 Nondiscussionmaking pro

11.3.5 All in the minu

11.3.6 An usual requadditional

n the majorer of the Gcted persoer, this ma

in accordaare suppo

el Policy: P

d Draft Nov

reputation ose describrate transp

especially c

a contract onto a contrnected comthe terms o

uations, or visers, therriate benefen in advan

propriate so the Gove

the case ofseverance

asons whyd person refor the maimpropriet

such transent

ne of the pns or negotocess

decisions wutes of the

entry will buirements (scrutiny an

rity of caseGroup] of an

n shall notay be perm

ance with orted by a c

Payments a

vember 20

or our busbed at sec

parency an

careful in s

of employmractual agrempany of a volunta

in any othere is the pofit or paymence, in add

specialist aerning Bod

f financial te etc.) a wry the transaepresents tnagement ty

sactions wi

people whotiations an

will be takee relevant m

be made in(as set outnd authoris

es, the purcny propertyt be permit

mitted, prov

our policy comprehen

and Benef

13

siness effection 8 of thnd accounta

sensitive si

ment to a ceement for

ary severa

er situationotential forent has be

dition to tho

advice will by or releva

transactionritten businaction with the best opt of the con

ll be dealt

o are directd will not b

en by the gmeeting

n the relevat at Sectionsation mea

chase by (y (includingtted. Undervided that a

and consisnsive busin

fits

ectiveness.his policy, pability.

ituations su

close familyr the provis

ance arrang

n where, inr the perceeen given oose norma

be obtaineant commit

ns (eg saleness case wthe conne

ption for usntractual pr

with in acc

tly affectedbe party to

governing

ant registen 8) but theasures that

Name of Og land, buir exceptionany such tr

stent with oness case

In these sprocedures

uch as:

y member sion of goo

gement wit

n the opinioption to exor receivedlly required

d, if necesttee

e, purchasewill be pre

ected busins and the arocess to a

cordance w

d will take pany stage

body and f

er in accorde entry will t have bee

Organisatioldings, equ

nal circumsransactions

our aims

situations s to ensure

of an empods or serv

th an emp

on of any oxist or be cd, the followd by sectio

ssary, and

e, service pared that

ness or arrangemeavoid any

with our po

part in the e of the dec

formally re

dance with also recor

en adopted

on) [or any uipment) frstances, s are:

we will e that

ployee vices

loyee

of the reated wing on 8:

t sets

nts

olicy on

cision

ecorded

the rd the

d

rom a

SFHA

12

(c) (d)

(e)

12. Pe12.1 Thpersonperson

12.2 UconnecsupplieOrganiresult osoughtconfirmconnecthe serof (Nam

12.4 In

Draft Mode

2 Revised

are individare rigorouappraisal/V(Name of otherwise

ersonal Ahe use of (

n must be cn:

is aware thcontractorcould reasof their co

nder the ccted persoers for privasation), a of their cont before usming that nocted persorvice that thme of Orga

n any of the

12.4.1 RepGoverningbefore entoffer.

12.4.2 Maor preferensupplier arthis may billustrating

12.4.3 RecBenefits, aapproved

el Policy: P

d Draft Nov

dually subjeusly testedVFM criterOrganisatibe unfairly

Arrangeme(Name of Oconsidered

hat the busrs/supplierssonably bennection to

ircumstancn must norate purposconnected

nnection wing the supo financial n’s relationhe connecanisation) e

e above cir

port their pg Body Memtering into

ke a writtential treatmrising out o

be supporte that there

cord the traalong with by [Name

Payments a

vember 20

ect to indepd against thria; and on’s) interey disadvan

ents Organisatiod under the

siness is os and/or perceivedo (Name of

ces listed armally avoises. Whend person mith (Name pplier or coor other a

nship with cted persone.g. A Rea

rcumstance

proposed cmbers) or ta formal ag

en declaratment (finanof their coned by prov

e is a limite

ansaction a brief expof Organis

and Benef

13

pendent ashe RSL’s b

ests and/ontaged if th

on’s) contre terms of t

ne of (Nam

d to be gainf Organisa

at 12.1, exid using thn such arra

must not recof Organis

ontractor aadvantage (Name of On wishes toactive Repa

es, we ex

course of ato their linegreement,

tion that thencial or othennection toviding quotaed number

or agreemplanation asation]

fits

ssessmentbusiness st

or the conne transacti

actors/supthis policy

me of Orga

ning a prefation).

cept wheree associatangementsceive a mosation). 12and a writtehas been sOrganisatio procure isairs compa

pect the co

action to thee managerand to foll

ey have noerwise) fro

o (Name of ations for tof suitable

ment in the as to why th

t and valuatrategy and

ected persion did not

ppliers by awhen the c

anisations)

ferential se

e specification’s contrs are permore favoura2.3 Prior aen declaratsecured ason). This s provided

any.

onnected p

e Chair (inr (in the caow any ad

ot receivedom the cont

Organisatthe propose contracto

Register ohis arrange

ation d financial

son would t proceed

a connecteconnected

ervice as a

ally permitteractors and

mitted by (Nable serviceapproval mtion made s a result oalso appli

d by a subs

person to:

n the case oase of staffdvice that t

d any advatractor or tion) (for ex

sed work orors in the a

of Paymentement was

d

result

ed, a d

Name of e as a ust be

of the es if

sidiary

of ) , hey

ntage

xample r by rea)

ts and s

SFHA

13

12.5

12.6 Innationatherefobased expect requireLocal A

12.7 Wpreferecontracprovide

12.8 Sounder t

13. Co

Emplo13.1 (Nentitlemreache

OR 13.1 (Nentitlemindepeand ma

13.2 Stand wilcommit

13.3 (Nguidan

Govern13.3 (Ngovern

Draft Mode

3 Revised

(Name of that overlaarrangemerecognisedmay not be

n cases whal/regional ore not in aon their asany staff o

ement to seAuthority W

Where a Coential treatmctors, and ed as long

ome examthe terms o

ontractual

oyees Name of Oment to anyed through

Name of Oment to anyendent advakes recom

taff are notll withdrawttee] at wh

Name of Oce in respe

ning BodyName of Oning body [o

el Policy: P

d Draft Nov

Organisatiap is unavoents to youd that for se necessa

ere the suorganisati

a position tossociation wor Governieek prior a

Waste Man

onnected Pment will bthere will bas they ar

mples of Peof this polic

Payments

rganisationy performaEmployers

rganisationy performaiser who u

mmendatio

t involved w from any hich such m

rganisationect of the r

y Membersrganisationor governin

Payments a

vember 20

on) uses aoidable in sur line mansome minory, particul

pplier usedon that opo offer discwith (Namng Body Mpproval. agement S

Person is a be receivedbe no requre in accord

ersonal Arracy are give

s to Conne

n) sets the ance relates in Volunt

n) sets the ance relatendertakes

ons to the g

in determinpart of a m

matters are

n) will alwaremunerati

s n) does nong bodies

and Benef

13

a large numsome casenager or Chor personallarly when

d by (Namerates to acounted goe of organ

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RESPONSE TO SFHA’S DRAFT MODEL POLICY: PAYMENTS & BENEFITS

1 Do you think the definitions at Section 4: "Who is Affected By This Policy?" and Section 5: "Definitions" are appropriate? Are there any changes you would suggest?

5.3 It might be useful if it was clarified whether arrears by a Board Member could be considered a ‘loan’.

2 Could you please consider Section 12: "Personal Arrangements" and if you feel that this approach is appropriate? Would you suggest any alternatives?

The important issue is recording on file use of contractors and costs in significant numbers. In island situation it will be difficult to avoid use of contractors used by HHP. Almost all contractors/suppliers are on Framework Agreement. Should staff with no influence on procurement be affected?

3 Do you feel that the document as a whole can be adapted for use by any size or type of organisation (e.g. rural, community based, large organisation that covers a large geographic area)? Would you suggest any amendments in this regard?

There could be practical issues where there is only one supplier available particularly in the likes of Barra.

Para 14.1 may reduce our scope for co-optees which in turn will affect our ability to have the right balance of skills.

4 Additional Comments Para 4.3 – Closely connected - in a ‘small town setting’ there is a much higher likelihood of familial connections and people are more likely to know one another through organisations such as churches, sporting clubs, school connections, and shared social activities. There is, therefore, likely to be considerably higher instances of closely connected persons in rural, as opposed to urban, housing associations.

Para 9.4 – Values detailed here (max £500) for attendance at special events does not reflect island travel issues.

Example 4 – how would this affect a housing association that asks Contractors to donate prizes for events?

Example 4 – it was not felt to be inappropriate. However, it may require to be caveated and their performance shortcomings noted.

In general HHP feels that the principles underpinning the policy should be transparency, proportionality and practicality.

Connectedness is more likely in small rural communities.

Staff subject to the policy should be in a position of influence with contractors/suppliers.

Where staff/Board Members have perceived conflict of interest these should be carefully managed and any interest recorded on file.

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APPENDIX 2

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Agenda Item: A&R – 11 Board - 23



ASBESTOS POLICY


PURPOSE OF REPORT

1.1 To seek Board approval for an updated Asbestos Policy.

SUMMARY

2.1 The Asbestos Policy is scheduled to be reviewed every 3 years.

2.2 The existing Policy has been split to separate the Policy and Procedural elements into separate documents.

2.3 The method of selecting specialist contractors has been changed.

COMPETENCE

3.1 The legal, financial or other constraints to the recommendations in this report are at paragraph 5.

RECOMMENDATIONS

4.1 It is recommended that the Updated Asbestos Policy detailed in Appendix 1 be approved.

APPENDIX 1 Updated Asbestos Policy


Writer of Report Peter O'Donnell Tel: 0300 123 0773


COMPETENCE

Financial 5.1 There are no financial implications arising directly from this report.

Legal 5.2 Under the Health and Safety at Work Act 1974, HHP has a duty to ensure, as far as is

reasonably practicable, the health, safety and welfare of employees and the health and safety of others that may be affected by the employer’s undertaking.

5.3 Under the Control of Asbestos Regulations 2012 there is a duty on HHP ‘to manage

asbestos’ in non-domestic premises which also include communal areas within flats. 5.4 The Policy is also based on the following additional legislation:

• The Construction (Design and Management) Regulations 2007;

• The Special Waste Amendment (Scotland) Regulations 2004; and

• Management of Health and Safety at Work Regulations 1999 (as amended).

RISK

6.1 There are no specific risks associated with the approval of this updated Policy. The satisfactory management of asbestos is, however, a significant area of risk for HHP and it is therefore critical that robust systems and processes are in place.

REPORT DETAILS

Asbestos Policy

7.1 The Asbestos Policy has been reviewed and amended to ensure it is fit for purpose and complies with all current legislation and best practice. In particular the Control of Asbestos Regulations 2012 has been incorporated into the Policy.

7.2 The previous version of the Asbestos Policy included procedures which have been

removed and now form the Asbestos Procedures Manual. The sections removed are as

follows:

• How to manage asbestos;

• Risk assessment;

• Managing risk;

• Protocol for planned programme of removal;

• Method statement;

• Record keeping;

• Information, instruction and training;

• Dealing with Health and Safety issues;

• Health Records and Medical Surveillance;

• Provision of Information;

• Selection and Control of Contractors to Work on Asbestos-containing Materials;

• Monitoring Premises and Contract Works;

• Emergency Procedures; and

• Disposal of Asbestos Waste Materials.

ASBESTOS POLICY

Section Operations

Date Policy Approved by Board 19 February 2014

Review Period Every 3 years

Review Due February 2017

Version 1.3

APPENDIX 1

Registered Charity No: SC035767

CONTENTS Policy Change History ................................................................................... 1

Interpretations & Abbreviations ....................................................................... 2

Introduction ............................................................................................... 3

Aims ........................................................................................................ 3

Legislation ................................................................................................. 3

Control of Asbestos Regulations 2012 ................................................................. 5

The Duty to Manage Asbestos .......................................................................... 6

Asbestos Policy Statement .............................................................................. 7

Roles and Responsibilities .............................................................................. 7

Duties ...................................................................................................... 7

Monitoring of Asbestos Policy .......................................................................... 8

1

POLICY CHANGE HISTORY

Version Change Applied Date By

1.3 Policy updated to take into account Control of asbestos at work regulations 2012. General review of policy.

January 2014 Peter O’Donnell

2

INTERPRETATIONS & ABBREVIATIONS The following interpretation and abbreviations are used in this policy:

Word Interpretation

HHP or Partnership Hebridean Housing Partnership

Board Means the Board of the Hebridean Housing Partnership

Board Members All Members of the Board including co-opted Members

ACM’s Asbestos Containing Materials

All references to the masculine gender in this policy shall read as equally applicable to the feminine gender

3

ASBESTOS POLICY INTRODUCTION

1.1 Products containing asbestos have been used for many years in a whole range of applications and locations including industrial, commercial and domestic premises. It has typically been used for lagging pipe work, tanks and boilers, or as a component of structural finishes, such as in walls and ceilings. In many cases the presence of asbestos is not known until it is exposed through wear, through structural damage or during development work. Whilst the use of all forms of asbestos has now been banned in the UK (with some minor exceptions), a great deal of asbestos is still in situ from previous installations.

1.2 Persons now considered to be most at risk from asbestos are trades persons involved in building renovation and maintenance work, particularly amongst plumbers, gas fitters, carpenters and electricians.

1.3 There are three main types of asbestos that may be encountered namely, Crocidolite (blue), Amosite (brown) and Chrysotile (white). Asbestos fibres enter the body by inhalation, which can give rise to asbestosis (a scarring of the lung tissue caused by asbestos), two kinds of cancer (mesothelioma and asbestos related lung cancer), and diffuse pleural thickening (a non-malignant disease affecting the lung lining). Currently, approximately 4,000 people are dying from mesothelioma, asbestosis and asbestos-related cancers per year. This is mainly attributed to exposure some time ago, as asbestos related diseases manifest themselves over an incubation period of anything from 20 to 30 years.

1.4 In many cases, asbestos in situ is of little risk and should only be treated or removed if its condition deteriorates or remedial / renovation works are required. The key to successful management of asbestos is to identify locations and forms of asbestos, monitor its condition and take the appropriate remedial action as and when required.

AIMS 2.1 The aim of this document is to demonstrate HHP’s commitment to ensuring its

employees including it’s contractors, tenants and the general public, are not knowingly exposed to any risks that would affect their safety. The documents covered by this Policy will provide guidance and specific instructions for all HHP employees and external contractors, whilst undertaking asbestos work. This is with the aim of satisfying the legal duties of the Control of Asbestos Regulations 2006 and the Health and Safety at Work Act 1974

LEGISLATION 3.1 Under the Health and Safety at Work Act 1974, employers have duties to ensure, as

far as is reasonably practicable, the health, safety and welfare of employees and the health and safety of others that maybe affected by the employers undertaking.

3.2 The Control of Asbestos Regulations (CAR) 2006 came into force on 13 November 2006. These Regulations bring together the three previous sets of Regulations covering the prohibition of asbestos, the control of asbestos at work and asbestos licensing. The Regulations prohibit the importation, supply and use of all forms of asbestos. They continue the ban introduced for blue and brown asbestos in 1985 and for white asbestos in 1999. They also continue to ban the second-hand use of asbestos products such as asbestos cement sheets and asbestos boards and tiles;

4

including panels which have been covered with paint or textured plaster containing asbestos. The ban applies to new use of asbestos. If existing asbestos containing materials are in good condition, they may be left in place, their condition monitored and managed to ensure they are not disturbed.

3.3 CAR requires employers to prevent exposure of their employees to asbestos or where this is not practicable to reduce the exposure to the lowest possible level. CAR also includes a regulation placing a duty on those who have repair and maintenance responsibilities for premises because of a contract or tenancy, to manage risks from asbestos in those premises. There is also a duty of co-operation between all parties.

3.4 It should be noted that CAR arises from the parent enabling act, The Health and Safety at Work Act 1974 and is thus confined to non-domestic premises, i.e. workplaces. Therefore, CAR does not directly apply to a domestic premise, but does apply to any work activity that takes place there, e.g. plumbing, electrics etc. However, it has been legally established that common parts of a block of flats are not part of a private dwelling and are considered as non-domestic. Thus Regulation 4 of CAR does apply to the common and external parts of flats.

3.5 Under CAR HHP does not have a duty to manage the asbestos within the private part of a dwelling. However, whilst they are excluded from CAR, domestic premises (and in fact all premises) are subject to The Occupiers Liability Act 1984. These require property owners and occupiers to be aware of potential significant hazards to health and safety. All persons including visitors, contractors (and trespassers) must be provided with reasonable care not to suffer injury or harm on these premises. Therefore, whilst under Regulation 4, a written plan is not required for the private dwelling, the location and condition of any asbestos does need to be known and expressed to all people to ensure due consideration is given to deciding what, if any, protective measures are required.

3.6 Therefore, CAR does not specifically cover domestic premises, but there is a legal requirement to manage the health and safety risks associated with asbestos.

3.7 The Asbestos Regulations also include the ‘duty to manage asbestos’ in non-domestic premises. Guidance on the duty to manage asbestos can be found in the 'Approved Code of Practice The Management of Asbestos in Non-Domestic Premises', L127, ISBN 0 7176 6209 8.

3.8 These duties are extended more specifically with regards to asbestos by the following legislation:

The Construction (Design and Management) Regulations 2007- require the client to pass on information about the state or condition of any premises (including the presence of any hazardous materials) to the planning supervisor before any works begin and to ensure that a Health & Safety file is available for inspection if required;

The Special Waste Amendment (Scotland) Regulations 2004. Domestic asbestos waste is ‘special waste’. The requirements of the Special Waste Regulations 1996, as amended, apply to this ‘special waste’, except where the original producer is also the person who resides at the domestic premises where the waste arises or where the waste producer is acting on behalf of the resident without reward. This means that a contractor who undertakes work for a householder that generates asbestos waste, must comply with the requirements of these Regulations;

Any asbestos product or material that is ready for disposal is defined as asbestos waste. Asbestos waste also includes contaminated building materials,

5

tools that cannot be decontaminated, personal protective equipment and damp rags used for cleaning. If in doubt, always treat waste as ‘Hazardous’ or ‘Special’. Asbestos waste is considered hazardous when it contains more than 0.1% asbestos;

Management of Health and Safety at Work Regulations 1999. Risk assessments are a legal requirement under s3 of the Management of Health & Safety at Work Regulations 1999; and

There is also a need for a special risk assessment for young persons (employees or work-experience students under 18) and new and expectant mothers, taking account of their individual needs.

CONTROL OF ASBESTOS REGULATIONS 2012 4.1 The Control of Asbestos Regulations 2012 came into force on 6 April 2012, updating

previous asbestos regulations to take account of the European Commission's view that the UK had not fully implemented the EU Directive on exposure to asbestos (Directive 2009/148/EC).

4.2 In practice the changes are fairly limited. They mean that some types of non-licensed work with asbestos now have additional requirements, i.e. notification of work, medical surveillance and record keeping. All other requirements remain unchanged.

4.3 What has stayed the same?

If existing asbestos containing materials are in good condition and are not likely to be damaged, they may be left in place; their condition monitored and managed to ensure they are not disturbed.

If you're responsible for maintenance of non-domestic premises, you have a 'duty to manage' the asbestos in them, to protect anyone using or working in the premises from the risks to health that exposure to asbestos causes.

If you want to do any building or maintenance work in premises, or on plant or equipment that might contain asbestos, you need to identify where it is and its type and condition; assess the risks, and manage and control these risks.

The requirements for licensed work remain the same: in the majority of cases, work with asbestos needs to be done by a licensed contractor. This work includes most asbestos removal, all work with sprayed asbestos coatings and asbestos lagging and most work with asbestos insulation and asbestos insulating board (AIB).

If you are carrying out non-licensed asbestos work, this still requires effective controls.

The control limit for asbestos is 0.1 asbestos fibres per cubic centimetre of air (0.1 f/cm3). The control limit is not a 'safe' level and exposure from work activities involving asbestos must be reduced to as far below the control limit as possible.

Training is mandatory for anyone liable to be exposed to asbestos fibres at work. This includes maintenance workers and others who may come into contact with or disturb asbestos (e.g. cable installers), as well as those involved in asbestos removal work.

6

4.4 What has changed?

From 6 April 2012, some non-licensed work needs to be notified to the relevant enforcing authority.

From 6 April 2012, brief written records should be kept of non-licensed work, which has to be notified e.g. copy of the notification with a list of workers on the job, plus the level of likely exposure of those workers to asbestos. This does not require air monitoring on every job, if an estimate of degree of exposure can be made based on experience of similar past tasks or published guidance.

By April 2015, all workers/self employed doing notifiable non-licensed work with asbestos must be under health surveillance by a Doctor. Workers who are already under health surveillance for licensed work need not have another medical examination for non-licensed work. BUT medicals for notifiable non-licensed work are not acceptable for those doing licensed work.

Some modernisation of language and changes to reflect other legislation, e.g. the prohibition section has been removed, as the prohibition of supply and use of asbestos is now covered by REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals Regulations 2006

THE DUTY TO MANAGE ASBESTOS 5.1 Duty holders include those responsible for the maintenance and/or repair of non-

domestic premises. This includes premises, whether they are occupied or vacant. The aim is to protect workers who may come across asbestos in the course of their day-to-day activities, since the major problem facing these workers is that they often do not know where and when the material may be encountered.

5.2 The duty holder must:

conduct a survey of the premises;

take reasonable steps to locate materials containing or presumed to contain asbestos and complete a risk assessment to discover the likelihood of the release of dangerous fibres;

make a plan to manage the above risk, including if necessary sealing or encapsulating the asbestos-containing material or, as a last resort, removing the asbestos;

keep in a well-maintained asbestos register a written record of the location and condition of the asbestos in the building; and

put procedures in place to ensure that HHP’s own employees or third-party contractors have full knowledge of where asbestos may be present to prevent accidental exposure.

5.3 The Health and Safety Executive (HSE) Approved Code of Practice (ACOP) L143: Managing and Working with Asbestos explains the duties of building owners, tenants and any other parties who have any legal responsibility for the work premises. It also sets out what is required of people who have a duty to co-operate with the main duty holder.

5.4 The Practical Stages of the Duty to Manage

In order to assess and manage the risk of asbestos, the duty holder must:

survey the work environment;

7

assess the risk; and

manage the risk.

5.5 There is detailed guidance from the HSE on surveying, sampling and assessment of asbestos. It is important to select a competent surveyor. A full list of companies accredited by the United Kingdom Accreditation Service (UKAS) can be obtained via their website.

5.6 Once the asbestos-containing materials (or materials presumed to contain asbestos) have been located, the ability of these materials to release asbestos fibres must be assessed, and a written plan prepared to manage the risk. This should ensure that details of the location and condition of any asbestos are provided to every person likely to disturb it. It should be made available, if required, to the emergency services. The plan should include a procedure for monitoring and recording any condition changes. The frequency of the checks to determine condition changes will depend on the type of material present.

ASBESTOS POLICY STATEMENT 6.1 HHP acknowledges and accepts its responsibilities under the Health and Safety at

Work etc. Act 1974 and the Control of Asbestos Regulations 2006 and 2012 and other related legislation appertaining to asbestos. The organisation acknowledges the health hazards arising from exposure to asbestos and will protect employees and other persons potentially exposed as far as is reasonably practicable. This will be achieved by minimising exposure through the management of asbestos-containing materials in the workplace premises.

6.2 HHP is committed to ensuring that all asbestos and asbestos products present within all buildings and dwellings managed by HHP are properly controlled so that they will not present a risk to staff, tenants, contractors or any other persons. Everyone who needs to know about the presence of asbestos will be alerted. No one will be allowed to start work that could disturb asbestos unless the correct procedures are to be employed. In pursuing this objective all relevant Health & Safety Guidance as set out in document HSG227 “A comprehensive guide to managing asbestos in premises" shall be followed. This policy requires the full co-operation of management and staff at all levels. Specific arrangements for compliance with this procedure are detailed in this Policy. The person responsible for the implementation of this policy is the Chief Executive.

ROLES AND RESPONSIBILITIES 7.1 Properties managed by HHP fall into two categories, Housing (HHP’s housing stock),

and non-Housing (offices, caravans, chalets, garages, laundry blocks, Cearns Shop, and other ad-hoc premises).

7.2 The Director of Operations is responsible overall for managing all properties.

7.3 HHP recognises that in order to discharge its duties effectively under this policy an individual officer must be charged with the responsibility for asbestos. The Investment Manager is therefore designated as the Asbestos Manager for HHP.

DUTIES 8.1 As an employer, HHP is required to:

prevent the exposure of employees to asbestos;

find out whether their building contains asbestos, what condition it is in and assess the risk, e.g. if it is likely to release fibres, employers must make a plan

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to manage the risk and protect employees and other persons from exposure to asbestos — if the employer is not responsible for maintaining and repairing all or part of the property, or does not have control of the building, the person who has these responsibilities must carry out the above actions;

ensure, so far as is reasonably practicable, the health and safety at work of all employees;

be licensed by the Health and Safety Executive if involved in any work with asbestos, with the exception of work in which the exposure is sporadic or of low intensity;

ensure that asbestos waste is transported in sealed, labelled containers with consignment notes, and disposed of at licensed sites; and

make no use of any product that contains asbestos.

8.2 Specific responsibilities are as follows:

Asbestos Manager:

Responsible for ensuring compliance with the Asbestos Policy and regulations relating to all aspects of the management of asbestos. This includes the drafting and revision of asbestos policies.

All Operations staff:

Ensure familiarity with location and nature of asbestos located in all premises in accordance with the asbestos register;

Be aware that the asbestos register lists known asbestos only (there may be more that has not yet been detected);

If it is believed that the condition of asbestos has deteriorated significantly between asbestos reviews or the presence of previously unidentified asbestos is suspected, arrange for a reassessment or survey to be undertaken by competent persons;

Ensure that no works (including plumbing and electrical) are undertaken that may disturb any asbestos present. If you are not sure if asbestos is present or not, specialist advice must be sought;

Not to interfere with control measures that have been implemented to safeguard employees and others from exposure to asbestos;

Co-operate with your employer’s asbestos safety arrangements;

Take reasonable care of yourself and others while working on asbestos-related activities;

Follow all the procedures set out in your employer’s assessment and plan of work;

Comply with the use of control measures; and

Report any problems with safety arrangements in connection with asbestos to your employer.

MONITORING OF ASBESTOS POLICY 9.1 The Corporate Asbestos Policy to be reviewed every 3 years.

9.2 The policy will be amended following any change in legislation impacting upon it or following any significant change in arrangements.

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9.3 Sample surveys will be reviewed and audited by the representative of the Director of Operations on a regular basis to ensure full compliance with the policy.





DEVELOPMENT HANDOVER POLICY


PURPOSE OF REPORT

1.1 To seek approval of the revised Project Handover Policy.

SUMMARY

2.1 The Handover Policy is one of the suite of development policies which were approved in 2008 and 2009 that are now due for review.

2.2 It is proposed that these Development policies be brought together into one Development Policy and considered at a future Board meeting. Therefore only minimal revisions have been made to the Handover Policy. The revised policy is at Appendix 1 to this report.

COMPETENCE

3.1 There are no legal or financial constraints to the recommendation in this report.

RECOMMENDATIONS

4.1 It is recommended that the revised Handover Policy at Appendix 1 be approved.

APPENDIX 1 Revised Development Handover Policy




COMPETENCE

Financial 5.1 There are no financial implications arising directly out of consideration of this report.


RISK

6.1 It is important to update development policies to ensure best practice is followed and any potential rental loss during the handover period is minimised.

Development Projects: Handover Policy

Section Operations


Review Period Every Three Years


Version 2.00

APPENDIX 1


CONTENTS

Policy Change History ................................................................................... 1


Introduction ............................................................................................... 3

Purpose .................................................................................................... 3

Implementing the Policy ................................................................................ 3

Lifespan/Whole Life Costings .......................................................................... 4

Insurance .................................................................................................. 4

Development Completion Certificate ................................................................. 4

Health and Safety File ................................................................................... 4

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2.00 January 2014 Chief Executive

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INTERPRETATIONS & ABBREVIATIONS

The following interpretation and abbreviations are used in this policy:

Word Interpretation





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DEVELOPMENT PROJECTS HANDOVER POLICY

INTRODUCTION 1.1 This policy describes HHP’s role in accepting handover from a contractor of a

scheme, or an agreed phase of a scheme, that has reached practical completion.

1.2 HHP adopts a thorough approach to scheme monitoring whilst a project is on site to ensure that work is carried out to the required standard and to reduce the level of defects identified at the end of the contract period.

PURPOSE 2.1 In adopting this policy, HHP seeks to ensure that:

The buildings that it procures are completed to an agreed high standard;

Buildings are substantially defect free at the point of handover;

Houses are occupied as soon as possible after handover;

Occupants are satisfied with their new homes; and

Rental and other income is maximised.

IMPLEMENTING THE POLICY 3.1 HHP aims to ensure that properties are let immediately on handover. The target

time for occupation is 14 days after practical completion. Consequently, not less than three months before the anticipated completion date, the Development Agent will confirm the expected completion date to the Director of Operations. This will enable the Director of Operations to begin the process of allocating the properties to those on the housing list. Responsibility for liaison with Allocations staff in the period leading to handover rests with the Development Agent.

3.2 HHP will not accept handover of a scheme, or part of a scheme, on or the day before, a Public Holiday.

3.3 Where the handover of a scheme, or part of a scheme, is delayed beyond the agreed date as a result of the contractor’s actions and no variation has been agreed with HHP, we will apply the provisions of the contract relating to liquidated and ascertained damaged to mitigate its losses.

3.4 Property Services, Housing Services and Allocations staff will be invited to attend snagging/quality check inspections and practical completion and defects inspections to ensure that the completed properties meet the requirements of potential occupiers. Where occupiers have been identified in advance and finishes have been selected to their specification (e.g. kitchen and bathroom fittings) these will be checked to ensure compliance in advance of handover.

3.5 HHP have determined that, where a property records an unacceptable number of snags or a serious snag during the pre-handover check, the inspection should be suspended and re-arranged for another date to enable remedial works to be done by the contractor.

3.6 On the date of handover HHP will inspect the scheme, together with the relevant consultants and agents. Representatives of Property Services, Housing Services and Allocations staff will participate in the handover inspection. Where HHP and its

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consultants are satisfied that all identified snags and defects have been satisfactorily dealt with, handover of the scheme will be accepted, subject to the terms of paragraph 3.2. Where HHP and its consultants are not satisfied that this is the case, handover will be postponed to allow the outstanding works to be remedied.

3.7 The Development Agent will confirm to Allocations that the Certificate of Practical Completion has been issued, and arrange handover of the tenant information packs. An agreed reading of all meters will be undertaken by both HHP and the developer. Electricity supply should immediately be taken up by tenants and should not transfer to HHP unless property cannot be let for some reason. The Director of Operations will ensure that the Health & Safety file is handed over to HHP by the CDM Co-ordinator within seven days of handover. Allocations staff will ensure that Housing Services and Property Services staff are notified when properties become occupied.

3.8 HHP will arrange appropriate security for any unoccupied properties following handover.

3.9 In accordance with our Allocations Policy, tenants will be visited within 6 weeks of moving in to ensure that they are settling in well, that there are no problems with their house and that they are familiar with HHP’s arrangements for reporting defects and repairs.

LIFESPAN/WHOLE LIFE COSTINGS 4.1 All buildings should be designed and constructed with materials which will help HHP

achieve their desire of zero maintenance and to reduce tenant running costs and have the most economic whole life cost rather than the lowest initial capital cost.

4.2 HHP requires Life Cycle Costs for all materials utilised within their developments to be provided by the Contractor at Practical Completion for each project.

4.3 The information is to be provided in a pro forma manner for upload onto the HHP Planned Maintenance system and submitted to HHP by the Contractor.

INSURANCE 5.1 The Development Agent will notify the Director of Resources of the handover date

so that insurance cover can be effected as soon as the properties fall within the ownership of HHP.

DEVELOPMENT COMPLETION CERTIFICATE 6.1 The Contractor must also provide Completion Certificates associated with consent

requirements, provide Tenant Packs, Health and Safety File and the like.

HEALTH AND SAFETY FILE 7.1 The Health and Safety file must contain information necessary for future

construction, maintenance, refurbishment or demolition to be carried out safely and is retained by the client or any future owner of the property. This should include installed service diagrams for mechanical, plumbing and electrical equipment and services both internally and externally (including the locations of all floor hatches internally). Information on external access to heights shall be provided with engineers information on hardstandings and loading capacity/limits for mechanical equipment.





EQUAL OPPORTUNITIES POLICY


PURPOSE OF REPORT

1.1 To present to the Board the revised Equal Opportunities Policy for consideration and approval.

SUMMARY

2.1 The Equal Opportunities Policy was last reviewed in 2008. The policy is due for review in accordance with the schedule for reviewing policies.

2.2 The revised policy is at Appendix 1 to this report.

COMPETENCE

3.1 There are no financial or other constraints to the recommendations in this report being implemented. The legal framework is detailed at paragraph 5.2.

RECOMMENDATIONS

4.1 It is recommended that the revised Equal Opportunities Policy at Appendix 1 is approved.

APPENDIX 1 Revised Equal Opportunities Policy




COMPETENCE

Financial 5.1 There are no financial implications arising from consideration of this report.

Legal 5.2 The legislation relating to discrimination law is now the Equality Act 2010.

RISK

6.1 Failure to comply with the Equality Act 2010 could leave HHP open to regulatory action and legal sanctions through the courts.

REPORT DETAILS

7.1 The Equal Opportunities Policy has not been reviewed since 2008. Since then Government has taken steps to eradicate inconsistencies in the equal opportunities legislation by the introduction of an all embracing piece of legislation, the Equalities Act 2010. All previous discrimination legislation was repealed and replaced with the one single piece of legislation.

7.2 HHP aims to ensure that the legislation is complied with and that there is a consistent approach in promoting equality and diversity in all activities. The organisation will endeavour to develop and sustain best practice.

EQUAL OPPORTUNITIES POLICY

Section Chief Executive


Review Period Every 3 Years

Review Due 2017

Version 2.00


APPENDIX 1

CONTENTS

Policy Change History ................................................................................... 1


Introduction ............................................................................................... 3

Aims ........................................................................................................ 3

Background ................................................................................................ 3

Legal Framework ......................................................................................... 3

Definitions ................................................................................................. 3

Recruitment Policy ....................................................................................... 4

Training and Development .............................................................................. 4

Monitoring and Review of Policy ....................................................................... 4

Policy Review ............................................................................................. 5

1



2.00 Updated in line with legislative changes February 2014 Angus Lamont

2



Word Interpretation





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EQUAL OPPORTUNITIES POLICY INTRODUCTION

1.1 HHP is committed to promoting an environment of respect, understanding, encouraging diversity and eliminating discriminataion by providing equal opportunities for all. HHP has a consistent approach to promoting equality through the entire employment relationship from the recruitment process to the termination of employment.

1.2 All employees are required to abide by this policy which covers discrimination by and towards members of the public, governing body, contractors and staff from other agencies.

AIMS 2.1 This Policy aims to:

Integrate equality and diversity practices;

Ensure that employees are treated with fairness and respect from each other, members of the public, governing body members and contractors;

Require HHP to implement fair employment practices ensuring that job applicants and employees receive equal treatement;

Ensure that people are recruited and employees promoted solely on the basis of their own merit, ability and potential; and

Promote an environment appropriate to the needs of those from all walks of life and a culture that respects and values difference and promotes dignity, equality and diversity.

BACKGROUND 3.1 U.K. Governments have been addressing equality and diversity issues for many

years. As Government tackled inconsistencies in previous legislation the new Equality Act 2010 was introduced. The introduction of the Act saw previous discrimination legislation abolished and replace with one single piece of legislation. This policy is compliant with the current legislation.

LEGAL FRAMEWORK 4.1 The following details the specific act relating to discrimination law:

Equality Act 2010

DEFINITIONS Diversity

5.1 HHP is committed to valuing and managing people’s differences to enable all employees to contribute and realise their full potential.

5.2 Making sure people are treated fairly and given fair chances.

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5.3 It is not about treating everyone in the same way but there is a recognition that people’s needs are met in different ways. Equality focusses on areas covered by the law and described as Protected Characteristics of race, sex, disability, age, gender reassignment, marriage and civil partnership, pregnancy and maternity, religion or belief and sexual orientation.

Direct Discrimination

5.4 Treating someone less favourably than another based on a protected characterisation.

Indirect Discrimination

5.5 A policy, practice, procedure or criteria that applies to everyone in the same way but might disadvantage a particular protected group and which cannot be justified in relation to the job.

Harassment

5.6 Conduct that violates a person’s dignity or creates an intimidating, hostile, degrading, humiliating or offensive working environment. The intention of the perpetrator is irrelevant. It is the impact which determines whether harassment has taken place.

Implementation of the Policy

5.7 The Director of Resources is responsible for the day-to-day implementation of the policy. All new employees and Board Members will receive training on this policy as part of the induction process. Copies of the policy will be freely available.

5.8 Appropriate training and guidance will be available to promote equality and diversity among staff.

5.9 Breaches of the Equal Opportunities Policy will be regarded as misconduct and will lead to disciplinary action.

RECRUITMENT POLICY 6.1 HHP’s Recruitment Policy is consistent with the Equal Opportunities Policy. All staff

involved at any stage in the recruitment and selection process will receive equality and diversity awareness training. This is to ensure that everyone involved in recruitment will not discriminate knowingly or unknowingly by asking questions which may lead to discrimination.

TRAINING AND DEVELOPMENT

7.1 Training and development opportunities will be given to all staff according to their job role. All employees must be able to participate and enjoy training opportunities or activities without discrimination or fear of harassment.

MONITORING AND REVIEW OF POLICY 8.1 Responsibility for monitoring the application of this policy will rest with the Chief Executive.

8.2 The policy will be reviewed every three years with amendments being made as appropriate and communicated to all staff and relevant stakeholders.

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POLICY REVIEW 9.1 The Policy will be reviewed in 2017.





GAS SAFETY MANAGEMENT POLICY


PURPOSE OF REPORT

1.1 To seek Board approval for an updated Gas Safety Management Policy.

SUMMARY

2.1 The Gas Safety Management Policy is required to be reviewed every 2 years.

2.2 The Policy has been amended to cover situations relating to tenants own gas installations.

2.3 The Policy also incorporates a commitment to carry out an external audit of gas processes and quality of work every 2 years or more often if considered appropriate.

COMPETENCE

3.1 The legal, financial or other constraints to the recommendation in this report are at paragraph 5.

RECOMMENDATIONS

4.1 It is recommended that the updated Gas Safety Management Policy as detailed in Appendix 1 be approved.

APPENDIX 1 Gas Safety Management Policy


Writer of Report Peter O'Donnell Tel: 0300 123 0773


COMPETENCE

Financial 5.1 The Policy contains a commitment to carry out an external audit of gas processes and

quality of work every 2 years. This will be funded from within existing budgets and the cost is estimated at £6k.

Legal 5.2 HHP has a duty under the Gas Safety (Installation and USE) Regulations 1998 in particular

the achievement of Regulation 35 – Duties of Employers and Self-employed Persona & Regulation 36 – Duties of a Landlord.

RISK

6.1 There are no specific risks associated with the approval of this updated Policy. The satisfactory management of gas installations is however a significant area of risk for HHP and it is therefore critical that robust systems and processes are in place.

6.2 Carrying out an external audit every 2 years further minimises risk to HHP and tenants.

REPORT DETAILS

Gas Safety Management Policy

7.1 The Gas Safety Management Policy has been reviewed and amended to ensure it is fit for purpose and complies with all current legislation and best practice.

7.2 The Gas Safety Management Policy has been amended to address the need to manage the installation of propane cylinders for cooking or other purposes within HHP properties. This was agreed by Board on 27 November 2013.

7.3 A requirement to carry out an external audit on our gas processes and quality of work has been added. The audit will be carried out by a specialised consultant every two years as the knowledge and skills to carry out such work are not available internally.

GAS SAFETY MANAGEMENT POLICY

Section Operations


Review Period 2 years


Version 2.00


APPENDIX 1



Gas Management Policy ................................................................................. 3

Introduction ............................................................................................... 3

Aims ........................................................................................................ 3

Gas Safety (Installation and Use) Regulations ....................................................... 3

Tenant Appliances ....................................................................................... 4

Tenants Own Installations .............................................................................. 5

Health and Safety at Work etc. Act 1974 ............................................................ 6

The Management of Health and Safety at Work Regulations ................................... 6

Scope ....................................................................................................... 6

Delegated Authority ..................................................................................... 7

Gas Safety Management Systems (Policies and Procedures) ................................... 7

Corporate Gas Safety Management Policy ........................................................... 7

Specific Contractor Instruction ........................................................................ 7

Procedure for Qualifying Contractors and Operatives ............................................. 7

Procedure for Uniformity of Documentation ........................................................ 8

Unsafe Situations Procedure ........................................................................... 8

Gas Escapes Procedure .................................................................................. 8

Procedure for Gaining Access .......................................................................... 8

Voids Procedure .......................................................................................... 9

Mutual Exchange Procedure ............................................................................ 9

Quality Assurance Procedure ........................................................................... 9

Procedure for Storage and Retrieval of Landlords Gas Safety Records ......................... 10

Statements of Intent ................................................................................... 10

Management Chart ................................................................................... 11

Chief Executive .................................................................................... 11

Director of Operations ............................................................................ 11

Investment Manager ............................................................................... 11

Gas Operational Team ............................................................................ 12

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1.2 External audit recommendations January 2012 Peter O’Donnell

2.0 Policy on tenants own installations and external audit cycle added January 2014 Peter O’Donnell

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INTERPRETATIONS & ABBREVIATIONS The following interpretation and abbreviations are used in this policy:

Word Interpretation





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GAS MANAGEMENT POLICY

INTRODUCTION 1.1 Hebridean Housing Partnership HHP is committed to maintaining the Health and

Safety of employees, tenants and members of the public. HHP recognises the potential health risks associated with gas used for fuel in HPP premises and in HHP housing. Potential risks associated with gas as a fuel are significant, given the risk of fire/explosion, or from carbon monoxide poisoning due to incomplete combustion arising out of poor or irregular maintenance of appliances and systems.

1.2 HHP will take all reasonable steps to ensure that appropriate management systems are in place to ensure employees and members of the public are not put at risk from the effects of gas or carbon monoxide.

1.3 The Gas Safety Installation and Use Regulations places important duties on landlords of all properties to ensure that gas appliances and their flues are maintained in a safe condition, annual safety checks are carried out, and records are kept and issued (or in certain cases displayed) to tenants. These duties are in addition to the more general ones that landlords have under the Health and Safety at Work Act and the Management of Health and Safety at Work Regulations.

AIMS 2.1 The aim of this document is to demonstrate HHP’s commitment to ensuring its

employees, tenants and the general public, are not knowingly exposed to any risks that would affect their safety. The documents covered by this Policy will provide guidance and specific instructions for all HHP employees and external contractors, whilst undertaking gas contracts. This is with the aim of satisfying the legal duties of the Gas Safety (Installation and Use) Regulations. The work as detailed within the specification may also include other aspects which will assist HHP in satisfying its duty of care to its tenants.

GAS SAFETY (INSTALLATION AND USE) REGULATIONS 3.1 These regulations, supported by their Approved Code of Practice (ACOP), stipulate

exactly how gas safety will be achieved. The fundamental requirements are:

Installations, appliances and their flues shall be installed in such a way that they will be safe to use, and installations, appliances and their flues shall be maintained in a safe condition so as to prevent risk of injury to any person (in lawful occupation). This also applies to employers or self-employed persons in respect of places of work under their control;

Appliances and flues relevant to those appliances in premises which are let, shall be checked for safety at intervals of no more than 12 months. A certificate (referred to as the Landlord’s Gas Safety Record ), confirming the findings must be given to the tenant or responsible occupier; and

Landlords shall ensure that the work undertaken on their behalf is done by a member or employee of the Health and Safety Executive’s (HSE) “Approved Class of Persons”. For the time being the approved class of person is one currently registered with the Gas Safe Register (GSR).

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3.2 It is very important to note the use of the terms “shall” and “shall ensure”. This makes the duty absolute. It does not consider cost, technical issues, or any other considerations; it must be done. The efforts that HHP make in this pursuit cannot absolve it from the duty, but if called to account, may (where qualified by the regulations) be used as evidence in mitigation.

3.3 In common law, HHP also has a general duty of care in respect of its tenants, service users, and the purchasers of its properties. To this end HHP must have in place management systems and practices to adequately address all foreseeable risks. Management in accordance with the Gas Safety (Installation and Use) Regulations is demonstrable evidence of such.

3.4 Regulation 36 places important duties on most landlords of domestic property to ensure that gas appliances and flues are maintained in a safe condition and that annual safety checks are carried out and records kept and issued (or in certain cases displayed) to tenants.

In summary it places two duties upon a landlord, those being:

to maintain all gas appliances, flues and gas installations; (appliances that the tenant cannot legally remove); and

to undertake an annual safety check of gas appliances and flues, and produce documents to support this.

3.5 All properties to which the duty extends have been included in the Service and Maintenance of Domestic Gas Fired Heating Appliances contract. The contract requires that appliances owned by HHP shall be serviced and checked for gas safety at intervals of no more than 12 months from the previously recorded Gas Safety check/service date.

TENANT APPLIANCES 4.1 HHP will service and check the safety of all appliances and flues that the tenant

cannot legally remove. This also includes HHP installed gas installation pipework.

4.2 In respect of tenants own appliances HHP accepts its liabilities to the flues of the properties that tenants appliances are connected to. In recognition of those liabilities HHP will undertake a gas safety check on all appliances connected to HHP property flues.

4.3 As a minimum the safety check will include, but will not be limited to, those checks detailed in the Gas Safety (Installation and Use) Regulations, Regulation 26 (9). In respect of appliances not connected to flues owned by HHP, a visual inspection for safe use will be undertaken.

Regulation 26 (9)

Where a person performs work on a gas appliance, he shall immediately thereafter examine:

the effectiveness of any flue; the supply of combustion air; its operating pressure / heat input, or where necessary both; its operation so as to ensure its safe functioning.

and forthwith to take all reasonably practicable steps to notify any defect to the responsible person, and where different, the owner of the premises in which the appliance or flue is installed, or where neither is reasonably practicable, the supplier of gas to the appliance.

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TENANTS OWN INSTALLATIONS 5.1 Throughout HHP properties there are a number of propane gas cylinders which

provide LPG gas to tenants’ cookers. Gas Safety (Installation and Use) Regulations 1998 make no reference to this type of installation as landlords duties apply only to:

“.. gas appliances, fittings and flues provided for tenants.“

5.2 The Regulations are specific on landlord duties regarding appliances that belong to tenants:

“If a tenant has their own gas appliance that you have not provided, then you have responsibilities for parts of the associated installation and pipework but not for the actual appliance.

5.3 HHP have no responsibility to service or maintain appliances, cylinders or pipework where the installation and pipework was not installed or provided by HHP.

5.4 Tenants who wish to use appliances that require the use of propane/butane cylinders must obtain permission from HHP before they are installed. The installations must be carried out by a member or an employee of the Health and Safety Executive’s (HSE) “Approved Class of Persons”. For the time being the approved class of person is one currently registered with the Gas Safe Register (GSR). Appropriate certification must also be provided to HHP.

5.5 Tenants will be required to service and check the safety of all appliances that they own where the installation and pipework to a propane gas cylinder was not installed or provided by HHP. They will also install carbon monoxide detectors.

5.6 As a minimum the tenant will arrange for a safety check that will include, but will not be limited to, those checks detailed in the Gas Safety (Installation and Use) Regulations, Regulation 26 (9).

Regulation 26 (9) (Appendix 2)

Where a person performs work on a gas appliance, he shall immediately

thereafter examine:

the effectiveness of any flue; the supply of combustion air; its operating pressure / heat input, or where necessary both; its operation so as to ensure its safe functioning.

5.7 The tenant(s) shall undertake such servicing at an interval of no more than 12 months and shall submit the gas service details to HHP to allow them to continue using propane gas.

5.8 HHP will maintain a record of propane cylinder installations alongside the HHP gas register.

5.9 HHP will write to tenants two months before the 12 month servicing period to inform that a service is due.

5.10 If a service is not undertaken within the 12 month period HHP will withdraw permission and commence enforcement action to achieve the removal of the installation.

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5.11 Butane cylinders serving portable gas heaters will not form part of the register. Tenants will not require permission to use these heaters in their home. They will be advised to have them checked but not serviced. They will also be advised to install a carbon monoxide detector.

HEALTH AND SAFETY AT WORK ETC. ACT 1974 6.1 There are two sections of the Health and Safety at Work etc. Act 1974 relevant to

this context:

Section 2 (1)

“It shall be the duty of every employer to ensure, so far as is reasonably practicable, the health, safety and welfare at work of all his employees.”.

6.2 This is supported by specific reference to maintaining the workplace in a condition such that it is safe, and does not put employees at risk.

Section 3 (1)

“It shall be the duty of every employer to conduct his undertaking in such a way so as to ensure, so far as reasonably practicable, that person not in his employment who may be affected thereby, are not thereby exposed to risks to their health or safety”.

6.3 This is interpreted to mean, HHP shall (so far as is reasonably practicable) ensure its housing stock (its business activity) does not cause harm to its tenants (non-employees).

Section 3 (1) is clearly a very broad duty and is a section increasing in use in prosecutions.

THE MANAGEMENT OF HEALTH AND SAFETY AT WORK REGULATIONS 7.1 In general terms the Regulations:

Assess the risk of Health and Safety of all employees and to anyone who may be affected as a result of work undertaken;

Endeavour to provide comprehensive information, instruction, training and supervision with the aim of ensuring, so far as is reasonably practicable, the health and safety at work of every employee or person so affected; and

Risk assess all work activities.

SCOPE 8.1 This policy applies to all HHP properties, domestic rented properties, domestic

housing stock and commercial responsibilities, and all work undertaken in these properties on HHP’s behalf.

8.2 For the purpose of any specifications or instructions given the Gas Contract Administrator (CGA) will be detailed within those instructions as being HHP, and the named person being the Chief Executive Officer (CEO). His duties will be expressed in delegating responsibilities to his senior management team.

8.3 This policy will apply to all HHP employees and contractors undertaking gas work on HHP’s behalf and anyone likely to be put at risk from work on those properties.

8.4 The specifications as compiled will include the Health and Safety Policy, and the working procedures of HHP.

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DELEGATED AUTHORITY 9.1 It has now been recognised that HHP will be known from this point forward as

Client Gas Administrator (CGA). 9.2 From this point forward reference to the client will be HHP. The purpose of this

delegated responsibility is to provide HHP with a structured means of delivery and control of gas contracts within its properties, domestic rented properties, domestic housing stock and commercial responsibilities and all work undertaken in these properties on HHP’s behalf.

GAS SAFETY MANAGEMENT SYSTEMS (POLICIES AND PROCEDURES) 10.1 The requirements for a robust Gas Safety Management system and Maintenance

system are clearly defined in Gas Safety (Installation and Use) Regulations, the Management of Health and Safety at Work Regulations together with the Health and Safety at Work Act, and other regulations made under this Act.

10.2 To safely manage these and other regulations HHP will ensure the following procedures are adopted and are continuously reviewed and amended as required.

CORPORATE GAS SAFETY MANAGEMENT POLICY 11.1 This document is a statement from the CEO to confirm HHP’s commitment to Gas

Safety, and also to demonstrate HHP’s commitment to ensuring its employees, tenants and the general public are not knowingly exposed to any risks that would affect their safety.

SPECIFIC CONTRACTOR INSTRUCTION The purpose of this document is to: 12.1 Provide guidance and specific instructions for all HHP employees and external

contractors, whilst undertaking gas contracts. This is with the aim of satisfying the legal duties of the current Gas Safety (Installation and Use) Regulations. The work detailed within the specification may also include other aspects that will assist HHP in satisfying its duty of care to its tenants.

PROCEDURE FOR QUALIFYING CONTRACTORS AND OPERATIVES This procedure covers: 13.1 The duties placed on HHP by the Gas Safety (Installation and Use) Regulations. HHP

must ensure that HHP employees, or contractors it intends to use, are suitably Gas Safe registered and competent for the categories of work they are expected to undertake.

13.2 After completion of the evaluation a register of all HHP’s employees and

contractors employed on the above work will be kept on electronic file. Copies of current Gas Safe registration, insurance certificates, operative’s registration and qualifications, will be kept. Details will be checked regularly and updated annually as detailed in the procedure.

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PROCEDURE FOR UNIFORMITY OF DOCUMENTATION The purpose of this procedure is:

14.1 To provide guidance for HHP employees and contractors to identify all gas safety documentation utilised by HHP and to ensure that all documents used are and remain fit for the purpose.

14.2 To demonstrate that operatives have carried out the tests and checks required by the relevant Gas Safety (Installation and Use) Regulations, HHP will have in place uniform documentation and paperwork that will allow positive records to be completed for confirmation and future reference. Where any tests and checks are carried out by an operative the work records will ‘positively record’ the information detailed in the procedure.

UNSAFE SITUATIONS PROCEDURE The purpose of this procedure is to:

15.1 Provide guidance for HHP employees and contractors to follow when dealing with unsafe situations, and clarifies HHP’s interpretation of specific aspects within the Industry Unsafe Situations Procedure, as produced by CORGI (USP1).

15.2 This procedure will also ensure HHP meets Regulations 34 (1) & (2 (Appendix 5)) of the Gas Safety (Installation and Use) Regulations, in ensuring the safety of its tenants in respect of gas escapes or suspected emission of products of combustion (fumes) in domestic properties.

GAS ESCAPES PROCEDURE This procedure is to:

16.1 Ensure HHP meets Regulation 34 (1 & 2) of the Gas Safety (Installation and Use) Regulations in ensuring the safety of its tenants from gas escapes or suspected emission of products of combustion (fumes) in domestic properties.

PROCEDURE FOR GAINING ACCESS The purpose of this procedure is to:

17.1 Provide guidance for all HHP employees and external contractors involved in the process to follow; to demonstrate that all reasonably practicable steps to gain access to tenanted properties has been undertaken. This is with the aim of satisfying the legal duties of the current Gas Safety (Installation and Use) Regulations. Landlords have a duty to maintain all the appliances they own, as well as undertake a safety check and produce a safety record. This is to be undertaken at intervals of no more than 12 months.

17.2 The basic steps and who is responsible are detailed below:

Planned appointment – Contractor / CGA

Personal visits – Housing / CGA

Legal Options – Legal Team / CGA

17.3 HHP will service and check the safety of all appliances and flues that the tenant cannot legally remove; this also includes HHP purpose provided gas installation pipework. In respect of the tenant’s own appliance HHP accepts its liabilities to the flues of the properties that tenants own appliances are connected to. In recognition

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of those liabilities HHP will undertake a gas safety check on all appliances connected to HHP property flues.

VOIDS PROCEDURE This procedure is to:

18.1 Be followed by HHP employees and contractors to ensure that in the case of a tenant vacating a property, gas fittings/appliances are safe before the property is re-let. When a property becomes vacant HHP will ensure that gas fittings/appliances are safe before the property is re-let or worked in by other trades.

18.2 Prior to first official occupancy day of the property a full service/safety check and inspection of the installation will be undertaken and a landlord’s Gas Safety Record produced and issued to HHP. A copy will be given to the tenant. The tenant will also be given instruction on the safe use of appliances and controls.

MUTUAL EXCHANGE PROCEDURE This procedure is to:

19.1 Be used as a guide for HHP employees and contractors to ensure that in the case of a tenant vacating/exchanging a property that gas fittings/appliances are safe before the property is re-let.

19.2 When an application for ‘Mutual Exchange’ of properties has been approved, HHP need to ensure that gas fittings/appliances are safe before the exchange can take place. Mutual exchanges constitute a new tenant and therefore the requirements of the Gas Safety (Installation and Use) Regulations 36 (6b) apply. A copy of the new Landlord’s Gas Safety Record will be given to a new tenant before taking up occupancy.

QUALITY ASSURANCE PROCEDURE HHP will carry out an external review of gas processes and work quality at least

every 2 years.

20.1 This will provide a systematic approach to Quality Assurance that is robust and reduces risk to the business. HHP will ensure it has Quality Assurance procedures that monitor and record the quality of domestic gas work that is carried out by all gas operatives working within HHP domestic premises.

20.2 This procedure will also allow HHP to demonstrate its duty to the Health and Safety at Work Act and the Management of Health and Safety at Work Act. All work carried out on gas systems and appliances by operatives will be subjected to a formal audit on standards of workmanship to ensure the specification of the tender document is being met.

This will include:

1. Contractors quality control; 2. Internal quality control; and 3. External, independent quality control.

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PROCEDURE FOR STORAGE AND RETRIEVAL OF LANDLORDS GAS SAFETY RECORDS

The purpose of this procedure is to:

21.1 Provide guidance for HHP employees to follow when dealing with gas documentation, especially in the vetting, storage and retrieval of al Landlord Gas Safety Records. It is a legal requirement that these documents be kept for a minimum of 2 years, and a HHP requirement that they are archived for a further 3 years to comply with internal policies.

STATEMENTS OF INTENT 22.1 Chief Executive of Hebridean Housing Partnership

As Chief Executive (CEO) of HHP I am committed to the effective operation of the Corporate Gas Management Policy across HHP as a whole, and I will ensure that effective procedures are developed to implement the policy within HHP. I am also committed to ensuring that adequate resources are made available to both develop and implement appropriate procedures, enabling responsibilities to be effectively delegated, and key personnel trained. I believe that the proper implementation of the Corporate Gas Safety Policy will contribute directly to ensuring the well-being of the tenants of Hebridean Housing Partnership.

Chief Executive

22.2 Director of Operations In my role as Director of Operations I will be responsible for ensuring the Corporate

Gas Management Policy for HHP’s domestic rented accommodation is applied. In addition I will be responsible for ensuring gas management systems and procedures are in place, maintained, monitored and reviewed across HHP’s rented accommodation. The Director’s position is responsible for ensuring that the Corporate Gas Management Policy and procedures are robust and effective and to regularly confirm that the persons currently in roles of responsibility are able to commit to the statements of intent published below. I will also be responsible for ensuring that tenants of HHP’s domestic rented accommodation adhere to the requirements of the tenancy agreement in respect of maintenance of gas systems and the ultimate provision of access to those properties for work to be undertaken


22.3 Investment Manager I will be responsible for the operational management of the Corporate Gas

Management Policy within HHP’s domestic rented accommodation and for reporting to the Director of Operations on all service delivery aspects of the Corporate Gas Management Policy

Investment Manager

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Hebridean Housing Partnership

Management Chart

Chief Executive Key responsibilities: Effective operation of the Corporate Gas Management Policy across HHP as a whole Adequate resources are made available to both develop and implement appropriate procedures Enable responsibilities to be effectively delegated

Director of Operations Key responsibilities: Interface with Corporate Management team Reporting to Chief Executive Ensure the Corporate Gas Management Policy for HHP’s domestic rented accommodation is applied. Responsible for ensuring gas management systems and procedures are in place, maintained, monitored and reviewed across HHP’s domestic rented accommodation. Responsible for the implementation of the policy and to ensure sufficient resources are available Financial provision and budget responsibility for repairs and planned maintenance Final approval for tender lists

Investment Manager Key responsibilities: Reporting on performance corporately Effective management of: Problematic access Legal injunctions Actioning identified vulnerability issues Mutual exchanges Provision of information and reports to the HHP Board Develop effective management information systems, establish, monitor and review performance indicators for gas servicing and repairs. Develop and manage effective services, policies, procedures and management systems, which ensure compliance with the Gas Safety Management Policy Lead Officer in contracts team, in the procurement, management and monitoring of gas contracts. Responsible for budget performance monitoring and service delivery improvements. Responsible for communication with other services to ensure that the services requirements are dealt with. Responsible for providing reports for Director of Operations

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Gas Operational Team Key responsibilities: Liaison with client service. Management of gas related performance and monitoring. GSR gas registration. Verification of contractors and operatives. Reviewing and updating GSR records on database and filing certificates. To monitor the quality of Services provided by contractors ensuring compliance with contract

conditions. To recommend specification/contract changes. Provide technical advice as required. To ensure the integrity of HHP computer records. To generate position statements based on computer records. Oversee administration functions. Responsible for ensuring property and appliance lists are updated.


Agenda Item: A&R - 15 Board - 27



HEALTH & SAFETY POLICY


PURPOSE OF REPORT

1.1 To present to the Board with the revised Health & Safety Policy and report on progress on the action plan following the Health & Safety audit carried out by EVH in August 2013.

SUMMARY

2.1 The Partnership’s Health & Safety Policy is scheduled for review. The policy has been updated and included in the Health & Safety manual. The revised policy is at Appendix 1 to this report.

2.2 The Action Plan drawn up following the Health & Safety audit carried out by EVH in August 2013 is being implemented. A copy of the plan and progress is at Appendix 2.

COMPETENCE

3.1 The legal, financial or other constraints to any recommendations in this report are contained in paragraph 5.

RECOMMENDATIONS


a) The revised Health & Safety Policy at Appendix 1 is approved;

b) The revised Health & Safety Policy is included in the Health & Safety Manual as Section 1; and

c) The Health & Safety Audit Action Plan is noted.

APPENDIX 1 Revised Health & Safety Policy

APPENDIX 2 Health & Safety Audit Action Plan




COMPETENCE

Financial 5.1 There are no financial implication arising directly from consideration of this report.

Legal 5.2 The Health & Safety at Work etc Act 1974 imposes statutory duties for Health & Safety on

employers and employees. The Corporate Manslaughter and Corporate Homicide Act 2007 allows companies and corporations to be prosecuted for Corporate Homicide (in Scotland).

5.3 Since the last revision of the Health & Safety policy changes to the Reports of Injuries,

Diseases and Dangerous Occurrences Regulation 2013 (RIDDOR) have been introduced to clarify and simplify the reporting arrangements while ensuring that the data collected gives an accurate and useful picture of workplace incidents.

RISK

6.1 Health & Safety is included in HHP’s Risk Register. It is essential that Health & Safety is given high priority to minimise risk to employees, contractors, tenants and the general public. An adequate programme of Risk Assessments will be maintained.

Health & Safety Policy

Section Chief Executive

Date Policy Approved by Committee 19 February 2014

Review Period Annually


Version

APPENDIX 1


CONTENTS PAGE Policy Change History ........................................................................... 2

Interpretations & Abbreviations .............................................................. 3

Aim ................................................................................................ 4

Health and Safety Statement .................................................................. 4

Overview of Responsibilities ................................................................... 5

Responsibilities - Board ......................................................................... 5

Responsibilities – Chief Executive ............................................................ 6

Responsibilities - Directors .................................................................... 7

Responsibilities – Team Leaders .............................................................. 8

Responsibilities – Employees ................................................................... 8

Responsibilities - H&S Committee ............................................................ 9

Responsibilities - H&S Administrator ......................................................... 9

Risk Management .............................................................................. 10

Emergency Procedures ....................................................................... 11

Health and Safety Manuals and Standards ................................................. 11

First Aid Provisions ............................................................................ 11

Health and Safety Training .................................................................. 11

Contractors ..................................................................................... 11

Violence at Work .............................................................................. 12

Recognised Trade Union Safety Representatives ......................................... 12

Review of Policy ............................................................................... 12

Consultation .................................................................................... 12

Scheme of Delegation ........................................................................ 13

Breaches of Policy ............................................................................. 13

Policy Change History


General review of policy. Minor amendments to reflect changes to other HHP policies; to reflect updates received from EVH and reformatting to meet HHPs Corporate Standard.

15 October 2013 Seonaid Paton

Review of policy 19 February 2014 Chief Executive

Interpretations & Abbreviations


Word Interpretation HHP or Partnership Hebridean Housing Partnership




HEALTH & SAFETY POLICY

AIM 1.1 The aim of this policy is to set out the responses of the Partnership to its

responsibilities to manage Health & Safety for its employees and across all its activities.

Health and Safety Statement 2.1 The Board of Management of Hebridean Housing Partnership is responsible

for the conduct of the business of the Association.

2.2 The Health and Safety at Work etc. Act 1974 imposes statutory duties on employers and employees. To enable these statutory duties to be carried out, it is the policy of Hebridean Housing Partnership so far as is reasonably practicable, to ensure that that responsibilities for safety and health are assigned, accepted and fulfilled at all levels of the Partnership. The Partnership will ensure that all practicable steps are taken to manage the health, safety and welfare of all employees and to conduct the business in such a way that the health and safety of visitors, to any premises under our control, is not put at risk.

2.2.1 It is the intention of the Partnership, so far as is reasonably practicable, to ensure that:

a) The working environment of all employees is safe and without risks to health and that adequate provisions are made with regard to the facilities and arrangements for their welfare at work;

b) The provision and maintenance of machines, equipment and systems

of work which are safe and without risks to health to employees, contractors and any other person who may be affected with regard to any premises or operations under our control;

c) Arrangements for use, handling, storage and transport of articles and

substances for use at work are safe and without risks to health; d) Adequate information is available with respect to machines and

substances used at work detailing the conditions and precautions necessary to ensure that when properly used they will be safe and without risk to health;

e) Employees are provided with such instruction, training and

supervision as is necessary to secure their health and safety; and f) The Health and Safety Policy will be reviewed at least annually.

Communication of any such changes will be made to all employees.

2.3 It shall be the duty of all employees at work to ensure:

a) That reasonable steps are taken to safeguard the health and safety of themselves and of other persons who may be affected by their acts or omissions at work; and

b) Co-operation with the Board of Management so far as is necessary to ensure compliance with any duty or requirement imposed on the employer, or any other person, under any relevant statutory duties.

Overview of Responsibilities 3.1 The Partnership recognises that all individuals within the organisation have

a responsibility to ensure their own safety and that of others. Consequently, all employees will have the potential to be held liable if their negligent acts or omissions result in harm being caused to any other persons. Those in positions of responsibility have additional obligations, by virtue of their ‘managerial’ functions. Indeed, the Health and Safety Executives (HSE) documents Enforcement Policy Statement, HSE41, Paragraph 43 notes following on ‘Prosecution of individuals’:

“... enforcing authorities should identify and prosecute or recommend prosecution of individuals if they consider that a prosecution is warranted. In particular, they should consider the management chain and the role played by the Chief Executives and Directors, and should take action against them where the inspection or investigation reveals that the offence was committed with their consent or connivance or to have been attributable to neglect on their part and where it would be appropriate to do so in accordance with this policy. Where appropriate, enforcing authorities should seek disqualification of Director under the Company Directors Disqualification Act 1986.”

3.2 The following sections set out the principal Health & Safety related responsibilities of individuals within the organisation. These duties will be in addition to the general duty on all individuals to ensure the Health, Safety and Welfare of themselves and all others who may be affected by their undertakings.

Responsibilities - Board 4.1 The Board, headed by a Chairperson, comprises ‘lay persons’ from the local

community, acting as a body to oversee the operations carried on by the Partnership.

4.2 It is recognised that the Board, while not actively involved in the daily running of the organisation, is collectively responsible for providing leadership and direction on Health & Safety, and in particular the Chief Executive shall be responsible for implementing the Health & Safety Committee plan for Health & Safety.

4.3 The Board will endorse the Health & Safety Policy and Control Manual and the Chairperson will sign the Health & Safety Policy Statement along with the Chief Executive. Where there is a change of personnel, the incoming Chairperson will sign the policy to ensure the commitment on behalf of the Board remains current.

4.4 The Board will place ‘Health & Safety’ as a standing item on the Agenda of all general meetings. This will allow the Chief Executive to report on safety performance, funding requirements, safety failures and other Health & Safety related issues. The Board will give all such issues due consideration

and will make available all reasonable funding and support as may be required.

4.5 The Board will review the findings of all internal and external Health & Safety audits carried out within the organisation and will authorise the use of all reasonable support required to rectify any significant non-compliances identified by the audits.

4.6 The Board will take an active interest in the investigation of any significant safety failure, making available all reasonable resources for a full investigation and for the taking of adequate measures to rectify any deficiencies in the existing arrangements.

4.7 All Board members will undergo training in ‘Health & Safety Awareness’ and in management responsibilities. This will ensure that all members have a working knowledge of the topic, which will assist in the discussion of Health & Safety at all meetings. This should also assist the Board in determining whether the Chief Executive is managing Health & Safety adequately within the organisation.

4.8 All Board Members shall review their responsibilities at least annually.

Responsibilities – Chief Executive 5.1 The Chief Executive is responsible for the general day to day running of the

Partnership. It is recognised that this function incurs the overall responsibility for Health & Safety management within the organisation and the following procedures will be adopted to ensure adequate provisions are made and maintained.

5.2 The Chief Executive will endorse the Health & Safety policy and Health and Safety Manual and will sign the Health & Safety Policy Statement along with the Chairperson of the Board. Where there is a change of personnel, the incoming Chief Executive will sign the policy to demonstrate commitment and acceptance of responsibilities.

5.3 The Chief Executive will hold ultimate responsibility for the organisation’s policy, procedures and arrangements and for the implementation of such. To this end, and to comply with the duties set out in the Management of Health and Safety at Work Regulations 1999, he/she will appoint an adequate number of competent persons to achieve and maintain legal compliance. This will include a Health & Safety Administrator. The Chief Executive will also take all appropriate action to reduce the risks to Health & Safety arising from the business undertaking and to improve the organisation’s safety performance.

5.4 The Chief Executive will report on safety performance, funding requirements, safety failures and other Health & Safety related issues at each Board meeting, as well as make available all internal and external audit reports to the Board. Fully justified requests will be made to the Board for any resources, support or funding required for Health & Safety purposes.

5.5 The Chief Executive will ensure that Health & Safety considerations are taken into account for all new investment opportunities and in the organisation’s purchasing policy. The objective will be to minimise risks as early in the purchasing chain as is reasonably practicable.

5.6 The Chief Executive will be responsible for maintaining an adequate programme of Risk Assessment, allocating duties and funds as appropriate to keep assessments and control measures current.

5.7 The Chief Executive will be responsible for maintaining an adequate programme of staff training in Health & Safety issues, ensuring that all staff are given appropriate instruction, information and training to reduce the risks associated with their work to an acceptable level.

5.8 The Chief Executive will ensure that adequate communication channels exist throughout the entire organisation to allow Health & Safety issues to be dealt with timeously and effectively. All staff will be given the opportunity to raise any safety related queries with appropriate management staff.

5.9 The Chief Executive will ensure that all significant safety failures are fully investigated and reported to the Board. He/she will also ensure that all necessary support is sought to adequately investigate the situation and develop suitable remedial measures to reduce the likelihood of a similar incident recurring.

5.10 The Chief Executive will give due consideration to all Health & Safety related requests from H&S Administrator, Heads of Departments and all other staff, taking appropriate action where necessary and requesting support/approval from the Board of Management where required.

5.11 The Chief Executive shall review their responsibilities at least annually.

Responsibilities - Directors 6.1 The Director of Resources and Director of Operations provide operational

support to the Chief Executive and discharge many of the day to day management tasks required in the running of the organisation. It is, therefore, recognised that this function incurs some significant responsibility in terms of Health & Safety. In particular, the Directors may be held liable where Health & Safety offences are committed with his/her consent or connivance or as a result of his/her negligence.

6.2 The Director of Resources and Director of Operations will take an active participation in the Health & Safety Committee. This will involve the raising of pertinent issues for consideration by the Board and the reporting of Board concerns to the Chief Executive and other staff as may be appropriate.

6.3 The Director of Resources and Director of Operations will take an active role in the Risk Assessment programme, arranging for the undertaking of all appropriate risk assessments and reviews, for the dissemination of findings and for seeking approval from the Chief Executive for remedial measures required to be taken. The Director of Resources and Director of Operations will also ensure that any remedial measures agreed with the Chief Executive are effectively actioned.

6.4 The Director of Resources and Director of Operations will give all safety related queries due consideration, liaising with the Chief Executive, H&S Administrator, Team Leaders, EVH Health & Safety Support Service and all other relevant bodies as appropriate.

Responsibilities – Team Leaders 7.1 Due to the ‘managerial’ function performed by Team Leaders, it is

recognised that Team Leaders may be held liable where Health & Safety offences are committed with their consent or connivance or as a result of their negligence.

7.2 Team Leaders will take an active participation in the Health & Safety Committee. This will involve the identification of Health & Safety concerns within their departments, the raising of pertinent issues for consideration by the Committee and the actioning of all measures identified by the Committee and management staff as being required.

7.3 Team Leaders will implement all relevant policies, procedures and arrangements within their departments, as required by the Health and Safety Manual, the Health & Safety Committee and management staff.

7.4 Team Leaders will ensure that adequate communication channels exist throughout their team to allow Health & Safety issues to be dealt with timeously and effectively. All staff will be given the opportunity to raise any safety related queries with their Line Managers or Team Leader.

7.5 Team Leaders will ensure that all staff adopt safe working procedures, work in accordance with any training provided and properly use any control measures, protective equipment etc., that are appropriate for the work carried out.

7.6 Where Team Leaders identify the need for further training or any other form of risk control for staff, the issue will be reported without undue delay to the Health & Safety Committee or appropriate Director.

7.7 Where Team Leaders identify any significant breach of Health & Safety procedures, appropriate action will be taken to reduce the risk in the short term, and the issue will be reported to the appropriate Director without undue delay.

Responsibilities – Employees 8.1 While the duties of management staff have been made clear in previous

sections, it is recognised that ALL employees have general duties to ensure their own safety and that of others. Indeed, the Health and Safety at Work etc. Act 1974 notes the following in respect of employees’ duties:

“It shall be the duty of every employee while at work – (a) to take reasonable care for the health and safety of themselves and of other persons who may be affected by his/her acts or omissions at work; and (b) as regards any duty or requirement imposed on his/her employer or any other person by or under any of the relevant statutory provisions, to co-operate with him/her so far as is necessary to enable that duty or requirement to be performed or complied with.”

8.2 The procedures as set out in the Health and Safety Manual will, therefore, be adopted by all employees to ensure their duties are adequately discharged.

8.3 Employees will comply with the policies, procedures and arrangements set out in the Health and Safety Manual and with any information, instruction

and training provided. In addition, any risk control measures and equipment provided to ensure safe working practices will be properly used.

8.4 Employees will report to their Team Leader or other member of management any identified breaches of Health & Safety procedures, any accidents or safety related incidents and any aspect which appears to them to give rise to a significant risk to the Health & Safety of employees or other persons. Such reports will be made without undue delay.

8.5 Employees will inform their Team Leader or other member of management, without undue delay, where they believe that further training or other risk control measures would be beneficial. Tasks will not be carried out where the employee believes significant risk to be present.

8.6 Employees will co-operate in all safety programmes, training, risk assessments and other initiatives that are intended to reduce risk and will actively implement any control measures identified as being required.

8.7 Employees will not participate in horseplay, practical jokes or other acts which may result in harm being caused to themselves or to other individuals.

Responsibilities - H&S Committee 9.1 The H&S Committee will provide an open forum for the discussion of all

Health & Safety related issues raised by members of the Committee and by any other relevant sources.

9.2 All Committee members will undergo suitable training, which will include as a minimum ‘Health & Safety Awareness’. This will ensure that all members have a working knowledge of the topic, commensurate with their role in the Committee and within the organisation as a whole.

9.3 The Committee will suggest solutions and initiatives for issues arising, which will be minuted and presented to the Chief Executive following each meeting, without undue delay.

9.4 Where appropriate, the Committee will draft and revise policy, procedures and arrangements, for ultimate approval by the Senior Officer and Board.

9.5 The Committee will delegate, with the Chief Executive’s approval, to members and to other appropriate persons within the organisation, actions required to be taken to implement policies, procedures, arrangements and any other initiatives authorised by the Chief Executive.

9.6 The Committee will review the Health & Safety performance of the organisation, analysing accident statistics, reported breaches of policy and procedures, audit and inspection reports and data from other information gathering exercises. Recommendations on options to improve safety performance will be made to the Chief Executive without undue delay.

Responsibilities - H&S Administrator 10.1 The function of the H&S Administrator is, by definition, one of

‘administration’ as opposed to ‘management’. The H&S Administrator will be fully supported by the Chief Executive, Directors and Heads of Departments.

10.2 The H&S Administrator will undergo suitable training, which will include as a minimum ‘Health & Safety Awareness’ and instruction in the implementation of the policies, procedures and arrangements set out in the Health and Safety Manual.

10.3 The H&S Administrator will maintain the master Health and Safety Manual and the record keeping system in an up to date and tidy condition. This will include the dissemination of all Manual updates to Manual holders and the filing of appropriate records.

10.4 The H&S Administrator will comply with his/her duties as set out in the Health and Safety Manual and will report the findings of any inspections, audits and other information gathering exercises to the H&S Committee without undue delay. Where the H&S Administrator has reason to believe that personnel are, or may foreseeably become, exposed to significant risk, direction will be sought from the Chief Executive without undue delay.

10.5 The H&S Administrator will provide assistance to the Chief Executive, Directors, Team Leaders and the H&S Committee in the undertaking of risk assessments, control implementation, policy development, etc. This may include expert advice on Health & Safety. It should be noted that the H&S Administrator will not be solely responsible for developing corporate policy, merely for assisting in its development and implementation.

Risk Management 11.1 The Partnership will pursue progressive improvements by the development

and implementation of a risk management strategy in relation to health and safety, to contribute to the reduction of occupational injuries and ill health.

11.2 The Chief Executive will ensure that a risk assessment programme is drawn up and appoint a Risk Assessment Working Group to implement this programme for all work activities.

11.3 The Health and Safety Administrator will provide advice and, where necessary, arrange for training in risk assessment techniques.

11.4 While the Management of Health and Safety at Work Regulations 1999 require all work activities to be assessed, other more specific regulations require that particular activities receive more attention - Use of hazardous substances (COSHH), Display Screen Equipment (DSE), Manual Handling Operations (MHO), Exposure to Noise and Personal Protective Equipment.

11.5 In addition specific policies have been developed in relation to:

Alcohol and Drug Use;

Fire Safety;

Lone Working;

New and Expectant Mothers;

Stress Management;

Violence and Aggression (see Section 17); and

Young Workers.

Emergency Procedures 12.1 Procedures to be followed by any person at work if situations presenting

serious and imminent danger arise will be established in accordance with Regulation 7 of the Management of Health and Safety at Work Regulations 1999. These procedures will set out the role and responsibilities of competent persons nominated to implement any detailed actions and will ensure that other employees know who the competent persons are and understand their own role. Where appropriate, they will also contain special action required for the evacuation of disabled persons.

Health and Safety Manuals and Standards 13.1 The Chief Executive will ensure that the Policy is supported through a

suitable Health and Safety Manual.

13.2 The Health and Safety Administrator will compile procedures where they are required or specific major hazards are identified in any work activity.

First Aid Provisions 14.1 Sufficient numbers of trained First Aid Personnel will be appointed by each

Team Leader to deal with workplace accidents and injuries as indicated by the results of a Risk Assessment.

14.2 Training will be through an HSE-approved body, selected by the Health & Safety Administrator, and each Team Leader must nominate a responsible person(s) to co-ordinate the training needs of their service and liase with the chosen training body.

Health and Safety Training 15.1 The Health and Safety Administrator is responsible for ensuring that all

employees are trained in all the health and safety aspects of their work activities. Such training is necessary for all employees:

(a) On joining the Partnership; and

(b) When the risks faced alter or increase due to:

a significant change in activities or responsibilities;

a significant change in equipment or technology; and

a significant change in the system of work.

15.2 Training must be repeated or updated as necessary. Training must extend to supervisory and managerial staff and must cover legal and organisational responsibilities as well as practical training. Relevant records must be maintained.

Contractors 16.1 The Partnership will define the standards required from and will monitor

the activities of contractors carrying out work for the Partnership in order to minimise risks to employees, other persons on site and members of the public. The Partnership will maintain a list of Approved Contractors and Contractors will be required to provide a detailed Health & Safety Method Statement and any health & safety documentation relevant to the contract.

16.2 Contractors will be required to provide a detailed Health & Safety Method Statement and any health & safety documentation relevant to the contract.

16.3 The Partnership will develop a document on ‘Safety Rules for Contractors’ and distribute it to all approved Contractors.

Violence at Work 17.1 The Partnership will establish systems and working practices that recognise

the potential risk to staff from acts of violence. The Partnership will develop mechanisms by which acts of violence to the staff are eliminated or minimised wherever possible.

17.2 The Partnership realises that violence, whether physical or in the form of verbal threats must be considered in the course of risk assessment and Departments are expected to take suitable preventive and protective measures, including the drawing up of suitable written standards and the provision of training where necessary.

Recognised Trade Union Safety Representatives 18.1 The Partnership will consult the recognised trade union safety

representatives with regard to:

proposals for introduction of measures which may substantially affect the health and safety of employees;

provision of health and safety information required under the relevant statutory provisions;

provision of health and safety training required under the relevant statutory provisions; and

the health and safety consequences of new technologies introduced into the workplace.

Review of Policy 19.1 The Partnership’s Health and Safety Policy and any revision of it will be

drawn to the attention of every employee of the Partnership. The contents of the documents produced under the policy will be brought to the attention of all employees to which the contents are relevant.

19.2 The policy and any documentation produced under it will be added to or modified as required and will be reviewed every three years. The lists of approved Contractors and Consultants reviewed annually.

19.3 The Board of Management or relevant sub-committee will receive the annual reports on the working of this policy and Health and Safety will be a standing item on the Board’s agendas.

Consultation 20.1 This section should contain what consultation has taken place on the policy.

Scheme of Delegation 21.1

Responsible Committee Board of Management

To whom delegated

Formulation and monitoring of policy Board

Policy Amendments Board

Implementation of policy Chief Executive

Formulation and implementation of relevant procedures

Chief Executive

Breaches of Policy 22.1 If a Board Member knowingly breaches the conditions of this policy this will

be grounds for removal from Office in accordance with the Partnership’s procedures for removal of a Board Member.

22.2 If a staff member knowingly breaches the conditions of this policy this will be grounds for disciplinary action.

HHP HEALTH & SAFETY AUDIT ACTION POINTS

The main areas of concern and of non-compliance that were highlighted included:

Risk assessments: General, DSE, Manual Handling, Work at Height, Occupational Driving, Legionella, Lone Working/Violence and Aggression.

Fire management: training, inspections and testing.

RELEVANT SECTION ACTION POINT TO BE ACTIONED BY PROGRESS

B1 – Policy, Organisation and Framework

Authorisation signatures for Policy Statements to be completed by all staff and Board Members. A review schedule to be established.

Angela Maciver Now completed. Will be an annual process completed at the time of the AGM.

H&S Administrator to have minimum Health and Safety Awareness Training.

Shona Paton & Angela Maciver

Training arranged for January.

B2 – Risk Assessment General Risk Assessment to be reviewed and include assessors name, date of assessment and review date. The action column must be updated.

Shona Paton Risk assessment will be completed in January once office refurbishment has been complete.

Fire Risk Assessment requires to be updated and training to take place.

Shona Paton/Angela Maciver

Training to be arranged for staff.

Fire Training to be arranged in January with John Campbell. John is going to provide quote and plan for training.

APPENDIX 2

Display screen risk assessments by DSE qualified person (Training to be organised for that?)

Both Shona Paton and Angela Maciver to get training from ACS for this

Training arranged for January. A timetable for DSE’s Reviews has been created but will be completed after office refurbishment as staff are moving desks.

Manual Handling risk assessment to be reviewed. Carrying the water bottles require a suitable and sufficient detailed assessment.

Shona Paton Will be completed after office refurbishment. There will be no water coolers after office refurb.

All hazardous substances need to be risk assessed with COSHH Assessment sheets done for all substances.

Shona Paton/Angela Maciver

To be completed.

Working at Height risk assessment to be reviewed

Clerk of Works To be completed.

Occupational Driving Managers Procedures are finalised, risk assessments to be completed. Risk assessment training now completed for risk assessments to be carried out.

B3 – Safety related facilities management

Asbestos Policy requires updating Angus MacNeil

Legionella? Risk Assessment of water systems

Liaise with Angus MacNeil to arrange suitable date

FES have tested the water and supplied an action plan recommended from risk assessment.

Emergency escape lighting to be tested and logged monthly.

Shona Paton & Angela Maciver

Being completed monthly.

Provide adequate Fire Safety Training for all employees

Angela Maciver Training to be arranged in January.

B5 – Personal safety Violence and aggression – Risk assessment to be completed.

Managers To be completed.

Lone working - Risk assessment to be completed.

Managers Review of policy has been completed. Risk assessment to be completed. Risk assessment training now completed for risk assessments to be carried out.


Agenda Item A&R - 16 Board 28



OPENNESS & CONFIDENTIALITY POLICY


PURPOSE OF REPORT

1.1 To present to the Board the revised Openness & Confidentiality Policy for consideration and approval.

SUMMARY

2.1 The Openness & Confidentiality Policy is reviewed on a four yearly basis as per the Policy Review Schedule.

2.2 Several amendments have been made to the policy for clarification and it is being passed to the Board for consideration accordingly.

COMPETENCE

3.1 There are no financial or legal other constraints to the recommendations in this report being implemented.

RECOMMENDATION


a) Audit & Risk Committee review the revised Openness & Confidentiality Policy at Appendix 1 and make a recommendation for approval to the Board; and

b) Board review and approve the revised Openness & Confidentiality Policy at Appendix 1.

APPENDIX 1 Revised Openness & Confidentiality Policy, Version 4.0




COMPETENCE

Financial 5.1 There are no financial implications arising directly out of consideration of this report.


RISK

6.1 The risk of not updating policies can lead to breaches in regulatory codes of governance and recommended practice, and leave the Partnership open to legal action.

REPORT DETAILS

7.1 The Openness & Confidentiality Policy is reviewed on a four yearly basis as per the Policy Review Schedule.

7.2 Several amendments have been made to the policy to make it fit for purpose as follows:

The 8 Data Protection principles have been clarified;

Points have been added at Section 2 in respect of tenant involvement, making non-confidential Board agendas and minutes available, and the outcome of complaints;

A paragraph has been added at Section 3 in respect of regulatory requirements;

The disposal of electronic data has been addressed at Section 3; and

A section on ‘Links to Other policies’ has been added.

7.3 The revised policy was reviewed by Management Team on 22 January 2014 and is now being passed to the Audit & Risk Committee, followed by the Board for consideration accordingly.

Openness & Confidentiality Policy

Section Resources


Review Period Every four years


Version 4.0


APPENDIX 1

CONTENTS

Policy Change History .................................................................................... 1

Interpretations & Abbreviations ........................................................................ 2

Aims & Objectives ........................................................................................ 4

General Principles And Practice ........................................................................ 4

Confidentiality ............................................................................................ 7

Breach of Policy ........................................................................................... 9

Legal and Regulatory framework ....................................................................... 9

Equal Opportunities .................................................................................... 10

Training .................................................................................................. 10

Media requests .......................................................................................... 10

Links with Other Policies .............................................................................. 10

Review .................................................................................................... 11

1




1.1 Initial Draft 4 March 2004 Dena Macleod

2.0 Amended for comments received at Governance Workgroup meeting of 25th May 2006

29 May 2006 Dena Macleod

2.1 Amended from comments received at Governance Workgroup meeting of 14th June 2006

15 June 2006 Dena Macleod

3.0 General review of policy. Minor amendments to reflect changes relating to HHPs (and the Boards) status/details following stock transfer and reformatting to meet HHPs Corporate Standard for policy documents.

4 March 2009 Angus M Smith

4.0 General review as per Policy Review Schedule. Clarification re Data Protection principles, tenant involvement, regulatory changes, links with other policies, and security of information.

19 February 2014

Angela C Smith

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Word Interpretation


Board The Board of the Hebridean Housing Partnership


Data Information which is:

a) processed by computer or information planned to be processed by computer

b) stored or collected for storage within a “relevant filing system”

Relevant Filing System Information which is structured in such a way that specific personal data may be readily accessed.

Personal Data Data about a living individual who can be identified from the data or any other readily obtainable information – this includes even basic information such as names and telephone numbers.

Sensitive Personal Data Sensitive Personal Data – Personal Data relating to:

Racial or ethnic origin Religious beliefs and political opinions Trade Union membership Health data (e.g. physical and mental condition) Sexual orientation Criminal matters/Commission of offences

Data processing The processing of data means any operation of data and includes:

Obtaining Recording Holding Organising Adapting & altering Retrieving Consulting Disclosing Combining Erasing Blocking Destroying

References to “process” and “processed” shall be construed accordingly in this policy.

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Commercially sensitive Data

Any information (including personal data), the disclosure of which is likely to prejudice the business interests of the Partnership. It is the information that is not generally known within the social housing sector, and that has economic value from not being known. If disclosed, this information could have adverse implications for the Partnership or for future occupants.

AGM Annual General Meeting


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OPENNESS & CONFIDENTIALITY POLICY

AIMS & OBJECTIVES 1.1 Hebridean Housing Partnership (HHP) aims to conduct its business in an open and

accountable manner whilst, at the same time, ensuring that personal and commercial confidentiality is maintained where appropriate.

1.2 The Partnership believes that its members and any other interested parties should have access to information on how it conducts its business. As a general principle, information about HHP and its work should be widely and freely available. Requested information will be made available unless it is considered commercially sensitive, personally confidential or where disclosure is restricted by legislation.

1.3 HHP’s staff and Board Members will:

a) treat all personal and sensitive organisational information as confidential to the Partnership;

b) comply with the law regarding the protection and disclosure of information including personal data;

c) not disclose or use personal data without obtaining the prior informed consent of the individual concerned, except in the circumstances outlined below in the section on disclosure or where otherwise permitted by law;

d) not gain or attempt to gain access to information they are not authorised to have.

1.4 All personal information relating to tenants, applicants, staff and Board Members that is not a matter of public record will be held in accordance with the eight Data Protection principles:

a) processed fairly and lawfully;

b) held for specific purposes and used only for those purposes;

c) relevant, adequate and not excessive;

d) accurate and kept up to date;

e) kept no longer than is necessary and destroyed when no longer required;

f) processed in line with the individual’s rights;

g) secure and protected against loss or disclosure; and

h) will not be transferred to other countries without adequate protection.

GENERAL PRINCIPLES AND PRACTICE

Communication of Information 2.1 Information will be made available through a range of channels considered

appropriate to the information in question. This will include HHP’s website (www.hebrideanhousing.co.uk) Tenants Handbooks, regular newsletters, in document form - upon request from HHP’s Head Office, and where practicable, Area Offices.

2.2 HHP will also provide an opportunity at the AGM for tenants to ask questions about performance, service standards and other general matters.

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2.3 HHP will ensure that, wherever possible and practicable, information available to the public will be written in Plain English. Every effort will be made to avoid unexplained acronyms, jargon and technical language where Plain English alternatives exist.

2.4 In order to overcome barriers caused by sensory impairment, language difficulties, literacy issues and other particular needs, HHP will in all reasonable circumstances make information available on request in a variety of information formats and in translation. Policy documents will contain in the English version the following sentence: “HHP will provide this policy on request at no cost, in large print, in Braille, on tape or in other non-written format, and in the main community languages”.

2.5 Faodar am pàipear-poileasaidh seo fhaighinn ann an Gàidhlig cuideachd. Airson tuilleadh fiosrachaidh, cuir fios gu Oifigear airson Riaghladh Coilionadh - aig Oifis HHP ann an Steornabhagh, air a fòn 0300 123 0773, neo cuir post-dealain gu [email protected].

This document can be supplied in Gaelic also. For further information, please contact the Corporate Governance Manager at HHP’s office in Stornoway, on 0300 123 0773, or email [email protected].

2.6 In addition, HHP where possible will provide copies of any requested policy in a specified language, provided that a translator can be made available to translate the material. HHP will always endeavour to access a translation/translator service on request.

Publication of Information 2.7 The following paragraphs outline the information that will be made available on

HHP’s website and the steps the Partnership will take to ensure compliance with this policy. This list is not considered to be exhaustive.

Annual Report and Accounts

2.8 The Annual Report will contain standard information required by law and will also report Performance against Operational targets. Monthly performance information will be available on the website and by request. The degree that tenants feel they are kept appropriately informed will be explored in Tenant Satisfaction Surveys, and the Partnership will increase the amount of information being circulated if any of the surveys suggest this.

How to become a Board Member or influence decisions in other ways

2.9 A leaflet is available to explain the process of becoming a Board Member.

2.10 It is recognised that on occasion tenants may wish to influence certain decisions, or have their voice heard, without necessarily joining the Board. Area Community Meetings are held occasionally to facilitate this.

2.11 Furthermore, where tenant and stakeholder views are being sought, consultation documents will be posted on HHP’s website.

Performance Audit Assessments

2.12 The findings are reported at the Annual General Meeting. All future Performance Audit assessment summaries will be disseminated to the membership. The full report will be available on request.

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Policies & Procedures

2.13 The Partnership will make available all key policies and procedures on the Partnership’s website and also at our offices’ reception. Availability of this information will be publicised from time to time in relevant HHP publications.

Results of External Audit

2.14 The Partnership’s Management Letter will be displayed in our offices’ reception. The external auditor will present the audited accounts at the AGM and respond to any questions raised.

Registers

2.15 HHP maintains a number of Registers which will be available for inspection. The following are on the Partnership’s website and at the Head Office:

a) Register of Board Members;

b) Disclosure of Interest Register.

At HHPs Head Office:

c) Gifts & Hospitality Register;

d) Control of Payments & Benefits Register.

Board Agendas & Minutes

2.16 Non-confidential Board Agendas will be made available on the Partnership’s website at least 7 days prior to Board meetings.

2.17 Non-confidential Board meeting minutes will be made available on the Partnership’s website once they have been signed off by the Chair of the meeting. This will generally be after the next scheduled Board meeting.

Complaints

2.18 The outcome of complaints made to the Partnership will be available for viewing at the Partnership’s offices. Personal information pertaining to tenants or staff will not be displayed.

Access to Meetings

Annual General Meeting

2.19 HHP, in accordance with its constitution, will hold an Annual General Meeting (AGM) to which all members of the Partnership will be invited.

Ordinary Meeting

2.20 HHP’s Rules and Standing Orders state that all agenda items at all Board and Area Committee Meetings shall be considered as non-confidential unless otherwise agreed.

2.21 Minutes, with any confidential items omitted, may be viewed on the Partnership’s web site and at our offices by the general public. Printed copies of the minutes can be made available on request for individuals without access to the internet. Where such a request is made, the Partnership will provide the document(s) within seven working days.

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CONFIDENTIALITY 3.1 The Partnership’s staff will generally have access to all information they genuinely

need to know to carry out their work, and are under a duty to respect the confidentiality of all personal information held by the Partnership.

3.2 Staff, wherever possible, must explain to individuals the Partnership’s purpose for processing that individual’s personal data and, where it is likely to be disclosed to persons outside the Partnership, the people or organisations likely to have access to it before it is first processed, so that (where necessary) informed consent can be obtained. If this causes concern, special arrangements for recording and access will be made.

3.3 It is not possible to produce a list of all items considered confidential. The following, however, are considered confidential and should, at no time, be divulged inappropriately:

a) Personal confidentiality of tenants and other members of the public will be respected. This means that the names, addresses, details on family composition or economic status (or any other means of identification) of individuals will not be given in Board reports or minutes or in any way divulged to anyone other than staff members, or other professionals, on a “need to know” basis;

b) All data records (both paper and computer) will be kept confidential to the appropriate staff members. No Board Member will view an individual’s data records;

c) Items adjudged, on an ad hoc basis, to be confidential.

3.4 Exceptions to the items listed in paragraph 4.3 are:

a) where a tenant or other member of the public complains or appeals to the Partnership about an issue and a personal representation is being made to the Board as the final stage in the procedure. In these circumstances, it is impossible to withhold information on the person’s identity.

b) where the Partnership has a legal obligation to provide information to a third party, in respect of, for example, the prevention of fraud.

Regulation 3.5 Occasionally regulations may change and new/amended regulatory requirements

are placed on social landlords, for example, the conducting of surveys as per the Scottish Social Housing Charter. For many social landlords the method of compliance with these regulatory requirements that best ensures Value For Money (VFM) for tenants means sharing information, with a third-party organisation, which is contracted for a short period of time. In such instances where information is shared, the Partnership will remain the Data Controller, and strict guidelines will be adhered to in respect of the handling and disposal of personal information, in order to ensure that HHP is not in breach of Data Protection legislation.

Data Security 3.6 The following technical and organisational measures should be followed to protect

personal data security:

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a) All computer held personal data should be protected by password, and accessible only to staff with a legitimate need to access or process the data;

b) Passwords should be changed every six weeks;

c) Computer systems should be secure, and sufficiently protected against unauthorised access, and documents should be encrypted where possible;

d) Sufficient safeguards should be in place to protect computer held personal data from loss, destruction or damage. No sensitive personal information should be held on laptops, computers, iPads, USB/pen drives, or any electronic device that could be vulnerable to theft or loss or unauthorised access;

e) All back up information should be held securely, and protected against unauthorised access;

f) All personal data must be erased from PC’s or other hardware and measures taken to protect it from subsequent retrieval by unauthorised persons on the disposal of such hardware;

g) Manual files containing personal data should be kept in secure filing cabinets when not in use – this includes returning files to locked cabinets overnight;

h) Care should be taken to ensure that manual files containing personal data are protected from loss or damage when removed from the office. Under no circumstances should personal files be left unattended in vehicles;

i) Staff members printing tenants’ personal data must print using the ‘User Box’ facility on the network and not leave the printer unattended while printing these documents;

j) All correspondence of a personal nature must have “Private and Confidential” clearly marked on the envelope;

k) Regular audits should be in place to test that technical and organisational security measures are being adhered to.

Disposal of Personal Data 3.7 With regard to document retention schedules, when no longer required, all personal

information, including computer printouts of rent accounts and arrears, must be shredded or destroyed

3.8 Data held on computers/electronic filing systems should be treated in the same manner as paper print-outs in respect of retention, and deleted accordingly.

3.9 The destruction of original records and documents, in both electronic and paper formats, should be authorised by managers and a file note must document this authorisation. The method of disposal should be appropriate to the confidentiality or sensitivity of the record.

3.10 Personal files should be weeded regularly, and information only retained if still relevant to the purposes for which it was intended to be kept. This should be done as a matter of routine whenever files are in use.

Performance Monitoring

4.1 A report will be prepared on an annual basis detailing how information has been made available and highlighting any improvements to be made to information provided. The report will be presented to the Board at the first meeting following the end of the financial year.

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4.2 Customer surveys will be carried out on a regular basis and the results of these surveys will be used to inform policy and service reviews. The quarterly tenants newsletter will update tenants with how HHP has responded to survey feedback.

BREACH OF POLICY 5.1 Any breach of confidentiality, whether deliberate or inadvertent, will be dealt with

seriously by the Partnership. The circumstances surrounding the breach will be taken into account. All breaches will be dealt with via the Staff Disciplinary and Grievance procedures and the Board Code of Governance and may result in:

a) the staff member(s) being issued with a warning or dismissed; or

b) the Board Member(s) being requested to leave the Board.

COMPLAINTS & APPEALS 6.1 Complaints regarding the policy will be dealt with under the Partnership’s

Complaints policy, a copy of which is available at the Partnership’s offices and on the Partnership’s web site.

LEGAL AND REGULATORY FRAMEWORK

Legislation 7.1 In formulating and implementing this policy, statutory requirements have been

incorporated, where required.

7.2 The legislation particularly relevant to this Policy includes:

a) Data Protection Act 1998: provides rights to individuals in relation to personal data held about them; regulates the use of personal data.

b) Freedom of Information (Scotland) Act 2002: entitles members of the public to receive information that they request from a public authority, subject to certain exemptions. Although not bound by the Freedom of Information Act (which currently does not extend to Registered Social Landlords), HHP aims to meet the spirit of the legislation. The Act supersedes the Access to Personal Files Act 1987.

c) Housing (Scotland) Act 2001, 2006 & 2010: provide a statutory right to all tenants with Scottish Secure Tenancies to receive information about their landlord’s policies and procedures, in addition to obliging landlords to consult and provide tenants with information in developing their Tenant Participation Strategy. The 2010 Act introduced the Scottish Social Housing Charter which obliges landlords to consult with tenants in respect of desired standards and outcomes.

d) Scottish Public Services Ombudsman Act 2002: describes the statutory arrangements for conducting independent investigations of complaints relating to maladministration by a wide range of listed authorities, including Registered Social Landlords.

e) Human Rights Act 1998: gives individuals a right to respect for their privacy.

f) The Scottish Secure Tenants (Right to Repair) Regulations 2002.

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EQUAL OPPORTUNITIES 8.1 This policy complies with HHP’s Equal Opportunities Policy.

8.2 HHP is committed to providing fair and equal treatment to all its customers and service users and will not discriminate against any individual, household or group on the grounds of:

a) sex or marital status;

b) race or colour;

c) disability;

d) age;

e) sexual orientation;

f) language or social origin;

g) employment status or;

h) other personal attributes, including beliefs or opinions such as religious beliefs or political opinions.

TRAINING 9.1 The Partnership is committed to training and developing staff and Board Members to

their full potential in order to deliver a high quality of service in all areas of its business to tenant members and the public.

9.2 The employee induction programme will include an overview of this policy, including responsibilities for the promotion and delivery of openness and confidentiality as relevant to their job descriptions.

9.3 Board Members and staff will receive updates on these issues and specific training on any specialised areas as required. Training needs are identified on an ongoing basis by various means including regular staff supervision sessions.

MEDIA REQUESTS 10.1 As a matter of policy, HHP will respond openly to requests for information from the

media. However, in order to manage the release of information and to ensure that the release is consistent with HHP’s interest, any request from the media for information should be made to the Chief Executive.

LINKS WITH OTHER POLICIES 11.1 The use of Openness & confidentiality Policy is supported by related HHP policies

and procedures and should be read in conjunction with, but not limited to, the following:

Code of Conduct for Staff; Code of Governance for Board Members; Communication; Disclosure of Interest; Membership; and Tenant Participation.

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REVIEW 12.1 HHP will review this policy every 4 years. More frequent reviews will be considered

if, for example, there is a need to respond to new legislation/policy guidance.

Katrina Palmer

Page 1 of 2 6/2/14




VOID MANAGEMENT POLICY


PURPOSE OF REPORT

1.1 To present to the Board the revised Void Management Policy for consideration and approval.

SUMMARY

2.1 The Void Management Policy was last updated in November 2008, and should be reviewed every two years in compliance with the Policy Review Schedule.

2.2 The Policy has now been reviewed and updated to take account of changes to legislation and regulation.

2.3 The Void Management Policy will be complemented by a Void Management Procedure.

COMPETENCE

3.1 Legal, financial or other constraints are listed at paragraph 5.

RECOMMENDATIONS

4.1 It is recommended that the Board approve the revised Void Management Policy.

APPENDIX 1 Void Management Policy




COMPETENCE

Financial 5.1 The financial aim of the Void Management Policy is to minimise rent loss on empty

properties and the cost of void repairs. There is no increase in financial obligations arising directly out of consideration of this report.


RISK

6.1 There are no risk implications arising directly out of consideration of this report.

REPORT DETAILS

7.1 The Void Management Policy was last updated in November 2008, and should be reviewed

every two years as per the Policy Review Schedule.

7.2 The policy has been updated to take account of changes to:

• Gas Safety (Installation & Use) Regulations;

• Comments, Compliments and Complaints Handling Policy; and

• HHP procedure following changes to Housing Benefit e.g. tenancies no longer need

to start on a Monday and end on a Sunday.

7.3 The Policy has clarified insurance requirements for properties void for periods in excess

of 90 days.

7.4 The revised Policy is now being passed to the Board for consideration and approval.

VOID MANAGEMENT POLICY

Section Operations


Review Period Every 4 Years


Version 2.0


APPENDIX 1



Introduction ............................................................................................... 3

Aims ........................................................................................................ 3

Principles .................................................................................................. 3

Legal Obligations ......................................................................................... 3

Void Creation ............................................................................................. 4

Death of a Tenant ........................................................................................ 4

Abandonments ............................................................................................ 5

Transfers .................................................................................................. 5

Pre-Termination Inspections ........................................................................... 5

Post-termination Inspections ........................................................................... 6

Ordering Repairs ......................................................................................... 6

Offering Tenancies ....................................................................................... 7

Creating Tenancies ...................................................................................... 7

Complaints ................................................................................................ 7

Performance Monitoring ................................................................................ 7

Commercial and Account Properties .................................................................. 8

Policy Review ............................................................................................. 8

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2.00

Updated in line with change in gas regulations

General review of the policy and remove excess procedural detail.

February 2014 Katrina Palmer

2



Word Interpretation




Void Any lettable property that has no tenant for a period of time.


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VOID MANAGEMENT POLICY INTRODUCTION

1.1 This policy encompasses void management activity. Void management is the term used to define how Hebridean Housing Partnership (HHP) deals with vacant property to ensure that rent loss is minimised.

1.2 A ‘void’ is any lettable property that has no tenant for a period of time. The void period is the time, measured in calendar days, between the date of termination of the previous tenancy and the start of the new tenancy.

AIMS 2.1 HHP identifies the following as key aims of its Void Management Policy and

associated procedures to:

Ensure that individuals are allocated a property that meets HHP’s defined re-letting standards;

Minimise the void days and rent loss on empty properties;

Minimise the cost of void repairs;

Monitor and report on void performance in order to highlight both successes and weaknesses making the maximum use of information technology; and

Comply with legal duties, regulatory requirements and good practice standards.

PRINCIPLES 3.1 The principles underpinning our Void Management Policy are:

To comply with legal duties, regulatory requirements and good practice standards;

To provide a clear statement of level of service and standards to which HHP will work;

HHP will implement detailed procedures to ensure that staff are equipped to carry out the roles expected of them;

That tenants and service users will be kept informed during the void management process; and

To communicate with tenants and services users in ‘plain language’.

LEGAL OBLIGATIONS 4.1 This policy reflects the following legal requirements:

The Housing (Scotland) Act 2001 amends the provisions of the Housing (Scotland) Act 1987 and the Housing (Scotland) Act 1988. The Housing (Scotland) Act 2001 provides that landlords have a duty to ensure that a house is wind and watertight and reasonably fit for human habitation, both at the beginning of the tenancy and throughout its term. Section 27, Schedule 4 of the Act gives landlords a legal right to enter a property on 24

4

hours notice to inspect it. Section 12 of the Act details how a Scottish Secure Tenancy may be brought to an end; and

Gas safety (Installation & Use) Regulations 1998 No. 2451, Part F, Maintenance:

o Section 35 which relates to the landlord’s duty as an employer, and o Section 36 with regard to the landlord letting property duties.

VOID CREATION 5.1 There are several ways in which a property can become void:

The tenant gives HHP written notice as per the terms of the Scottish Secure Tenancy agreement;

By written agreement between the tenant and HHP; Death of the tenant – where HHP is notified of the death of the tenant and

there is no qualified person to succeed to the tenancy; Abandonment – where HHP issues a legal notice to a tenant who has vacated

the property without notice; Eviction – where HHP has enforced decree for repossession, granted by the

court following legal action; Transfers – where the tenant is re-housed in another HHP property; Development voids – where a new property is handed over to HHP and is

untenanted; and Decants – where a tenant has to be moved, usually temporarily, from their

property for purposes of refurbishment or as a result of the property becoming uninhabitable e.g. fire, flood.

Note: Mutual Exchanges do not allow for a property to have a void period. Please refer to the Mutual Exchanges Procedure.

5.2 In most circumstances tenancies will terminate by a tenant giving notice. The

tenancy agreement states that this should be a minimum of 28 days. Rent will be due for the full 28 days, and thereafter, if the keys are not handed in on time.

5.3 It is recognised that there may be circumstances in which tenants could not

reasonably give 28 days notice prior to vacating the property. Where the full notice is not given all the circumstances will be reviewed and a decision taken as to whether the tenant will be held liable for the rent for the full notice period.

5.4 The outgoing tenant will be responsible for the clearing out the property and for

addressing any unauthorised alterations or damage which is not attributable to ‘fair wear and tear’.

DEATH OF A TENANT 6.1 Where a tenancy is terminated as the result of a death, and where there is no

qualified person to succeed to the tenancy in accordance with the Housing (Scotland) Act 2001, HHP will:

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terminate the tenancy from the date of death;

request details of the Next of Kin from the person notifying the death, and if appropriate;

advise the person that any housing benefit entitlement will cease from the Sunday following the date of the tenant’s death;

advise the person that HHP will expect the keys to the property to be returned to HHP as soon as possible after bereavement, the tenancy will end at the date of bereavement and a rental equivalent charged for the period that the Next of Kin takes to return the keys to the property; and

make clear to the person that rent arrears and outstanding rechargeable repairs may be recovered against the tenant’s estate, if any.

ABANDONMENTS 7.1 If it is suspected that a property has been abandoned, the statutory procedures will

be followed. In accordance with the Housing (Scotland) Act 2001 HHP will conduct reasonable enquiries in order to establish the whereabouts of the tenant(s) and confirm that:

the property is unoccupied; and

the tenant no longer intends to occupy it as their only or principal home.

Enquiries may include contact with any known relatives, neighbours, and contact with other agencies, for example, Police, Social Work, Council Tax, etc.

7.2 Where HHP has made investigations and confirmed that a property has been abandoned, it will be made secure as soon as possible. Between the months of October and April, HHP may enter the property in order to drain the water down.

7.3 HHP has a right of access at all times of the year where necessary to prevent possible damage to either the property or other tenants.

TRANSFERS 8.1 Tenants transferring to another HHP tenancy will not be required to provide 28 days

written notice.

8.2 The tenant will be responsible for rent on the old property until the keys are returned to HHP. They will be responsible for rent on their new tenancy from the tenancy start date.

PRE-TERMINATION INSPECTIONS 9.1 HHP will inspect all properties becoming vacant, both prior to (with the tenants’

agreement) and following the termination of the tenancy, in order to ensure that the property is tenantable and habitable.

9.2 A pre-termination inspection will be arranged, with the tenant, within 5 working days of receipt of the notice of termination. The tenant, or the tenant’s representative, will be asked to attend the inspection.

9.3 The Housing Officer will also agree, if appropriate, a repayment arrangement for any rent arrears.

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9.4 A standard form will be completed at the pre-termination inspection and will be signed by the Area Housing Officer and the tenant. A copy will be given to the tenant. The outgoing tenant will be given the opportunity to remedy any defect for which they are responsible prior to the end of the tenancy. If defects are not remedied prior to the end of the tenancy, or if work completed is not of a satisfactory standard, a recharge may be raised for the cost of the works.

POST-TERMINATION INSPECTIONS 10.1 A post-termination inspection will be completed on all vacant properties and,

where possible, this will be completed within 2 working days of keys being returned.

10.2 The outgoing tenant will be informed within 10 working days of the post-termination inspection if there are any outstanding items for which they will be recharged.

10.3 On completion of all void repairs and return of the keys from the contractor a further post-inspection will be carried out. The purpose of this inspection is to confirm that all void repairs issued to the contractor are completed satisfactorily.

SECURITY 11.1 Where judged necessary, HHP will make arrangements to take appropriate security

measures at the earliest opportunity where a void property is vulnerable to vandalism, or theft of components, for example changing locks.

LONG TERM VOIDS 12.1 In order to comply with insurers’ requirements, if a property is void or unoccupied

for 90 days or more, HHP will ensure that:

All main services are switched off; All water pipes and central heating systems are drained; The property is secured against unlawful entry;

Thereafter HHP are required to undertake inspections of these properties every seven days (by a Housing Officer or other suitably authorised employee).

12.2 A log of the visits must be kept on file.

ORDERING REPAIRS 13.1 Repairs will be completed once the property becomes vacant and the tenancy has

ended. Repairs will be ordered within one working day of the post-termination inspection.

13.2 The priority timescale for repairs will be at the discretion of the officers but will have regard to the overall targets for void management and the nature of the repair. The targets will therefore reflect the targets detailed within HHP’s Response Repairs Policy.

13.3 It will be usual for all repairs to be carried out prior to the tenant being issued with keys. There may however be occasions where it is deemed appropriate to allocate the property and carry out minor repairs when the property is occupied.

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OFFERING TENANCIES 14.1 Tenancies will be allocated in accordance with HHP’s Allocations Policy.

CREATING TENANCIES 15.1 When a prospective tenant has indicated their acceptance of a property, the date

of entry to the house must be agreed. This will be as soon as possible after all the essential repairs are completed.

15.2 The prospective tenant will be advised of the associated responsibilities involved with a tenancy and given assistance where needed. The prospective tenant will be asked to sign the tenancy agreement. Responsibilities involved and assistance given include:

The key obligations of the landlord and tenant as outlined in HHP’s Tenancy Agreement and as required by the Housing (Scotland) Act 2001;

Advice on possible entitlement to Housing Benefit;

Advice on rent and service charge payment arrangements;

Details of the rent arrears recovery process;

The issue of a Tenant’s Handbook; and

Advice on contents insurance.

15.3 When the tenancy agreement is signed, the first week’s rent is paid in advance (or a Housing Benefit application form signed) and all essential repairs carried out, the tenant will be provided with the keys to the property.

15.4 At the point of allocation high risk tenancies will be identified and a note passed to the Housing Officer to request that a frequent visit schedule is set up.

COMPLAINTS 16.1 Complaints relating to the Void Management Policy can be made by following HHP’s

Comments, Compliments and Complaints Policy.

PERFORMANCE MONITORING 17.1 Regular monitoring of void management will be undertaken.

17.2 Performance measures will include:

time taken to relet voids with a breakdown for each associated task e.g. post-inspections, raising orders, completing work;

number of refusals for each voids; average cost of change of tenancy works; and rent loss due to void as a percentage of gross rent receivable.

17.3 A selection of performance measures will be reported in the HHP monthly

performance report to the Board.

17.4 HHP will seek feedback from new tenants to identify improvements to the void management process.

17.5 Complaints made through the Comments, Compliments and Complaints Policy will be monitored, reviewed and used to see continuous improvements to the void management process.

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17.6 Performance will be assessed:

against performance in the previous year;

using benchmarking; and

taking account of contextual issues such as change in demand.

COMMERCIAL AND ACCOUNT PROPERTIES 18.1 Properties that are let on a commercial basis or let to other agencies will follow the

same general principles of the void policy but will be dealt with in line with their individual tenancy agreements. For example the notice period may differ for a commercial property.

POLICY REVIEW 19.1 The Void Management Policy will be reviewed every four years as per the Policy

Review schedule.

board agenda 19 february 2014 @ 5.30pm venue: hhp …€¦ · venue: hhp boardroom, creed court,...

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