HERTSMERE BOROUGH COUNCIL REPORT TO EXECUTIVE
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1 HERTSMERE BOROUGH COUNCIL REPORT TO EXECUTIVE Item no: 7.1 Document Reference no: EX/16/17 Date of Decision: 20 July 2016 This is not a key decision Urgency: The proposals are not exempt from callin on the grounds of urgency CHARGING FOR PROPERTY INSPECTIONS FOR IMMIGRATION CLEARANCE AND FOR HOUSING ACT ENFORCEMENT NOTICES PORTFOLIO HOLDER COUNCILLOR J HEYWOOD 1. ACTION RECOMMENDED 1.1 Agree: i) to charge for enforcement notices under the Housing Act 2004 as set out in Appendix A; ii) to charge for property inspections for immigration clearance as set out in Appendix B. 1.2 Delegate authority to the housing services manager to charge for property inspections for immigration clearance and authorise the issue of charge notices and review representations made by persons who appeal the charge notices. The housing services manager to review and amend charges as necessary. Authorise the chief finance officer to issue certificates where required to show the charge had not been received by a date specified. 2. EXECUTIVE SUMMARY / PROPOSALS 2.1 The surrounding authorities around Hertsmere are using the available legislation to charge for certain services provided. In particular they are charging for property inspections for immigration clearance; which officers are obliged to do to establish if a property is suitable for family members intending to come to the UK from outside of the EU and for the issue of enforcement notices under the Housing Acts. 2.2 The local housing authority is permitted to make reasonable charge for the issuing of enforcement notices under the Housing Acts, this is primarily to recover the expenses of the work involved in the inspection and the enforcement process. The authority can charge for each course of action. Presently this authority does not charge for immigration inspections or enforcement notices. 2.3 The legislation allows local authorities to make a reasonable charge for performing immigration inspections. 1
2 2.4 For charges levied on the issue of enforcement notices the legislation provides for the appropriate national authority to set a maximum charge to be set by local authorities; to date no such maximum has been set. It is therefore a decision for local authorities to decide how much to charge, however authorities are reminded they should charge only the reasonable costs of enforcement, this includes administration, inspections and the serving of notices. 2.5 In deciding whether to exercise their powers to make a charge and the level of any charge, authorities should take into account the personal circumstances of the person or persons against whom the enforcement action is being taken. The degree to which authorities consider personal circumstances is at their discretion, having regard to the resources available to them. 2.6 Any unpaid charges under the Act (Section 49 Housing Act 2004) will be pursued as usual through the powers granted (Section 50 Housing Act 2004). Any sums received by the local authority under the charge may be used for the local authority s housing act enforcement functions. 3. REASON FOR RECOMMENDATION 3.1 To meet the Council s duties under the Housing Acts. 4. ALTERNATIVE OPTIONS 4.1 Continue to perform these tasks without charging. 5. PLANNED TIMETABLE FOR IMPLEMENTATION 5.1 Immediately once approval has been obtained. 6. DELEGATION 6.1 This is a decision delegated to the housing services manager and for that officer to review and change charges as required.. 7. FINANCIAL AND BUDGET FRAMEWORK IMPLICATIONS 7.1 Any sums received by the local authority under the charge may be used for any of its housing enforcement functions. 8. LEGAL POWERS RELIED ON AND ANY LEGAL IMPLICATIONS 8.1 A summary of the requirements of the Housing Act 2004 and supporting documents are in the Members Room. 2
3 9. EFFICIENCY GAINS AND VALUE FOR MONEY 9.1 The savings will be limited, with the costs of some administration, inspection and enforcement expenses costs. In particular where charge notices have been issued this will cover the cost of issuing those enforcement notices. We currently do not add a charge to the enforcement notices. The property inspections for immigration clearance will be cost neutral covering the cost of the administration and inspections thereby paying for a service we currently do for free. 10. RISK MANAGEMENT IMPLICATIONS 10.1 Not to agree to the above leaves the Council open to criticism for not using the available legislation to cover costs. 11. PERSONNEL IMPLICATIONS 11.1 These responsibilities will be undertaken within the resources agreed as a result of the Private Sector Housing Strategy. 12. CORPORATE PLAN & POLICY FRAMEWORK IMPLICATIONS 12.1 To work towards meeting local housing needs through our strategic housing role. 13. ASSET MANAGEMENT PLAN IMPLICATIONS 13.1 None. 14. HEALTH AND SAFETY IMPLICATIONS 14.1 None. 15. APPENDICES ATTACHED Appendix A: Process to charge for enforcement notices under the Housing Acts Appendix B: Process to charge for property inspections for immigration clearance Appendix C: Charges comparison between nearby local councils 16. BACKGROUND PAPERS USED IN PREPARATION OF THIS REPORT 16.1 Housing Act AUTHORS 17.1 Andy Chittenden, Private Sector Housing Officer and Kim Harwood, Housing Services Manager 3
4 APPENDIX A Section 49 Housing Act 2004 Process to charge for enforcement notices under the Housing Charging for Notices Section 49 of the Housing Act 2004 gives local authorities the power to make a reasonable charge to recover certain expenses incurred by them when taking enforcement action under the Act. This includes service of statutory notices to remove hazards under sections 11, 12, 20, 21, 40 and 43 of the Act. The Act allows Councils to charge for the following; Serving an Improvement Notice (requiring works) Serving a Suspended Improvement Notice (as above, but the operation of the notice is delayed until a specific event occurs (e.g. a vulnerable person moves into the property) Making a Prohibition Order (prohibiting use of the property or an area within the property) Making a Suspended Prohibition Order (as above, but the operation of the notice is delayed until a specific event occurs (e.g. the current occupier is moves out) Taking Emergency Remedial Action (requiring works to reduce imminent risk) Making an Emergency Prohibition Order (prohibiting use of the property or an area within the property to reduce imminent risk) The Council will also charge for serving a Hazard Awareness Notice. It is proposed that the landlord/person/company in control of the property will be charged a standard rate of (based on the cost of preparing the average statutory notice) for the first notice served in relation any one property. A further amount of will be charged for every additional notice served at the same time under the Housing Act 2004 in relation to the same property to the same person. Where a second landlord/person/company is also responsible then a further will be charged for the first notice and a further will be charged for each notice thereafter in relation to the same property. The charges are based on an assessment of the officers time involved in the case from inspecting the property and preparing the case, to drafting the notice and then serving it. In some cases we may charge more if the officer has to spend more than the average time in preparing notices. When a suspended notice is due for a review, we will make a further charge of per notice. We must review suspended notices every 12 months and make a decision on whether to retain or lift the suspension or revoke the Notice. 4
5 We will advise a landlord/person/company in control of the charges when we serve preliminary notices and they can avoid fees if they agree to undertake the work. In cases of imminent risk, we will make an attempt to involve the landlord before service of notice, but if a landlord cannot react quickly enough, or cannot be contacted, we will serve notice and the charges will apply. Table of charges for service of Statutory Notices Service of first Statutory Notice under the Housing Act 2004 per landlord/person/company per property Improvement/Suspended Improvement 350 Notice (S11/12) Prohibition/Suspended Prohibition Order 350 (S20/21) Emergency Remedial Action (S40) 350 Emergency Prohibition Order (S41) 350 Service of second and subsequent Statutory Notice under the Housing Act 2004 (at the same time) Improvement/Suspended Improvement 75 Notice (S11/12) Prohibition/Suspended Prohibition Order 75 (S20/21) Emergency Remedial Action (S40) 75 Emergency Prohibition Order (S41) 75 Review of suspended Statutory Notices under the Housing Act 2004 Suspended Improvement Notices (S11/12) Suspended Prohibition Orders (S20/21) for each Notice reviewed A section 49 notice must be served with the statutory notice and on expiry of the appeal period, an invoice should be raised. 5
6 Works in Default If we need to carry out work on a house or flat because the landlord/person in control has not made suitable progress, then we charge professional and administrative fees as well as the cost of the work. Non payment of fees and charges When we make a charge for service of notices and work in default, the Council will send an invoice to the responsible person. If they do not pay the invoice, we will add interest to the debt at a compound interest rate set by the Finance Department starting from the date the Notice was served until the debt is settled in full. The debt also becomes a local land charge on the property and will be revealed when local land charge searches are carried out. 6
7 APPENDIX B Inspections for immigration clearance If a person wants a family member to immigrate to the UK, the Border Agency may require a report to be sent to the British High Commission about the place where they intend to live. Hertsmere Borough Council currently offers inspections for immigration purposes to those living within the borough. These will be carried out by a Private Sector Housing Officer who provides a report or letter acceptable to the immigration authorities for the applicant to include in their application. This authority currently do not charge for this service but most authorities do charge a reasonable charge to cover the cost of the service. If the proposed charges are agreed a charge would be made for each application for the sum of (plus an hourly rate of up to for re-visits and or additional advice). These charges will be reviewed annually and added to the fees and charges report. The council reserves the right to charge for any second and subsequent inspections arising from the application. First application Hourly rate re-visits or advice Second visit (over 12 weeks) Hourly rate re-visits or advice (over weeks) The inspection Process When we inspect, we ask to see proof of the ownership or tenancy of the property. If the applicant owns the property, we will need to see the Title Deeds, Mortgage Statement, or correspondence from the mortgage provider. If the applicant rents the property, then we need to see a current Tenancy Agreement, and a utility bill in their name at the address in question. We also ask to see details of the person coming into the UK, to including their date of birth and full address in their home country. 7
8 We will then inspect the whole of the property at which the applicant lives. They will be asked to show the officer around the property, outlining who occupies the house, and which rooms they sleep in. During the course of the inspection, the officer will make a judgement on whether the property is suitable and safe for occupation, and whether it would become statutorily overcrowded by the addition of the person seeking entry to the UK. We may ask additional questions if we are unclear on anything that we have seen or the applicant has told us, and may ask to provide additional documentation to support what they have told us. When we have completed our investigations, the applicant will be supplied with a letter or report, usually within 3 working days of our visit, it will state: The property owners name and the name(s) of the person(s) seeking entry to the UK. The address of the property inspected. Who owns, and who occupies the property. How the property is occupied, and by whom, whether the property contained any Category 1 hazards at the time of our inspection, whether the property would be statutorily overcrowded by the addition of the person seeking entry to the UK and the name of the officer to contact for further information. The applicant is then responsible for forwarding the letter to the appropriate authority in support of the application for immigration. We will not supply letters unless we have inspected the property. The Immigration Authorities will not accept letters that are greater than 12 weeks old. If the letter expires on this ground, we will not issue another until we have carried out a full investigation again and we will charge the full amount again. It is important that an inspection of the property for immigration purposes is not completed until the applicant is ready to submit the full application to the relevant authorities. 8
9 APPENDIX C Charges comparison between nearby local councils Herts, Beds & Barnet Charges and Fees for 2014 / 15 Immigration checks Housing Act Enforcement Notice fees Dacorum No service offered Beds Borough No service offered. Referred to outside contractor Broxbourne No service offered. Referred to CIEH for private cont. Stevenage No service offered Central Bedfordshire East Herts per notice Luton Referred to outside contractor for each visit St Albans per recipient Watford Standard 10 days priority 3 day per person per notice Welwyn Hatfield North Herts London Borough of to Barnet Hertsmere No charge No charge 9
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