Agenda and minutes

(Assistant to the Chief Executive)  To report the appointment of any substitute members for the meeting.

There were no substitute members present.

(Assistant to the Chief Executive). To declare interests in any items on the agenda.

In considering whether to declare a personal or a prejudicial interest under the Code of Conduct, Overview & Scrutiny members are asked pay particular attention to paragraph 11 of the Code in addition to the more familiar requirements.

This requires the declaration of a personal and prejudicial interest in any matter before an OS Committee which relates to a decision of or action by another Committee or Sub Committee of the Council, a Joint Committee or Joint Sub Committee in which the Council is involved and of which the Councillor is also a member.

Paragraph 11 does not refer to Cabinet decisions or attendance at an OS meeting purely for the purpose of answering questions or providing information on such a matter.

There were no declarations of interest made pursuant to the Member’s Code of Conduct.

To agree the notes of the Panel meeting of 29 July 2010 which were not submitted to the last Panel meeting

RESOLVED:

That the notes of the last meeting held on 29 July 2010 be agreed.

(Chairman/Lead Officer) The Overview and Scrutiny Committee has agreed the Terms of Reference of this Panel and associated Work Programme. This is attached. The Panel are asked at each meeting to review both documents.

(a)        Terms of Reference

The Terms of Reference were noted.

(b)        Work Programme

The Work Programme was noted.

1.         (Director of Housing) Following the Comprehensive Spending Review, publication of the new Localism Bill and the consultation paper “Local decisions: a fairer future for social housing”, and other ministerial announcements, the Government proposes a number of changes in national housing policy, which will have a significant effect on the Council, its tenants and housing applicants.

2.         The Director of Housing will therefore be giving a presentation on “Proposed New National Housing Polices and Legislation”.

3.         All Members of Council and all members of the Tenants and Leaseholders Federation have been invited to attend the Presentation.

The Panel received a presentation from Mr A Hall, Director of Housing, regarding Proposed New National Housing Policies and Legislation.

As part of the Comprehensive Spending Review, publication of the new Decentralisation and Localism Bill and the consultation paper “Local Decisions: A Fairer Future for Social Housing” and ministerial announcements the Government proposed a number of changes in national housing policy. These changes would have a significant effect on the Council, its tenants and housing applicants.

(a)        Comprehensive Spending Review – Government Objectives

The Government was aiming to make social housing:

• Responsive, Flexible, Fair
• Accessible
• Reflect individual needs/changing circumstances
• Funded from higher HA rents
• Deliver 150,000 new affordable houses over CSR period

(b)       CSR – Funding for New Housing

• Almost 50% reduction in funding for new affordable housing over next 4 years
• New Homes Bonus, making payments to District Council for every new home given planning permission

(c)        HRA Self Financing

• Replacing existing Housing Subsidy System
• In 2011/12, the District Council would be paying Government around £11.4 million from tenants’ rents through the current housing subsidy system.

(d)       CLG Consultation Document – “Local Decisions: A Fairer Future for Social Housing”

(i)         Key Proposals

• Create new (optional) LA Tenancy – “Flexible fixed term” (Minimum 2 years)
• Introduce “Affordable Rent Tenancies” (Up to 80% of market rents)
• Invest £100 million – bringing empty homes back into use
• Accommodating homeless applicants in the private sector without their agreement.

(ii)        Tenure – LAs and HAs

• Ability to let social housing on fixed term rather than lifetime tenancies
• Minimum of two years
• When ended, the options for tenants would be:

·                     Remain in social/affordable rented housing

·                     Private rented sector

·                     Home ownership

(iii)       Affordable rents in EFDC

• Averages for 1/2/3 bed properties:
• Average HA rent                                              £96 p/w
• Average market rent                                       £177 p/w
• 80% of Average Market rent                            £142 p/w
• Potential surplus for new development          £46 p/p/p/w
• Potential subsidy for new prop (25 years)      £60,000 p/p

(iv)      Homelessness

• LAs would be able to discharge homelessness duty by accommodating homeless people in private rented sector – without requiring the applicant’s agreement
• Should enable more social homes to be allocated to non-homeless households

(v)       Empty Homes

• Government to invest £100 million for HAs to refurbish over 3,000 empty properties
• HAs to manage at affordable rents for up to 10 years
• Recent CLG announcement – properties must be empty for over 2 years (currently 6 months)

RESOLVED:

That the Presentation of Proposed New National Housing Policies and Legislation be noted.

1.         On the 22^nd November 2010, the CLG published a consultation paper entitled “Local decisions: a fairer future for social housing”.  The closing date for comments is the 17^th January 2011.

2.         The Consultation Paper sets out the Government’s proposals to reform social housing by:

·     Creating a new local authority flexible tenancy with a minimum fixed term of two years. This will be in addition to, rather than replacing, secure and introductory tenancies;

·     Requiring housing associations to charge new “affordable rents” for all newly built affordable properties, and a proportion of re-lets from April 2011, of up to 80% of private rents;

·     Investing £100m to bring empty homes into use as affordable housing;

·     Giving local authorities the powers to manage their housing waiting lists;

·     Introducing a nationwide Social Home Swap Programme for social housing tenants;

·     Enabling local authorities to fully discharge a duty to secure accommodation by arranging an offer of suitable accommodation in the private rented sector, without requiring the applicant’s agreement;

·     Seeking views on the reforms needed to enable local authorities and landlords to tackle overcrowding;

·     Reforming social housing regulation in line with the recommendations of the review of the Tenant Services Authority (TSA) and the Social Housing Regulation Framework; and

·     Introducing legislation to replace the Housing Revenue Account subsidy system with “a transparent, self-financing arrangement” from April 2012, instead of the previous Government’s proposal to introduce self-financing on a voluntary basis.

3.         In view of its importance, it is felt that the Council should respond to the Consultation Paper.  More information on each of the above proposals will be explained in detail within the presentation given by the Director of Housing immediately before this agenda item.

4.         The Director of Housing is currently drafting a proposed response to the Consultation Paper for consideration by the Scrutiny Panel.  It is hoped that the draft response can be circulated to members in advance of the meeting, otherwise it will be tabled at the meeting.

5.         Although proposed responses will be drafted by the Director of Housing on the technical aspects of the proposals, the Scrutiny Panel will need to decide at the meeting whether or not it wishes to support or disagree with the principles of the key proposals, since this is seen as a political issue.

6.         Members of the Tenants and Leaseholders Federation have been invited to attend the meeting and take part in the debate.  It has been agreed that Federation members will decide at the meeting whether or not they can agree to the Council’s proposed response, in which case it is suggested that a joint response is sent to the CLG.  If the Federation members are unable to agree with the Council’s response, the Federation will agree its own, separate, response at its next scheduled meeting to be held on the evening following the Scrutiny Panel meeting.

The Panel received a report regarding the CLG Consultation Paper – “Local Decisions: A Fairer Future for Social Housing,” which had been published on the 22 November 2010. The Consultation Paper set out the Government’s proposals for reforming social housing.

Members of the Tenants and leaseholders Federation had been invited to the meeting to take part in the discussion and to consider whether or not the Federation would be prepared to submit a joint response to the CLG with the Council. On discussion at the end of the debate, the members of the federation present stated that they were not in a position to say whether or not the Federation would be prepared to submit a joint response. It was agreed that the Federation would consider the Consultation Paper and the Council’s proposed response at its meeting later in the week and advise the Council of its decision.

The Scrutiny Panel considered each of the questions raised in the Consultation Paper and agreed the following responses:

Question 1:    As a landlord, do you anticipate making changes in light of the new tenancy flexibilities being proposed? If so, how would you expect to use these flexibilities? What sort of outcomes would you hope to achieve?

Response:     The members welcomed the proposed flexibilities that fixed term tenancies appeared to present, and that it would be discretionary for landlords to decide whether or not to introduce them.

It was felt that tenants should be consulted before any decision was made. However the Panel felt that fixed term tenancies should be introduced for some groups at some stage.

Members suggested that fixed term tenancies of 2 years would be too short, it was likely that the minimum period the District Council would use would be 5 years.

The District Council hoped to achieve the following outcomes:

• A higher turnover of Council accommodation
• Better use of Council housing stock
• More applicants being housed
• Tenants no longer in need of Council housing making way for those in current housing need

There was concern that for many people the “affordable rents” would, in fact, be unaffordable, especially if they were set at 80% of market rents.

Question 2:    When, as a landlord, might you begin to introduce changes?

Response:     The District Council would wish to consult all its tenants on the proposed approach taken. The Council would require 9 months for implementation.

Question 3:    As a local authority, how would you expect to develop and publish a local strategic policy on tenancies? What costs would you expect to incur?

Response:     It was the Council’s intention to develop the proposed required local strategic policy on tenancies in close liaison with both the Council’s five Preferred Housing Association Partners, other housing associations and the Tenants and Leaseholders Federation.

The draft policy would be considered by the Housing Scrutiny Panel, with final adoption by the Cabinet and possibly the Full Council. Other details would need attention such as a new leaflet for all housing applicants. The cost of this exercise  ...  view the full minutes text for item 40.

1.         A key component of the Council’s Repairs Refresh Programme – the strategy to further improve the Council’s Housing Repairs Service – is the appointment of a private contractor to manage the Housing Repairs Service.

2.         The approach taken to this issue is very innovative and unique, and is seen as a low risk approach for both the Council and contractor, since the Council’s repairs staff will remain with the Council.

3.         Following the formulation of a bespoke specification and Invitation to Tender by the Council’s consultants, which was signed off by the Housing Repairs Advisory Group, tenders were invited on the 26^th November 2010, with a closing date of 17^th January 2011.  The anticipated commencement date for the contract is the 2^nd May 2011.  The contract period is for 3 years, with the possibility of two extensions of 3 years each.  Potentially, the contractor could be appointed for 9 years.

4.         The Pricing Framework for the contract has three components:

·         Contract Management      For the provision of an on-site Repairs Manager and back office support (e.g. IT, procurement etc) to run and improve the Repairs Service on a day-to-day basis

·         Key Deliverables   For the implementation of specific projects, including: the introduction of a full appointments system for all repairs; the provision of an improved supply chain; and the implementation of a new IT system, that allows mobile working for tradesmen

·         Incentivised Payments      Received by the contractor if they achieve all 5 Key Indicators in a quarter.  All the indicators are much more challenging than current targets and performance.

5.         Once tenders have been received, an Assessment Centre will be undertaken to assess each contractor’s proposals.  The final appointment will be made on a combination of price and quality, in accordance with a detailed Evaluation Methodology that has been developed.

 6.        The Housing Portfolio Holder, who chairs the Repairs Advisory Group which is overseeing the appointment, has suggested that the Housing Scrutiny Panel may like to receive a presentation from the Assistant Director of Housing (Property) at its next meeting in March 2010, on the main elements of the new contract.  Since the contractor should have been selected by the date of the next meeting (even if the contract has not been signed), it is hoped that a representative from the contractor will also be able to explain how they intend to take the appointment forward.

7.         The Scrutiny Panel is asked to consider whether or not it would like to receive a presentation at its next meeting.  If this is agreed, it is suggested that all Members of Council are invited to the presentation, as well as all members of the Tenants and Leaseholders Federation.

The Panel was advised that the Council intended to appoint a Private Repairs Management Contractor. This was a key component of the Council’s Repairs Refresh Programme, the strategy to further improve the Council’s Housing Repairs Service.

Following the formulation of a bespoke specification and Invitation to Tender by the Council’s consultants, which was signed off by the Housing Repairs Advisory Group, tenders had been invited. The anticipated commencement date for the contract was the 2 May 2011. The contract period was for 3 years, with the possibility of two extensions of three years each.

The Pricing Framework for the contract had three components:

• Contract Management – for the provision of an on-site Repairs Manager and back office support, to run and improve the repairs Service on a day-to-day basis;
• Key Deliverables – for the implementation of specific projects, including the introduction of a full appointments system for al repairs, the provision of an improved supply chain, and the implementation of a new IT system that allowed mobile working for tradesmen; and
• Incentivised Payments – received by the contractor if all 5 Key Indicators were achieved in a quarter.

Assessment would be undertaken on each contractor’s proposals. The final appointment would be made on a combination of price and quality.

The Housing Portfolio Holder, who chaired the Repairs Advisory Group which was overseeing the appointment, had suggested that the Panel should receive a presentation from the Assistant Director of Housing (Property) at its next meeting in March 2011, on the main elements of the new contract. The Members agreed that they receive a presentation.

RESOLVED:

That the Panel receive a presentation regarding the Appointment of Private Repairs Management Contractor.

To consider which reports are ready to be submitted to the Overview and Scrutiny Committee at its next meeting.

There were no reports to be forwarded to the next meeting of the Overview and Scrutiny Committee.

To consider the forward programme of meeting dates for the Panel. The next scheduled meeting of the Panel is on 27 January 2011 at 5.30p.m. and then on:

24 March 2011

The next Panel meeting was on 27 January 2011.