DISABLED FACILITIES GRANTS APPENDIX B

DISABLED FACILITIES GRANTS APPENDIX B

CONTENTS Disabled Facilities Grants (DFGs)...1 General Comments...1 Role of the Social Services Authority...1 Collaboration and Consultation...2 Role of the Housing Authority...2 Necessary and Appropriate...2 Reasonable and Practicable...3 The Grants Process...3 Home Improvement Agencies...4 The DFG Means Test...5 Eligible Works...5 Facilitating Access and Provision...6 Rooms Usable for Sleeping...6 Making a Building or Dwelling Safe...7 Heating Lighting and Power...7 Works to Common Parts...7 Rented properties...7 Ancillary Fees and Charges...8 Obtaining Estimates for the Relevant Works...9 Providing Lists of Contractors...9 The Quality of Grant Aided Adaptation Works...10 Value Added Tax (VAT)...11 Limit on Mandatory Grant...11 Funding Considerations...11 Property charges...12 Discretionary powers to provide financial assistance for housing adaptations...12

Disabled Facilities Grants (DFGs) This is a summary. Refer to the Housing Grants Construction and Regeneration Act 1996 and subsequent regulations, circulars and guidance for detailed information. General Comments Disabled Facilities Grants (DFGs) are administered by local housing authorities under the provisions of the Housing Grants, Construction and Regeneration Act 1996 (the 1996 Act ). Grant aid can only be given after statutory consultation by the Housing Authority with the relevant Social Services Authority. In Lincolnshire there are 7 district councils. Some housing authorities have transferred their own housing stock to Housing Associations. Inevitably, this mix of authorities, with different responsibilities, priorities, budgets and areas of control will lead to some variation in the way Disabled Facilities Grants are administered and processed. However, for the most part, disabled facilities grants paid are mandatory in nature. This should mean the essential process and eligibility criteria are the same across Lincolnshire. It should be the professional responsibility of all authorities involved to ensure this is the case as far as possible, within obvious constraints. Consistency is, after all, a prerequisite of the fair and equitable delivery of grant assistance. Role of the Social Services Authority Social Services authorities responsibilities under the Chronically Sick and Disabled Person Act 1970, to make arrangements for home adaptations are not affected by the grants legislation. Where an application for DFG has been made, this duty might be called upon in two ways: Where the assessed need exceeds the scope for provision by the Housing Authority by grant aid. Where an applicant for DFG has difficulty in meeting his assessed financial contribution determined by the grants means test, and seeks assistance. In such cases, once the need has been established it remains the duty of Social Services to assist even where the Housing Authority either refuse or are unable to approve an application. Government advice states that Social Services Authorities may consider charging for their services where appropriate. 1

Collaboration and Consultation The adaptation needs of disabled persons must by law be the subject of formal consultation between the Housing and Social Services Authorities. The Housing Authority is expected to take the lead role in co-ordination with the grant applicant, as it processes the DFG application. This formal consultation relates only to the consideration by the Housing Authority of whether the relevant works are necessary and appropriate to meet the needs of a disabled occupant. There is no reason why the procedures for consultation need to be carried out in a particular way. However, the decision on grant assisted works remains a matter for the housing authority. It is for Social Services authorities to decide in each case who should be involved in the assessment procedure. It is important that jointly agreed policies and procedures are put into place between respective authorities for delivering help through grant assistance in an efficient, effective and timely manner. Role of the Housing Authority While there is a duty to consult Social Services on the housing adaptation needs of disabled people seeking disabled facilities grant aid, it is the housing authority who must decide what action should be taken on that advice, and also to decide whether or not the application is approved. The statutory basis on which such decisions are taken is whether it is reasonable and practicable to carry out the proposed works, although the housing authority must also be satisfied that the works are necessary and appropriate by means of the consultation described. More particular collaboration with the Social Services authority might be needed where the meeting of these criteria is initially considered borderline. Non approval of particular adaptations recommended should be very rare, particularly if sufficient consultation takes place between authorities. Necessary and Appropriate A number of factors need to be considered in the determination of whether particular works are necessary and appropriate for a disabled person. Considerations should include whether the works: Are needed to provide for the implementation of a care plan to maintain independent living as far as possible; this may often mean consultation with other workers involved 2

Would meet the assessed needs of the disabled person where they are dependent on carer/s, as far as possible, taking into account their medical and physical needs. Are actual needs, rather than just desires of the disabled occupant for which grant support can be fully justified. In such considerations, regard should be given to the household group in which the disabled occupant resides, and the effect of proposed works on interpersonal relationships. The degree to which proposed adaptations or improvements improve independent living and/or eases the burden of care by the carer are pertinent factors in deciding the appropriateness of works. Reasonable and Practicable Where it is unreasonable or impractical to proceed with the proposed adaptations, the housing authority may refuse grant aid. Usually, alternative solutions should be sought by consultation between authorities involved in such cases. Relevant considerations in such instances include: Encouraging the disabled occupant to seek a renovation grant (discretionary) to make the property fit first, before the relevant DFG application works are carried out. Considering a reduced level of adaptations. Considering alternative re-housing options for other more suitable adapted accommodation in the locality, particularly if major expenditure on adaptations is involved. DFG works can be carried out on property of any age, although various factors need common consideration: The architectural and structural characteristics of the dwelling particularly small properties with narrow internal dimensions. Conservation considerations and planning constraints. The impact of proposed adaptations on the use of existing facilities and amenities by other occupants (i.e. balancing needs). Other factors may also be taken into account, such as the type of tenure, for example, in some areas council tenants may not have access to local DFG s. The Grants Process 3

The processing of DFG s can be broken down into distinct stages that run into each other, where a person successfully passes each stage of eligibility: Assessment by the Occupational Therapist (OT). Grant enquiry referral stage. Formal grant application and approval. Execution of relevant works and grant payment. The first stage is entirely the responsibility of the Social Services authority. The latter 3 stages are administered entirely by the local housing authority (district councils). Consultation between authorities may occur at any or all of these stages, and must by statute occur at the application stage, if not before. Government advice encourages other bodies to play a full and active part at different stages of the grant process. Home Improvement Agencies Some authorities in Lincolnshire operate local home improvement agencies to facilitate house renewal grant work. This may include assistance with the DFG grant process at various stages, from enquiry through to the satisfactory completion of grant works. Such agencies may be run independently from the housing authority by housing associations or other external organisations, or internally involving the use/secondment of housing authority staff. Agencies vary in their complexity and sophistication but may include more generally: Support to make a DFG application Form of agreement between owner and builder. An approved contractor list. Building works specification. Arrangements for supervising works and administration. Project manager or supervisor. Supportive approach to person s needs. Assistance in identifying finance for works, including private finance. Referral to other organisations for assistance. 4

Architectural services. As local arrangements will vary between districts, it is strongly recommended that processing procedures are checked out with the local housing authority so that ongoing liaison can dovetail efficiently and effectively. The DFG Means Test All applicants for DFG, except those in respect of children with disabilities, have to undergo a test of their financial resources (both income and capital). Actual outgoing expenses are excluded from this test but are factored in through prescribed allowances and premiums. Under the provisions of the 1996 Act, only the disabled occupant, and any partner for whom the relevant adaptation works are intended need be means tested, unless some other person is responsible for him/her. In the case of children applications are exempt from the test of resources. Normally, housing authorities operate an initial grant enquiry stage involving the full test of resources, as this informs all parties involved at an early point in the grant process whether grant aid is likely, or otherwise. Where other funding is needed, either as a top up to any grant or for the whole works; the range of options for meeting this financial need can be considered and appraised. A person who has either an owner s interest in the dwelling, or who is a tenant or licensee of the dwelling must make a formal application for DFG. Respective certificates must be provided with the application. Eligible Works DFG is mandatory where the relevant works required meet the following criteria: Facilitating access by the disabled occupant to and from: The dwelling or the building in which the dwelling or flat is situated A garden (and ensure that the access to that garden is safe) A room used or usable as the principal family room A room used for sleeping, or providing one for such use A room in which there is a lavatory, or facilitating the use or provision of A room in which there is a bath or shower, or facilitating the use or provision of A room in which there is a wash hand basin, or facilitating the use or provision of 5

In order to enable him/her to care for a dependent resident. ( Dependent residents can include spouse, partner or family member, another disabled person or a child. The dependent being cared for need not be disabled). Facilitating for the benefit of the disabled occupant: The preparation and cooking of food. The use of a source of power, light or heat by altering the access to, or controls of that source, or by providing additional controls. Improving any heating system in the dwelling to meet the needs of the disabled occupant, or providing such a heating system, where lacking. Making the dwelling or building safe for the disabled occupant and other persons residing with him/her. Note that the provision of equipment, which can be installed and removed fairly easily, with little or no structural modification of the dwelling is the responsibility of the Social Services authority. Facilitating Access and Provision The presumption should be that a disabled occupant should have reasonable access into his/her home, to the main habitable rooms within the home and to a garden. Rooms Usable for Sleeping The provision of a room usable for sleeping should only be undertaken if the Housing Authority is satisfied that the adaptation of an existing room in the dwelling (upstairs or downstairs), or the access to that room, is unsuitable in the particular circumstances. A mandatory grant can be obtained for those who have larger, shared rooms. 6

Making a Building or Dwelling Safe This criterion relates to the making safe of dwellings or buildings for the disabled occupant and other residents. Grant aid can be provided to minimise safety risks that arise as a result of the person s disability, as far as practicable, which can include carrying out adaptations or other appropriate works. Potentially, a wide variety of works could be considered for this purpose; in practice the Social Services authority and housing authority should liaise closely to agree on the works which are appropriate in any individual case, so that grant eligibility can be advised at an early stage. Heating Lighting and Power DFG would not normally be available to provide heating in rooms which are less frequently used by the disabled occupant. The installation of central heating should only be considered where the well-being and mobility of the disabled person would otherwise be adversely affected. DFG can grant aid works to allow a disabled occupant to make full use of heating, lighting and power controls in a dwelling. This can include specialised controls. Works to Common Parts DFG can assist with works to common parts of buildings containing flats, where the works are necessary to facilitate access, or to facilitate the use by a disabled person of a source of power, lighting or heating in the common part. The consent of other persons, such as the freeholder, and/or leaseholders will be required before any such works to common parts are carried out. This may be to also comply with contractual lease agreements, for practical purposes, for safety reasons, and for common courtesy. Rented properties Freeholders who are the immediate landlord of a tenant applying for a DFG have to give consent to works. Landlords are sometimes reluctant to give consent to works. This may be due to a perceived loss of value of the relevant accommodation if works proceed, poor relationships, or a misunderstanding about whether and what kind of grant conditions might be applied for which they might become liable. There are no grant conditions applicable to DFGs, although the local housing authority may require the landlord to provide an owner s certificate unless they consider it unreasonable in the circumstances to do so, although these certificates would be difficult to enforce in some circumstances. It is important agents and landlords understand that there are no conditions of grant that might lead to any financial liability, for obvious reasons. Usually, landlords can be persuaded to co-operate on a goodwill basis, if assurance can be given (by the tenant) that the premises will be made good. (It would have to be agreed who would be responsible for this). 7

Ancillary Fees and Charges As an addition to the main eligible cost of relevant disabled adaptation works, DFG may be paid for reasonable ancillary fees and charges where such services are necessary, as specified by statute as follows: Confirmation of an owner s interest when sought by a local authority. Technical and structural surveys. Design and preparation of plans and drawings. Preparations of schedules of relevant works. Assistance in completion of forms. Financial advice on meeting the costs of works not met by grant. Building Regulations fees ) district councils can waive these if Social ) Services confirm that the work is of Planning application fees ) benefit to a disabled person Listed building consent fees. Conservation area fees. Obtaining estimates. Advice of contracts. Consideration of tenders. Supervision of the relevant works. Disconnection/reconnection of electricity, gas, water or drainage utilities related to relevant works. Payment of contractors. In the case of an application for DFG, the services and charges of a private occupational therapist in relation to the relevant works are also specified. 8

But this does not include the fees of an occupational therapist working for the Social Services authority in the discharge of it s responsibilities under the 1996 Act. This would also exclude the fees of a private OT working for the Social Services authority under contract, in relation to these responsibilities. Conversely, fees of an OT directly employed by the applicant in relation to relevant grant aided works, could be included. Note: that the Social Services authority would still have to be involved in confirming the necessity of recommended works. Obtaining Estimates for the Relevant Works Grant applications are normally required to include at least two estimates from different contractors for the cost of the relevant works. Housing authorities have the discretion to require only one estimate in certain instances, for example, where the works are either very small or specialised. This discretion is to be used sparingly. The responsibility for the obtaining of estimates for the relevant adaptation works for DFG purposes rests with the grant applicant. Sometimes this will be the disabled occupant for whom works have been recommended; and sometimes a member of the immediate family, dependent upon who has the relevant owner s interest, or, in the case of a tenancy, the relevant tenant s interest. In some localities, there has been a tradition of the Social Services authority obtaining estimates in respect of the relevant works, although this is being increasingly changed with service users choosing if anyone acts on their behalf. Sometimes the local housing authority or home improvement agency obtains estimates or operates a schedule of rates. The scheme, throughout this document has been designed in such a way that the OT assessor can define the recommendation so that either the applicant, relative or home improvement agency can arrange for estimates. It is not appropriate for the OT assessor to assist in the obtaining of estimates unless there are very special circumstances, e.g. a visit to a demonstration centre to trial equipment resulting in the person requesting an estimate from that particular manufacturer. Providing Lists of Contractors More recently, there has been an increasing emphasis on ensuring service users are given an opportunity to seek quotes for relevant works themselves. Whilst this is an entirely proper path in respect of estimates, it may lead to practical difficulties in the location of suitable and reliable contractors, for both specialist and more general building works associated with adaptations. 9

The use of a list of approved contractors is one option available to alleviate this problem. Circular advice encourages the use of approved lists, but the use of a contractor from such a local list may not be attached as a condition of DFG grant aid. Where such lists are provided, it is important to recognise that there is a perception of implied endorsement of contractors so listed and legal liability if the work is not of a reasonable quality which must be qualified. Running such a list involves responsibility for the vetting and approval of contractors. Procedures for the vetting of contractors have been operating in some housing authorities, sometimes in connection with other housing work. Where applicants are referred to an approved list, they must be advised of the nature of such lists, and the freedom of choice any applicant for grant has in seeking and appointing a contractor to undertake the relevant works. Grant applicants commonly misunderstand the nature of their legal relationship with contractors. Often they assume that the Social Services authority or the housing authority is employing the contractor(s) concerned. It is paramount that applicants are made aware of the private nature of the contract they enter into with a contractor who has provided a quotation for the relevant works. This applies to the whole arrangements for the works with the contractor, even where all of the cost of the work is to be met by mandatory DFG aid. Social Services authorities and housing authorities do not have any authority to give instructions to contractors concerning the relevant works, unless an applicant has given a mandate to an authority to act as his agent in some specific respect. Such mandates should preferably be in writing. Where a local agency, such as a care and repair agency is acting on behalf of an applicant in respect of part of the whole of the grant process, this is equally true. The Quality of Grant Aided Adaptation Works This contractual relationship is particularly pertinent when concerns arise about the quality of the work. Ultimately, the issue of the quality of any grant-aided works is a matter between the applicant and the contractor concerned. The duty of the housing authority awarding a grant to an applicant is simply to ensure that the relevant works are carried out in accordance with the formal offer given, and any related specification approved, to ensure that the statutory requirements of the grants process are adhered to and that there has been value for money with regard to the public purse. In this regard, grant approvals are always given subject to the condition that the relevant works are carried out to the satisfaction of housing authorities. Inspections of works by officers of the housing authority are not done on the applicant s behalf, in this context. It is important that at the completion of relevant grant aided work, that the housing authority seeks formal confirmation from the occupational therapist involved, that all works carried out meet the needs of the client in accordance with any specification provided, before the grant is paid. This gives an opportunity for snagging queries to be raised and hopefully resolved before the contractor has been paid off. 10

Clearly, there is an area of overlap here in respect of quality, but the housing authority should indicate via an applicant any poor quality work to be put right by a contractor. In practice, the applicant has the power to influence the contractor greatly in this respect as the applicant is entitled to receive the grant money directly and can withhold payment, if necessary, until the works are completed to their satisfaction. In any event, housing authorities are usually reluctant to release any grant payment until an applicant is satisfied with the works carried out. Most insist that an applicant sign a statement of satisfaction and a grant payment mandate before processing any payment. Value Added Tax (VAT) Most improvement or repair works are taxable at the standard rate of VAT, with the exception of certain works for the benefit of disabled people which are zero rated for this purpose. Where VAT does apply, it is eligible for DFG. Works exempt from VAT, are: The construction of ramps or widening doorways for the purpose of facilitating the disabled person s entry to, from or movement within the building, including any preparatory work or making good. The installation of a lift for the purpose of facilitating the movement of the disabled person between floors of the building, and the repair and maintenance or preparatory works, and making good and restoring of decorations are also zero rated. The providing, extending or adapting of a bathroom, washroom or lavatory where such provision, extension or adaptation is necessary by reason of the disabled person s condition. Other works essential to the provision of these facilities can also be zero rated. In order for works to be zero rated for VAT purposes, the contractor or supplier must obtain a form of declaration from the disabled person. Limit on Mandatory Grant There is a current statutory limit of 30,000 on mandatory DFG. Above this limit, a housing authority may give discretionary grant for those mandatory works outlined. Where there is evidence of financial difficulty the budget holding manager should be involved. Funding Considerations Notwithstanding any individual DFG approval, local housing authorities are obliged to fund DFG expenditure within the constraints of funding provided by the relevant service committee of the respective authority. 11

Under the 1996 Act, DFG grant funding is now distinct from other renewal grant expenditure. Accordingly, housing authorities are given a separate Specified Capital Grant (SCG) for DFG spending. Allocations based on a formula are made to housing authorities from central government each year, for expenditure in the following financial year. Bids for the funding of DFGs are made as part of the annual DFG monitoring return. Property charges A general consent enables the Housing Authority to apply a charge to the property where the cost of work exceeds 5,000; limited to a maximum charge is 10,000. The charge would require repayment of grant aid where the property is sold within a 10 year period. The placement of charges is at the discretion of each local authority and should be determined on a case by case basis reflecting the individual circumstances of each applicant. Local authorities are best placed to determine, where the placement of a charge may cause hardship or where due to the sensitivities of a case, the charge should be waived. Discretionary powers to provide financial assistance for housing adaptations The general power under Article 3 of the Regulatory Reform (Housing Assistance) (England and Wales) Order 2002 enables housing authorities to give discretionary assistance, in any form, (e.g. grant, loan or equity release) for adaptations. The financial assistance can also be provided indirectly to the disabled person through a third party. There is no restriction on the amount of assistance that may be given. Discretionary assistance may be given in addition, or as an alternative to mandatory DFG. This power replaces old powers to provide Home Repair Assistance which was used by some housing authorities to provide minor adaptations assistance. Assistance can be given under Article 3 for a wide range of purposed for example: To provide small-scale adaptations to either fulfil needs not covered by mandatory DFGs or, by avoiding the procedural complexities of mandatory DFGs, to deliver a much quicker remedy for urgent adaptations; To provide top-up assistance to mandatory DFG where the local authority takes the view that the amount of assistance available under DFG is insufficient to meet the needs of the disabled person and their family; and 12

To assist with the acquisition of other accommodation (whether within or outside the authority s area) where the authority is satisfied that this will benefit the occupant at least as much as improving or adapting existing accommodation. The Article 3 power may not be used unless the authority has published a policy setting out what use it intends to make of the power. As the mandatory DFG will not be adequate to deal with all likely requests for assistance it is very important for an authority to include in its published policy what form of additional help it will offer in relation to adaptations for disabled people. 13