No Use Empty. Partnership Working. By Andrew Lavender. Project Consultant.

Transcription

1 No Use Empty Partnership Working By Andrew Lavender Project Consultant

2 What we set out to achieve No Use Empty (NUE) Launched 2005 to improve the physical environment in four coastal districts of Kent - Dover, Shepway, Swale and Thanet by bringing empty properties back into use. PSA Target number of empties returned and business and residents satisfaction Kent County Council - 5 Million initial pot NUE extended County wide 2009 THREE APPROACHES ADOPTED Interest free loans (loans to sell / rent) Partnership fund (works in default and CPOs) Direct Purchase

3 Informal Advice & Website () Awareness Newsletters, leaflets, mail outs Developed databases for the authority Estate agents / management agents, builders & developers Advice & guidance always first course of action Open day empty property owners in each area Vat implications empty 10 years 0%, more than 2 years 5% Home improvement agency, list of builders etc Advertise their property for sale for free / Auction reduced fees Advice on method of disposal or options if renting Guidance on planning maximise profit etc FOI request, referral service for an interested party. Website One stop resource for empty property owners and practitioners Hotline and web reporting of empties Extensive case studies

4 KCC Interest Free Loan Scheme Loans - 25,000 per unit, maximum of 175,000 per applicant (interest free) Properties must be let or sold on completion (decent homes standard) Loan Period is a maximum 2 or 3 years and we do not offer loans where property will be occupied by applicant (FSA / PR issues). Application fees are charged, ( 450 to 714) including Land Registry Fee. Secured as a financial charge against property (1 st & 2 nd ). Maximum LTV 90%, independent RICS valuation (charged to applicant). 100% of the funding provided up front (staged for larger loans). Provides good working Capital

5 Loan Scheme Investment vs. Leverage Funding By No. of Units % of Units Value NUEI Loan Leverage Total Investment % of Loan % of Leverage % of Total Project Loan Scheme 12 Kent LAs Individuals (<3 units) Developers (> 4 units) % 4,210,040 5,743,309 9,953,349 40% 38% 38% % 6,395,099 9,566,495 15,961,594 60% 62% 62% Total % 10,605,139 15,309,804 25,914, % 100% 100%

6 Loan Scheme Statistics 42,966 - Average renovation cost per unit (often very worst properties) 19,867 - Average KCC loan investment per unit. Average cost per unit 2,500 (interest and management cost) Loan Scheme 4.5M Repayment to date (low default rate) 12% Loan to Sell (2 years) & 88% Loan to Let (3 years) 20% of application forms returned & 97% of them approved 1 spent on interest and administration, this translates to being spent in local economy (labour & materials) created/sustained over 565 jobs

7 Old School House (Loan to Sell)

8 Loan to Rent Derelict Warehouse in Dover NUE Loan 175,000 Developers Contribution 161,000 Total development 336,000 6 x 2 bed apartments 2 x loft apartments high spec - private courtyard, allocated parking, security gates and video entry system

9 NUE & Affordable Housing Loan Scheme NUE Scheme has been be extended to 2017/18 Total Capital Fund - 12 Million over 5 Years Target of a minimum 200 empty homes back into use per year NUE Affordable Homes Project M Capital Funds secured December 2011 (KCC Regeneration Fund) 790,000 confirmed by Homes & Community Agency (HCA) Total 1.79 Million Loan Terms Usual max. loan 30k per unit, maximum loan per applicant 250,000 (flexible) Interest free loans up to 5 years (loans to let) Must be let through Registered Provider (RSL / HA) 5 year lease (18% fee) Affordable rent (80% market rent) Must meet Decent Homes Standard Took a year to receive contract HCA, delivery will be tight

10 Provide funding to facilitate: Partnership Scheme Compulsory Purchase Orders Works in Default (Building Act, Housing Act, Town and Country Planning Act) Empty Dwelling Management Orders Direct Purchase (CPO or otherwise) Supported by Consultant : A floating resource to the district councils Identifying the most appropriate course of action for most difficult properties Providing professional & technical guidance on implementing course of action Working with EPO to encourage other departments engage actively (Corporate Approach to the problem) Training: 890 Officers on a wide range of housing related issues

11 Direct Purchase Looking to acquire key properties to demonstrate benefits of returning empty properties back into use (Key Areas - Cliftonville) Link with the wider regeneration activities Look for opportunities to link with RSL s Link with construction training initiatives.

12 No Use Empty Initiative: Achievements by Approach Compulsory Purchase Orders, Enforced Sales Procedure or Empty Dwelling Management Order CPO ESP Prosecution for non compliance of Notice or undertaking the works in default and using the County Court or Enforced Sales Procedure to recover costs Statutory Notices under a range of legislation. Owner has right of appeal. Works in Default or Prosecution Enforcement (Notices Served on Owner) CPO, EDMO & Enforced Sales 3% After exhausting of voluntary assistance, threat of appropriate enforcement action is raised with owner Threat of Enforcement Threat of or Actual Enforcement 11% Other (Auctioneer, sale of LA land, PSL) 7% Financial Assistance / Other Assistance (Loans, grants, home improvement agency, private sector leasing) Advice and Guidance (Development advice, tax and vat, reduced fees to sell via auctioneer, guidance on extent of works, guidance on planning, raising finance) Grants 3% & Interest Free Loans 18% Advice & Guidance 58%

13 When Negotiations Fail Enforcement Options Councils have a range of powers at their disposal to secure the improvement of properties To deal effectively with the problem takes a corporate approach and using the most appropriate legislation to deal with the problem Cannot secure the occupation of the property, but can make the owner take responsibility for their property Town & Country Planning Act 1990 (Section 215 adverse affecting amenity) Building Act 1984 (Section 77-79, dangerous structures & ruinous and dilapidated) Housing Act 1985 & 2004 (improvement notices, EDMO s, demolition) Environmental Protection Act 1990 (Section 79/80 statutory nuisance) Prevention of Damage by Pests Act 1949 (Section 4 harbourage & treatment of pests) Local Government (Miscellaneous Provisions) Act 1982 (section 29 boarding up) Enforced sales procedure Compulsory purchase orders

14 Section 215: Town & Country Planning Act 1990

15 Section 215: Town & Country Planning Act 1990

16 Section 215: Town & Country Planning Act 1990

17 Section 78/79 Building Act 1984

18 Section 78 & 79 Building Act 1984

19 Turner Street, Margate: Housing Act 2004

20 Turner Turner Street, Margate: Housing Housing Act 2004 Act 2004

21 Empty Dwelling Management Order

22 Empty Dwelling Management Order

23 77 Eastern Esplanade, Margate

24 77 Eastern Esplanade, Margate

25 Warren Court Hotel, Arthur Road, Margate

26 Warren Court Hotel, Arthur Road, Margate Warren Court - Company owned ( 600K) Sec. 79 BA 1984 & Sec. 215 T&CP Act 1990 Compulsory Purchase Order Appealed - voluntary sale Mortgagee ( 116K) KCC provided funding for purchase Town & Country Housing Group HCA funding 1.6 million T&CH funding 1.2 million Thanet DC 318,000 Thanet DC gifted land 8 x 2 bedroom flats and 12 x 3 bed houses All for affordable rent.

27 Former Warren Court Hotel, Dalby Square, Margate

28 Lessons Learnt It takes time to develop a scheme, particularly where there are a number of stakeholders, including developing a legal framework for provision of loans Lack of resources both in terms of personnel and financial was a limiting factor (only 2 LAs had fte Officers) Lack of corporate approach within LAs was a major issue, training of individual officers and corporate training for all department was essential PR and communication is an essential aspect of the work, both locally and nationally. Owners now engage more readily

29 Achievements to date Strong partnership arrangements between KCC and the 12 District Councils Increased output, knowledge, expertise of professional staff and development and sharing of good practice. Extended the Initiative to all Authorities in Kent and gained National Recognition (CIH 2011 & Regeneration and Renewal Awards 2014 (Partnership Working) Returned 3,230 long term empty by March 2014 Reduced No. Empty Kent ,000, ,874 Bristol & West of England Authorities have adopted the No Use Empty model and branding Welsh Government and Scottish Government, introduced similar models

30 Thank you for listening /