Asset Management Strategy Customers, at the heart of what we do

Transcription

1 Asset Management Strategy Customers, at the heart of what we do

2 Contents 1. Executive Summary 3 2. Achievements 4 3. Strategic Context 5 4. Context for Demand 7 5. About our Homes 9 6. Property Anaysis Panning for Deivery Asset Management Action Pan Concusion 21 Version

3 Introduction and Foreword by the Chairman of the Board Wecome to the Coastine Housing s Asset Management Strategy for Property assets are the essentia foundation for the continued existence of the Company. Far more than simpy bricks and mortar they pay a key roe in shaping the socia, environmenta and economic webeing of the oca community, infuencing the quaity of ife for oca peope. We recognise that there wi be an ongoing need for an Asset Management Strategy. Effective asset management wi ensure that our homes continue to provide a high quaity, suitabe and sustainabe contribution to the oca area. New chaenges are facing us incuding customer affordabiity issues arising from wefare reforms, demographic changes, increasing customer expectations and the need to create a more sustainabe asset base in the widest possibe sense. In recent years the focus has changed from providing Decent Homes to asset investment and viabiity with a proper return on investment. With our success in securing Homes and Communities Agency funding and our newy-agreed enders arrangements we wi be investing 54.2 miion over the ife of the Strategy to deiver one of the argest affordabe housing programmes in Cornwa. We wi buid over 650 new homes for peope in housing need across the county. Buiding new homes is ony part of the picture and we must ensure that a of Socia our homes continue to meet customer needs and expectations. Coastine puts customers at the heart of everything we do so we must baance our socia, environmenta and economic Bearabe Equitabe responsibiities to deiver a sustainabe business at the core. This Asset Management Strategy shows a goden thread to aign our property management and investment practices with Corporate Pan objectives, supported by the 30 year Business Pan. Environment Sustainabe Viabe Economic This Strategy was deveoped with our customers and shows how our property wi enabe us to ive up to our mission statement of :- Great homes, great services, great peope I am therefore proud to recognise this coordinated approach and commend this ambitious pan. Derek Law MBE, Chairman of Coastine Housing Group Board, Coastine Housing Limited 2

4 1. Executive Summary Coastine Housing Limited s Asset Management Strategy is a critica business too for us to aign our property assets with business need; directy inked to the Corporate Pan and supported by the 30 year Business Pan it highights the strategic goden thread through these Pans eading to deivery outcomes. We are a property business and it is therefore critica for us to understand the performance of our assets. Much has changed in recent years and this new Asset Management Strategy refects these chaenges incuding customer affordabiity issues arising from wefare reforms, demographic changes, increasing customer expectations and the need to create a more sustainabe asset base against a background of rising energy prices and costs. Coastine Housing first impemented an Asset Management Strategy in Apri 2002; the Asset Management Strategy focusses on the Corporate Pan objectives, buiding upon the successfu deivery of the previous Corporate Pan targets. It is no onger about simpy ooking at buiding components and bringing a homes up to standard - it s now about making viabiity decisions on which homes wi be sensibe to retain and invest in. The Corporate Pan was deveoped in coaboration with customers, coeagues and partners and it sets out cear commitments in terms of maintenance and improvement to the Company stock. It paces customers at the heart of the business and provides further high eve direction for the Asset Management Strategy, incuding key objectives and targets with the foowing objectives:- Provide exceent housing and support services Invest in our homes and neighbourhoods Grow the organisation sensiby Continuousy improve our financia strength Effective asset management means that our homes wi meet the needs and standards for the future so sustainabiity is a key theme throughout this new Strategy. This is not just about environmenta sustainabiity but aso ensuring that we have the right mix of homes which wi be more affordabe to customers. Increasingy improving data wi drive inteigence-based asset management giving a greater understanding of the needs of our customers and their homes. This wi ensure that Coastine Housing can better target effective partnerships and investment in new homes as we as our existing housing assets. This new Asset Management Pan spans a five year period but wi be formay reviewed every year as it is expected that the Pan wi receive minor updates at each review. The deivery of the strategy in the short term wi be through the annua Asset Management Action Pan which wi be re-drafted from the ground up every year. 3

5 2. Achievements The previous Asset Management Strategy achieved a number of notabe successes:- Decent Homes achieved, demonstrating high quaity homes; Coastine Standard deveoped, exceeding Decent Homes standard; Neighbourhood Standard agreed, driving up environmenta quaity; Affordabe Warmth Strategy in pace, improving energy efficiency of our homes; SAP (2005) increase from 67.7 to 69.55, showing a measurabe increase in sustainabiity; 14 Sewage Treatment Works transferred, saving customers 1m over the next 10 years; Over 250 Air Source Heat Pumps instaed with grant funding, providing a more affordabe heating soution for customers; Around 500 homes benefitting from Externa Wa Insuation through grant funding, eading to warmer and cheaper to heat homes; CESP (Community Energy Saving Programme) - 2.7m grant funding secured; ECO (Energy Companies Obigation) - 203k funding secured; RHPP (Renewabe Heat Premium Payments) - 265k funding secured; RHI (Renewabe Heat Incentive) - 500k funding secured; Improved parking provision in areas of greatest need; Above nationa average investment of amost 1k per year per home; Heath and Housing project underway in partnership with Exeter University; Deveopment Strategy proposas exceeded with 54.2m invested in new buid initiatives; and Around 400k saved by coaborative procurement. 4

6 3. Strategic Context Why Asset Management? The aim of asset management is to guide the future shape and direction of the property assets to ensure that they meet corporate objectives and customer expectations. The Nationa Housing Federation definition of property asset management is:- Asset Management is the range of activities undertaken to ensure that the Housing Stock meets the needs and standards for the future. As is cear, asset management goes beyond investing in good repair and improvements. Asset management is about reviewing and changing the asset base to end up with the right accommodation in the right ocation supported by exceent fexibe services for our customers. It must consider quaity and vaue for money, particuary the whoe ife of a home and how future running costs wi affect customers. By appying an effective asset management strategy to our 4,000 pus homes, the benefits wi incude: Assets aigned with corporate aspirations and customer needs; Homes which wi be more affordabe to customers; A more environmentay sustainabe asset base; The right mix of homes to meet oca and demographic needs; Lower whoe ife running costs; Identified ong term capita investment needs; Better financia vaue through grants and other externa funding sources; Vaue for money through coaborative procurement and partnerships; Cear understanding of maintenance needs; and Rents review Deveopment programme Stock rationaisation Risk strategy Business pan Asset management strategy Demand and sustainabiity Stock condition Investment and procurement strategies Option appraisas Appropriate disposa of assets, enabing investment in new homes and reinvestment in existing homes. The Asset Management Strategy sets out the strategic framework to provide exceent housing and support services, invest in our homes and neighbourhoods, grow the organisation sensiby and continuousy improve our financia strength. Coastine Housing first impemented an Asset Management Strategy in Apri 2002 and has maintained one ever since. Buiding upon previous successes this new Asset Management Strategy remains an essentia business too for Coastine to aign property assets with business need. Customers have asked that this Strategy reaches a wider audience by being shorter than previous versions and inking a goden thread through other strategic documents. 5

7 Foowing successfu achievement of previous Corporate Pan targets, this new Strategy focusses on the Corporate Pan objectives. These wi be deivered through the 30 year Business Pan against a backdrop of the changing socia, financia and egisative needs of the company. The Corporate Pan Much has changed in recent years and the Corporate Pan sets an updated context for this new Strategy with new chaenges incuding customer affordabiity issues arising from wefare reforms, demographic changes, increasing customer expectations, increasing competition and the need to ensure more sustainabe homes. This Strategy must be read in conjunction with the Corporate Pan which was deveoped in coaboration with customers, coeagues and partners and it sets out cear commitments in terms of maintenance and improvement to the Company stock. We wi: Provide exceent housing and support services Invest in our homes and neighbourhoods Grow the organisation sensiby Continuousy improve our financia strength Customers are at the heart of the business and the Pan provides further high eve direction for the Asset Management Strategy, incuding key objectives and targets. Deivery of the Asset Management Strategy The deivery of this Strategy is informed through the Stock Condition Survey and is supported by the 30 year Business Pan containing an expenditure of 337m (at 2014 prices) with an aowance for infation. Long term projections for maintenance and investment costs have been made based on component ife forecasts in the Stock Condition Survey to ensure that they are affordabe and can be fuy funded from agreed budgets. Compared to the nationa average of 979 per home, Coastine invested 995 per home in Proper investment in existing stock is key to continued high performance. For the medium term, a five Year Maintenance Pan ( ) was produced and pubicised to customers. In ine with the expectations of the 2014 HCA Sector Risk Profie, the Pan was designed to be both fexibe and comprehensive, enabing us to baance maintenance with deveopment and with new government funding streams such as CESP, RHPP and RHI. Investment is not simpy a baancing figure in the business pan, the Maintenance Pan is one of the essentia supporting documents to be reviewed eary in the ife of this new Asset Management Strategy. The Director of Housing and Care is responsibe for the impementation and deivery of the Asset Management Strategy through the Head of Technica Services. An annua review wi ensure that it remains fit for purpose. It is expected that the Strategy wi evove sighty over its five year ife according to externa and interna pressures but the Action Pan which deas with deivery wi be redrafted afresh every 12 months. The Action Pan is produced within this Strategy for easy reference. The Head of Technica Services wi prepare a report on an annua basis to monitor progress. The Home Sounding Board remains the primary customer forum for monitoring progress but the report wi aso be presented to the Executive Team and Investment Committee on behaf of the Coastine Housing Group Board with observations from the Home Sounding Board. 6

8 4. Context for Demand Nationa Context With the most significant changes for at east a generation, Coastine now faces some of its greatest ever chaenges. The nationa fisca picture is expected to remain weak and uncertain with austerity continuing through to 2018, eading to further cuts in oca government grant and impact on the services deivered to our customers. We aso recognise that there is ikey to be a cose interpay between the new 10-year rent formua, Housing Benefit, Annua Managed Expenditure Caps and Loca Housing Aowances. Wefare benefit reforms are underway and wi continue for some years with the phased introduction of Universa Credit. The bedroom tax and benefit cap has had a substantia impact on around 8% of our househods. Counci Tax benefit has aso been cut by 25% in Cornwa. There is great uncertainty of the impact these combined measures wi have on many of our customers so bad debt provision has been increased in our business pan. The Government s austerity measures wi continue to have a substantia and damaging impact on many of our customers with a ikey knock-on effect on their abiity to pay rent and ook after their homes. The Nationa Housing Federation in their 2014 report Broken Market, Broken Dreams states that Engand is suffering a catastrophic housing crisis. With too few houses being constructed to meet demand and an average house price of 233k, home ownership is being pushed out of the reach of average earners, putting even greater pressure on the rented sector. In another pubication An Ambition to Deiver, the Nationa Housing Federation makes it cear that the next 20 years hod considerabe chaenge due to additiona factors outside of the housing sector: By 2030, 1 in 6 peope in Engand wi be aged 70 or over; By 2033, 1 in 5 househods wi be singe person; The baby boom of 8 miion births between 2001 and 2012 wi put a massive strain on an aready beeaguered Engish housing market; By 2020, there wi be more than 315,000 muti-famiy househods (young aduts iving with parents), an increase of 11%; Loca authority income wi decrease by 15% by 2020, with pressure on housing associations to fi some of the community services gaps; and Pubic expenditure on heath and socia care for oder peope wi rise by 37% by The chaenges nationay cannot be understated and the Housing sector must diversify much further in coming years. We are ikey to be operating in a changing reguatory environment which wi require a risk based approach and a very strong focus on protecting socia housing assets. 7 Coastine Housing can demonstraby rise to this chaenge. Between 2007 and 2013, over 20m of grant funding has been achieved from the Homes and Communities Agency via the Source Partnership and from Cornwa Counci for deveopment of new homes. There is a much ower centra government subsidy across our deveopment programme than previous years but a further 10m of Homes and Communities Agency funding was secured in 2014 to increase our stock by 326 homes up to 2018.

9 The Loca Market A 25% increase in popuation in parts of Cornwa is expected by Over 22% of the popuation of Cornwa is aged 65+ compared to 16% across Engand and over the next 20 years this is projected to increase to over 25%. 6.3% of economicay active peope in Cornwa are unempoyed compared to 7.8% across Engand and Waes. However, Gross Domestic Product per head of European Union average is ony 74% and this has remained broady fat over the past decade. When compared to the UK average figures, Cornwa (and the Ises of Sciy) remains the second poorest region. Cornwa is second ony to Westminster in the areas with the highest eves of rough seeping in the UK. The percentage of Housing Benefit caimants in Cornwa is broady in ine with the Engand average, whie Job Seekers Aowance is neary 1% ower. However, Persona Independence Payment caims are consideraby higher than the average in Engand. Demand Coastine operates its own housing register and works with Cornwa Homechoice to offer homes to potentia customers. The changing demographic profie of Cornwa aong with Wefare Reform is ikey to ead to a demand for smaer homes in future. The number of peope on Cornwa Homechoice s waiting ist continues to increase with over 28,000 househods currenty seeking a home. Over 11% of Cornwa s 260,000 homes have no permanent residents (primariy second home owners), compared with just 4% nationay. Deveopment The Deveopment Strategy estabishes how new affordabe homes wi be deivered by the end of 2017, incuding speciaised Oder Persons properties. The Homes and Communities Agency award of over 10m in 2014 wi assist in the deveopment of new homes as set out in the strategy. Buiding homes is just the start - it is critica that they are sustainabe in the widest sense, incuding future running costs for Coastine and customers. This whoe ife cost approach is centra to a Coastine investment so a new homes wi, wherever possibe, take into account whoe ife costs to reduce the ong term financia impact on our customers. 8

10 5. About our Homes Corporate Assets The Coastine Housing Group, as at 31st March 2014, had a stock in ownership of 3,978 dweings distributed as shown in the tabe beow:- Property Tenure Number Socia housing rented 1 3,763 Shared ownership 113 Non-socia housing 9 Leasehod properties 93 Tota Housing Stock 3,978 1 This incudes homes et on Affordabe Rent tenancies of which there were 102 at 31 March Stock Condition Survey Accurate stock information and good data systems are key components to the deivery of sound asset management with reiabiity of information absoutey critica to the operationa deivery of improvements. The Civica Universa Housing Management system is the primary asset database supported by Asprey EstatePro database for additiona data and reporting functions. A 100% stock condition survey was undertaken in 1996, prior to transfer, which was updated via the next 22% stock condition survey in 2001 and further standard 10% surveys in 2005, Apri 2009 and December A more recent 10% Stock Condition Survey was competed during 2012 which forms the baseine data used to deveop programmes and reinvestment pans for the stock based on standard eementa ifecyces. The most recent stock condition surveys, competed during 2012 by Ridge & Partners, has been used to update asset management systems, forecast future asset management budgets and produce a five year Improvement Pan. Athough the stock was surveyed in 1996, it has become cear in the subsequent years that on a per-property basis this information is no onger adequate as data errors, ack of detai and coning of data at intervening Stock Condition Surveys have created potentia information gaps. 9

11 To support this new Strategy, the 2015 Stock Condition Survey wi cover more homes, targeting both a representative sampe of stock and areas of data weakness/uncertainty. Stock wi be physicay surveyed and financiay modeed in terms of short, medium and onger term investment. This wi be foowed in future years by a focussed programme to repace a coned data with surveyed information. On top of this, as it is our area of highest maintenance spend and greatest area of risk we conducted a highy detaied data gathering exercise on our heating, eectrica and fire systems during The 30 year Business Pan incorporates the Stock Condition Survey data to ensure that the maintenance requirements can be fuy met. Decent Homes Standard The Decent Homes Standard was achieved for a of our homes in 2010 where customers agreed to panned improvements. Foowing this, we worked with customers to deiver a Coastine Homes Standard exceeding the Decent Homes Standard which has sti not been achieved by some other Housing Associations. Aids and Adaptations At Coastine we are committed to ensuring that residents are abe to ive independenty in their homes for as ong as possibe and we wi carry out minor adaptations up to 1k to avoid deays in competing work. Staff and contractors wi be reguary trained to identify where these works can be carried out whist on site. For more significant work, an Occupationa Therapist referra is required as customers are entited to appy for Disabed Faciities Grant through the Loca Authority. Heath and Safety (compiance) Statutory compiance with Heath and Safety reated egisation is essentia. Coastine has deveoped appropriate contracts and programmes to meet the Company s statutory obigations and best practice incuding those identified in the Asset Risk Management Matrix. Headine areas incude heating servicing, energy performance of homes, eectrica safety, Asbestos, sewerage treatment, Legionea and water hygiene, Mundic, Radon, non-traditiona and system buit stock and food risk. Sustainabiity A socia andords have constructed new homes to meet the Code for Sustainabe Homes Leve 3 but the bar has been increasingy raised and this has now been superseded by Buiding Reguations. The Deveopment Strategy wi continue to be revised and take future opportunities to provide the most economicay viabe sustainabe homes that can be achieved within budgetary restrictions. The Affordabe Warmth Strategy sets our objectives for energy efficiency and sustainabiity; we are deveoping a whoe stock approach to ensure that we can invest to achieve the greatest benefit in vaue for money terms whist aiming to reduce rea heating costs for customers. Coastine wi continue to seek and deiver initiatives to provide customers with opportunities to reduce expenditure such as ow energy ight bubs and water saving devices as part of our duty of care when carrying out cycica maintenance. 10

12 6. Property Anaysis Property Data and Performance Anaysis It is important that we have good quaity data about the performance of our assets to inform our decision making. On an ongoing basis, we maintain a comprehensive set of Performance Indicators; a subset of these caed Key Performance Indicators forms the basis of the corporate Performance Improvement Pan, some of which are nationay benchmarked. By anaysing a range of indicators we can understand how our assets perform to support the Asset Management Strategy. The anaysis and evauation enabes us to position each asset reative to others and identify options for improving or maintaining viabiity. Over time, we can then review the outcomes of any investment decisions. Understanding asset vaue and estate performance is a compex process drawing on a range of financia and non-financia data. Stock Condition Surveys have been carried out on a representative proportion of the asset base to improve quaity and robustness of the data. Much of the data is taken from actua surveys but with many simiar homes it is common practice to use coned information from actua surveys on other homes. However, with increased use of compex data anayses, it has become cear that whist coning of data is hepfu at a strategic eve, at a per-property eve it is ess accurate and eads to repeated re-casting of investment pans. Future Surveys wi focus on coned properties aongside a representative proportion of the remainder for resurvey. This wi ensure a baanced mix of property types and areas being surveyed, graduay reducing the number of properties with coned data year on year unti a coned properties are fuy surveyed.this wi be suppemented by two data improvement projects which commenced in 2014, focussed on heating data and asbestos data. In future we wi be moving towards monitoring the financia performance of individua properties, enabing a more granuar assessment of the financia return on assets. Option Appraisa Framework The Vaue for Money Framework estabishes the basis of whoe ife costs and socia vaue, aiming to ensure that Coastine assets and resources are used economicay, effectivey and efficienty to improve outcomes for our customers and other stakehoders. Option Appraisas are conducted to consider the sustainabiity of a property or group of properties by ooking at maintenance, costs of repairs, cost of operation, demand and the effects of the property within the community. Option Appraisas are carried 11

13 out on a void properties or where investment in excess of 10k is considered. A desktop appraisa may ead to a more detaied investment appraisa and consideration of aternative options. The ong term investment options are considered as part of the Stock Condition Survey process with ifecyces aigned with component accounting expectations. This is based on broad assumptions and often upon coned data and proposas need to be checked at an individua property eve. When consuting customers on major panned investment under the five year Improvement Pan it has been made cear to customers that on a per-property basis any works wi be subject to survey. This ensures that where an eement is ife expired but safe and functiona a rationa decision (to incude reviewing simiar eements) is made whether to proong the ife or repace. In vaue for money terms this is an exceent method of managing budgets and deferring works to avoid unnecessary repacement. Aongside the five year Improvement Pan, Coastine has deveoped the Asset Viabiity Mode to assess whether a property asset shoud be retained as-is, considered for reinvestment or highighted for potentia disposa. This Mode uses a range of factors incuding etabiity to deveop a weighted viabiity score and is used prior to any significant investment decision and at void to assess whether the property shoud be retained or disposed of. Furthermore it can be used to identify where a range of property assets woud benefit from targeted reinvestment to improve their performance and viabiity, making them assets worthy of retention. Supported schemes are a significant feature of the Asset Management Strategy. Option appraisas of schemes have been undertaken with a view to increasing standard mobiity features and prioritising improvement works. These appraisas wi aow the Company to pan these significant works in ine with business pan imitations. Customers views and priorities have aso been fed into the review process. Consutation Consutation with suppiers, customers, contractors and other invoved stakehoders is a key theme at every stage of the Asset Management Strategy deivery. Exampes of this incude:- Reporting to the Board, customer Sounding Boards are formed with forma terms of reference with a direct responsibiity for specific service areas, using invoved customers to represent the wider customer base on strategic issues. Sub-groups are formed where necessary such as the Asset Management Strategy Action Team which deveoped this Strategy and reports to the Home Sounding Board. Contractor engagement in Hearts and Minds Workshops which set out the aspirations of a new services being impemented. Contactors have provided vauabe insights into working practices that they have adopted to ensure that work can be deivered efficienty. Partnership-specific Action Teams incuding interna stakehoders and invoved customers are utiised to manage major contracts and drive continuous improvement into the services provided. Customers are invoved at the concept stages of the drafting of specification of a materias and the assessment of suitabe suppy chain organisations as part of the buk procurement process adopted by the Advantage South West Procurement Consortium. Socia Vaue In accordance with the Pubic Services (Socia Vaue) Act 2012, Coastine Housing is proportionatey committed to promoting enhanced socia, environmenta and economic vaues through its procurement of goods and services. Socia vaue is the term used to describe the positive outcomes created by our day to day activities, incuding the community cohesion projects we undertake, which provide benefit to customers. Our Community Cohesion Strategy eads our day to day activities and heps to quantify socia vaue in terms of monetary benefit, enabing us to measure, monitor and benchmark our positive impact in the neighbourhoods. In ine with the Vaue for Money Framework, the Company wi aso seek to evauate the Socia Vaue outcomes of arger projects and use those outcomes to pan new initiatives. 12

14 7. Panning for Deivery Repairs and Maintenance Strategy and Organisation The Homes and Communities Agency Reguatory Framework, Apri 2010 estabished the Decent Homes Standard which expects a cost-effective repairs and maintenance service which aims to compete repairs and improvements right first time. It must meet a appicabe statutory requirements whist giving choices, and respond to the needs, of our customers. A range of framework contracts are in pace to deiver the majority of panned property maintenance needs. In addition, Coastine Services Limited is a whoy owned company within the Coastine Group providing an increasingy wide range of maintenance services. Recognising the difficuty customers face in obtaining a competent, safe and vaue for money contractor for minor repairs Coastine Services has deveoped the Handyine service. This provides access to affordabe assistance to a customers which is further reduced for those in receipt of benefits. Sustainabe deveopment is a wide reaching agenda that incudes poicy initiatives such as the Decent Homes Standard, Affordabe Warmth, energy efficiency ratings and the SAP energy assessment methodoogy. This Asset Management Strategy wi continue to take these agendas forward by ensuring that resources are targeted effectivey. With particuar reference to energy efficiency and fue poverty, the poorest performing stock has now been identified and programmes are underway to increase SAP ratings through a combination of improved insuation and more efficient heating systems. This information forms the basis of the Affordabe Warmth Strategy, tacking fue poverty within our stock. We are using a whoe home approach to ensure that affordabiity is the primary measure of success. Interna Contros Coastine Housing has a range of protocos, poicies, standards and reated contros. These have evoved over time and during the ife of this Strategy there wi be the opportunity to review and revise these into a singe cohesive suite of property standards, subject to avaiabe resources. This wi reinforce the goden thread which is articuated by the Asset Management Strategy. Risk Management Management responsibiity has been ceary defined for the identification, evauation and contro of significant risks throughout the Group. There is a forma and on-going process of management review which is coordinated through a quartery reporting framework from management, through the Executive Team to the Audit & Risk Committee. The Company s significant risk map is presented to the Audit & Risk Committee quartery and the minutes of the meeting are subsequenty reviewed by the Board. The fu risk map is reviewed annuay by both the Audit & Risk Committee and the Board. The ongoing review of risk incudes consideration of the competeness of the principa risks identified, of the reative significance of those risks and of the risk management techniques that are appied to mitigate those risks. The Board agreed that a range of risk mitigation techniques shoud be used incuding assurance, preparation of contingency pans and interna contros. The system of interna contro is present in a aspects of the Group s operations and is essentia to its management of risk. The asset management risk matrix is a supporting document to this Strategy. 13

15 The Company s most recent reguatory judgement referred to the Company s risk management approach and concuded that risk management is embedded within management and governance processes. Procurement Coastine Housing uses the Source Deveopment Partnership for new buid procurement and for other purchasing is a member of the Advantage South West Procurement Consortium; this is a shared service that enabes 12 member oca housing associations and councis to work together to achieve better vaue through the extra power of a arger cient. The advantages of membership incude ower prices, improved performance management, benchmarking and access to procurement technoogy and expertise. During the 2013/14 financia year it has saved Coastine Housing over 111k on direct purchasing and a further 24k on the avoidance of retai price index increases. Coastine Services Limited is a whoy owned subsidiary company within the Coastine Housing Limited group and profits are reinvested into Coastine Housing aowing further investment in its services for customers. The formation of a Maintenance Partnership agreement for many of the required maintenance services introduces innovative cost and reward opportunities for both partners. The agreement provides additiona benefits of VAT savings and administration. Coastine Services Limited benefits from the 10 year contract agreement which provides certainty of income of approximatey 450k a year. Supporting documents 1. Asset Management Action Pan 2014/15 (The Goden Thread) 2. 5 Year Maintenance and Investment Pan (2013) 3. Stock Condition Survey 2012 (dated May 2013) 4. Stock Profie Anaysis Statutory Compiance Arrangements 6. Property Poicies and Procedures 7. Asset Management Risk Matrix 8. Performance Improvement Pan Deveopment Strategy

16 8. Asset Management Action Pan Asset Management Action Pan 2014/15 (The Goden Thread based on the Corporate Pan ) Provide exceent housing and support service Outcome 2014 Targets 2017 Targets W CUSTOMER SATISFACTION 92% overa customer satisfaction achieved Upper quartie with a stretching target of 93% overa customer satisfaction achieved C p Sector eading customer satisfaction 91% customer satisfaction achieved for hepfuness of staff Upper quartie with a stretching target of 93% customer satisfaction achieved for hepfuness of staff C p Customers integra in shaping service deivery decisions Ensure over 250 ambassadors retained and, research and investment anaysts providing statistics to customers to enabe shaping High quaity invovement structure shaping services and budgets, and forecasting provided to Invovement structure P in co COMMUNITY INCLUSION High eves of community pride 82% of customers not experienced ASB in past 12 months Upper quartie with a stretching target of 85% of customers not experienced ASB in past 12 months W ta 15

17 What we wi do How we wi do it Team Objectives Continuay review the services we provide and seek to improve them. Working with Customers we wi review and estabish more effective methods of coating Customer feedback on services Working with customers we wi review and estabish more effective methods of coating Customer feedback on services Continuay review the services we provide and seek to improve them. Working with Customers we wi review and estabish more effective methods of coating Customer feedback on services Working with customers we wi review and estabish more effective methods of coating Customer feedback on services Possess up to date information and inteigence on our customers, communities and externa environment Working with Customers we wi review and estabish more effective methods of coating Customer feedback on services Impement Systems to create more inteigent Asset Management Practices and data audit/updates Working with customers we wi review and estabish more effective methods of coating Customer feedback on services Impement systems to create more Inteigent Asset Management practices and data audit / updates Work with our partners to prevent and tacke ASB - Work in partnership with externa companies to produce innovative projects (neighbourhood improvements, boundary improvements and reduced maintenance and repairs) 16

18 17 Invest in our homes and neighbourhoods

19 What we wi do How we wi do it Team Objectives Continuousy review how we can provide better maintenance services Working with Customers we wi review and estabish more effective methods of coating Customer feedback on services Working with customers we wi review and estabish more effective methods of coating Customer feedback on services Continuousy review how we can provide better maintenance services Forma review of Responsive Repairs processes Ensure absoute efficient use of our resources and that our primary grant capture focus is on therma efficiency Aspire to produce the best quaity affordabe homes at the point of re-et in the south west Produce Energy Efficiency Whoe Stock Incusive Contract Specification with Outcomes Linked to Corporate Pan Review and impement RHI stream to ensure that a quaifying instaations are recorded and gain funding - Produce Whoe Stock incusive contract specification with outcomes inked to Corporate Pan Review a supported compexes in terms of aternative sustainabe soutions to reduce costs Review and impement RHI income stream to ensure that a quaifying instaations are recorded and gain funding Forma review of Voids Re-et Standard to benchmark with top quartie companies Forma review of Voids and Mutua Exchange processes Unock 1m for investment in our neighbourhoods - Work in partnership with externa companies to produce innovative projects (neighbourhood improvements, boundary improvements and reduced maintenance and repairs) Work coser with pubic sector partners to deiver joined up investment in communities Impement Systems to create more inteigent Asset Management Practices and data audit/updates Impement systems to create more Inteigent Asset Management practices and data audit / updates Working with a reevant Coastine Housing Limited Contractors produce forma pan and systems to data-share Asset Management information Ensure a housing and nonhousing assets are reviewed annuay on a financia basis Phase 2 water options appraisa competed and a project pan for disposa competed ready for impementation Waste Water Options appraisa competed and a project pan for disposa competed ready for impementation 18

20 Grow the organisation sensiby Outcome 2014 Targets 2017 Targets W NEW HOMES BUILT New homes buit for oca peope 100 new homes buit 400 new homes buit Outcome 2014 Targets 2017 Targets W NEW HOMES BUILT New homes buit for oder peope incuding appropriate technoogy Strategy approved by the Board. 100 new homes buit New homes buit for oca peope INEFFICIENT ASSETS AND EXPENSIVE TO 100 new homes buit 400 new homes buit RUN HOMES SOLD New homes buit for oder peope incuding appropriate technoogy Inefficient and expensive to maintain Strategy approved by the Board. Seven homes sod homes new homes sod buit homes INEFFICIENT repaced ASSETS with AND new EXPENSIVE ones TO 20 and transformation pots sod and 10 and transformation pots sod RUN HOMES SOLD custom house operating profitaby ACQUIRE HOMES AND PROFITABLE ASSETS Inefficient and expensive to maintain homes repaced with new ones Homes purchased and et to oca peope at appropriate renta eves ACQUIRE HOMES AND PROFITABLE ASSETS Homes purchased and et to oca peope at appropriate renta eves Non- socia 10 and transformation housing imited pots to sod a maximum of 10% capita faciities 20 and transformation pots sod and Non- socia housing imited to a custom house operating profitaby maximum of 10% capita faciities Outcome 2014 Targets 2017 Targets W Continuousy improve our financia strength FINANCIAL STRENGTH Seven homes sod Non- socia housing imited to a maximum of 10% capita faciities 30 homes sod Non- socia housing imited to a maximum of 10% capita faciities Outcome 2014 Targets 2017 Targets W FINANCIAL STRENGTH D re fo Se pe D po re fo Se Se pe wpo bu ho Se w Wbu re ho an W re an 27% operating margin achieved 30% operating margin Achieved The financia performance of the Coastine Group continuousy improves 12% Group net surpus deivered 150% interest cover 27% operating margin achieved 14% Group net surpus deivered 30% operating margin Achieved 160% interest cover M ef The financia performance of the Coastine Group continuousy improves 12% Group net surpus deivered 150% interest cover 14% Group net surpus deivered 160% interest cover M ef 19 Page 21 o

21 What we wi do How we wi do it Team Objectives Deveop new affordabe and market rented, and shared ownership homes for oca peope Secure opportunities to buid oder persons housing across Cornwa and potentiay wider. Deveopment Strategy Deveopment Strategy Support the Deveopment team to put the Deveopment Strategy into effect Support the Deveopment team to put the Deveopment Strategy into effect Se empty homes on the open market with a proceeds reinvested into buiding and acquiring energy efficient homes Impement Systems to create more inteigent Asset Management Practices and data audit/updates Impement systems to create more Inteigent Asset Management practices and data audit / updates Work with other organisations in respect of purchasing / acquiring homes and profitabe assets Deveopment Strategy Support the Deveopment team to put the Deveopment Strategy into effect What we wi do How we wi do it Team Objectives Maintain and increase our cuture of efficiency and baance sheet growth Vaue for money to work in partnership CSL and identify additiona workstreams Drive more efficient working methods incuding the deveopment of mobie working Work with the Finance and Performance team to deveop a structure to report the financia performance of individua assets. This wi enabe a more granuar cacuation of the financia return on assets Vaue for money work with Coastine Services Limited to identify new work streams to create savings and achieve savings with other contractors Review 5 year pan from 2015 to estabish panned maintenance expenditure with Coastine Services Limited Working with the Repairs Team continue to impement future opportunities to refer customers to Handyine Working with the Property Investment Manager to estabish more effective methods of recharges 20

22 9. Concusion Asset Management Action Pan In concusion, we are a property business and it is therefore critica for us to understand the performance of our assets. The deivery of this Strategy is informed through the Stock Condition Survey and is supported by the 30 year Business Pan in the onger term. Where new investment, such as photovotaic panes, eads to a financia return which is in ine with the reevant financia parameters then Coastine Housing wi consider direct investment. For the medium term, a five year Maintenance Pan ( ) was produced and pubicised to customers. Funding criteria have changed significanty in the ast 3 years and using the new Stock Condition Survey data this pan wi be updated to aign it with the Asset Management Strategy. Asset management investment wi:- Be ed by the recommendations of the Stock Condition Survey; Be further refined by reevant standards, poicy and strategy such as the Coastine Standard, Affordabe Warmth Strategy and Performance Improvement Pan; Link to corporate priorities and address risks in the Asset Management Risk Register; Obtain grants and aternative funding to maximise everage; Reprioritise the pan where opportunity, risks or statutory compiance dictates; Prioritise investment where it addresses fue poverty or improves socia vaue; Seek reinvestment of capita receipts where appropriate; Invest on a whoe ife cost basis, seeking reprioritisation of budgets as necessary; Consider viabiity and vaue for money as part of the options appraisa; Reduce panned investment where it woud be poor vaue for money and the asset is identified for potentia disposa; Ensure the right baance between panned and responsive maintenance; Maximise the technica performance of the housing stock; and Take into account the diverse needs of customers. Deivery of the Strategy wi be achieved through the Asset Management Action Pan which wi be reviewed annuay to incorporate continuous improvement. 21

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24 Coastine Housing Coastine House 4 Barncoose Gateway Park Redruth Cornwa TR15 3RQ customer.services@coastinehousing.co.uk twitter.com/coastinehouse facebook.com/coastinehousing Headand Printers