VOLUNTARY TRANSFER OF INDIVIDUAL TENANTED PROPERTIES BETWEEN COMMUNITY HOUSING ORGANISATIONS POLICY AND PROCEDURES
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1 Housing SA Community Partnerships and Growth Community Housing Debenture Program VOLUNTARY TRANSFER OF INDIVIDUAL TENANTED PROPERTIES BETWEEN COMMUNITY HOUSING ORGANISATIONS POLICY AND PROCEDURES Version Number: 3 Status: APPROVED October 2013 Voluntary Transfer of Tenanted Properties between CHOs: Policy and Procedures 1
2 Document Name Voluntary Transfer of Tenanted Properties between Community Housing Organisations Policy Division Housing SA Sub Division Community Partnerships and Growth Responsible Officer Jane Fletcher, Manager Policy and Operations Version 3 Status Approved Issued October 2013 Next Review As required CPG CONTACTS Web: Telephone Address communityhousing@sa.gov.au Policy Approval Content Author: Delegated Authority: (Director or authorised delegate) Date: Name: Margaret Tamlin Position: Policy Development Officer Date: Name: Gregg Ryan Position: A/Director, Community Partnerships and Growth Voluntary Transfer of Individual Tenanted Properties between CHOs: Policy and Procedures 2
3 Table of Contents Policy Approval Intent Context Risk Reference Documents and Links Directive Documents...4 South Australian Co-operative and Community Housing Act Supporting Documents Related Documents and Resources Scope Definitions Policy Detail Governance Principles Procedure details To arrange for a possible transfer from Community Housing Organisation to Community Housing Organisation To arrange formal transfer of tenanted property request Following the passing of the Special Resolution To meet the requirements of the transfer conditions on the Transfer of Tenanted Property Request Form To assess the Transfer of Tenanted Property Request Form To finalise the transfer with the tenant To arrange a transfer of Title Treatment of Costs To finalise the Transfer request GST obligations...11 Voluntary Transfer of Individual Tenanted Properties between CHOs: Policy and Procedures 3
4 1 Intent This policy supports the procedures and outlines the primary responsibilities for the transfer of tenanted properties from one Housing Association or Housing Co-operative to another. These properties are referred to as "transfers" in this policy. 2 Context Housing SA, Community Partnerships and Growth hereafter referred to as Community Partnerships considers requests for the transfer of properties in accordance with this policy and the following legislative/authority base: The South Australian Co-operative & Community Housing Act (1991) The South Australian Co-operative & Community Housing Regulations (20007) 3 Risk Housing SA, Community Partnerships and Growth, requires clear policy for the transfer of individual tenanted properties between Community Housing Organisations in order to manage the following: Transfer conditions including required property maintenance Tenancy issues associated with the reason for transfer. Titling arrangements and implications, i.e. whether the dwelling may share title with another or be a community title, or is on a single title and any other issues impacting the transfer e.g. encumbrances Possible impact on financial viability of either Community Housing Organisation. 4 Reference Documents and Links 4.1 Directive Documents South Australian Co-operative and Community Housing Act 1991 The South Australian Co-operative and Community Housing (General) Regulations (SA) Community Housing Funding Agreement 4.2 Supporting Documents Voluntary Transfer of Individual Tenanted Properties between Community Housing Organisations Procedures 4.3 Related Documents and Resources Community Housing Maintenance Policy Community Housing New Generation Housing Program Policy Community Housing Property Returns Policy Community Housing Regulation Policy Related forms, available at include: o Transfer of Tenanted Property Request Form 5 Scope 5.1 This document outlines the policy in relation to the transfer of tenanted properties from one Community Housing Organisation to another. Voluntary Transfer of Individual Tenanted Properties between CHOs: Policy and Procedures 4
5 5.2 This policy does not cover: 6 Definitions a) The provision of properties from Community Partnerships to Community Housing Organisations (refer Community Housing New Generation Housing Program Policy) b) The return of vacant properties to Community Partnerships (refer Community Housing Property Returns Policy) c) The transfer of tenanted properties from one Community Housing Organisation to another, where Community Partnerships initiates such a transfer e.g. as a result of formal intervention, (Refer to Community Housing Regulation Policy 2006, Section 10.1 l and and ); d) The leasing of properties to organisations through other Housing SA programs. e) The transfer of an entire group/organisation s tenanted community housing properties and tenancies. These are considered voluntary amalgamations or mergers and are not covered in this Policy. See Co-operatives Voluntary Amalgamations and Mergers Policy and Procedures. Assets Co-ordinator The staff member within Housing SA Community Partnerships and Growth who liaises with Community Housing Organisations to co-ordinate asset activity on behalf of Community Housing Organisations. Contact no.: Assets Directorate The directorate within Housing SA which provides a service to all other Housing SA divisions to ensure that affordable and high need housing outcomes are achieved to meet the objectives and priorities set out in DCSI Housing Business Plan and the Strategic Asset Management Plan Capital Contribution A regular payment made by Associations and Co-operatives to Housing SA, Community Partnerships and Growth, to fund the continuation of the community housing debenture program. Community Housing Project Management - Assets Directorate The team within Housing SA s Asset Directorate that provides a service to Community Partnerships and Growth for assets and property relating matters. Debenture A legal document which acknowledges an Association s/co-operative s debt to the South Australian Housing Trust for the equivalent of the value of each property provided to the Community Housing Organisations. See also debenture value. Debenture value The property s capital value as set annually on 1 July, by the Office of the Valuer General (VG) and recorded by Housing SA. Housing Association An organisation that is managed by a Board of Management (i.e. not tenants) that owns and manages community housing properties, conducts property and tenancy management, and is accountable to Housing SA. Housing Co-operative An organisation that is managed for and by its members e.g. tenants are responsible for property and tenancy management. The organisation is are accountable to Housing SA. Voluntary Transfer of Individual Tenanted Properties between CHOs: Policy and Procedures 5
6 Housing SA The division within the Department for Communities and Social Inclusion that connects people to all Departmental housing services including those delivered by community agencies. The organisation assumes the role of the former SA Community Housing Authority (SACHA) and oversees the operations of Housing SA, Community Partnerships and Growth, the agency responsible for regulating Community Housing in South Australia. Housing SA, Community Partnerships and Growth Housing SA, Community Partnerships and Growth is the government Directorate responsible for the development and regulation of non-government housing in SA, including community housing. Further information can be found at Rates and taxes Rates and taxes adjustments occur where a property legally changes title e.g. sale or transfer etc. Rates and taxes may include: Council rates SA Water supply charges Emergency Services Levy Any other rates, charges or taxes which may arise that would normally be charged to the property owner by a government or statutory body. Receiving Community Housing Organisations The Community Housing Organisations that will be receiving a property transferred from another Community Housing Organisations. Relinquishing Community Housing Organisations The Community Housing Organisations that is relinquishing a property (or giving it up), either as a return to Housing SA, Community Partnerships and Growth, or as a tenanted transfer to another Community Housing Organisation. Settlement date The date when the property will legally transfer from one party to another as lodged at the Lands Titles Office (LTO). South Australian Housing Trust (SAHT) The South Australian Housing Trust (SAHT) is the legal entity that holds title to Housing SA assets. Special resolution A written motion sent to members and considered at a general meeting of the Community Housing Organisations as follows: Co-operatives All members must be sent the motion 14 days before any general meeting to consider the motion; or Associations (if the association s rules specify who members are) All members must be sent the motion 21 days before any general meeting for consideration; or Associations (if the association s rules do not specify who members are) All current members of the Association s committee of management must be sent the motion 21 days before any general meeting to consider the motion The motion must be included on the meeting agenda, or separately written and provided to all members in advance of the meeting. For a motion to be passed regarding returns, transfers or sales, the motion: Must be considered by the number of members necessary to form a quorum for the general meeting (as specified in the rules of each CHO); and Where a quorum is present, at least 75% of votes cast are in support of the motion (including proxy votes, where these are allowed). Voluntary Transfer of Individual Tenanted Properties between CHOs: Policy and Procedures 6
7 Transfer Date The date nominated by Community Partnerships and Growth as the date of transfer of title. 7 Policy Detail 7.1 Governance Housing SA, Community Partnerships and Growth hereafter referred to as Community Partnerships considers requests for the transfer of properties in accordance with this policy. The South Australian Housing Trust (SAHT) is the legal entity that holds title to Housing SA assets. All legal documentation relating to property transfers will reference the SAHT. Final approval for all property transfers rests with Community Partnerships. 7.2 Principles With the written consent of Community Partnerships, Associations and Co-operatives may transfer tenanted properties to another Community Housing Organisation. Queries about the transfer of an individual property should be directed in the first instance to the Community Partnerships Assets Co-ordinator. Relinquishing Community Housing Organisations will be responsible for the cost of bringing properties up to Accommodation Standards and other property related costs outlined in this policy. 8 Procedure details 8.1 To arrange for a possible transfer from Community Housing Organisation to Community Housing Organisation Where two Community Housing Organisations identify the possible transfer of a tenanted property between themselves, the relinquishing Community Housing Organisation should contact the Assets Co-ordinator, Community Partnerships as soon as possible to discuss: Any agreement reached regarding transfer conditions (including required property maintenance) Any relevant issues associated with the tenancy relating to the reason for the transfer Community Partnerships will consider the following when determining the appropriateness of a transfer request: Confirmation from the tenant that he/she agrees to the transfer Whether the relinquishing Community Housing Organisation has considered all other alternatives to resolve any tenancy issues Titling arrangements and implications i.e. whether the dwelling may share title with another or be part of a community title, or is on a single title and if so where there may be other issues impacting the transfer (e.g. encumbrances) Any possible impact on the financial viability of either Community Housing Organisation Voluntary Transfer of Individual Tenanted Properties between CHOs: Policy and Procedures 7
8 The condition of the property with a check of the maintenance plan for the property Any broader strategic asset issues in the context of Housing SA s total stock The Community Housing Assets Co-ordinator will give in principle agreement to the transfer providing all the above is satisfied. 8.2 To arrange formal transfer of tenanted property request If it is deemed that transfer of the property poses no immediate or long term management implications for either Community Housing Organisation and is deemed to be the most appropriate solution for the tenancy by Community Partnerships, the Community Partnerships Asset Co-ordinator will contact the relinquishing Community Housing Organisation to advise it to: Proceed with formalising the decision by Special Resolution (if the Community Housing Organisation has not already done so) 8.3 Following the passing of the Special Resolution The relinquishing Community Housing Organisation must: Provide the receiving Community Housing Organisation with a copy of the current detailed summary maintenance plan for the property and the most recent property inspection report. Inspect the Property with the Community Housing Organisation acquiring the property to formally agree and document in detail (provision included on the Transfer of Tenanted Property Request Form) the conditions upon which the transfer will be made (i.e. responsibility for any outstanding maintenance); Assess outstanding or due dates for statutory charges and costs (such as rates, excess water charges, taxes, levies, strata payments etc) and undertake responsibility for ensuring these charges are paid so that there are no outstanding costs at the date of transfer ; Assess and document in detail any tenant damage to the property for which the tenant will be responsible; Ensure the tenant is fully aware of the nature of the Community Housing Organisation they are transferring into (i.e. what the Community Housing Organisation s purpose is), and of any participation or other requirements they will need to meet as part of their membership (if the tenant did not actively initiate the transfer to the specific Community Housing Organisation themselves). Note All Community Housing Organisations decisions to transfer a tenanted property to another Community Housing Organisation are conditional on Community Partnership's assessment and approval of the Formal Request Voluntary Transfer of Individual Tenanted Properties between CHOs: Policy and Procedures 8
9 8.4 To meet the requirements of the transfer conditions on the Transfer of Tenanted Property Request Form The relinquishing Community Housing Organisation: Should lead the coordination of the transfer request (i.e. ensuring the receiving Community Housing Organisation provides all information as required by the Transfer of Tenanted Property Request Form). must return the Transfer of Tenanted Property Request Form, signed by both parties including the following attachments, to the Community Partnerships Assets Coordinator o The minutes of the meeting at which the special resolution was made by the relinquishing Community Housing Organisation to transfer (dispose of) the property. o o The minutes of the meeting at which the receiving Community Housing Organisation agreed to accept the property OR evidence of prior delegations in place by the Organisation enabling the decision to be made by relevant Officers, and proof of the meeting between those Officers where the decision was made. Evidence that the tenant agrees to the transfer. Upon receipt of the Transfer of Tenanted Property Request Form, the Assets Co-ordinator will determine if all required information has been provided and if necessary liaise with the relinquishing Community Housing Organisation to finalise the formal request. The Transfer of Tenanted Property Request Form will be forwarded by the Assets Coordinator to the Director, Community Partnerships and Growth, via the Manager, Community Housing Assets, for formal approval. Note Community Housing Organisations that transfer a property to another Community Housing Organisation will not receive a replacement property. 8.5 To assess the Transfer of Tenanted Property Request Form Generally all tenanted property transfers that Community Housing Organisations may wish to make are approved, provided that: There is evidence that the tenant agrees to the transfer the Community Housing Organisation has followed steps 1-4; and o the Transfer Request is on the appropriate Transfer of Tenanted Property Request Form the impact of the transfer will not impact the ongoing financial viability of either Community Housing Organisation Voluntary Transfer of Individual Tenanted Properties between CHOs: Policy and Procedures 9
10 8.6 To finalise the transfer with the tenant In addition the relinquishing and receiving Community Housing Organisations must, before finalisation of transfer, ensure the tenant: Provides appropriate notice of their termination of tenancy and membership to the relinquishing Community Housing Organisation (in keeping with the requirements of their current tenancy agreement and Community Housing Organisation membership) Undergoes a final inspection with the relinquishing Community Housing Organisation (i.e. complete their previous property inspection sheet to determine if there are any tenant damages or charges including excess water usage); Enters into a new written tenancy (and where relevant, membership) agreement with the receiving Community Housing Organisation; Undergoes a new property inspection with the receiving Community Housing Organisation. 8.7 To arrange a transfer of Title Approval for transfer of the property will be finalised and transfer of title will be completed only when the requirements listed in Step 5 (above) have been satisfied The Director, Community Partnerships and Growth will: Approve and advise in writing the Community Housing Organisation s Property Transfer Request has been approved. Note - The transfer date will be negotiated between each Community Housing Organisation and Community Partnerships and Growth A Conveyancer will be appointed by Housing SA Community Housing Project Management Team to facilitate the transfer/s once: the formal approval has been given all the relevant documents have been received The Asset Co-ordinator will forward the documents to the relinquishing and the receiving Community Housing Organisations for signature and seal Once documents are received by each Community Housing Organisation from the Conveyancer, these are to be signed and sealed and returned to the Assets Coordinator as soon as possible after receipt to avoid delay in transfer of title and settlement The Conveyancer will advise the Assets Co-ordinator when the transfer has been effected, and the Assets Co-ordinator will advise both Community Housing Organisations in writing. Voluntary Transfer of Individual Tenanted Properties between CHOs: Policy and Procedures 10
11 8.8 Treatment of Costs Statutory Charges Disbursements (Cost adjustments made at transfer between actual transfer date and end of current billing cycle) Council Rates must be paid in full to the end of the financial year by the relinquishing Community Housing Organisation. Water Rates and Water Usage must be paid in full and in advance to the end of the current quarter cycle by the relinquishing Community Housing Organisation. Emergency Services levy must be paid in full to the end of the financial year by the relevant Community Housing Organisation. Strata Fees for properties that are community title must be paid in full and advance to the end of the current financial year the billing cycle varies per situation by the Community Housing Organisation Insurance Costs Insurance Cost will be adjusted between the two Community Housing Organisations by the Insurance Broker Maintenance Costs The cost of maintenance work on properties being transferred to another organisation, where they are necessary to bring the property up to the required standard, will be funded by the relinquishing organisation s maintenance account funds wherever possible. 8.9 To finalise the Transfer request The conveyancer will: Prepare settlement statements for both the relinquishing Community Housing Organisation as the vendor and the receiving Community Housing Organisation as the purchaser Confirm the apportionment of payment via the settlement statements for the associated rates and taxes between the groups. The relinquishing Community Housing Organisation will be responsible for the final water meter reading and the charge to the tenant GST obligations Refer to the Audit guidelines, Accounting for GST for the relevant year which are available on the Community Partnerships and Growth website, Voluntary Transfer of Individual Tenanted Properties between CHOs: Policy and Procedures 11
12 Note: The Association/Co-operative will be fully responsible for the property until the date of settlement. Before the property is handed back final electricity and gas readings must be arranged and paid for by the Association / Co-operative. Before the property is handed back final electricity and gas readings must be arranged and paid for by the Association / Co-operative. Voluntary Transfer of Individual Tenanted Properties between CHOs: Policy and Procedures 12
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