MILNBANK HOUSING ASSOCIATION RENT POLICY PH/FEBRUARY 2010
(1) INTRODUCTION The aim of this policy is to detail how the Association sets rents for the percentage of Scottish secure tenants who were formerly assured tenants, the method used for calculating rents and rent accounting and arrears procedures. The Housing (Scotland) Act 2001 introduced a single form of tenancy known as a Scottish secure tenancy for all Association tenants from 30 th September 2002. The Association s Management Committee continue to devise a method of establishing rent levels for all Association tenancies entered into from 2 nd January 1989. The Association s Management Committee retain the responsibility for rent setting for the majority of its tenants. Those tenants with rents formally registered with the Rent Registration Service will continue to do so. (2) OBJECTIVES The Association has agreed that the objectives of the Rent Policy are:- - To ensure that the rent structure is acceptable to the Association and its tenants. - Will be easy to explain, be understood by those affected by it and its effectiveness can be demonstrated. - To set rents that are affordable to tenants on low incomes. - To enable the Association to provide and maintain a high level of service provision. - At all times ensuring that the Association s financial viability is maintained. (3) CATEGORIES OF RENTS (a) Pre 1989 Formerly Secure Tenancies All fair rents are determined by an independent Rent Officer. Although Milnbank proposes rental charges, compiled from the Rent Policy, the final amount is determined by the Rent Officer. Each tenant has the right to appeal this figure, which is reviewed every three years. The Association also has the right of appeal. The Association strives to ensure parity between former secure and former assured rents.
(b) Scottish Secure Tenancies (Formerly Assured Tenants) All Scottish Secure rents with the Modernised Right to Buy are determined and set by the Association s Management Committee and are subject to review annually. There will be no more than one rent review a year. The Association will set rents at a sufficient level to cover the costs of managing and maintaining all types of property under its control. In addition to this provisions are made for future major repairs and renovations and private loans on developments. Tenants are lettered every February informing them of any proposed rent increases which will become effective from 1 April, a summary of how the rent figure is determined is given to the tenant. (4) RENT FORMULA The Association have adopted a points based system of calculation which is more transparent and easier to understand. The basis of this system is that a number of points will be allocated to each property, based on the amenities within the property, and a monetary value will be attached to each point. The points are calculated on a number of factors as shown below: The base or monetary value for each point will be 17.47 which was agreed by the Management Committee for the financial year 2010/2011 (A) The rents are calculated on a Base Monetary Value of 17.47 per point as below:- Element Points per point amount BASE Flat 1 apt 111 17.47 1939.17 2 + apt 122 17.47 2131.34 Flat Post 1965 132 17.47 2306.04 House Post 1965 155 17.47 2707.85 HOUSES House Mid Terrace 142 17.47 2480.74 APPIN RD/ Semi-detached 149 17.47 2603.03 APPIN CR Detached 171 17.47 2987.37 Bungalow 179 17.47 3127.13 HOUSES Cottage Upper/Lower 184 16.55 3045.20 TODD ST/ House Semi 215 16.55 3558.25 LEDAIG ST Bungalow 230 16.55 3806.50 Element Points per point Amount NEW BUILD Cottage Upper/Lower 174 17.47 3039.78 CORSOCK STREET Houses Terraced 176 17.47 3074.72 Semi 181 17.47 3162.07
Element Points per point Amount NEW BUILD GREAT EASTERN Flats 174 17.47 3039.78 SIZE 1 person 1 apartment 1 17.47 17.47 1 person 2 apartment 2 17.47 34.94 2 person 2 apartment 5 17.47 87.35 3 person 3 apartment 11 17.47 192.17 4 person 3 apartment 17 17.47 296.99 5 person 4 apartment 22 17.47 384.34 6 person 4 apartment 28 17.47 489.16 6 person 5 apartment 41 17.47 716.27 7 person 6 apartment 45 17.47 786.15 8 person 6 apartment 49 17.47 856.03 ADDITIONS Central Heating 11 17.47 192.17 Dining Kitchen 5 17.47 87.35 Additional W.C. 5 17.47 87.35 Double Glazing 1 17.47 17.47 Replace Kitchen 1 17.47 17.47 DEDUCTIONS Poor Outlook 6 17.47 104.82 Ground Floor no garden 6 17.47 104.82 Breakfast bar Kitchen 5 17.47 87.35 Shower Unit (only) 5 17.47 87.35 NB:- (A) No deductions will be made for ground floor amenity flats. (B) No deductions will be made for New Build Stock. Under noted is an example using the points Based system:- Example (i) A 2 person, 2 apartment, tenemental property with double glazing, central heating and replacement kitchen. Rent Element Points Value 2 person 5 x 17.47 = 87.35 2 apartment flat 122 x 17.47 = 2131.34 Double glazing 1 x 17.47 = 17.47 Central Heating 11 x 17.47 = 192.17 Replacement Kitchen 1 x 17.47 = 17.47 Total charge 140 17.47 = 2445.80 Monthly Rent = 203.82
(5) CALCULATIONS/COMPARISONS The Association attempts to charge an affordable rent and at a level which is fair when compared to other rent levels of similar property within the wider Glasgow area, while at the same time allowing the Association to meet its costs. The following example demonstrates the effectiveness of the Association s Rental Policy. Organisation Example1: 2 person 2 apt flat with CH Example1: 3 person 3 apt flat with CH Proposed Increase Milnbank HA 197.00 205.56 Thenew HA 231.77 266.93 3% Parkhead HA 219.49 230.57 unavailable Tollcross HA 192.70 201.81 RPI + 3.5% Reidvale HA 198.08 214.83 2.9% Shettleston HA 187.50 205.58 nil West of Scotland 200.53 225.87 0.5% GHA (Keystone) GHA (Milnbank LHO) (4 weekly) 174.44 (4 weekly) 127.40 Duke St (4 weekly) 206.36 (4 weekly) 251.68 Dennistoun 183.68 Haghill Private Sector 395.00 550.00 (6) AFFORDABILITY to be confirmed rent structure changing to be confirmed rent structure changing Milnbank Housing Association aims to strike a balance between the ability of the tenant to pay, in particular those on low incomes who are not reliant upon Housing Benefit, and maximising the Association s rental income. Tenants will be surveyed periodically in an attempt to assess income levels. All new and transferring tenants will be encouraged to complete S.C.O.R.E. (Scottish Continuous Recording) data in order to assess income levels (7) COLLECTION OF RENTS Milnbank Housing Association aims to maximise the Association s rental income through an efficient and effective method of collection. The highest possible level of rent collection should also be available to tenants. (a) ALLPAY The ALLPAY system of rent payments, operational from 1 st April 2003, is flexible and more convenient for tenants to use than the previous Giro Payment Card system. Rent payments can be made at any Post Office as well as a number of Pay Point or Pay Zone outlets ranging from shops to garages. Payments can be made 24 hours a day
365 days a year. Payments can also be made through debit card by telephone and internet. (b) Standing Order Payment can be made via a Standing Order. Details will be given by the Association to assist tenants to set up this facility. (c) Cheque Payment by cheque is acceptable. (d) Cash For security purpose it is not the Association s practice to receive cash at the office, however tenants who are in arrears with payment plans may be requested to contact the office directly on a weekly or other basis in order that payments can be monitored. (e) Direct Debit A Direct Debit payment scheme is in operation and operated via the ALLPAY network. Details can be obtained from the Association s office. No fee is charged for setting up a direct debit, however in the event of non payment the tenant will incur charges by their own Bank. (f) Housing Benefit Information and advice on Housing Benefit is given to tenants before they sign a Tenancy Agreement. Tenants who are in receipt of Housing Benefit are encouraged to have their rent paid directly to the Association. Association Staff will seek to develop a good working relationship with the relevant Benefit Agency Office and with Glasgow City Council Staff responsible for administering Housing Benefit. Milnbank retains the right to instruct the Housing Benefit Department to have a tenant s rent mandated to the Association if the level of rent arrears reaches 2 months. Glasgow City Council has recently set up and ECLAIMS option for Housing Benefit which allows staff or tenants to calculate and claim Housing Benefit and Council Tax Benefit. The benefit claim and calculator can be used to: see how much Housing Benefit and Council Tax Benefit you could get if you rent - then claim online! check and claim Council Tax Benefit if you own your home
find out if you're entitled to Income Support, Pension Credit or Tax Credits It's quick, easy and secure. Housing Management staff will use this resource when tenants come into the office to advise them of the level of benefit they will be entitled to. This may encourage more tenants to attend the Housing Benefit office if they know that they are definitely entitled to make a claim. (g) Greater Easterhouse Money Advice Project (GEMAP) The Association will be working in partnership with GEMAP to assist tenants to obtain assistance with regards to maximising their income and assisting with money advice and debt issues. Interviews will be arranged and set up with individual tenants for these issues to be discussed. (h) Debit/Credit Card The Association are currently obtaining information with regards to the possibility of installing a card device which will allow tenants to pay by debit or credit card. This would be an additional method of payment and can be used for telephone payments or payments can be made during house visits with a mobile device. This would also reduce the amount of cash being handled within the office. (8) ARREARS MONITORING The Association aims to maintain that the arrears level do not exceed 4% of the total rents receivable. The Services Committee shall closely monitor the arrears level on the following criteria: (a) Monthly Basis A detailed arrears report will be presented on a monthly basis to Services Committee Members to obtain an over view on Housing Benefit details and sum of arrears. Decisions are made in relation to court action cases. (b) Bi-annually Every six months the Services Committee shall be presented with full details of the arrears position which have occurred over the past half year.
(c) Annually When reviewing the Rent Policy, the Services Committee will examine the rental activity, including arrears, for the full year. (9) RENT ARREARS PROCEDURE The Association s Arrears Policy is to encourage tenants to make contact as soon as possible. Information and advice is always on offer and every endeavour is made by the Association to resolve the situation at an early stage. The main purpose of the rent arrears procedure is to focus on early intervention and personal contact in order to address rent arrears issues. Personal contact is to be made by the following methods: Visit Telephone call E-mail Text message Interview in office Less than 2 months arrears All tenants are due to pay their rent on the first day of each month. When arrears are determined personal contact is to be made with the tenant, using the methods listed above, to discuss the reason for the arrears and to make arrangements for payment or to assist with any other issue. If there is no response to this contact a letter will be sent out advising them that contact had been attempted and that they should contact the office at the earliest opportunity. 2 3 months arrears Tenants will receive a letter asking them to attend an interview in the office on a specific date and time. If they do not attend this interview personal contact will be made, using the methods listed above, to make arrangements. 3 months + arrears All tenants who are in more than 3 months rent arrears will be contacted by the Housing Co-ordinator, and failing response a letter will be sent asking them to attend the office for an interview at a specific date and time.
A general advice leaflet has been drawn up and will be issued to tenants along with any letters or visits etc in attempt to get people to address rent arrears. The main focus is on tenancy sustainment rather than eviction and NOP s only being served if serious about proceeding to Court stage. (10) REPOSSESSION PROCEDURE The Association serves the prescribed notice giving a minimum of 28 days notice. On expiry of this date, the notice then becomes live. This notice remains live for a maximum period of 6 months, during this time the Association may proceed with legal action. During the period of legal action the Association will only halt the proceedings if the tenant pays the arrears in full. The only exception being in cases agreed by the Depute Director or the Housing Co-ordinator. If the tenant pays the arrears in full during the 28 day period the notice will be allowed to expire but no action will be taken. However, the tenant will be made aware that should they incur arrears within the six month period, the Association will instruct recovery without having to initiate a further 28 day notice. If the tenant fails to make full payment of the arrears until the decree has been secured, the Association may, in exceptional circumstances and at the discretion of the Housing Co-ordinator or Depute Director, offer a new tenancy. No eviction will be implemented without prior approval of the Services Committee. At the point the case is being booked into Court Section 11 Notification will be made to the Council using the standard format. In addition to this letters will be sent to Glasgow City Council Homeless Casework Team and the Social Work Services to advise of the impending action. Once decree has been obtained a second letter will be sent to Glasgow City Council Homeless Casework Team and the Social Work Services to advise of the eviction date and time. (11) COMMITTEE CONTROL (a) (b) (c) The Services Committee shall delegate rent collection and accounting to the appropriate Staff. The Services Committee shall delegate the implementation of clear procedures for all aspects of rent to the appropriate Staff. The Services Committee shall be responsible for setting an appropriate Rent Policy to be implemented by the Association.
(d) All aspects of this Policy will be closely monitored on an ongoing basis by the Services Committee. (12) APPEALS Tenants have the right of appeal against any aspect of rent, they can do so in accordance with the Association s Complaints Procedure Policy. The first point of contact should be to the Housing Co-ordinator, failing satisfaction the Depute Director should be contacted. If the matter is not resolved at this stage, the applicant may appeal in writing to the Chairperson of the Management Committee. At all stages a written statement can be requested from the Association setting out the reasons for the decisions taken. The Association will review all issues to ensure that equal opportunity to all is both practised and demonstrated.