Business Plan Improving homes, enhancing communities

Transcription

1 Business Plan Improving homes, enhancing communities

2 March 2015 Contents Foreword by Chairperson Executive Summary Background to Linstone Housing Association Purpose of the Plan Feedback from Previous Plan Vision, Mission and Aims Strategic Direction and 3 Year Strategic Objectives Business Objectives Housing Stock Plans Risk Management Financial Plans and Resources Other Resources Monitoring Appendices A) Key Facts and Figures B) Management Committee C) Management Team D) Organisational Staff Structure E) Environmental Analysis (SWOT) F) Current Pressure Points (PESTLE) G) Risk Register H) Budget 2015/16 I) 5 Year Financial Projections J) Financial Assumptions K) Sensitivities L) Key Performance Indicator Report

3 Foreword by Chairperson, Nanette J Reid BEM The last three years have been some of the most positive in Linstone s history. With significant investment in our homes, continued improvements in our performance, an increased profile within the community and beyond and a new purpose built office it has been an exciting time for the organisation. We have been in operation for over 17 years and we have never been in a stronger position, both financially and organisationally. Each year brings new challenges and opportunities and this new Business Plan for the next three years from 2015 until 2018 identifies a range of activities the association will undertake to ensure that we are able to provide the best service to our customers. Our previous Business Plan for the period gave Linstone some challenging objectives which have generally been delivered successfully. Some of the main highlights for Linstone over the last three years include: Implementation of a large scale insulation programme with our partners Eon and Renfrewshire Council Successfully moving to our new purpose built and wholly owned office in the regenerated Linwood Town Centre Completed a full refurbishment of 16 homes within Brown Street which were previously derelict Attaining lottery funding to deliver an innovative support project (Connect4Renfrewshire) working with partners including RAMH, Renfrewshire Credit Union and Renfrewshire Council. Introduced a range of enhanced communication tools including a revised website, text messaging, complaints and customer satisfaction. Continued improvement across all performance measures with notable decreases in rent and factoring arrears and improved repairs performance Strong governance and financial management frameworks which has given us the best platform to deliver our objectives. So what does the next three years bring. We remain in the midst of uncertain times with the Smith Commission, Welfare Reform and ongoing political change (both locally and nationally) and this will impact on how we operate going forward.

4 Some of the main activities for Linstone going forward include: Continuation of the ECO programme and identification of additional requirements to meet the 2020 EESSH target Implementation of Universal Credit within Renfrewshire scheduled for June 2015 Enhancing our customer satisfaction and engagement methods Explore options for increased partnership working with a range of external organisations, including FLAIR Examining the creation of a social enterprise to in house services Continued performance improvements including reducing the number of our empty properties and debt owed to the association These are only a selection of the objectives for the coming years and as the world around us changes there will be other challenges and opportunities which arise. Our principle aims for the next three years is to continue to enhance the services provided to our customers, invest heavily in our homes and communities and explore ways of making our services more efficient to ensure the income we receive is reinvested in our communities. We will also continue to build on the strength of existing and new partnerships with FLAIR, the Local Authority, third sector organisations, external agencies and contractors to drive through the innovation and opportunities to deliver our goals in helping to strengthen communities. The following plan sets out Linstone s future objectives for the next three years which has been developed through consultation with residents, staff, external partners and the Management Committee. Nanette J Reid BEM Chairperson

5 Executive Summary In this three year plan we set out our vision of building upon what we have already achieved. The last three years have seen considerable change for Linstone and our future aims include continued investment in our homes and communities combined with growth and diversification within the organisation, where it proves beneficial to all parties. Over the longer-term we see Linstone continuing to operate as an independent locally based association providing high quality affordable rented housing, excellent factoring services and a range of services which support the wider community. Linstone has now been in operation for seventeen years following a stock transfer from Scottish Homes. During this time we have delivered significant achievements despite the restrictions of being a debt funded association which provides limitations on the income we have available to meet our aspirations. To this end we have developed a new three year business plan which focuses on looking both inwardly and externally at the services we deliver, to ensure the following is achieved: Our customers needs and aspirations are at the heart of what we deliver Every service is delivered in a high performing and efficient manner which focuses on ensuring value for money We actively encourage and seek out opportunities to work in partnership with the community and relevant stakeholders Our staff and management committee have the skills, motivation, knowledge and vision required to move the association forward. This business plan outlines what we hope to achieve over the next three years, a review of the current environment in which we operate and the resources required to deliver our objectives. Our vision is: Improving homes, enhancing communities From this vision we have identified 5 Strategic Objectives: Provide excellent homes and communities by implementing our asset management strategy Continuously improve our services to our tenants and customers by providing services that meets their needs and priorities. Ensure good governance, effective financial management and regulatory compliance.

6 Value our staff and Governing Body through training, education, coaching and leadership Develop and sustain effective partnerships which maximise the benefits to Linstone and our communities. The financial plans and sensitivity testing carried out by the Association will ensure that we have sufficient resources available to meet our obligations and ambitions regarding tenants needs and expectations, legislative requirements, and the scope to make significant progress to help build more sustainable communities. The work Linstone has carried out in the last five years to ensure we are financially sound means that we are able to ensure that any rental increases take account of both the affordability for our tenants and the needs of Linstone to deliver high quality services and investment in our homes. Our main priorities over the next three years are: To invest over 10m (including ECO / HEEPS and other funding sources) in improving, maintaining and repairing our homes and estates. Provide a range of opportunities for effective resident involvement including governance, satisfaction, scrutiny, participation and communication To achieve value for money and efficiencies in all our activities including investigating in-house services and partnerships with relevant organisations To develop and implement high quality performance, benchmarking and risk management processes Enhancing our activities through the use of technology Seek out external recognition and validation where it furthers Linstone s aims Ensure that the association and our tenants are not significantly adversely affected by the introduction of Universal Credit. Deliver projects which enhance the communities in which we operate including Connect4Renfrewshire, Belmar Court etc Detailed information on the objectives for this period can be found later in this Business Plan. The Association will formally review progress against objectives on an annual basis, including identifying achievements and any barriers to success, exploring new issues may have arisen and identifying any opportunities for the following year. This will ensure that the business plan remains a live document which is constantly reviewed and updated.

7 Background Information Linstone Housing Association Limited was set up in 1998 as a Charitable Housing Association to purchase most of the former Scottish Homes stock in Renfrewshire. We employ around 45 staff, managing just fewer than 1,600 properties. These staff provide also provide factoring and estate management services to a further 2,300 owner occupiers, as well as care and estate caretaking services. Key facts and figures about Linstone are contained in Appendix A. Housing and Income Management Linstone delivers a comprehensive housing management service to just less than 1,600 tenants. These services include:- Keeping a waiting list of people applying for rehousing and letting empty properties Managing the estates, i.e. enforcing tenancy conditions, dealing with neighbour disputes, keeping the estates well maintained Tenant participation through encouraging tenants and residents to become involved in the management of their homes and areas. Provision of tenancy support to new and existing tenants Rent and factoring arrears recovery combined with the provision of support services including welfare rights Factoring Services Linstone delivers a factoring service to approximately 500 owner occupiers who live in properties with common areas. Twice yearly, owners are billed for common repairs, caretaking services, landscape maintenance and insurance. In addition there are over 1,800 owner occupiers who receive an estate management service i.e. maintenance of common landscaped areas. The costs of this service are recharged on an annual basis. Housing Support Linstone has a dedicated housing support team involved in delivering Sheltered Housing Support Services to elderly people living in three sheltered schemes. The Association is registered with the Care Inspectorate and Supporting People teams. In addition the association has a Very Sheltered housing scheme where support services are provided by Renfrewshire Council.

8 Estate Services Linstone provides a range of estate services provided either by our in-house estates team or sub-contracted to private companies. These services include close cleaning, minor repairs, special uplifts and painterwork. Repairs and Improvements Linstone delivers a day to day repairs service from its offices in Linwood to all our tenants and common areas. In addition, we carry out planned and cyclical maintenance programmes such as external wall insulation, rewiring, fitting central heating systems, painting and servicing contracts. The Association has a longterm 30-year plan for the maintenance of its properties where each aspect of the building is assessed to determine how long it will be before it needs to be replaced. The association aims to ensure its stock reaches the Energy Efficiency in Scottish Social Housing (EESSH) standard by 2020 and has a Delivery Plan in place to achieve this. Corporate Services The organisation is also supported by a Corporate Services Team that provides services to both our internal and external customers. This includes ICT, Marketing and PR, Health and Safety, Human Resources, Wider Role and Customer Satisfaction. This team also includes a Finance Team, which ensures the association is properly managed in terms of finance including the production of management accounts, financial monitoring information and internal financial processing. Membership Linstone is a registered charity and Friendly Society. Membership is open to anyone over the age of eighteen (or sixteen in the case of Linstone tenants) following payment of 1 for a share in the association. As at the 31 st March 2014 the Association had 165 members and we remain committed to encouraging interested persons to become members of the Association.

9 Governing Body The formal control and strategic management of the Association rests with the Governing Body (or sometimes known as the Management Committee). Their role and responsibilities are set out in the Association s Rules and Standing Orders. All committee members receive thorough and detailed training on governance and other relevant matters on a regular basis. They sign up to our Code of Conduct on an annual basis. We currently have 14 committee members comprising of community representatives, professional representatives, tenants and a Council representative. Appendix B lists the current Committee membership of the Association and a brief summary of background and experience. The Committee Structure consists of the following:- Management Committee This meets every six weeks to consider corporate strategy, policies, and membership applications and oversee the operation of sub committees. Finance and Income Sub Committee This sub committee meets quarterly months to discuss internal audit reports, quarterly management accounts, financial policy and income management. Housing and Property Services Sub Committee This sub committee meets bi-monthly to receive performance information on housing and property services issues, agree housing policies and approve the planned and cyclical programmes. Health and Safety Sub-Committee This sub committee meets six monthly to review compliance with Health and Safety requirements. In addition, the Association holds ad-hoc Working Group or Sub-Committee Meetings to deal with specific tasks or projects.

10 The Association s Staff As at 1 st February 2015 we employ 48 people (44.5 full time equivalents). This includes 2 housing support staff within our Sheltered Housing Service and 5 estate based staff Also included in this total is 3 Welfare Rights staff who operate across FLAIR and are funded by the four participating housing associations. A number of the posts are funded posts either through Renfrewshire Council, Big Lottery or FLAIR and these account for approx. 6.5 FTE posts. Responsibility for each department rests with a Management Team member and a brief summary of their skills and experience is included as Appendix C. An organisational chart is included as Appendix D. FLAIR The Association is also constitutionally affiliated to FLAIR (Federation of Local Associations in Renfrewshire).This is a group of 5 RSL s within Renfrewshire and East Renfrewshire who meet regularly to share ideas, staff resources, lobby collectively, attend working groups, apply for joint funding, etc. IFLAIR I FLAIR is an extension to the above with the Associations in Inverclyde (Oak Tree, Cloch and Arklet in East Renfrewshire).The purpose of IFLAIR is to jointly procure planned and cyclical works for the period A Framework Document was signed in January 2012 committing jointly 34M value of work in the areas such as gas safety, painterwork, landscape maintenance, kitchen replacement and installation of gas heating.

11 Purpose of the Business Plan The Business Plan is the core document setting out the Association s plans and strategies for the next 3 years, setting out our strategic aims and priorities. The plan: Defines the overall Strategic Objectives of the Association Defines the short and medium term Business / Departmental objectives which will deliver the strategy Defines the overall financial position and plans including our annual budgetary and medium term financial requirements of delivering these aims Identifies key potential risks to Linstone and how these will be managed. Is the mechanism which ensures an efficient and effective planning process and identifies the actions required for the day to day running of the association Is a working document to allow management committee and management team to monitor progress against objectives and review priorities. Progress reports on objectives will be made on a quarterly basis. We will review this plan annually and develop our next 3 year plan by March 2018 We have developed this Business Plan in consultation with our key partners and stakeholders including tenants, residents, staff, Renfrewshire Council, Scottish Housing Regulator, the Scottish Government (Housing Investment Division) and our lenders to ensure that the Plan is focussed on real issues, realistic and achievable. Our consultation has included: Consultation took place with the Management Committee at a facilitated session to seek their views on the future direction of the association before production of a draft for further comment. Newsletter and website articles outlining the production of a new draft plan with the plan included on our website for comment Management Team has considered the future challenges and opportunities facing Linstone and identified a number of key issues requiring further action. A consultation session was held with the full staff team at an away day giving them the opportunity to feed their views into the future priorities of the Association. Meeting held with our Consultation Group which includes office bearers of a number of our RTO s and other interested community representatives.

12 Linstone recognises the importance of partnership working in achieving our aims. As member of FLAIR (Federation of Local Associations in Renfrewshire) staff from all departments hold regular meetings and work collectively on a range of topics. Similarly we work in partnership with the Renfrewshire Council and the Scottish Government in developing common objectives, funding requirements, area wide strategies and policy development. This partnership dialogue is generally for specific areas of activity, for example, Local Housing Strategy, Joint Procurement, Development activities, Housing Management Activities, Community Planning and Wider Role. These discussions and partnership approach ensure that the association is aware of our partner s future direction on the relevant topics. We hold regular liaison meetings with Renfrewshire Council on a range of issues, including the Housing Providers Forum and Local Housing Strategy working groups. We input our views on key local authority documents relating to community and housing planning. A draft of this plan was circulated to the Scottish Government, Renfrewshire Council and FLAIR for comments, which were then incorporated into the final plan. A consultation draft of the plan was also sent to our lender, Nationwide Building Society, for comment. Linstone liaises on an ongoing basis with the Nationwide to ensure that our lender is aware of our plans and that we are meeting all the obligations within the terms of our current loan agreement. To ensure our Business Plan is relevant and robust, we have carried out an updated environmental analysis with staff and Management Committee at various consultation sessions. This involved an updated assessment of the Association s Strengths, Weaknesses, Opportunities and Threats (SWOT) and also an analysis of the current pressure points through a PESTLE analysis. The information gathered from the SWOT and PESTLE analysis is contained in Appendix E and F.

13 Links to other corporate plans This document links to the main strategies to be followed by the Association and the business plan itself links to a number of our business planning documents: Risk Management Policy including identification of key risks, assessments of potential severity and planned actions to minimise risk. Key Performance Indicators reported to the Management Committee and Sub-Committees on a regular basis Our externally facilitated financial review (April 2011) produced template Five Year and Thirty Year Financial Projections and detailed cash flow predictions. These forecasts have been reviewed and updated in-house on an annual basis. Budget for 2015/2016 and quarterly management accounts detailing the current year s financial assumptions and expected income and expenditure as well as performance against budget. Strategy documents relating to specific activities of the Association e.g. ICT, Wider Role, Tenant Participation, Asset Management, Training & Staff Development Business objectives and individual personal objectives are then developed throughout the association. These are developed through Linstone s staff Performance Review System in line with the objectives contained within this plan. Links to Regulatory Expectations As a social landlord we are regulated by the Scottish Housing Regulator and This Business Plan takes account of their recommended practice produced in 2012 including incorporating each of the seven critical components identified by the regulator which are: Strategic objectives Risk assessment Operational targets Environmental analysis Asset management Financial forecasts Scenario planning The plan aims to ensure delivery of the expectations clearly defined within the Scottish Social Housing Charter.

14 Progress update on Previous Plan The last three years have seen significant progress for the association in a variety of areas. While this plan had a broad range of business objectives at the core of our approach was to ensure that Linstone sought to improve our services, manage our finances, develop our people, work in partnership and enhance our homes and communities. On reviewing progress against the plan it can be identified that generally the strategic objectives have been delivered upon. Improving services we have improved performance across most areas including tenancy sustainment, reduction of debt and void management and continue to look at how customer satisfaction and complaints can inform improved service delivery. Manage our finances we have continued to show prudent financial management and over the period of the plan ensured that we have increased our cash balances from 3.6m to over 4.5m despite significant financial investments during this period in increasing the number of homes in our ownership (20+), ownership of a new purpose built office and external wall insulation to 1100 tenants and residents. Developing our people over the period we have implemented a staff structural review to ensure skills are deployed effectively, an increased number of staff completing further education, enhanced the range of diverse skills within the Management Committee and sought to employ trainees, apprenticeships, those marginalised within the employment market etc wherever possible. Working in Partnership this continues to be evident through the partnership with FLAIR in which we lead on a range of areas and i-flair. Other partnership working through the Connect4Renfrewshire project which brings a range of voluntary agencies together has improved the lives of those residents engaging with the services. Our partnership with Eon and Renfrewshire Council has helped lever in significant funding to improve energy efficiency within homes. Improving our Homes services like the introduction of the Estates Services employed directly by the association, continued investment in the properties (particularly in relation to ECO works), refurbishment of Brown Street etc have helped ensure we have delivered on this strategic objective. The purchase and development of the new office accommodation provides a strong asset to the association The above represents only a selection of the progress made against that last business plan and highlights where some of the key successes were achieved. Generally the association has performed well against all of the key areas of work during the last three years and the intention is to build on this success going forward.

15 Financial Management Using the information contained within the annual accounts produced for the period , the Association has seen continued positive results in almost all key areas. The table below is designed to highlight some of the trends which identify that: Turnover has increased by 16% since March 2010 Interest payable has decreased by 11% since March 2010 due to the continued reduction in interest rates Cash in our bank accounts has increased by almost 4m since 2010, although this is to cover significant expenditure in Management costs have increased by around 20% since 2010 primarily as a result in salary increases and increased pension contributions Reactive repairs expenditure has increased in 2014; however this is primarily due to how costs were allocated in this year an following further analysis reactive repairs costs remain around 20% below the 2010 figure On average the association has invested around 1m per annum on major repairs Current and former rent arrears have demonstrated a 8% decrease since March 2010 Factoring debt has demonstrated a 60% decrease since 2010 Rental income collected year or year remains around 99% TURNOVER 5,398,142 5,530,039 5,775,944 5,991,467 6,460,478 GAIN ON SALES 57, , ,613 INTEREST PAYABLE 388, , , , ,541 INTEREST RECEIVED 9,985 5,478 33,646 62,749 44,748 CASH AT BANK 2,173,560 3,030,758 3,673,561 4,725,894 6,125,626 MANAGEMENT COSTS 1,507,465 1,574,021 1,626,351 1,787,712 1,889,144 REACTIVE REPAIRS 842, , , , ,611 MAJOR REPAIRS 1,340,893 1,192, , ,465 1,647,090 BAD DEBTS 109,851 82,329 58,835 55,607 64,583 ARREARS (RENT) 348, , , , ,569 ARREARS (FACTORING) 1,574 1,572 1,569 1,568 1,566 RENT INCOME COLLECTED 99.10% 99.20% 98.34% 99.2% 102.2% CURRENT FACTORING DEBT , ,355

16 Performance The table below indicates the Association s Key Performance Indicators over the previous three years with actual performance taken directly from completed APSR / ARC returns: Performance Measure Current Rent Arrears 213, , ,491 % of rent that comes from 60.2% 59.1% 58.7% housing benefit Amount of factoring arrears 277, , ,350 Number of houses allocated during the year Average time taken to allocate a 50 days 67 days 51 days property % of tenancies sustained more 85% 85.4% 88.2% than 1 year Number of applicants on housing waiting list % of the total rent collected in 93.8% 99.2% 102.2% the year % of rent lost through empty 2.29% 3.18% 2.5% properties % of properties that received an 100% 100% 99.9% annual gas safety check % of staff sickness absence 7.39% 2.55% 2.7% The QEF report at Appendix L indicates how the Association currently benchmarks performance against 32 other housing associations based primarily on the ARC returns. Due to the complexity in comparing information between landlords, particularly with the introduction of the Annual Return on the Charter and the revised Charter Indicators it is difficult to provide true comparisons at this point in time. Once comparative data emerges in future years this table will be revised to meet current performance reporting mechanisms.

17 Customer Satisfaction In 2014 the association, in partnership with our FLAIR colleagues commissioned Research Resource to carry out an independent customer satisfaction survey of out tenants and residents taking into account the ARC requirements. This survey involved face to face interviews with 668 tenants, 190 factored owners and a postal survey of other owners. This extensive survey asked a range of questions relating to the services provided by the association, their neighborhood, their home and customer service. It is not the intention to highlight all the aspects of this survey and for the purposes of this business plan will only focus on the responses of tenants in relation to the Charter Indicators. While there were a lot of positives contained within the survey it highlighted a range of areas where potential further work should be undertaken. A customer satisfaction action plan has been developed and will be implemented together with areas contained within the ARC, staff feedback and complaints monitoring. Due to the change in methodology it can be challenging to determine why performance has been reported or identified differently from the 2011 survey. Scottish Housing Regulator indicators (Tenants only, with the exception of satisfaction with the factoring service) Renfrewshire Linstone Average 2014 Taking everything into account, how satisfied or dissatisfied are you with the overall service provided by Linstone Housing Association? (% very/ fairly satisfied) How good or poor do you feel Linstone is at keeping you informed about their services and decisions? (%very good/ fairly good) How satisfied or dissatisfied are you with the opportunities given to you to participate in Linstone s decision making process? (% very/ fairly satisfied) 89% 85% 92% 91% 69% 70% Thinking about the LAST time you had repairs carried out, how satisfied or dissatisfied were you with the repairs and maintenance service provided by Linstone? (% very/ fairly satisfied) 76% 74% Overall, how satisfied or dissatisfied are you with the quality of your home? (% very/ fairly satisfied) [IF LIVED IN THEIR PROPERTY FOR LESS THAN 12 MONTHS] Thinking about when you moved in, how satisfied or dissatisfied are you with the standard of your home? (% very/ fairly satisfied) Taking into account the accommodation and services Linstone provides, to what extent do you think that the rent for this property represents good or poor value for money? Is it (% very good value/ fairly good value) Overall, how satisfied or dissatisfied are you with Linstone s management of the neighbourhood you live in? Taking everything into account, how satisfied or dissatisfied are you with the factoring service provided by Linstone? 87% 79% 83% 77% 85% 55% 60% 87% 63% 58%

18 Vision, Mission Statement and Aims Linstone has now chosen to adopt a revised vision statement for the future, which we think encapsulates our main aims: Improving homes, enhancing communities We have also revisited our Mission Statement: Linstone s aim is to continue to be an excellent housing association. We will continue to deliver high quality services to our tenants and customers and provide good quality affordable homes. We will ensure the association s finances are well managed and put to good use to benefit our tenants and communities. The key principles in delivering this mission statement are: To maintain and further develop our effective governance mechanisms to allow the Governing Bodies to fulfill its role in setting the Association s strategic direction and to ensure robust performance monitoring in all aspects of the Association s business. To implement our asset management strategy which informs our future investment in our stock and any plans for development of new housing To further develop our approach to risk, aiming primarily to minimise risk to the organisation, our tenants and customers. To manage our income and expenditure prudently, including ensuring we have a sound understanding of our finances, now and over the next 5 years. To provide a customer first culture where services are delivered that we know meet needs and aspirations. To work in partnership with relevant stakeholders with the aim of delivering benefits to the wider communities in which we operate. To empower our staff and make a suitable policy framework available to allow staff to make effective decisions and to maximise the impact they can make through their work with us. As an ethically sound organisation, to ensure that openness, trust, fairness and transparency are central to everything we do.

19 Strategic Direction and 3 Year Strategic Objectives The strategic direction outlines the general direction the association wishes to take over the next three years and beyond. Over the next three years, we aim to continue along similar lines as the previous three years incrementally building on these successes and examining ways to enhance our services to customers further. We intend to achieve this through continuous improvement in all the services, exploiting opportunities to attain additional funding, major investment in our communities and partnership working where appropriate. Our intention is to continue to invest heavily in our homes with around 5m of our own resources earmarked for major repairs investment over the life of this plan with year one continuing to focus on the ECO programme where we can lever in funding to progress these works. Another central theme is that we look to ensure financial sustainability and manage the association s rent and factoring arrears. This is particularly challenging and presents a serious risk to the association in terms of the potential implications of welfare reform. One of the main priorities for Linstone in the next three years is to enhance the customer experience and ensure that our tenants, residents and service users have the opportunity to both receive services and engage with us in a way which suits them. This will include innovative approaches to communication, increased focus upon customer service and continued support within our communities. We will seek to capitalise on any opportunities which arise for new projects or development which help to meet our overall objectives. Over the longer term, we will aim to work toward reducing the overall level of debt carried by the association and only consider further borrowing for financially sustainable projects. Building on the strategic direction developed for the Association the main three year objectives are: Provide excellent homes and communities by implementing our asset management strategy Continuously improve our services to our tenants and customers by providing services that meets their needs and priorities Ensure good governance, effective financial management and regulatory compliance Value our staff and Governing Body through training, education, coaching and leadership Develop and sustain effective partnerships which maximise the benefits to Linstone and our communities.

20 Specific Business Objectives 2015/16 Business Objectives set out the Association s key objectives for each financial year. These objectives are the specific actions which will assist Linstone in delivering against our higher level three year strategic objectives. Where it defines a lead person for the specific Business Objective this is: CEO Chief Executive Director of Finance and Corporate Services DHPS Director of Housing and Property Services These individuals or team will have overall responsibility for ensuring that the business objective is achieved, although in some instances through the Performance Review process responsibility for the objective may be devolved to another staff member / team. Strategic Objective 1 Asset Management Provide excellent homes and communities by implementing our asset management strategy Action Date 1.1 Develop a strategy which continues to reduce the number of void properties within our stock: - Void loss lower than 2.1% - Days to relet at below 30 days 1.2 Carry out a full assessment of how our properties meet the 2020 EESSH requirements 1.3 Undertake ECO programme phase 2 to over 500 properties 1.4 Implement actions identified from our Health and Safety and Fire Risk Assessment audits in Successfully implement a new reactive repairs contract including enhanced services (repairs appts, communication, customer feedback etc) 1.6 Carry out a review of our flatted accommodation identifying improvements required in terms of lighting, environmental, close cleaning etc DHPS DHPS DHPS DHPS DHPS 31 st August st January st March st October th June th November 2015

21 Strategic Objective 2 Continuous Improvement Continuously improve our services to our tenants and customers by providing services that meets their needs and priorities Action Date 2.1 Develop a clear customer satisfaction and complaints framework which is used to refine services 2.2 Develop a revised performance management framework which meets aspirations and regulatory requirements 2.3 Ensure that Linstone is cited as an exemplar of good practice and seeks award recognition 2.4 Explore opportunities for efficiencies and shared services with other similar organisations 2.5 Exploit opportunities to further promote the Linstone brand including signage for properties, visibility of staff, increased marketing etc 2.6 Develop and implement a social media / on-line communication strategy to ensure widest participation / information available 2.7 Implement a range of Capita software modules which enhances performance including anti-social behavior, tenants on-line, planned maintenance and gas servicing CEO / DHPS 31 st August st July st March st March st March st October st January 2016

22 Strategic Objective 3 Governance and Financial Management Ensure good governance, effective financial management and regulatory compliance Action Date 3.1 Work with FLAIR, Renfrewshire Council and others to mitigate impact of Universal Credit / Welfare Reform 3.2 Deliver a reduction in arrears, both tenanted and factored by 31 st March 2016: - Reduce current non technical debt to 2.75% of net rental income - Reduce factoring debt below 100k 3.3 Develop and implement a more robust risk management framework 3.4 Identify the strengths of existing Management Committee and op-opt where skills are required 3.5 Undertake an externally validated review of our 30 year financial projections 3.6 Carry out a full review of our rent charges seeking to implement from 2016/17 onwards 3.7 Implement a policy review timetable including reviewing and adopting at least 10 policies per year CEO DHPS / CEO 31 st July st March st January th September st August st December st March 2016

23 Strategic Objective 4 People Development Value our staff and Governing Body through training, education, coaching and leadership Action Date 4.1 Enhance the financial understanding and awareness of the Management Committee 4.2 Implement a Tenant Scrutiny Panel DHPS 28 th 4.3 Develop a new performance appraisal process for staff and committee incorporating a training plan 30 th September 2015 February st July Implement any changes identified through mini-structure review and staff questionnaire CEO 31 st October 2015 Strategic Objective 5 Partnership Working Develop and sustain effective partnerships which maximise the benefits to Linstone and our communities. Action Date 5.1 Maintain and improve on relationship with Local Authority CEO 31 st 5.2 Identify and explore opportunities for partnership with others 5.3 Continue to grow and develop the C4R partnership subject to successful funding CEO December st October th November 2015 The above 27 business objectives represent a significant amount of work for the association during the financial year. As this is a plan which sets out our main priorities the timescales, relative priority of some of these objectives may evolve throughout the year. While we recognise that achievement across all of these objectives will be challenging it is anticipated that they are deliverable. In a number of instances work has already commenced, plans are in place and the organisation has a clear understanding of what needs to be achieved.

24 Specific Business Objectives 2016/17 Business Objectives set out the Association s key objectives for each financial year. These objectives are the specific actions which will assist Linstone in delivering against our higher level three year strategic objectives. Where it defines a lead person for the specific Business Objective this is: CEO Chief Executive Director of Finance and Corporate Services DHPS Director of Housing and Property Services These individuals or team will have overall responsibility for ensuring that the business objective is achieved, although in some instances through the Performance Review process responsibility for the objective may be devolved to another staff member / team. On an annual basis the Business Plan is reviewed in detail and the objectives revised to meet changing priorities or landscape. The below areas are provisional objectives currently identified which will be reviewed at the time of the annual Business Plan update to determine their relevance and level of priority together with providing clear action dates. Strategic Objective 1 Asset Management Provide excellent homes and communities by implementing our asset management strategy 1.1 Investigate the feasibility of providing in-house services including estates services / gas maintenance etc 1.2 Develop revised 30 year Life Cycle Costs following completion of Phase 2 of the ECO programme 1.3 Develop a strategy which continues to reduce the number of void properties within our stock: - Void loss lower than 1.8% - Days to relet at below 27 days DHPS DHPS DHPS 1.4 Deliver ECO Phase 3, provided funding in place DHPS 1.5 Investigate the feasibility of providing an in-house reactive repairs service either as Linstone or in partnership with others 1.6 Produce a development strategy for consideration in terms of new build and off the shelf properties 1.7 Carry out a review of our sheltered housing service to ensure efficiency and sustainability DHPS DHPS DHPS

25 Strategic Objective 2 Continuous Improvement Continuously improve our services to our tenants and customers by providing services that meets their needs and priorities 2.1 Implement a document management system which reduces paper / increases efficiency 2.2 Implement a revised factoring service based on good practice internal audit 2.3 Ensure that Linstone is cited as an exemplar of good practice and seeks award recognition 2.4 Identify and implement appropriate external validation, for example Quality Scotland or Investors in people 2.5 Identify opportunities for utilising technology to support committee involvement Strategic Objective 3 Governance and Financial Management Ensure good governance, effective financial management and regulatory compliance 3.1 Carry out a review of all the associations costs to determine any efficiencies which can be achieved 3.2 Deliver a reduction in arrears, both tenanted and factored by 31 st March 2017: - Reduce current non-technical debt to 2.5% of net rental income - Reduce factoring debt below 85k 3.3 Implement a new rent charge regime following rent review assessment DHPS /

26 Strategic Objective 4 People Development Value our staff and Governing Body through training, education, coaching and leadership 4.1 Undertake a cultural audit of the association 4.2 Explore development of a training academy with FLAIR and other potential partners 4.3 Identify opportunities for increasing employability opportunities to various groups of individuals 4.4 Provide recognised qualifications for our estates team Strategic Objective 5 Partnership Working Develop and sustain effective partnerships which maximise the benefits to Linstone and our communities. 5.1 Explore opportunities for closer partnership working with third sector organisations CEO

27 Specific Business Objectives 2017/18 Business objectives set out the Association s key objectives for each financial year. These objectives are the specific actions which will assist Linstone in delivering against our higher level three year strategic objectives. Where it defines a lead person for the specific Business Objective this is: CE Chief Executive F&CSD Director of Finance and Corporate Services H&PSD Director of Housing and Property Services Mgt Team Management Team These individuals or team will have overall responsibility for ensuring that the business objective is achieved, although in some instances through the Performance Review process responsibility for the objective may be devolved to another staff member. On an annual basis the Business Plan is reviewed in detail and the objectives revised to meet changing priorities or landscape. The below areas are provisional objectives currently identified which will be reviewed at the time of the annual Business Plan update to determine their relevance and level of priority. Strategic Objective 1 Asset Management Provide excellent homes and communities by implementing our asset management strategy 1.1 Develop a strategy which continues to reduce the number of void properties within our stock: - Void loss lower than 1.5% - Days to relet at below 23 days 1.2 Develop a business plan and financial model for the implementation of an in-house Gas Service which delivers a range of services to Linstone by 31 st March 2017 DHPS DHPS Strategic Objective 2 Continuous Improvement Continuously improve our services to our tenants and customers by providing services that meets their needs and priorities 2.1 Carry out a full satisfaction survey

28 Strategic Objective 3 Governance and Financial Management Ensure good governance, effective financial management and regulatory compliance 3.1 Deliver a reduction in arrears, both tenanted and factored by 31 st March 2016: - Reduce current non technical debt to 2.0% of net rental income - Reduce factoring debt below 70k Strategic Objective 4 People Development Value our staff and Governing Body through training, education, coaching and leadership 4.1 Following cultural audit implement a range of revisions to organisational practice to meet future direction CEO 4.2 Explore the provision of a governance framework and qualification for all committee members CEO Strategic Objective 5 Partnership Working Develop and sustain effective partnerships which maximise the benefits to Linstone and our communities. 5.1 Explore opportunities with other organisations for the provision of services and organisational growth CEO

29 Housing Stock Plans Investment The Association has invested heavily during the last three years focusing on external insulation to maximise the available supporting funding streams like ECO and HEEPS. In previous years the focus was on bathrooms, kitchens, heating and windows with the external fabric not receiving as much attention. Currently taking account of the investment in our insulation programme which includes renewal of gutters, fascia s and downpipes the Director of Housing and Property Services is developing revised 30 year Life Cycle Costs. It is still assumed that we will look to invest in the region of 50m in planned / major repairs programmes over the next 30 years and bringing forward the insulation works to utilise the available funding means that we should be able to focus on other areas including roofs, door entry and other areas which relate to SHQS and EESSH together with renewal cycles in terms of heating, windows etc. A full programme for the next thirty years is in the process of being developed, which will be revised annually to take account of failing elements within our stock or opportunities which arise to attain funding by bringing forward works. SHQS / EESSH In our 2013/14 Annual Return on the Charter (ARC) submission we projected that all properties, excluding those where we are unable to secure agreement from owners to complete door entry systems, will have met the SHQS. We can demonstrate that we could deliver the SHQS standard for the 2015 deadline with the exception of those works which require owners consent without affecting the Association s financial viability, or deviating from our Investment Programme, agreed previously with our tenants and residents. Our focus for the next three years will be on meeting the 2020 EESSH target and the works we have undertaken in the last few years should assist greatly with this. The Association has been actively carrying out Stock Condition surveys and gathering energy ratings, to assist in providing an up to date and accurate assessment of our stock which will be analysed on a continuous basis. This data is fed into an Access database which is maintained and updated to provide a robust record of our SHQS / EESSH data and activities carried out to meet the Standard.

30 Stock Growth Intentions The Association remains keen to look at potential opportunities to develop where this meets the needs of the communities and the priorities contained within the Local Housing Strategy. While we have various small areas of land available there are no current plans outlined within the Strategic Housing Investment Programme (SHIP) to develop in these areas. The costs involved in building new homes continue to limit the potential for future development; however where opportunities arise we will carry out a full risk appraisal and financial assessment to examine whether this could be in the best interests of Linstone and our tenants. Given the limitations of potential development opportunities the association will continue other options to ensure growth of the organisation and our housing stock. This may include, but not limited to, the various options outlined below. Stock transfer / Group Structures while larger scale stock transfers remain off the agenda within Scotland the opportunities for small scale transfers of properties may arise during the life of the plan. These would primarily be with Renfrewshire Council although this could occur with another housing association provided the right set or circumstances arose. Mortgage to Rent the association purchased a number of properties through this Scottish Government scheme over the last three years. We continue to have a healthy cashflow available to us and we will explore the opportunities to purchase properties within our geographical location which would provide benefits in increasing our stock and retaining ownership of an estate. We are been approached on various occasions recently about buying back properties within our communities on the open market. Typically these are properties that were sold at one point through right to buy and the owner is now looking to sell. We have implemented a policy over the last few years which allows for this occurrence provided certain conditions are met, primarily the financial viability of any purchase. Consideration is also given to the disposal of properties where our interest in the estate or block is relatively limited. When the properties become vacant we may consider selling these on the open market and eliminating our need to manage the block. The proceeds of these sales are ring fenced for the purchase of a property which enhances our portfolio and / or provides a more effective asset management approach. The areas outlined above represent a selection of the opportunities we may explore which would increase the size and scale of the association. Each opportunity will only be considered where tangible benefits to Linstone, our residents or the wider community have been identified. Risk Management