Draft Private Sector Housing Investment Policy

Transcription

1 CONSULTATION DRAFT Draft Private Sector Housing Investment Policy If you need a translation of this document in another language, larger print, Braille, audio or electronic version please contact The Borough Council of King s Lynn and West Norfolk

2 Updated 31 st October 2008 Dave Clack, David Hanson, Duncan Hall Whilst this draft is subject to consultation and therefore may be subject to change, sections in italics are provided in the draft for information purposes and are not intended to appear in the final document. Introduction This policy is required in order to meet the requirements of the Regulatory Reform (Housing Assistance) (England & Wales) Order 2002 (The Order). Article 3 of this Order specifies that Local Authorities may provide, directly or indirectly, assistance to any person for various purposes including those of enabling him to adapt or improve living accommodation or to repair living accommodation. Article 4 of the Order provides that before exercising the power conferred by article 3 the Local Housing Authority have adopted a policy for the provision of such assistance, publicised the policy and made the policy available in certain specified ways. The present Private Sector Housing Policy 2003 met the requirements of the Order in taking forward a raft of Grants & other assistance available for Landlords and owner occupiers across the borough. With the policy falling due for review and changing needs and priorities the Action Plan under the Private Sector Housing Strategy (currently under development and in final draft) identifies the need for the policy to be reviewed. This Policy also meets the requirements of both Key Priority 3 of the Housing Strategy and also one of the objectives in chapter 4 of the (presently DRAFT) Private Sector Housing Strategy This policy needs to be seen in the context of these strategies, the resulting action plans and their objectives. In addition this policy deals with our duties under the national Disabled Facilities Grants (DFG) Programme, much of which is mandatory and therefore the section of the policy dealing with these issues does not need to be adopted and is included for completeness. Only one area of assistance under the DFG programme is discretionary and that is the imposing of a charge on the property under certain circumstances, this adoption of this discretion is included in this policy. Policy Aims In order to bring together in one policy all the relevant forms of grant and other assistance this policy deals with the Council s approach to delivering both mandatory and discretionary Grants and Loans to assist vulnerable occupiers to remain in their own home and to enable vulnerable owner occupiers to maintain their property to the Decent Homes Standard. This function is broadly divided into two areas, that of Disabled Facilities Grants (DFGs) and then other Grants and forms of assistance.

3 We have a mandatory duty to provide DFGs under the national Disabled Facilities Grant Programme. This new policy reflects the Package of changes to modernise the programme published by the Government in February The Council aims to ensure an effective delivery of the DFG programme, with a consistency of service across all tenures. Secondly the policy also deals with the discretionary range of support made under the Order, to assist the most vulnerable households to live in private sector housing of a decent standard. The policy aims to ensure those vulnerable households in greatest need in the borough are protected from undue risks to their health & safety, have a decent home and feel safe and secure. National Policy Context The national policy context is given in more detail in the Private Sector Housing Strategy. In summary it is drawn from: Lifetime Homes, Lifetime Neighbourhoods: A National strategy for Housing in an Ageing Society Disabled Facilities Grant The package of changes to modernise the programme (CLG). See more detail below. Regulatory Reform (Housing Assistance) (England & Wales) Order Loans (see page 61 Lifetime Homes) ODPM Circular 05/2003 Housing Act 2004 Housing Health and Safety Rating System A Decent Home: Definition and guidance for implementation. DCLG June Audit Commission Key Lines of Enquiry In addition the Audit Commission provides clear guidance on their Key Lines of Enquiry (KLOEs) used by the Audit Commission Housing Inspectorate when looking at private sector housing. Full guidance is available from the Audit Commission website at: KLOE documents are designed to provide inspectors, inspected bodies and others with a framework through which to view and assess services. The guidance identifies the key questions under the following headings: Access, customer care & user focus Diversity Private sector stock condition and housing need data The strategic approach to private sector housing The impact of the strategic approach - how effectively is the council tackling poor housing conditions in the private sector Value for money. DFGs & the package of changes to modernise the programme (CLG) This policy reflects the package of changes published by the government earlier in 2008.

4 These changes include: Raising the maximum grant limit Amending the mean test Including access to garden Relaxing the ring-fence around the DFG Incorporation of Local Area Agreements Levying limited property charges How does the Council fund assistance under this policy? And why change? There are clear indications about the changing profile of the population and with an increasingly older population our policy aims to look at ways of making the resources go further. There will only be more increasing demands so we must act to redefine those that we can assist. This should ensure that we concentrate our efforts on the most vulnerable clients and that it is better to have equality of service and a sensible response time and try to minimise waiting lists that leave those in need waiting. Policy principles and objectives The Council will ensure that the available resources are focussed on meeting the needs of the most vulnerable. This will mean a change in approach. This will be consistent with HECA strategy and Fuel Poverty Strategy, as well as several objectives of the Local Area Agreement. This focus needs to be seen in the context of greater demands on the DFG resources, and increasing pressures on some of the most vulnerable households relating to the costs of maintaining and heating a home.

5 Objectives The objectives of the policy are set out below: 1) To enable disabled people and people with mobility issues to live independently in their own homes 2) To tackle housing conditions that represent a hazard to the health of the occupier, focusing on the needs of the vulnerable households. 3) To support the provision of measures that will help vulnerable households feel safe and secure in their own homes, and contribute towards maintaining independent living. Objective 1 above relates to the mandatory duty to carry out works under the Disabled Facilities Grant Programme. Objective 2 above relates to Hazards identified as being under Category 1 or 2 using the Housing Health & Safety Rating System (HHSRS) under the Housing Act The council has a relevant HHSRS enforcement policy in place and all decisions in this regard will be taken in accordance with this policy. Objective 3 above relates to other defects or deficiencies identified as making the property fall below the Decent Homes Standard or other works eligible for assistance under other elements of this policy. A degree of flexibility is required to meet changing needs but these will be taken in priority order according to our statutory duties, which will mean: Priority 1: Statutory DFG must be the first call on available funding Priority 2: Addressing Category 1 and Category 2 hazards Priority 3: Other forms of assistance to meet Decent Homes, Safe and Secure and other identified forms of assistance. These priorities will ensure available resources are targeted to meet the needs of the most vulnerable. Resourcing Principles 1) In determining funding assistance, other than where it is mandatory in the case of DFG, assistance will generally not be offered when there is a feasible alternative funding solution. For example where there is a dedicated government grant or non mandatory top ups are available through another agency or where private finance is available. 2) The policy will not be applied in a way that can enable an accumulation of assistance from different strands of the policy other than the emergency repair grant which will not affect eligibility for other forms of assistance.

6 3) In terms of managing the Council s available resources Funding will always be on the basis of priority for the most vulnerable, and priority for a DFG to aid an adaptation or a repair where the health of the occupant is at risk Research and Consultation The policy has been informed by recent research: Strategic Housing Market Assessment (SHMA) /census / Data about West Norfolk (DAWN) an ageing society demands on resources for adaptation. In addition consultation carried out at the Housing Strategy Consultation day in July 2008, on the general principles underlying some of the changes in this area of policy has helped to inform the proposed changes. Landlord Grants and Home Improvement Assistance Financial support will no longer be available to the landlords of private sector accommodation. Previously under the Private Sector Housing Policy 2003 grants were available for the provision of fire safety equipment in Houses in Multiple Occupation and for works to bring empty properties back into use. These grants will be withdrawn. The approach to maintaining effective standards in private sector housing will be one of effective engagement with landlords on rights and responsibilities, advice for landlords and tenants. Where this approach does not succeed and it is considered necessary we will carry out effective enforcement in accordance with a range of enforcement policies. Financial support will no longer be available to owner occupiers of overcrowded properties. Previously under the Private Sector Housing Policy 2003 grants were available to permit such properties to be extended to meet the needs of the occupiers. Where action is necessary we will encourage owners to buy or rent a more suitable property. If this fails and the property is subject to statutory overcrowding we will consider enforcement action. Innovation Schemes / Area based initiatives In implementing this policy, a pro-active approach will be taken to ensure that resources are targeted where they are most needed, and that the available resources are committed. Using evidence of need, and utilising available capital resources, and ad-hoc funding opportunities schemes and initiatives will be developed to help direct support to those in greatest need, in line with the aims and objectives of this policy. Where necessary there will be planned promotion and publicity of any such schemes. From time to time funds will be available that can be used to support project based work. In determining the scope of any project, or any bid for resources meeting the aims and objectives of this policy will be an overriding factor.

7 The Role of Care & Repair West Norfolk Applicants will be directed to the Council s Home Improvement Agency, Care and Repair West Norfolk, who will administer the grants, and financial support. Care & Repair will undertake work on organising works connected with adaptations and repairs, but beyond this will look at help with much wider issues that could impact on someone s ability to live independently. Forms of discretionary assistance. In order to meet with expectations placed on local Government in relation to the ability to effectively recycle grant money and therefore assist more vulnerable households in the longer term we aim to reduce the availability of non repayable grant aid and increase the use of loan funding. In principal this loan funding does not adversely affect the client and their day to day situation it does result in a charge being placed on the property which is recoverable on the sale or other disposal of the property. Grant Aid Any discretionary non repayable grant aid will be set at a 2,000 maximum level, below which the administration of any charge would be disproportionate to the recoverable grant. Loan Assistance Over the 2,000 limit for Grant aid, assistance will be available by way of loan assistance up to a maximum of 30,000 (or 15,000 if Equity release is introduced for larger loans). This is a repayable charge placed on the property, subject to conditions around disposal when the charge becomes repayable. Under the Private Sector Housing Policy 2003 these loans were interest free, unless a relevant disposal took place within five years of the completion of the works, when an additional 15% would be added to the loan amount. Given that the charge may well remain on the property undischarged for many years and that the effective amount of the charge reduces over this period, under consideration is the ability of the loan to be linked to interest rates or cost of living rises each year. This would ensure that the amount recovered would be more effective in assisting further clients at the time of recovery. In accordance with the above it is proposed that Loan assistance is offered subject to either a 15% charge if a relevant disposal takes place within the first five years or to the addition of an interest calculated on average Bank of England Base Rate for the life of the loan, whichever is the greater. This charge would be calculated at the time of the relevant disposal of the property and would be compound interest based on average Bank of England Base Rate for each full year of the life of the loan. This loan would be available for loans of between 2,000 and the maximum of 30,000. (or 15,000 if Equity release is introduced for larger loans).

8 Equity Release In order to further maximise the recycling of financial assistance we are looking at the possibility of commencing an Equity Release scheme, for larger loans. This ties the value of the return into the increasing value of the property. In other words the value of the share of property owned by the local authority increases in proportion to the market value of the property. The Governments new strategy Lifetime Homes, Lifetime Neighbourhoods a national strategy for Housing in an Ageing Society states it is clear that equity release will become an increasing important option for a growing minority of older people. Many older people face additional barriers to improving or adapting their homes. For a proportion of these people who may be asset rich by income poor equity release may be an option through a loan scheme or through moving on to a smaller property which is easier to maintain and cheaper to keep warm. Central government has given guidance to regional assemblies on how publicly funded equity release loan schemes could operate on a regional or sub-regional basis. The guidance is supported by a Communities and Local Government report titled Loan Finance to improve housing conditions for vulnerable owner occupiers. The Borough Council are presently part of a Norfolk & Waveny bid to EERA for additional funding to extend the already successful Equity Loan Scheme operating in Great Yarmouth. Provisional approval of this bid has been given by EERA but this is subject to ministerial approval and other conditions. Should the bid be successful larger loans would be offered as an equity release product rather than a charge on the property. The effective minimum for this type of assistance would be 15,000. Should the bid be unsuccessful officers will seek to investigate and if possible implement a suitable scheme based on the existing Yarmouth model. The maximum level of assistance available under an equity release scheme would be 30,000. However this is limited to 35% of the available equity in the property. In cases where the amount of loan required can not be met by Equity Release owing to there being limited equity in the property, the loan would be provided by the interest free or simple interest loan described above.

9 Forms of assistance available. 1) Home Renovation Assistance Purpose: The purpose of this financial support is primarily to fund works that help to alleviate the most significant hazards within domestic dwellings that have the potential to impact on the health of the most vulnerable residents. Hazards are identified with reference to the Housing Health and Safety Rating System (Housing Act 2004) and to the Decent Homes Standard. Eligibility: Owner-Occupiers who have owned and occupied their property for more than three years and are in Government Defined Vulnerable, subject to means test where the relevant benefit is not means tested. (For a definition of Government Defined Vulnerable and the conditions relating to means testing see appendix 1) Qualifying Works: i) Measures that contribute to the property meeting the Decent Homes Standard A decent home is one that meets the following four criteria: a) It meets the current statutory minimum standard for housing It is free from category 1 hazards under HHSRS. b) It is in a reasonable state of repair Dwellings which fail to meet this criterion are those where either: One or more of the key building components are old and, because of their condition, need replacing or major repair; or Two or more of the other building components are old and, because of their condition, need replacing or major repair. c) It has reasonably modern facilities and services Dwellings which fail to meet this criterion are those which lack three or more of the following: a reasonably modern kitchen (20 years old or less); a kitchen with adequate space and layout; a reasonably modern bathroom (30 years old or less); an appropriately located bathroom and WC; adequate insulation against external noise (where external noise is a problem); and adequate size and layout of common areas for blocks of flats. A home lacking two or fewer of the above is still classed as decent, therefore it is not necessary to modernise kitchens and bathrooms if a home meets the remaining criteria. d) It provides a reasonable degree of thermal comfort This criterion requires dwellings to have both effective insulation and efficient heating.

10 For a full explanation of the Decent Homes Standard a copy of the DCLG booklet: A Decent Home: Definition and guidance for implementation can be downloaded free or ordered from: ii) iii) Measures that reduce identified hazards to a reasonable level Measures that assist in improving heating and energy efficiency in the homes of vulnerable people The type and level of financial support: 0-2,000 Measures funded by way of a Grant (subject to conditions) 2,000-30,000 (or 15,000 if Equity release is introduced) Measures funded by way of a Loan (subject to conditions) 15,000-30,000 measures funded by way of Equity Release (subject to conditions) Maximum Loan - 30,000 2) Safe and Secure Grants Purpose: To help fund measures that overcomes the fear of crime felt by eligible households Eligibility: Owner-Occupiers who are Government defined vulnerable households. Qualifying works: Works such as but not exclusively: Window locks Door locks Security bolts Eye viewers Kick panels Smoke alarms Security lighting The type and level of financial support: Measures funded by way of a Grant (subject to conditions) Maximum grant level for any one measure 500.

11 3) Careline Grants (formerly Help at Hand) Purpose of grant To help vulnerable households live safely and independently in their own homes. Eligibility: Government defined vulnerable households. For works of assistive technology these will be clients not eligible for assistance from Social Services where there is an identified need for the works. Qualifying works: These grants are used to assist in the costs of equipment and installation for the provision of works such as, but not exclusively: Careline Alarms (including such necessary works as electrical or telephone sockets & BT landlines) Assistive technologies including extreme temperature sensors and smoke detectors. Alarm links to key safes. Bogus caller buttons. The type and level of financial support: Measures funded by way of a Grant (subject to conditions) Maximum grant level 500 4) Emergency Repair Grants Purpose of grant: To help vulnerable households with emergency repairs to alleviate the most significant hazards, where the work would be eligible for Home Renovation Assistance above. Eligibility: Owner-Occupiers who have owned and occupied their property for more than three years and are Government defined vulnerable households. Qualifying works: Emergency works and temporary repairs to alleviate the most significant hazards, where the work would be eligible for Home Renovation Assistance above and where such a repair will prevent further deterioration of the property or alleviate a significant hazard prior to the case being processed for HRA, or where the repair would alleviate the need for such an application to be made, for example:

12 Temporary repairs to a roof to prevent water ingress Temporary repairs to windows/doors to make them weather tight Installation of an RCD to make older wiring safe prior to full re-wiring Repair to boiler or installation of an immersion heater so as to provide some heating or hot water prior to the completion of heating system works by another agency, but the wait for such works is excessive under the circumstances. The type and level of financial support: Measures funded by way of a Grant (subject to conditions) Maximum grant level 250. In terms of prioritising the demands on assistance under 1-4 above. Priority 1 / first call: Addressing cat 1 & cat 2 hazards Priority 2 / 2 nd call: Decent Homes measures Priority 3/ 3 rd call: Warm front top up grants and home security grant 5) Disabled Facilities Grant In 2004 the government launched a review of the DFG programme. In early 2008 a package of changes to the programme were announced. One of the reasons fro reviewing the programme was the need to be better prepared to meet the rising demand. Both locally borne out by research, and nationally we are an ageing society. An increasing proportion of the population are older people who are the main beneficiaries of the programme. It is inevitable that as the population grows older the number of people living with disabilities and chronic health conditions will increase. Locally greater pressures may come from in-migration of older households (SHMA research). Need to bear this in mind when planning. The area is seen as a destination for retiring or semi-retiring households. Nationally demand for DFG has increased constantly. Pressures on the resources locally at this Council have increased, and as with the national picture it is clear people with disabilities have waited too long for this assistance. Whilst this new policy incorporates some of the key changes to the programme, it is important to note that the DFG remains a mandatory entitlement. The grant is subject to an assessment of need and a test of financial resources. Some of the drivers for changing the programme are to make the most of the DFG resource, create greater flexibility over how it is managed, and reduce the level of bureaucracy involved in the process.

13 Purpose of grant: Enable disabled people and people with mobility issues to live independently in their own homes Eligibility: The DFG is available to home-owners, private and social rented tenants to help pay for adaptations to their homes so they can live as comfortably and independently as possible. Qualifying works: The Housing Grants Construction and Regeneration Act 1996 lays down the legal framework for the DFG, and sets out the qualifying work. In general the grant can be used to fund a range of measures providing access to the property and the basic facilities within it. Commonly it will provide the following:- Bathroom adaptation including level access showers Stair lifts Kitchen modifications Provision of ramps Extensions to provide access to any of the above Other qualifying works are specified in the Housing Grants Construction and Regeneration Act 1996 and any subsequent amendments.. The type and level of financial support: Measures funded by way of a Grant (subject to conditions) Maximum Grant Limit is presently 30,000 (previously 25,000). This may be subject to change during the life of the policy, where this occurs the legal grant maxima will be applied. Where the costs of adaptation works are in excess of this limit any eligible applicant will be referred to Norfolk County Council Social Services. The County Council s current policy is to fund by way of a top up grant any gap in the funding to cover the costs in full. Funding could be available under the Additional Adaptations Assistance section of this policy (see below) in the event the County Council are not able to offer this funding. Means Test Applicants for DFG assistance are subject to a statutory means test, for full details of this see appendix 4. The means test is not applied in the case of applications relating to disabled children. Property Charges Commonly for any DFG that exceeds 5,000 a charge will be placed upon the adapted property. The charge will be for the value of the works over 5,000 to a maximum charge of 10,000. The charge will remain on the property for a maximum of ten years.

14 The decision to waive a charge or not to place a charge can be made by officers in consultation with PFH Community where a charge may cause severe hardship or due to the sensitivities of a case would be inappropriate. Such circumstances are likely to be uncommon and therefore the waiver should not be viewed as optional. 6) Additional Adaptation Assistance (replaces non-mandatory DFG) Purpose: To provide assistance to help fund measures associated with adapting the home of a disabled person, where the nature of the work falls outside work funded by the DFG programme or if works associated with an adaptation under the DFG programme exceed the funding limit of 30,000. Eligibility: Have to meet Social services criteria for adaptation assistance, thereby being eligible for a DFG under social services criteria and be a Government defined vulnerable household Qualifying Works: 1. Where works qualifying under the DFG programme exceed the maximum statutory DFG limit ( 30,000) where the client has no access to private sources of funding. 2. Where the total cost of an adaptation to an existing property significantly exceeds the cost of moving house to a suitably adapted or more easily adapted property and the associated cost of the adaptation. In these circumstances financial assistance could be considered to contribute towards reasonable removal costs, professional fees ( solicitors and estate agents) stamp duty, Home Improvement Agency fess (for housing options advice where appropriate) 3. The costs associated with the provision of a shed for the purpose of housing a mobility scooter, and works to create appropriate, but reasonable access arrangements to it. 4. The cost of adaptations to help a disabled person work from home. 5. The provision of equipment as an alternative to an adaptation where this is more cost effective. The type and level of financial support: 0-2,000 Measures funded by way of a Grant (subject to conditions) 2,000-30,000 (or 15,000 if Equity release is introduced) Measures funded by way of a Loan (subject to conditions) 15,000-30,000 measures funded by way of Equity Release (subject to conditions) Maximum Loan - 30,000

15 Appeals and Exceptional Cases Any person aggrieved by the way this policy is administered in an individual case has the right of appeal to the Head of Housing and Environmental Health in the first instance. An appeal should be in writing and sent to: Head of Housing and Environmental Health Borough Council of King s Lynn and West Norfolk King s Court Chapel Street King s Lynn Norfolk PE30 1EX The appeal must set out the grounds on which the appeal is based. An appeal will not be considered simply on the grounds that the appellant does not agree with the policy, although any complaint about the general policy will be dealt with by a written response. Further complaints can be addressed through the corporate complaints procedure. An appeal will therefore only be considered on the grounds that either the adopted policy has not been applied correctly; or that the potential application for assistance is so exceptional that it justifies consideration by the Council outside the normal policy. The Head of Housing and Environmental Health will give a full written response to all appeals. It is not possible to set out the detailed criteria that may comprise exceptional circumstances or the type or amount of assistance that the Council may offer. Each appeal will be treated on the individual circumstances of the case and will be judged against the particular financial circumstances of the applicant, the strategic objectives of the Council, other options available to the applicant, the resources available to the Council and the long term public benefit. Where a case for assistance is so exceptional that it justifies consideration by the Council outside the normal policy, this may be approved under delegated powers to the Executive Member. Any complaint about the outcome of an appeal can be addressed through the corporate complaints procedure. Details will be included in the decision letter for all appeals. Grant Conditions See Appendix 2 for Discretionary Grant Conditions Loan Conditions See Appendix 3 for Loan Conditions

16 Appendix 1 Government Defined Vulnerable. Households on one of the following means tested Benefits: Income Support Income Based Job-Seekers Allowance Child Tax Credit (with a household income of less than 15,460) Working Tax Credit (with a disability element and household income of less than 15,460) Pension Credit Council Tax Benefit Together with the following non means tested benefits: Disability Living Allowance Attendance Allowance Industrial Injuries Disablement Benefit War Disablement Benefit Applicants on any one of these non means tested benefits will be subject to a means test in accordance with the current DFG requirements. Where an applicant is found to have a contribution the amount of loan payable will be reduced accordingly. During the life of this policy should the Government revise or rename any benefits or alter those in the definition of Vulnerable our policy will change in accordance with their alterations.

17 Appendix 4 Means Test The Means Test is set out in the Housing Grants, Construction and Regeneration Act 1996, and The Housing Renewal Grants Regulations Changes to the means test were incorporated into the package of changes to the DFG programme detailed above. The changes are summarised below: People claiming Council Tax Benefit, Housing Benefit and tax credits for those on low incomes will be fast tracked through the means test process as they will not be required to provide any further financial information in addition to these benefits. In addition the means test will be changed so that Working Tax Credit and Child Tax Credit are not counted as income. These changes came into force on 22 nd May 2008 through Statutory Instruments The Housing Renewal Grants (Amendment) (England) Regulations 2008 No