“A busy year has just gone by and an equally busy one is already underway”

Colin Hawkins

Chief Executive

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Chief Executive’s Report /I am delighted to report another successful year for AHP.2007/08 saw AHP welcome ninety families to brand new houses we completed at Peterhead, Newmachar, Alford and Sauchen. These were a mix of houses for families, couples and people with particular needs. We hold welcome meetings for tenants and it’s always an interesting and enjoyable experience listening to people recount their experiences as they look forward to moving into their new homes.

We were particularly proud to achieve our fi rst major award for Tramaine House, Peterhead, which we developed in partnership with Aberdeenshire Council and the National Autistic Society.

Staff were also busy working up new projects in towns and villages across the north east. Our new website features up to the minute news and articles on development.

Our housing management team had an excellent year too, with strong performance across the board – our tenants measure us on the service we provide and we look forward to further improvements next year.

Keeping our properties in good condition is important to AHP and our tenants. We spent over £123,000 during the year on carrying out a number of improvements as we work toward achieving our goals to meet the Scottish Housing Quality Standards. Ever-rising fuel costs have a major impact on household budgets, particularly in the North East and more effi cient heating systems and energy effi ciency measures are critical improvements for our tenants.

The staff team has worked throughout the year to continue AHP’s upward trend and has embarked on a range of further improvements which will make a difference to tenants over the years ahead.

The role of the Board is highly appreciated by myself, the management team and staff. Under the chairmanship of Mike Scott, the Board continues to provide support and challenge to the staff – all to the benefi t of our tenants now and in the future. My thanks to all board members and staff for their continued commitment to AHP.

Contents / Chief Executive’s Report 1Chair’s Remarks 2The Board 3The Three Committees 3The ScottishHousing Regulator 4Tenant Consultation 4Tenant Participation 4Development 5Devanha 5Repairs 6Rechargeable Repairs Policy 6Housing Management 6Equality and Diversity 7Annual General Meeting (AGM) 7Customer Charter 8Performance Indicators 9Financial Highlights 13Acknowledgements 14

January 09 s m t w t f s 1 2 3

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Chair’s Remarks / The past year has been an extremely busy, interesting and challenging one for AHP and I’m proud to have been Chairman throughout most of this time. I am indebted however to Hazel Al-Kowarri, former Chair, for her input to the business and continued development of AHP and for her smooth handover to and support for me since last year’s AGM. Thank you Hazel. Since the AGM we’ve welcomed Gill Mathieson to the Board but unfortunately Sheila Thomson had to reluctantly resign and her invaluable input and insight has been sadly missed. All the best for the future Sheila.

People may well have noticed our recent Board Member recruitment campaign which I’m pleased to say is beginning to bear fruit both from within AHP and from within the wider community. We will continue to seek Board Members who are committed to the ethics of AHP in terms of housing provision and service to our tenants and who can also help us identify and explore new opportunities.

So back to this past year and the previous housing inspection (which took place in February 2007) has led to continued specifi c focus on particular parts of our operations and has resulted in signifi cant and much welcomed improvements across a range of activities. Our staff continues to work tirelessly towards the achievement of targets set with and by the Board. There has been a consistently high level of performance in relation to the delivery of the services of AHP. The Scottish Housing Regulator, who monitors all post-inspection matters,has, in recognition of the above, announced a “low engagement” with AHP which basically means keeping a watching brief over us. Well done and thanks to all involved in this process of improvement.

AHP now owns over 700 houses throughout Aberdeenshire and over the past year has received funding for 90 houses. Current projections suggest that the day of the “1,000th House” arriving will be reached within the next couple of years. There are nearly 280 properties – 226 for rent – in the pipeline for AHP within the Devanha programme to be delivered over the next 18 months. This progress and rate of AHP development has led to a number of other initiatives being pursued.

Firstly, the staff structure has been changed and adjusted to better refl ect not only where we now are but also to introduce capacity to meet the challenges of future rapid development, and the increased pressures on management which this will lead to. The new enhanced staff structure is also intended to further develop tenant contact, consultation and liaison and to further support our customer care and services.

The second key development has been the creation of a separate but related company, AHP Developments Limited, to take better and fuller advantage of opportunities arising in terms of management agency work (AHP now for example manages the small number of houses owned by the Aberdeen Soroptimist Housing Society) and in relation to all future housing

and other related building or leasing proposals. All of this is at an early stage and will be reported on at a future date once new schemes and proposals are identifi ed and start to come through.

The third development has been around the Scottish Government’s document called “Firm Foundations” and the proposed changes to Housing Association Grant allocation and funding processes. This will place further pressure on AHP’s rents and general funds and will test our resolve to sustain housing and other services at affordable levels. The recent “Credit Crunch” has also seen other possibilities arise – and may lead to further partnership arrangements with house builders and other housing, commercial and social enterprise agencies.

Devanha continues to progress in delivering on the current contract with the Scottish Government for the provision of over 1,500 new homes in the North-East over a period of 3 years, and we are now halfway through this timescale. AHP has been fortunate enough to have been one of the early recipients of housing schemes under Devanha but has also deliverd consistently well in terms of completion of these schemes – with Sauchen and Alford houses recently coming on-stream by April 2008. There are signifi cant schemes approved for Upper Grange Phase 2, Peterhead (36 rented homes), Marconi Road, Fraserburgh (46 rented and 12 LIFT), Deveron Road, Huntly (61 properties), Cornhill Road, Aberchirder (20 homes) Broadshade, Westhill and Blackhall Road Inverurie.

So a busy year has just gone by and an equally busy one is already underway and I would like to thank all of our partners for their continued support. Most of all however I’d like to thank all Staff and Board Members for their time and commitment to AHP’s continued good progress and success. We need to be fi t for the future and I believe we are and will continue to grow stronger and be more infl uential in the things we do best – to provide and manage houses and related services, support our tenants and work well with our partners, both at a local and at a national level.

Thank you all and I hope I, as Chairman, continue to be worthy of your support and assistance as we enter further challenging and testing times.

Mike Scott

Chair

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February 09 s m t w t f s 1 2 3 4 5 6 7

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The Board / An effective Board is crucial to the success of AHP. Our Board members are volunteers who give up their time to support the work of the Partnership. Each Board member is also a director of the company, and each member also sits on one of our three committees: Housing, Marketing and Communications or Resource and Governance.

The Board is determined to carry out its Governance responsibilities effectively and effi ciently and has taken cognisance of the Performance Standards in establishing this Schedule. In order to maintain full and effective control over the business and management aspects of the Board, the following matters are reserved for Board agreement:

• Governance.• Finance & Statutory Returns.• Policies & Strategies.• Human Resources.

The Board has three Committees

• Resource and Governance Committee.• Housing Committee.• Marketing and Communications Committee.

Resource and Governance /The Resource and Governance Committee has responsibility for taking a Quality Assurance and overview of AHP’s activities and reporting to the Board on the fi nancial reporting process; the external audit; the accounting and internal control systems and the internal audit function.

Housing Committee /The Housing Committee is responsible for reviewing AHP’s housing management and property maintenance activities and for reporting to the AHP Board on all aspects of tenant communication, consultation and participation.

Marketing and Communications Committee /The Marketing and Communications Committee is responsible for reviewing AHP’s strategy, and reporting to the Board on the approval and funding of PR and marketing matters.

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March 09 s m t w t f s 1 2 3 4 5 6 7

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29 30 31

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The ScottishHousing Regulator / Tenant Communication, Consultation and Participation /AHP aims to take into account the views of our tenants when making decisions on how we develop and how we deliver our core services. Evidence of this is refl ected in the recent restructure of the organisation resulting in responsibility for response repairs moving from the Property and Development Section to Housing Management.

Our regular newsletter contains information on our policies and procedures and articles on current issues affecting our tenants. In addition our upgraded website invites comment from tenants and other stakeholders.

AHP continues to work with TIGHRA in the development of tenant participation and the establishment of our Tenants’ Panel as a registered tenant organisation. The Panel assists AHP in the review of our policies and strategies and provides feedback on issues affecting the organisation and our tenants.

April 09 s m t w t f s 1 2 3 4

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Development /It has been another successful year for the Partnership with 24 homes in Kingseat and 45 homes in Peterhead being completed. In addition, 8 homes were completed in Sauchen and a further 12 in Alford were completed prior to the year end.

2008/09 will see the commencement of developments in Fraserburgh, Peterhead, Huntly and Aberchirder adding over 160 units to our housing stock .

The development team at AHP will continue to seek development opportunities throughout the North East of Scotland to address the housing needs of the population of the North East.

Devanha /We are pleased to be working alongside other housing associations and the Scottish Government as we look toward building more houses for rent in the future. As one of the founder members of Devanha Ltd, AHP is a joint signatory to the Programme Agreement with Communities Scotland which sets out an ambitious development programme stretching to 2010. Funding for this programme has been committed - with £93 million from Communities Scotland in addition to the funding we will source from our funders, Lloyds TSB. AHP has a strong record in working in partnership developments and this puts us in a good position for the future.

Devanha is the route for all our developments to be contracted over the next 3 years and the new approach to procurement being established envisages a partnership of framework contractors and consultants working with Devanha to deliver the new houses to the widespread communities of the North East.

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May 09 s m t w t f s 1 2

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Repairs /Our Repairs Policy provides an overview of what AHP is trying to achieve in the area. Close working with our repairs contractor has helped to bring about a degree of improvement in our response repairs service, but still more needs to be done to deliver the service which is up to the standard our tenants deserve and AHP are seeking to deliver. In addition the policy outlines those aspects of repairs which fall within a tenant’s responsibilities and for which, if carried out by AHP, will be recharged to the tenants.

Rechargeable Repairs Policy /The Rechargeable Repairs Policy will assist AHP to meet the objectives of the Strategic Plan and Maintenance and Repairs Policy, aims and priorities. In particular, it will assist AHP to provide well-maintained houses for all tenants. This policy will also assist AHP to achieve Best Value in the use of its resources. The specifi c objectives of the Rechargeable Repair Policy are to give clear guidance on the circumstances which tenants will be recharged and the process of recharging for repairs.

Housing Management /Our continued aim is to become one of the best social landlords in the North East and to carry out our housing management responsibilities both effi ciently and effectively. We will continue to seek internal improvements to our work practices whilst developing effective relationships with external partners including the local authority and the police.

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June 09 s m t w t f s 1 2 3 4 5 6

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28 29 30

Equality and Diversity Policy /We are committed to promoting diversity and equality in housing, employment and the provision of all our services.

Our policy says:

• We will treat all people equally regardless of: race, colour, ethnic origin, religion, cultural background, sexual orientation, gender, disability, age, marital or parental status, illness, employment status, membership of trade unions or political beliefs, or any other unjustifi able criteria.

• We will apply these principles when we build new homes, let new homes and when we employ staff members.

Annual General Meeting (AGM) /Our AGM is held at a different location each year. Last year’s AGM was held in Fraserburgh and this year’s will be held in Kemnay. It is the Board’s intention to host a separate event for the benefi t of tenants where the tenants will have the opportunity to address matters of concern to both the Board and Management of AHP.

Mike Scott was elected as Chair, Bill Chapman was re-elected as Vice Chair and Baker Tilly were retained as external auditors for 2008/09.

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July 09 s m t w t f s 1 2 3 4

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Customer Charter /

“AHP is committed to providing the highest standard of service to all customers. We achieve this by being open, fair and honest in all our practices. We treat our customers as we would wish to be treated ourselves.”

OUR COMMITMENT

We wish our customers to know the standards of service they can expect from us, our contractors and other partners.

• Queries will be answered correctly and quickly.• All customers will be treated fairly and equally, in

a polite manner.• We will listen to what you say, use plain language

and be responsive to your query.

OUR EXPECTATIONS OF CUSTOMERS

• To co-operate with staff and our contractors and other partners.

• To be courteous with staff at all times.

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August 09 s m t w t f s 1

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PerformanceIndicators2007/08 /Monitoring our performance is key to ensuring the continuing success of AHP. Our Board members hold quarterly performance Board meetings where a stock check is taken of management performance.

Housing Stock as at 31 March 2008

Allocations and voids

Arrears /The partnership’s rent arrears (current tenants) in 2007/08 were £ 67,000 (3.25%). We are particularly pleased that although we took court action against a number of tenants, only two evictions were carried out. The target for rent arrears in the year was 3.5% and we will continue to set challenging standards for rent arrears in the coming years.

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Apt Size 2 apt 3 apt 4 apt 5+ apt Total

March 2007 99 311 206 17 633

Additions 36 31 0 4 71

March 2008 135 342 206 21 704

2008 2007

Number of new lets 86 32

Number of relets 58 54

Average time to relet 16 days 16 days

% of rent lost through to voids 0.48% 0.71%

September 09 s m t w t f s 1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28 29 30

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Maintenance Services /

Capital Maintenance 2007/08 /

Number carried out

Classifi cation of Repairs 2008 2007

Emergency (4hrs) 29 412

Urgent (3 days) 535 904

Routine (30 days) 40 237

% Completed on time

Classifi cation of Repairs 2008 2007

Emergency (4hrs) 93% 82%

Urgent (3 days) 90% 77%

Routine (30 days) 100% 85%

AHP completed the following programme during the year:

2008 2007

Cost Cost

Door and Window

Replacement

18,000(9 properties)

16,000(8 properties)

Heating

Replacements

105,000(26 properties)

63,000(3 properties)

Total Spend 123,000 79,000

October 09 s m t w t f s 1 2 3

4 5 6 7 8 9 10

11 12 13 14 15 16 17

18 19 20 21 22 23 24

25 26 27 28 29 30 31

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Cyclical Maintenance 2007/08 /A programme costing £55,000 was undertaken to paint 170 homes. AHP also completed ten adaptations to tenants’ homes costing a further £10,000

AHP Income 2007/08 /

AHP Expenditure 2007/08 /

Income 2006/07

AHP Expenditure 2006/07

Rents

Leases

Grants

Miscelleneous

Staff

Property Maintenance

Business Costs

Depreciation

Board

Debt Servicing

1.5%

6.1%

3.5%

89%

25.83%

16.01%

14.02%

7.77%

0.58%

38.80%

Income 2006/07

AHP Expenditure 2006/07

Rents

Leases

Grants

Miscelleneous

Staff

Property Maintenance

Business Costs

Depreciation

Board

Debt Servicing

1.5%

6.1%

3.5%

89%

25.83%

16.01%

14.02%

7.77%

0.58%

38.80%

November 09 s m t w t f s 1 2 3 4 5 6 7

8 9 10 11 12 13 14

15 16 17 18 19 20 21

22 23 24 25 26 27 28

29 30

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Staff /

During 2007/08 AHP welcomed John Martin, Finance and Corporate Services Manager and Lorna Clark, Financial Accountant who replaced Stephen Lawson. Seonaidh Docherty, the What’s IT All About co-ordinator also left AHP.

Formal Complaints / Compliments /

AHP has a Formal Complaints Policy and we aim to ensure a reply to complaints initially within 3 working days, and a final response within 10 working days.

During 2007/08 there were 21 complaints and 11 compliments received.

No complaints were made to the Ombudsman.

Complaints / Compliments

Complaints

Compliments

20

15

10

5

0

2005/06 2006/07 2007/08

December 09 s m t w t f s 1 2 3 4 5

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Financial Highlights / Balance SheetAs at 31 March 2008

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2008 2007 £ £Tangible Fixed AssetsHousing properties – depreciated cost 37,585,015 32,236,265Less: HAG and other capital grants (21,457,219) (19,098,006) 16,127,796 13,138,259

Other Fixed Assets 20,147 18,536

Current Assets 16,147,943 13,156,795

Debtors 168,475 178,703Cash at bank and in hand 484,248 815,873 652,723 994,576 Creditors: amounts falling due withinone year (689,422) (462,078) Net current (liabilities)/assets (36,699) 532,498

Total assets less current liabilities 16,111,244 13,689,293

Creditors: amounts falling due after more than one year (15,692,989) (13,558,668)

Net Assets 418,255 130,625

Capital and ReservesDesignated reserves 121,000 57,000General reserves 297,255 73,625 418,255 130,625

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Acknowledgements /

Our thanks go to the following companies for agreeing to sponsor the production of our report this year and for their continuing support of the work of the Partnership.

This Annual report can be made available in other formats. Please contact us at our office address or telephone 01467 641200 for further assistance.

If you require this document to be translated into your language, large print, Braille or cassette then please telephone the office on the number on the back page of this document 15

www.a-h-p.org.uk

AHPUnit 8, Netherton Business CentreKemnay, by InverurieAberdeenshireAB51 5LX

General Enquiries: 01467 641200Housing Repairs: 01467 641560Fax: 01467 641220E-mail: enquiries@a-h-p.org.ukWeb: www.a-h-p.org.uk

The Partnership is registered with:Communities Scotland No. CON 312Companies House No. SC 198586Inland Revenue Charity No. SC 029461

Auditors: Baker TillyBankers: Lloyds TSBSolicitors: McGrigors, PeterkinsProject Development Managers: Baxter Dunn & Gray