Housing Asset Management Strategy

Transcription

1 Housing Asset Management Strategy Lead officer: David Hodgson EIA completed: March 2010 Date agreed: 25 March 2010 Review date: March 2012 Working Page together 1 of 30 to deliver quality homes and a better environment for all

2 Contents Page 1 Foreword 3 2 Introduction 4 3 The Vision 5 4 Background 6 5 Customer Involvement 6 6 Property Profile 7 7 Stock Condition 9 8 Health and Safety Issues 14 9 Investment & Funding Procurement Planned Maintenance and Responsive Maintenance Decent Homes Environmental Issues Diversity Risk Management Performance Management Conclusion Implementation and Monitoring 21 Appendix 1 Sustainability Model 25 Page 2 of 30

3 1. Foreword Welcome to the revised East Durham Homes Asset Management Strategy. The strategy was adopted by the Board in March 2009 and the updated version takes into account changes in the stock and demand patterns, delivery of the repairs and maintenance service and delivery of Decent Homes since the strategy was first agreed. The strategy fits in with the overall approach adopted by the council to ensure that the resources available are used effectively and compliment wider regeneration initiatives. We will align our expenditure with the Councils regeneration strategy and the emerging Total Place agenda, to maximise the impact of our investment. We have made significant progress in dealing with stock which is no longer sustainable and worked with the council to deliver solutions which meet needs and demands locally. The scheme at Patterson Gardens Blackhall is an example of what can be achieved working in partnership. We have commenced the strategic partnership with Morrison Facilities Services to deliver our repairs and maintenance service and we have also commenced works on properties to address our non-decency rate, working with our strategic partners (FHM, Kier and Wates) One of the challenges facing us is making sure that our stock not only meets but exceeds the decent homes standard and also meets modern aspirations. This is especially challenging in relation to the accommodation we offer to older customers such as bungalows with one bedroom and sheltered housing. Paul Tanney Chief Executive Page 3 of 30

4 Introduction An asset management strategy can be seen as; The strategy that covers the range of activities that ensure that the council s housing stock meets the needs and standards required now and in the future. This asset management strategy has been drawn up to complement and inform our business plan and to set out priorities for the physical care and improvement of the housing stock. East Durham Homes (EDH) is responsible for the day-to-day management, maintenance and sustainability of the council s housing stock in East Durham, which consists of 8527 residential dwellings, 1725 garages and 5 sheltered housing units, one of which has been agreed for closure and tenants are currently being re-housed. The ownership of the stock transferred from Easington District Council to Durham County Council on the 1 st April EDH will work closely with the new council to achieve the aims of this strategy. The council retains ownership of the stock and the strategic direction and future of the stock is directly influenced by EDH s Asset Management Strategy. The council have been consulted in the production of this strategy and will continue to be involved in the decision making process together with other stakeholders through the Asset Management Group. As part of our ongoing work we will develop a positive working relationship with the new council to ensure that its assets are managed efficiently. Asset management is a key part of the business process for EDH and this strategy aims to ensure that financial resources are appropriately invested in long term sustainable stock. Through this the joint objectives of EDH and the council are to provide housing that is: Affordable In a good condition In the right location Of a design that is fit for purpose Meets the need of local people EDH aims to ensure that the strategy and its aims and objectives are consistent with other key plans and policies including: Business Plan Customer Involvement Strategy Corporate Equality Policy Leaseholder Policy Repairs and Maintenance Strategy Procurement Strategy Page 4 of 30

5 Environmental Policy Value for Money Strategy Aids and Adaptations Policy Asbestos Management Policy Gas and Solid Fuels Policy The asset management strategy should be read in conjunction with the delivery programme for decent homes. The Asset Management Strategy has six objectives set out as below: Objective 1: Ensure homes are improved and maintained to a high quality standard and meet customer aspirations Objective 2: Ensure effective customer involvement in the development and monitoring of improvement programmes Objective 3: Develop the computer infrastructure to provide accurate stock information Objective 4: Demonstrate value for money in the delivery of the capital improvement programme Objective 5: Develop the performance management framework for the capital improvement programme to deliver real outcomes for customers Objective 6: Work in partnership with Durham County Council to manage assets on their behalf 3. The vision EDH is committed to providing quality, decent and affordable housing but recognise that housing alone does not make a sustainable community. In line with the Government s Place Shaping agenda EDH is committed to ensuring that its housing areas are well maintained and help to create environments that are safe and desirable places in which to live. By implementing effective stock improvement strategies EDH is able to make a positive contribution to the physical regeneration of East Durham. This strategy sets out our approach towards delivering decent homes and affordable housing and has been shaped by customer engagement, reviews against the key lines of enquiry, best practice, recommendations by external inspectors, the emerging TSA standards and other service review activity. Our vision for the asset management strategy is: Page 5 of 30

6 To have high quality homes, that meet modern aspirations and are located within sustainable communities 4. Background The actions contained in this strategy have been incorporated into the relevant Delivery Plans within EDH which are agreed with the council to ensure that it is fully integrated into both organisations operational activities. An Asset Management Group has been established to drive the strategy forward, with membership from EDH and the council as well as co-opted membership from other key stakeholders such as RSLs, Community Groups etc where relevant. As a reflection of the importance placed on this strategy by the EDH Board a Board Member will be elected as the lead for Asset Management issues and will chair the Asset Management Group. As well as the delivery of the Asset Management Strategy action plan, the group will consider wider issues relating to the future sustainability of the housing stock and make recommendations for action as appropriate, for instance cases for disposal or investment. 5. Customer Involvement Our customers have been involved in the development of the priorities for this strategy through the Capital and Repairs Service Review Panel and the Housing Partnership. Tenants (our customer) are a key element in the delivery of services and so it is very important that we use every available opportunity to involve the customer and thus challenge the way we work and improve services. We use feedback and other customer involvement processes to shape the way services are delivered and also ensure that we meet the needs of customers. We have Service Review Panels where they work together with Board Directors and our staff to analyse data, consider options for improved performance, draw conclusions and agree actions. In addition, we host an annual Customer Involvement Event targeting both our vulnerable customers and representative from special interest groups. This year we addressed Decent Homes, with our partners, as one of the four topics. EDH will continue to involve customers, the Board, the council and staff to ensure that the strategy and its aims and objectives are consistent. Page 6 of 30

7 Leaseholders As at March 2010 EDH manages 104 leasehold properties for which service standards have been developed and agreed through the mechanism of the Leaseholder Forum, which meets on a quarterly basis. EDH recognises the need to improve consultation and communication with leaseholders, where works to external and communal areas in multiple tenure blocks needs to be undertaken. EDH will aim to consult its leaseholders in compliance with Section 20 of the Landlord and Tenants Act (1985) as amended by the Commonhold and Leasehold Reform Act (2002) on the scope of works, the costs involved and the anticipated timescales for work. However where essential works need to be undertaken, difficulties may be experienced in recovering costs from leaseholders. EDH will adopt a firm but fair approach to recovery of costs that do not cause hardship to individuals but which equally reduces risk to EDH and the council. We recognise that we can always improve the way we communicate with tenants and leaseholders. Poor communication has been identified both as a factor within our complaints system and in respect to dealing with our leaseholders in the Audit Commission Inspection. Therefore we must establish consistent methods to ensure effective communication. We place a dependency on our partners in terms of the delivery of works and therefore it is important that we agree standards for communication and apply these consistently across our work activities. 6. Property Profile Effective asset management requires a number of factors to be adhered to in order to ensure that the housing stock meets the needs and aspirations of EDH s tenants now and in the future. These factors include; consideration of the balance between the supply and demand for specific property types, the physical condition of properties, location and environmental factors along with an understanding of key financial investment options and funding constraints. EDH s current stock profile is detailed within Table 1. Within the East Durham area, the demand for certain types of property has shifted during the last 10 years. In 2001/02 there was a significant over supply of Council housing in many settlements, with void figures reaching a peak of 910. A combination of stock reduction (sales and demolitions) together with increasing demand due to affordability issues in the market sector resulted in much higher levels of demand. In January 2009 the number of properties vacant and available for Page 7 of 30

8 letting was 80, with a further 47 properties being deemed non-lettable. In January 2010 the number of properties available for letting had risen to 94, but the number of non-lettable properties had reduced to 41. Table 1: Stock profile as at March 2010: Bedrooms Definition Total % Stock Pre 1945 small Terraced house Pre 1945 semi detached house All other pre Small terraced house built Large terraced/semi-detached detached houses Post 1974 houses Non traditional houses Housing Total Pre 1945 flats in low rise blocks (1-2 storeys) Post 1944 flats in low rise blocks (1-2 storeys) Flats in medium rise blocks (3-5 storeys) Flat Total Bungalows Total % Affordability has become a critical factor within the district in the context of private sector rents, typically a three bedroom private sector house can achieve a rental value of 450 per month, this compares to an average Council house rent for a similar property of 238 per month. There are currently 2378 applicants who are active on the waiting list. The highest demand is for 2, 3 and 4-bed family accommodation throughout East Durham, with each property becoming advertised currently receiving an average of 16 bids. Demand for 2 bed bungalows is high, and looks certain to rise in the next 5 years, however, much of the Council s bungalow and flat accommodation stock is 1-bed, furthermore a study in April 2006 (Older Persons Strategy) identified that Page 8 of 30

9 existing housing accommodation for older people is not adequate for their future housing needs and requirements. We know that there is significant demand for family type housing in the area and there is an over supply of bungalows with one bedroom, which no longer meets current needs and aspirations of customers. One of the actions of the strategy is to develop options for the future of this type of property, taking into account the feasibility study undertaken by Curtins Consulting (2009), pilot works and the availability of finance. EDH recognises that the reduction of housing stock year on year has a direct impact on the viability of EDH s future. Current stock projections suggest a steady decline in stock numbers (through Right to Buy and rationalisation schemes). These projections exclude the concerns regarding 1 bed bungalows and flats. This reduction in the portfolio not only represents a risk to EDH but also has a direct impact on future levels of funding available to continue to invest and deliver decent affordable housing. EDH will therefore in association with the council, investigate appropriate ways of stabilizing the portfolio and the potential to increase assets through either new build and acquisitions (including stock from other social housing landlords). 7. Stock Condition EDH are responsible for the improvement of the present housing stock to meet the Decent Home Standard (further detail in Section 12) as introduced by the Government in July 2001, with the aim to improve the standard of social housing in England. The Decent Homes Programme has enabled us to compile a comprehensive focus on our housing stock, which was identified as being 90% non-decent within the 2009 Audit Commission Inspection. We are further able to analyse the failure in terms of individual elements as detailed in Table 2. We have been able to commence delivery of our Decent Homes programme during 2009, however we have only been able to reduce the non-decency rate to 84% of the housing stock. We have plans in place to significantly improve the non-decency rate and this is detailed in Section 9: Investment & Funding. Page 9 of 30

10 Table 2: The number of properties failing the Decent Homes Standard by element: Group Bathroom 5648 Electrical 5395 Heating 4219 Kitchens 5455 Miscellaneous Home 1998 Roof 2535 Structural 3931 Thermal 4905 Walls 2128 Windows and Doors 3091 Stock Condition Validation EDH commissioned a stock condition validation exercise in early 2007 via an external consultant (FFT Chartered Surveyors). This exercise involved 30% validation of actual surveys, market testing of our build cost model, accuracy of information and methods of cloning within the Amethyst software and a gap analysis of our overall systems. The results of the validation exercise confirmed that our system is fit for purpose only needing minor improvements and slight adjustments to our build cost model. The validated build cost model indicate that in terms of funding required to meet the Decent Homes Standard we will have sufficient resources (following the achievement of a 2 star rating and the associated finance) to meet the standard for all our existing stock by This is based on achieving the Decent Homes Plus standard, at an average unit cost of 18,500. We will continue to work with our strategic partners to achieve value for money wherever possible. Stock Condition Survey To date 36% of properties have been subject to a stock condition survey and these results have been used to programme decent homes work. It is essential that accurate stock condition information is recorded and readily available as this will ensure that future improvement and maintenance works are effectively programmed and budgeted. Stock information is held in an online database within the Procurement and Investment Section of EDH. Further stock condition surveys are being undertaken by independent surveyors (David Adamson & Partners) and commenced in February 2010, making full use of handheld technology. The proposed timetable for achieving 100% stock condition surveys as detailed in Table 3. Page 10 of 30

11 Table 3: Timetable to carry out stock condition surveys Year Anticipated Stockholding Target % Target Number 2009/ % % 2010/ % % 2011/ % % 2012/ % % Stock Condition Database % Total stock surveyed (cumulative) We recognise the need to maintain effective records of our stock and that the system is available to the different directorates within EDH and external partners to facilitate the delivery of their work tasks. We are currently in the process of purchasing a new system which will integrate our current Stock Condition Database with our Housing Management system, also ensuring that linkage occurs with other IT platforms incorporating attributes such as asbestos management. Non Traditional Properties Within the housing stock there are various properties constructed in a nontraditional design or build, further detail is provided in Table 4. Table 4: Non traditional properties Type Number Description BISF (British Iron and Steel Federation) 142 Steel framed semi detached houses with first floor steel cladding, render on expanded metal lathing and asbestos sheet roofs built in the late 1940 s No fines 31 Semi detached houses constructed by means of concrete poured insitu and without the fine elements of concrete as the name indicates. The cellular type of concrete gave some insulation and weather resistance and full weather proofing was achieved with the use of external rendering Skarne 210 Large precast wall and floor panel buildings built in mid to late 1960 s Tarran 17 System built with full storey height concrete wall panels and asbestos cement roofs on steel roof trusses Total 400 Page 11 of 30

12 Non-traditional property types have been found to have defects and therefore need to be given additional consideration when assessing their long-term sustainability. The majority of the non-traditional stock is however high demand property such as two bedroom bungalows and three bedroom family accommodation. We commissioned Curtins Consulting to undertake detailed analysis and survey work on our non traditional stock to identify the options available. The findings of this report will be used to guide our decision making both in terms of sustainability and affordability during delivery from 2010/11 onwards. Sustainable Development and Regeneration The sustainability of housing areas is dependant upon a holistic approach to management and investment in housing stock. EDH has made significant progress in addressing a number of low demand areas. This has included implementing plans within a number of areas to facilitate both the demolition and improvement of a range of housing in both the social and private sector. We will look to work closely with Durham County Council to ensure a joined up approach towards sustainable development and regeneration. The Sustainability Model is central to assessing the viability of investment through the Decent Homes programme as well as identifying future areas that are demonstrating signs of decline. Appendix 1 provides further details of the Sustainability Model and includes a worked example (sustainability matrix). It is acknowledged that further work is required on the model and that an electronic link between the database and the Orchard Housing Management system is desirable to ensure that the information is live and up to date. Further work is also required to develop a system which will enable greater interpretation of the data and again enable live and up to date monitoring of housing stock and areas. Adapting the Stock It is clear that the housing stock in our area does not meet the changing needs of many of our customers. Significant adaptations are often required to enable disabled tenants to continue to live in their homes independently. We have been setting aside over 500,000 per annum within the capital programme to carry out adaptations, based on assessment by an occupational therapist. We have been able to dramatically reduce the waiting time and currently aim to undertake major adaptation works within 16 weeks of receiving a request. Page 12 of 30

13 In addition to this our decent home programme supports works that have a future proofing effect on the property. This enables customers who become disabled to remain in their own home with the reduced need to undertake minor adaptations. It also enables disabled customers who have limited needs, to move into a home which has already been adapted, which becomes vacant. One Bedroom Bungalows There is an oversupply of one bedroom properties in some areas in the housing stock. EDH will consider which one bedroom bungalows are suitable for conversion into two bedroom bungalows and these will be costed and submitted for consideration by the council. This analysis will be based on the feasibility report undertaken by Curtins Consulting and we are currently looking at the options and sources of finance. Those which are deemed no longer fit for purpose will be identified and subjected to a full options appraisal to consider a range of outcomes including; partnership schemes with suitable RSL s, redevelopment by the Council or demolition. To help inform this decision EDH undertook to pilot conversions during 2009/2010 and the results from this will inform our overall approach. Sheltered Housing Units The council currently owns six Sheltered Housing Units (SHUs) which comprise individual flats or bedsits linked by communal living areas and typically served by a resident or visiting warden. These properties have traditionally provided popular fit for purpose accommodation for older people but are increasingly difficult to let as people s aspirations for the type and location of housing has changed. The council have agreed to close 2 sheltered housing units, 1 of which has now been closed and the other is in the process of being decommissioned. The other 4 units are considered to be sustainable and will be included in the Decent Homes Programme. In addition we will review the condition of the communal areas to ensure that these are adequately maintained and are fit for purpose. This has included a recent access audit which has led to a programme of works to improve access to the customers, in particular addressing the needs of visual impairment. One Bedroom Older Persons Flats One bedroom older persons flats in some areas are a potential problematic stock. EDH will initially consider whether the unsustainable stock is suitable for conversion into family accommodation/houses and put forward the appropriate recommendations to the council for consideration. If the stock cannot be Page 13 of 30

14 remodelled, the flat block and surrounding area will be subject to the Options Appraisal Framework. Garages EDH developed a Garage Strategy ( ) to deal with the oversupply and poor condition of much of our garage stock across the district. The Strategy included an action plan which outlined refurbishment of sustainable garages and the disposal or demolition of those garages that suffered from lack of demand and/or poor structural condition. The number of void garages has reduced from 348 to 85 as at February 2010, 38 of these are to be demolished. The issue of refurbishment of the sustainable garages remains, therefore we will review the current garage strategy to ensure that it remains fit for purpose and this includes the option of a number of accessible facilities. Environmental Works We have limited funds available to undertake environmental works. With the funds that are available and following consultation with customers we have agreed to carry out environmental works by area following decent homes work and look to attract additional resources to complement the finance we have available. We will involve customers and stakeholders in delivering environmental improvements which meet local needs and aspirations. 8. Health and Safety Issues EDH has a legal responsibility to ensure all of our customers (and their visitors) live within a safe environment. This legal requirement, along with our moral responsibility for all of our service users and providers, is taken very seriously and we have recently taken the decision to appoint our own Health & Safey Advisor. EDH is responsible for managing the asbestos within the Council housing stock. As at March 2010 around 78% of the stock has been surveyed in accordance with Safe Management Procedure 09. The target is for 100% of stock to be surveyed by 2011/12. Further details are included within the Asbestos Management Policy. Our standard procedure is to conduct a management survey which involves a physical sample of material being taken off-site for analysis, appropriate actions put in place if asbestos is discovered, and all results recorded on our asbestos database. Where the opportunity exists i.e in a void property where extensive repairs or replacement are identified, we will undertake a more intrusive targeted refurbishment survey. Page 14 of 30

15 EDH and the council also have an electrical/gas safety implementation group, which manage and monitor the installation testing for housing and EDH currently maintain the electrical testing records for the housing stock. Similarly, EDH also mange in conjunction with the council s Health and Safety Unit, the risk of Legionella to all residential stock in accordance with the management procedures Safe Management Procedure 14. For any major work schemes for example the Decent Homes Programme we ensure that the Construction Design & Management Regulations (CDM) are applied with full notification to the Health & Safety Executive. Part of the CDM obligation is for us to ensure that the contractors we employ are competent to undertake the designated task and we supply them with all relevant information in the design and planning phase of the scheme. We have recently agreed a programme of fire risk assessments to our flat blocks and completed fire risk and Disability Discrimination Act assessments to sheltered housing units. Initial feedback indicates that we will need to undertake physical fire prevention improvements to our buildings. We have allocated 50k in 2010/11 to begin this work, but will need to discuss and agree future funding for this work with Durham County Council. We have also included 70k in 2010/11 to increase accessibility to sheltered housing units and communal areas. 9. Investment and Funding Past Investment Prior to the Decent Homes Programme the stock was subject to a series of improvement schemes managed via Easington District Council. Investment Needs Spending on the housing stock should typically cover; 1. Routine repairs and maintenance; including responsive repairs, works to void properties, servicing regimes i.e. heating systems and cyclical work i.e. external painting. 2. Planned maintenance; undertaken to parts of a building (often called components) which need to be replaced before they fail. 3. Improvement programmes; work being undertaken under capital funding similar to the Decent Homes initiative, which are aimed at improving the stock condition (including energy performance and security of the home). 4. Environmental improvements: this work is aimed at improving the condition and security of areas within estates or community wide. Page 15 of 30

16 5. Development or re-development; this work typically includes acquisition, demolition, remodelling and new build. There is currently no budget identified to support EDH carrying out such work. We have a clear understanding of the current and future investment needs of the stock. Data collected prior to and during the delivery of the Decent Homes Programme, provides a solid platform for our investment needs. The Board have previously agreed a five-year delivery programme for achievement of the Decent Homes Standard from The build cost model is based on attaining Decent Homes plus. Whilst we are confident that this standard can be achieved (see Funding below) we recognise that effective procurement and financial management will be essential to enable delivery of the programme. A 30 year plan has also been developed and our current aim will be based on working within these financial restraints to maintain the stock to the Decent Homes standard. Funding The funding required to improve stock via the Decent Homes programme is to be obtained from: Government ALMO funding 116,774,300 Council Capital Programme 33,149,895 Total cost of programme 149,924,195 Following a successful inspection by the Audit Commission in June 2009, we have now been able to access the first tranche of additional ALMO funding. We were allocated an additional 4.9 million to spend in Year 1 on decent homes and work started in Horden, Seaham and Peterlee on a worst first basis by area, as agreed with our customers. This has resulted in 370 homes being made decent during 2009/10. We have received an additional sum of ALMO funding of 10 million for 2010/11 which will enable us to bring 600 properties up to the Decent Homes standard during 2010/11 There is however some uncertainty about the future availability of funds as the system is dependant on allowances from Central Government. Our strategy is based on the latest projections following detailed discussions with the Homes & Communities Agency in January Page 16 of 30

17 If the funding required is not made available, we will be unable to deliver planned improvements and elemental replacement on time and could therefore expect an increase in day to day repairs caused by components that fail. 10. Procurement Modern methods of procurement When procuring a service it is important to strike the right balance between price and quality. We have adopted this approach to embed a partnered relationship within our works service provision. We aim to deliver our capital programme work through a strategic partnership involving FHM, Kier and Wates to deliver the Decent Homes programme. The Kier team are delivering a significant proportion of the capital programme following the outsourcing of EDH staff and operatives. We have also used this opportunity to further develop accessible services tailored to meet the needs of our diverse communities. Delivery of the Repairs & Maintenance services is set up in a similar manner with Morrison Facilities Services, also following outsourcing of EDH staff and operatives. We regularly review our partnering arrangements to ensure that the targets and objectives are being achieved in addition to continuing to provide best value and continuous improvements. Collaborative procurement We are using the Decent Homes programme as the opportunity to explore and adopt the correct approach for the procurement of materials. Within the strategic partnership we have considerable buying power, with our construction partners who are all major national contractors and can therefore combine EDH s requirements with other clients and also call on procurement experts within their organisations. We can also investigate other opportunities which may exist and are aware of the activities of North East Procurement who have been established within our region and are seeking new members and we are currently members of Procurement for Housing. There is also possible scope for added value through the reinvestment of savings, either directly back into the stock or directed towards community initiatives like training and employment. Page 17 of 30

18 11. Planned Maintenance and Responsive Maintenance In order to support the decent homes investment programme a robust planned maintenance framework also needs to be established. The scale of improvement work needed to bring the Council s housing stock up to Decent Homes Standard, led to the introduction of three major strategic partners to take advantage of economies of scale, and ensure that large programmes of works could be practically achieved within the agreed timescale. The partnership now includes planned and reactive maintenance works. Previously, EDH had employed its own direct workforce, but subsequent to a period of market testing it was concluded that from a best value perspective, partnering provided a most efficient procurement option. In addition, it is anticipated that the repairs and maintenance costs for properties, which have been improved to decent home standards, will also require significant ongoing investment in terms of maintenance and repair. Income to undertake these ongoing maintenance works needs to be generated from the rental income stream, which is to be achieved from the managed stock, and therefore, we will need to build on our sustainability matrix to generate and implement financial appraisals and models. 12. Decent Homes The Decent Homes Standard requires compliance with 4 basic criteria so that a property: Is free from Category 1 hazards in the Housing Health & Safety Rating System Is in a reasonable state of repair Has reasonable modern facilities and services Provides a reasonable degree of thermal comfort Our programme is based on our Decent Homes Plus Standard which consists of new kitchen and bathroom (including wall tiling and flooring), full gas central heating system or upgrade, full electrical rewire or upgrade, double glazed doors and windows, electrical focal point fire, enhanced loft and cavity insulation and structural repairs/roofing works where required. The standard was developed and agreed in consultation with tenants via a series of focus groups. Work commenced during 2009/10 in delivering the 5 year Decent Homes programme with extensive property modernisation schemes at; Deneside (Seaham) Edenhill (Peterlee) Ponyfields (Horden) Page 18 of 30

19 In addition extensive work has been undertaken to install new doors and widows, with the aim that all our homes achieve this standard in 2010/ Environmental Issues This strategy needs to consider the different environmental issues which impact on individual properties and the wider environment. This is recognised in EDH developing a separate Environmental Policy within which; EDH makes a commitment to reducing the environmental impact of its operations and services and to make the company both resource-efficient and environmentally responsible, by the direct actions of company staff, Board Members, its partners, residents and customers. We will commit to; Evaluating and maximising the potential of delivering improvements to homes that improve energy and reduce future running costs for our customers. Work closely with our strategic partners to fully consider the environmental impact during the delivery of improvement and routine maintenance work. Consider innovative solutions for heat and power, maximising the use of renewable energy. The Capital Investment programme will be aimed at carrying out substantial energy efficiency improvements to the stock, in particular in the following areas; Check adequate insulation (many properties having been improved within programmes managed by Easington District Council) Install efficient heating systems Install UPVC double glazing (we have pledged to ensure that all our homes achieve this standard in 2010/11). 14. Diversity East Durham Homes recognise the importance of understanding the diverse needs of our customers in order to enable the provision of stock which meets such needs. Recent work has been undertaken on improving our customer profile data and our access and customer care strategy outlines a number of actions to increase our ability to tailor and deliver services based on individual need. Page 19 of 30

20 We need to continue the work we are undertaking with our customers with visual impairments to provide a specification list which will future proof repair and maintenance work against the needs of future tenants. We are also reviewing best practice and analysing the local demographics to enable us to address issues that have greater impact upon specific diverse communities. For example, issues associated with larger or extended families, as well as those which impact upon members of the traveller communities moving into bricks and mortar for the first time. The Equality Impact Assessment identified the following key actions: The Asset Management Strategy is generally robust. This is not a new strategy but a review of the existing strategy which was approved by the Board in An EIA was undertaken at the time the strategy was last reviewed. EDH will consult with all relevant external agencies as deemed appropriate as we develop and maintain our housing stock. EDH will benchmark with other ALMOs and social housing providers to ensure best practice and value for money. EDH will work with its strategic partners and seek continuous improvement in the provision of its services to customers. We will seek to address the issue highlighted within this EqIA associated with faith through our EqIA of the decent homes programme. We will seek to address the issue highlighted within this EqIA associated with the Traveller communities through the development of our corporate Traveller Policy. 15. Risk Management In accordance with the company's Risk Management Policy we have identified areas of major risk as follows: Failure to obtain full ALMO funding for Decent Homes Late notification of funding impacting on our delivery programme Lack of resources to deliver (people, materials) Bankruptcy of a strategic partner We have also undertaken specific operational risk assessments and set out measures to mitigate these within our Delivery Plan. 16. Performance Management In accordance with the company's Performance Management Framework we have identified the following performance indicators to monitor the progress of Page 20 of 30

21 the Asset Management Strategy and in particular to monitor the performance of our contractors who deliver improvements on our behalf; Customer Satisfaction Cost Time predictability within properties Time predictability of overall project Quality Health & safety We will also carry out an annual service review to ensure that we identify areas where we can improve and learn from good practice. 17. Conclusion The Asset Management Strategy is intended to provide a framework in which EDH organises and co-ordinates all activities that contribute to the continued viability of the housing stock. It sets out EDH s commitment to provide decent and affordable houses to residents through effective investment and neighbourhood planning. It provides the tools and necessary structure to enable the stock to be continually analysed and reviewed in order to ensure that it retains the sustainability in order to provide housing stock that is fit for purpose. In addition it also ensures that the future financial viability for EDH and the council in terms of generating sufficient capital to ensure that the properties are well maintained and managed on a holistic basis. 18. Implementation and Monitoring EDH will use current performance management processes including service delivery plans to ensure that the objectives of the Asset Management Strategy are achieved based on the 6 objectives as detailed below; Objective 1: Ensure homes are maintained to a high quality standard and meet customer aspirations We will aim by May 2010 to further raise customer awareness of the Decent Homes Plus standard. We will review the effectiveness of 10 year electrical safety programme and use the results available in May 2010 to inform capital investment decisions. Page 21 of 30

22 We will ensure effective resources are in place by September 2010 to maintain and update the sustainability model. We will develop a clear approach to address the long term sustainability issues around non traditional stock and one bed roomed bungalows. We aim to be in a position by September 2010 where our strategy is clearly informed. We will investigate the partnering arrangements to pilot improved energy efficiency to traditionally inefficient properties. Our aim is by September 2010 to showcase energy efficiency. We will regularly review our investment profiles in response to changing government policies. Objective 2: Ensure effective customer involvement in the development and monitoring of investment programmes We will develop clear information and arrange implementation in May 2010 to enable front line staff to more effectively sign post customers who have service queries We will regularly publish on the website work progress on the scheduled work of the Decent Homes programme. In consultation with customers we will evaluate the impact of our approach of re-decoration and aim by July 2010 to decide whether it meets the needs of vulnerable and disabled customers We will record, analyse and monitor information about ethnicity, vulnerability and disability of service users, with the aim to tailor service and prioritise resources by September We will consider the possibility of the development of an appeal process where certain tenants can question the level and timing of works to their homes and aim to implement this by March Objective 3: Develop the computer infrastructure and provide accurate stock information By September 2010 we will implement a rolling programme to carry out a statistically representative sample stock condition survey of our properties. Page 22 of 30

23 We plan to introduce a new asset management software system, with the aim of having a fully effective system in place by March We will investigate the possibility of the new asset management system holding pictorial information e.g. gas safety certificates, also within the same timescale. We will ensure the new asset management system provides an interface between the asbestos and stock condition databases. We will ensure the asset management system links the aids and adaptations property register to stock condition database We will develop a long term investment programme (30 year) in line with the asset management strategy and aim to conclude this by March Objective 4: Demonstrate value for money in the delivery of the capital investment programme From April 2010 onwards we will undertake a thorough assessment of the external resources required and potentially available to support investment in the Decent Homes Scheme. We will regularly carry out effective cost and quality benchmarking of capital improvements to enable demonstration of improved performance over time. We will review procurement and by September 2010 aim to ensure good practice in procurement including standardisation, partnering down the supply chain, and discounts for long term periods. Within the procurement review we will investigate the use of collective procurement, involving other ALMOs / social housing organisations. We will aim to maximise local training and job opportunities in conjunction with our strategic partners and review this again in March Objective 5: Develop the performance management framework for the capital investment programme to deliver real outcomes for customers We will use the role of the Core Group and Sub Groups within the strategic partnership, to continually improve performance management and monitor costs of the Decent Homes programme. Page 23 of 30

24 In July 2010 in consultation with customers and using the data from KPI s, we will review the performance management framework to monitor progress, improvements and outcomes from capital investment service. We will use the Equality and Diversity Sub-Group within the strategic partnership to implement effective monitoring of contractors equality and diversity policies We will continue to carry out independent satisfaction surveys for all capital improvement schemes and ensure that the feedback from customers is systematically used to shape and improve service delivery and report results each quarter. We will arrange regular consultation events with a representative group of customers to ensure that customers are effectively engaged in shaping and improving service delivery. Objective 6: Work in partnership with Durham County Council to manage assets on their behalf We will use the Asset Management Group to facilitate effective consideration of stock related issues We will continually work with the Council to address demand and sustainability issues relating to the stock. We will contribute to development of the Council s housing strategy We will contribute to Council initiatives for example the Total Place agenda We will meet regularly with the Council s other social housing agencies and share good practice. Where applicable we have indicated specific targets dates otherwise we will aim to undertake continual review and aim to achieve continuous improvement. We will include additional milestones within our objectives as soon as funding becomes clear for the period 2011 onwards. Page 24 of 30

25 APPENDIX 1 SUSTAINABILITY MODEL In order to devise a framework for targeting investment, EDH (in association with Easington District Council) developed a Sustainability Model to measure the long-term viability of stock. The sustainability model has been adopted as the tool used in identifying the sustainability of stock as part of future development/regeneration plans The model uses indicators of demand, tenancy turnover, and scheme cost to street and property type level. The individual scores for the above indicators are then applied to a scoring matrix to give an overall score. The scores are then coded using a traffic light system giving an immediate overview of the property. Red Unsustainable Amber Attention Required Green Sustainable Typically if an area is given a Green Indicator it is a sustainable stock and relevant investment monies will be spent on planned maintenance, decent homes works etc. For areas which are Amber or Red, further investigations are carried out and an options appraisal completed which incorporates additional factors such as employment, benefit dependency, crime rates and private housing market activity, RSL activity etc to attain a true level of sustainability. Once the option appraisal process has been completed by the Regeneration Team, this may lead to specific investment plans for individual regeneration areas so that capital is directed to those estates which are to be retained enabling capital works to be prioritised particularly in relation to Decent Homes Works. Individual properties such as high cost voids will be put through the sustainability matrix to assess their longevity. If a property is highlighted Green, relevant works are completed in accordance with standard Decent Homes Works and if a property is Red this requires the property to be automatically passed to the Asset & Property Management Team so that a Net Present Valuation can be completed to assess the financial viability also. Sustainability of stock will determine investment and as such it is essential that a holistic overview of settlement areas is considered for those areas showing Page 25 of 30

26 potential signs of decline or excessive investment costs so that stock decisions are not made on a purely repair costs basis. The sustainability model is also able to demonstrate whether a regeneration scheme is working ie stock indicator red at beginning, as redevelopment occurs and Decent Homes work aligned a scheme should go through amber to green if the indicators for the scoring matrix are tested. A worked example of the sustainability model and Option Appraisals Framework is attached. Page 26 of 30

27 Sustainability matrix worked example - Thorpe, Conyers, Hall Crescent, Horden This area had been programmed into 2008/09 Decent Homes Programme for new doors and windows, however, when the properties were put through the sustainability model they scored high due to high turnover and scheme costs and were passed to the Regeneration Team to be tested through the options appraisal framework. The Regeneration Team considered the site layout to ensure that all surrounding properties were considered within this area of the estate. Previous demolition of 14 unpopular properties raised demand for the 3 bedroom stock in the area however sales of 10 properties for owner occupation have failed to have the desired effect of uplifting the area with several of the sold properties remaining empty and gardens and boundaries being in poor condition. The relevant pro-forma was circulated to collect further information from estate officers, street wardens, local police, the Council Asset Management and Regeneration and the tenancy enforcement teams and a tenant survey was completed. There were no major concerns raised from the tenants survey with most residents feeling safe and happy in their homes issues raised were traffic, visual appearance of estate, ASB (although this is not borne out by Street Warden information), rotten windows and general home improvements required. A site visit by the group confirmed that the majority of the properties appeared to be well kept by the tenants however there were signs that windows and doors were poor and boundary fencing is a mismatch of colour and style and gives a poor overall aesthetic appearance. Taking into account the importance of retaining family accommodation and rental income, it was not felt prudent to recommend that these properties should be disposed of and the recommendations from the group are : Intensive estate management by both EDH and D of E to enforce conditions of tenancy and covenants to encourage improvement of the untidy gardens in the area. Reinstate the area onto the door and windows contract (temporarily withdrawn whilst a decision was pending) Reallocation of current voids (2 low cost, one high cost) Discuss possible environmental improvement works with Groundwork trust (as part of the Environmental & Neighbourhood Work Programme Group) Monitor situation. Page 27 of 30