PROPERTY RETURNS: POLICY AND PROCEDURE

Transcription

1 Housing SA Community Partnerships and Growth Community Housing Debenture Program PROPERTY RETURNS: POLICY AND PROCEDURE Version Number: 2 Status: APPROVED October 2013 Property Returns Policy and Procedures 1

2 Document Name Property Returns Policy Division Housing SA Sub Division Community Partnerships and Growth Responsible Officer Jane Fletcher, Manager Policy and Operations Version 2 Status Approved Issued October 2013 Next Review As required CPG CONTACTS Web: Telephone Address communityhousing@sa.gov.au Policy Approval Content Author: Date: Name: Margaret Tamlin Position: Policy Development Officer Delegated Authority: (Director or authorised delegate) Date: Name: Gregg Ryan Position: A/Director, Community Partnerships and Growth Executive: (if required) Date: Name Position Property Returns: Policy and Procedures 2

3 Table of Contents 1 Intent Context Risk Reference Documents and Links Documents Supporting Documents Related Documents and Resources Scope Inclusions Exclusions Definitions Policy Detail Governance Principles Procedure details To inform Community Partnerships about the return of a property To approve the return of a property To return a vacant property to Community Partnerships Preparing a property for return On receipt of the Property Return Form, the Asset Co-ordinator will: To transfer title of a property: Responsibility for costs associated with Property Returns...9 Property Returns: Policy and Procedures 3

4 1 Intent An Association / Co-operative may return a property to Housing SA for a number of reasons including: The property is identified as being surplus to Association / Co-operative requirements (i.e. the property cannot be let, or is in a location that no longer services the needs of the Association / Cooperative); or The property has been identified as a non-performing asset and is no longer viable to retain (refer to the Community Housing Maintenance Policy and Procedures This Policy sets out the steps for an Association/Co-operative to return a property to the South Australian Housing Trust via Community Partnerships and Growth. Property Returns does not include incidences when returning properties through the New Generation Housing Program. 2 Context Legislative / Authority Base The South Australian Co-operative and Community Housing Act (1991) The South Australian Cooperative & Community Housing Regulations (General) Risk Failure to effectively and efficiently manage vacant properties may reduce the number of tenantable properties available for people in need and increase vacancy management costs (e.g. vandalism). 4 Reference Documents and Links 4.1 Documents The South Australian Co-operative & Community Housing Act (1991) The South Australian Co-operative & Community Housing Regulations (General) Supporting Documents Community Housing Property Returns Procedures Community Housing Maintenance Policy and Procedures Community Housing New Generation Housing Program Policy Community Housing Transfer of Property Policy Community Housing Vacant properties Policy Community Housing Regulation Policy 4.3 Related Documents and Resources Community Housing Maintenance Accommodation Standards: Guidelines Property Return Request form Property Returns: Policy and Procedures 4

5 5 Scope 5.1 Inclusions The policy sets out the basis on which the return of vacant properties debentured to Associations/Cooperatives from Community Partnerships is determined. 5.2 Exclusions This policy does not apply to: a) Properties supplied by Community Partnerships to Associations/Co-operatives via programs other than the Debenture program; or b) Transferred properties from one Association/Co-operative to another, (refer Community Housing Transfer Policy); or where related to an amalgamation/merger of two groups; or c) Properties leased through another Housing SA program. 6 Definitions Assets Directorate The directorate within Housing SA which provides a service to all other Housing SA divisions/directorates to ensure that affordable and high need housing outcomes are achieved to meet the objectives and priorities set out in DCSI Housing Business Plan and the Strategic Asset Management Plan. Community Housing Project Management Team (CHPM). The Team within Housing SA s Asset Directorate that is responsible for the project management of constructing and upgrading debentured properties and the associated legal titling requirements for the Community Housing Sector. Community Partnerships & Growth Directorate, Housing SA Referred to in this Policy and Procedures as Community Partnerships; also known as CPG. The Directorate within Housing SA responsible for the development and regulation of all non-government housing in SA, including community housing. Debenture A legal document which acknowledges an Association s/co-operative s debt to Housing SA for the equivalent of the value of each property provided to the Association/Co-operative, plus any Capital Components. Housing Association An organisation that is managed by a board of management that collects rents and manages maintenance etc on behalf of tenants. Associations are similar to traditional housing models where a landlord rents a property to a tenant. Associations are however often managed by groups linked to community based organisations e.g. support services, churches, welfare or charitable organisations. Associations are often established to assist people with specific needs e.g. women escaping domestic violence, people with intellectual disabilities, people on low income etc. Associations may manage properties under a range of housing programs (e.g. including debentured properties, Nation Building Economic Stimulus Plan, National Rental Affordability Scheme, Specialised Housing programs) Housing Co-operative An organisation that is managed for and by its members eg tenants provide property and tenancy management on the Co-operative s properties, and report back to Housing SA, Community Partnerships according to the requirements of the funding agreement. Co-operatives are commonly established by people with specific interests or needs e.g. single parents, aged, people with specific disabilities or people from specific cultural backgrounds. Property Returns: Policy and Procedures 5

6 Housing SA The division within the Department for Communities and Social Inclusion that connects people to all Departmental housing services including those delivered by community agencies. The organisation and oversees the operations of Community Partnerships, the Directorate responsible for regulating Community Housing in South Australia. Rates and taxes Rates and taxes adjustments occur where a property legally changes title eg sale or transfer etc. Rates and taxes may include: Council rates SA Water supply charges Emergency Services Levy Any other rates, charges or taxes which may arise that would normally be charged to the property owner by a government or statutory body. Settlement date The date when the property will legally transfer from one party to another as lodged at the Lands Titles Office. South Australian Housing Trust (SAHT) The South Australian Housing Trust is the legal entity that holds title to Housing SA assets Special resolution A written motion sent to members prior to a General Meeting and considered at the General Meeting of the Association / Co-operative as follows: Co-operatives All members must be sent the motion 14 days before any general meeting to consider the motion; or Associations (if the association s rules specify who members are) All members must be sent the motion 21 days before any general meeting for consideration; or Associations (if the association s rules do not specify who members are) All current members of the Association s committee of management must be sent the motion 21 days before any general meeting to consider the motion. The motion must be included on the meeting agenda, or separately written and provided to all members in advance of the meeting. For a motion to be passed regarding returns, transfers or sales, the motion: o Must be considered by the number of members necessary to form a quorum for the general meeting (as specified in the rules of each Association / Co-operative); and o Where a quorum is present, at least 75% of votes cast are in support of the motion (including proxy votes, where these are allowed). Transfer The transfer of the title of an existing debentured property from one organisation to another. 7 Policy Detail 7.1 Governance Housing SA, Community Partnerships & Growth, (hereafter referred to as Community Partnerships); in consultation with the Housing SA, Asset Services, hereafter referred to as Asset Services considers requests for return of properties in accordance with this policy and is responsible for final approval for all returns. Property Returns: Policy and Procedures 6

7 7.1.2 The South Australian Housing Trust (SAHT) is the legal entity that holds title to Housing SA assets. All legal documentation relating to property returns will reference the SAHT. 7.2 Principles With the written consent of Community Partnerships, Associations and Cooperatives may dispose of properties by: Returning vacant properties to SAHT; or Transferring properties to another Association/Co-operative Properties to be returned should be kept tenanted as long as possible, to minimise vacancy costs and risks (e.g. vandalism), and to maximise use of the property for housing purposes Properties which are returned to Community Partnerships are not replaced unless there are prior arrangements between the Association/Co-operative and Community Partnerships for property exchanges or redevelopments through the New Generation Housing Program The Community Housing Organisation will ensure properties being returned are brought up to a standard consistent with the Community Housing Maintenance Accommodation Standards: Guidelines, or a level of amenity, cleanliness and functionality as determined by Community Partnerships. The house, grounds, fixtures and fittings, and any other standard items provided with the house, will be in good repair and not present a health hazard. 8 Procedure details 8.1 To inform Community Partnerships about the return of a property An authorised Association/Co-operative representative (i.e. an Office Holder) should as early as possible before the property becomes vacant contact the Assets Co-ordinator, Community Partnerships, to discuss: The reasons why the Association / Co-operative wishes to return the property (e.g. surplus to requirements, not viable to maintain/ nonperforming asset The issues which led to this decision (e.g. location, lack of access to services, issues identified through annual maintenance planning process) Anticipated vacancy date (if known). 8.2 To approve the return of a property The Assets Co-ordinator, Community Partnerships will Work with Asset Services, Housing SA to determine: Future intent for the property Condition in which property is to be returned to Housing SA And will contact the Association/Co-operative as soon as practicable with decision whether it can proceed to formally return the property, including information re required condition of the property and yard etc. or the proposal to return is inappropriate and other options need to be considered. Property Returns: Policy and Procedures 7

8 8.3 To return a vacant property to Community Partnerships An Association / Co-operative will: Pass a special resolution agreeing to return the property to Housing SA (See Special Resolutions Fact Sheet) Fill out the Property Return Form Attach the minutes of the meeting at which the Special Resolution was made, and send to the CPG Assets Co-ordinator. 8.4 Preparing a property for return The CHO must ensure: The property is vacant and is of a standard agreed between CPG and the Community Housing Organisation (depending on the Housing SA intention for the property). Final gas and electricity readings Check that the dwelling and yard are free of all tenant s personal effects and rubbish and grass cut prior to handover. 8.5 On receipt of the Property Return Form The Asset Co-ordinator will: Check the minutes of the meeting where special resolution was made by the Association / Cooperative to return the property is attached to the Property Return form Determine if all required information has been provided and is acceptable then liaise as required with the Association /Co-operative to finalise the formal return Meet with a representative of the CHO and check property has been brought to a standard agreed between CPG and the Community Housing Organisation Confirm final gas and electricity readings (provision is included on the Property Return Form to document these arrangements) Check that the dwelling and yard are free of all tenant s personal effects and rubbish and grass cut prior to handover Request for outstanding maintenance work to be completed before the return of the property is accepted, where necessary If the property has not been prepared to the required standard (see attachment 1), negotiate with the Association / Co-operative to ensure the work reaches the required standard for return by: Negotiating with the Association / Co-operative for the work to be done. Organising Housing SA to contract the work on behalf of the Association / Co-operative with any associated costs billed to the Association / Co-operative. The Assets Coordinator will document the agreed scope of work and responsibility for associated costs. The Assets Co-ordinator will make a time for a further inspection and key handover after the Association / Co-operative has confirmed upgrade work has been completed if necessary Will liaise with the CHPM team and advise when the property is ready for return by sending the Property Return form to that unit. Property Returns: Policy and Procedures 8

9 8.6 To transfer title of a property: The Housing SA conveyancer produces the title transfer documents and related paperwork and liaises with the Association / Co-operative regarding this process. Once the Association / Cooperative receives the documents the office bearers must sign and send in the signed forms within 7 days of receipt to avoid delay in transfer of title and settlement Community Partnerships will bear any associated legal costs including: The preparation of Statutory Charge The preparation of Debenture The preparation of Cancellation of Charge Rates and Taxes Search Fees Associations/Co-operatives will not be reimbursed any identified rates and taxes credits (i.e. where rates and taxes have been paid in full by the Association / Co-operative for the year ahead and the return occurs prior to new payments falling due), given that: o o Community Partnerships has borne all legal costs associated with the return. The Association / Co-operative was not required to reimburse Community Partnerships for the rates and taxes which were paid in advance by Community Partnerships when the property was initially provided to the Association / Co-operative The conveyancer will provide a lodgement statement indicating the date of settlement The Association / Co-operative will be fully responsible for the property until the date of settlement. 8.7 Responsibility for costs associated with Property Returns Before any property is handed back, final electricity and gas readings must be arranged and paid for by the Association / Co-operative. Should a Community Housing Organisation confirm on the Property Return Form that the utilities have been finalised, and upon a first or second inspection carried out by Housing SA, it is identified that the final readings have not occurred, Housing SA at their discretion will organise the transfer of title of the property and will invoice the Community Housing Organisation for any outstanding utilities costs incurred by the previous tenant. The Community Housing Organisation is responsible for paying these costs in full. Property Returns: Policy and Procedures 9

10 ATTACHMENT 1 - PROPERTY RETURN VACANCY REQUIREMENTS When returning vacant properties to Community Partnerships, the following property condition standards must be achieved (as a minimum) prior to the acceptance by Community Partnerships: 1. FOR PROPERTIES NOT SPECIFICALLY IDENTIFIED FOR DEMOLITION: Properties being handed back will be brought to a standard agreed between CPG and the Community Housing Organisation, or to a level of amenity, cleanliness and functionality as determined by CPG. The house, grounds, fixtures and fittings, and any other standard items provided with the house will be in good repair and must not present a health hazard. All properties must be returned clean (inside and outside), free of rubbish and with final meter reading completed. Fences must be in reasonable condition, and if necessary, repaired and must not present a health hazard. 2. FOR PROPERTIES IDENTIFIED FOR DEMOLITION: All properties must be returned clean (inside and outside), free of rubbish and with final meter reading completed. Fences must be in reasonable condition, and if necessary, repaired and must not present a health hazard. Property Returns: Policy and Procedures 10