Report Planning, Housing and Environment Services Committee 13 May 200r PRIVATE SECTOR HOUSING GRANTS: UPDATE ON FUNDING

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1 Report Planning, Housing and Environment Services Committee 13 May 200r PRIVATE SECTOR HOUSING GRANTS: UPDATE ON FUNDING 1. Reason for Report To provide Members with information on the current Housing Grant Scheme and to inform Members of the changes to the funding and monitoring of Private Sector Housing Grants Scheme. 2. Report Summary This Report outlines the existing Housing Grant Scheme (Appendix I), and the change to the payment and monitoring of Private Sector Housing Grant 3. Glossary of Terms PSHG: Private Sector Housing Grant PSHGS: Private Sector Housing Grants Scheme BTS: Below Tolerable Standard 4. Recommendations Members are asked to note: 4.1 the changes that the Scottish Government is making regarding the funding and monitoring of the Private Sector Housing Grants Scheme; and 4.2 that the current Private Sector Housing Grants Scheme will be reviewed and amended in the light of the new provisions of the Housing (Scotland) Act Corporate Plan Links and Contribution The issue of grants for the improvement and repair of the private sector housing contributes particularly to the Councils Safer and Stronger and Healthier Communities theme in the Corporate Plan, through improving standards of private sector housing and providing aids and adaptations to meet the needs of disabled persons. The delivery of PSHG is a key element of the Local Housing Strategy in relation to the key theme of Quality Housing for All. The resultant investment in local housing stock also generates economic activity in the region thus contributing to the Wealthier and Fairer theme in terms of supporting economic regeneration. 6. ResourcesNalue for Money Assessment The existing grants scheme improves the standard of the private sector housing stock by providing financial assistance for certain works of repair and improvement. 7. Risk Assessment 7.1 The PSHG of f 2.2M for 2008/2009 includes f 125,000 for Care & Repair revenue funding. After administratiodstaffing costs (approx f200k) have been deducted, there is an available balance off 1,875,000 to fund both mandatory and discretionary grants. This is a fixed allocation and as there is still no indication of funding for 2009/10 it means that there is a need to control spending more than ever. Dumfries 5 sa Uo w y C O U N C I L

2 Report Planning, Housing and Environment Services Committee 13 May Note, a commitment accounting system used to monitor the spend on PSHG s, already indicates a figure of f 1.5M for those applications approved and committed for the current financial year. 8. Authorities and Legal Implications The Housing Acts: 1987; 2001; and Detail statutory provisions for the delivery of PSHG and of the statutory requirement to develop and implement a Local Housing Strategy. The Housing Act 2006 includes provisions for Scheme of Assistance and associated statutory changes. 9. Consultations The Acting Director of Finance, Group Manager Sustainable Development, Group Manager Economic Regeneration, Service Director Social Work and Community Services, Chief Internal Auditor, Operations Manager Accountancy and Operations Manager Housing have been consulted and are in agreement with the terms of this report. 10. Background Existing System 10.1 Under the Housing (Scotland) Act 1987 the Council has a responsibility to provide financial assistance to individuals in respect of improvements to housing. The provision of grants for private sector housing improvements has been a long established function of local authorities. It is particularly associated with the modernisation and rehabilitation of older or lower grade housing stock through essential improvements such as inside bathrooms (for the first time), damp-proof courses etc Grants fall into two categories, Improvement Grants and Repair Grants. Within each category there is a mandatory and discretionary element. A summary for each category follows: Mandatory Improvement Grant - local authorities are obliged to make an improvement grant where an application relates exclusively to the provision of standard amenities or to the provision of those facilities for a disabled occupant; Discretionary Improvement Grant - local authorities have broad discretion to approve or refuse applications for these grants that relate to other improvement and repair works; 0 Mandatory Repair Grant - if a repair notice has been served under Section 108 of the above Act, it is the duty of the local authority to approve an application for a repairs grant in so far as it relates to the works required by the notice to be executed; and Discretionary Repairs Grant - in all other cases the local authority has I discretion to approve or not to approve an application for repair grants. For example defective roughcast, rotten windows and defective roof coverings Appendix 1 details the existing PSHGS as presented to the Planning, Housing and Environment Services Committee on the 10 July Key Issues 11.I Funding of these grants is provided by the Scottish Government. The allocation for the current financial year 2008/2009 is f2.2m plus a one off additional award of f0.588m in 2007/08 which can be carried fonnrard.

3 Report Planning, Housing and Environment Services Committee 11.2 As this figure is slightly less than that expected for the current financial year, and as there is no indication of the level of funding for the 2009/10 period, there are no changes planned to the existing scheme and qualifying criteria. (Appendix I) A Care & Repair service in Dumfries and Galloway is provided by Loreburn Housing Association and helps target both older owner occupiers and people with disabilities or other special needs. The service offers to provide the client with a one point of contact who can lead them through what can often be a very complex and stressful period. Care and Repair work closely with the Private Sector Housing Grants Scheme and have been funded via the Council from Communities Scotland Care & Repair revenue funding (f 0.125M) was previously ring fenced by Communities Scotland. This ring fencing has now been removed, and their revenue funding will be allocated from the f2.2m referred to above The current PSHG allocation of f2.2m (referred to above) was given by the Scottish Government based on the Scottish Ministers desire to achieve certain objectives. The offer of grant is made to enable the council to: 0 Provide support to help people live more independently with assistance to an aging population and people with disabilities; and Prepare for implementation of the Housing (Scotland) Act 2006 and its Scheme of Assistance Communities Scotland (former providers of the PSHG) in a letter dated 21 December 2007 notified Local Authorities of a change in funding. Payment of PSHG would fundamentally change from a system of payment in arrears, to one of automatic stage payments. This change reflects more closely how funding will be paid to authorities from 201 0/11 onwards once ring-fencing around PSHG is removed and funding is rolled-up into the general local government settlement Communities Scotland also advised: From 2008/09, we propose to cease the carry-forward system as it will no longer be needed. This is because of three factors: 0 we will aim to announce two year allocations early in the new year, following discussions with COSLA, so authorities will be able to plan activities over more than one year - it will be for authorities to decide how much to commit in advance; authorities will be paid their allocations in full each year with no risk of losing unspent allocations; and 0 authorities will be able to carry forward actual resources from one year to the next (at least up to 2009/10), to help pay for commitment made in that year, reducing the need to be able to commit future years budgets. 0 Close monitoring of authorities PSHG spending will continue by way of quarterly and end of year returns One of the most useful effects of this change is that it leaves authorities free to retain any unspent portion of their allocation for subsequent spending for the purposes for which the allocation was made. This measure will increase flexibility for local authorities, and reduce bureaucracy for both central and local government. 13 May 2C-- 3

4 Report Planning, Housing and Environment Services Committee 13 May However in their recent letter dated 27 March 2008 the Scottish Government did not indicate what the level of funding would be for 2009/10, merely stating that this would be advised of at a later date. 11.I 0 A Scottish Government consultation document has just been received ( April 2008) titled The Housing (Scotland) Act 2006: Consultation on Draft Guidance and Regulations. The Local authority will be responding formally to this consultation. 11.I 1 The guidance has been long awaited and is intended to help local authorities to work effectively with their new powers and duties. Because of the complexity and breadth of these powers the draft guidance has been published in six separate volumes, namely: e Preparing and Delivering; e Housing Renewal Areas and Repair, Improvement and Demolition; e Maintenance; e Tolerable Standard; e Scheme of Assistance; and e Proposals for a National Trusted Trader Framework. 11.I 2 The outcome of the consultation on the Draft Guidance will inevitably impact on the way the PSHG funding is allocated and on the Environmental Standards Operation Plan and its links to the Local Housing Strategy. This will not be known until August 2008 at the earliest. The Council will need to review the current scheme in the light of the new statutory duties and associated guidance It is expected that the PSHG allocation for the period 2009/10 will be known by then and members will be informed of both outcomes in a further report to Committee shortly thereafter. Martin Taylor - Report Author Housing and Safety Services Manager Environmental Standards Tel: Date of Report: 2 May 2008 David A Grant Operations Manager Environment Standards County House Dumfries DGI IAE I File Ref: mtra9cm APPEDNICES - 1

5 APPENDIX 1 APPENDIX 1 Existing Housing Grants Scheme The existing grants scheme, as agreed by Members at the meeting held on 11 April 2006 and amendment reported to the meeting on 10 July 2007 is outlined below: Subject to budget limits, only mandatory grants will be considered, these include; provision of a standard amenity to meet the needs of a disabled occupant, not withstanding that the house presently has all standard amenities, along with all appropriate hot and cold water supplies; 0 provision of an amenity where a house does not have the minimum required, along with all appropriate hot and cold water supplies; where a house fails to meet the tolerable standard; where a house is considered to be in serious disrepair, or is in need of repair and is likely to deteriorate rapidly, or to cause material damage to another house, if no action is taken; and replacement of lead water supply pipes where the water contains lead above the current specified limit on the running sample. This grant would be issued without consideration to the present condition of the property. These proposals specifically exclude grants to the following: 0 unoccupied properties, i.e. derelict or has been empty for at least 6 months prior to application; and 0 landlord or estate owned properties, with the exception of mandatory obligations. The issuing of Repair Notices and Improvement Orders is only be carried out where a house is in serious disrepair or is in need of repair and is likely to deteriorate rapidly, or to cause material damage to another house, if no action is taken or falls below the Tolerable Standard (BTS). A full and detailed report is required from the case officer along with supporting documentation; this will include photographic evidence and any available professional surveyors or structural engineer s reports. A joint inspection with a senior officer may also be necessary. Applicants for grant assistance are all financially assessed in accordance with The Housing Grants (Assessment of Contributions) (Scotland) Regulations 2003, The Housing Grants (Assessment of Contributions) (Scotland) Regulations 2004 and The Housing Grants (Assessment of Contributions) (Scotland) Regulations 2005, and also subject to The Housing Grants (Minimum Percentage Grant) (Scotland) Regulations The following is the revised scale of rates, which also includes amendments to one of the previously agreed rates, i.e. the installation of a shower tray. The list now includes allowances for discretionary roofing grants that it is proposed to include. The rates are the maximum that will be allowed and they will be reduced, if necessary, to reflect the amount or value of work being carried out.

6 APPENDIX 1 APPENDIX 1 Installation of an over bath shower Installation of a shower tray* Level access or wet floor shower W.C. Wash basin Kitchen sink Professional fees Shower toilet - Clos-o-Mat or similar Height adjustable bath - Astor Bannerman or similar Combination shower and toilet enclosure Professional fees Tile covered roofs Re-tile one elevation - deemed to be front or rear** Complete roof replacement Slate covered roofs Repairs - removehe-bed skew stones, replace chimney flashings etc. Re-slate one elevation - deemed to be front or rear** Complete roof replacement Flat roofs Below 5 sq metres 5 to 10 sq metres 10 to sq metres to 20 sq metres 20 to 30 sq metres Above 30 sq metres Associated works up to a maximum of 25% of the approved expe nse. Up to a max. of f 2,500 f 5,000 f 2, 000 f 4,000 f 1,000 f 6,000 f 300 f 500 f 750 f 1,000 f 1,250 f 2,000 *Revised from f 1,000 **This is based on a traditional style property with 2 elevations, properties with more elaborate roof constructions should be dealt with as per a traditional style property, as described, and have the front and rear split accordingly. The proposed and revised rates are not expected to cover the full cost of the work that the applicant may want to carry out but to assist them in completing the work that is necessary to meet their needs or the terms of the grant. For a roof to qualify for grant assistance there will need to be signs of serious water penetration over a substantial part of an elevation to warrant grant assistance. This would need to affect at least 30% of the area of an elevation and for a whole roof allowance; both elevations would be similarly affected. In cases where the cost of the necessary work is above the agreed rates and the applicant will suffer undue financial hardship in completing the necessary work an approach can be made to the Operations Manager, Environmental

7 APPENDIX 1 APPENDIX I Standards, for his consent to increase the approved expense up to the limit of f 10,000. It is also proposed to include discretionary improvement grants to assist eligible applicants in ensuring that their home meets the Tolerable Standard. The applicants, any joint owners and landlords, where applicable, are all subject to financial assessment in accordance with the current legislation. The maximum approved expense is f 10,000 and any cases above this limit that are deemed to be an exception will be presented to Members for their consideration as per their meeting of 12 September The maximum allowed approved expense was reduced from f20,000 to f 10,000 at the meeting held on 11 April 2006 and any cases above this limit would be treated as an exception case and a report would be submitted to the Committee Chair and Group Manager, Planning and Environment Service for their decision. At the meeting held on 12 September 2006 this decision was changed and it was agreed by Members that any exception case would now be submitted to the Planning, Housing and Environment Services Committee for their decision.