New Models in the Financing and Provision of Social

Housing

Irish Council for Social Housing

17th September 2009

Mr Sean O’Connor

Director

Helm Housing

Biennial National Social Housing Conference 2009

Playing our Part

Leasing: A Housing Association

Perspective

“May you live in interesting times”

Two roles for VHAs

� Managing Agent (HAMA)

� Leasing Agent (HALP)

3 Key Issues:

�Public Relations

�Financial

�Legal

Financial Considerations

� VFM ethos – not for profit

� Unsold affordable (HAMA) - shared risk basis

� HALP - rent paid to lessor by VHA / reimbursed by DOEHLG

� Service Charges paid by lessor

� VHA deduct service charges from rent (if lessor defaults)

� Differential rent for tenant / low differential service charge

� M&M fee’s optionaldfchNotNNoNot for profit but nr loss

Legal Considerations

� Lease / Availability Contract / SA contracts – Consistency!

� Tenancy agreement (non-secure)

� 100% noms from LA waiting list / Choice based lettings

� Council Consents & Standing Orders

� Tenant / Incremental Purchase / VHA Purchase Options

�Defects / Collateral Warranties / Dilapidations

Housing Association Managing AgentRelationships between Partners

LOPERHELM

LOCAL AUTHORITY TENANT

Eventual Re-housing Responsibility

ServiceAgreement

Tenancy Agreement

DOEHLG

Finance

Council Tender – D&B Scheme

� 70 apartments� Mix of RAS & Social units� Qualitative/Quantitative competition� Service level agreement� Tendering/cost transparency/VFM� Helm manage at cost / low M&M fee� Differential rental income� Resident Caretaker

Westmeath County Council Affordable Housing Management Pilot

Offaly County Council TenderDispersed Part V Stock & Possible Private Leasing

Part V Linkages

Permanent ‘conversion’to Social Housing

Private Leasing: Key Messages

� PPVP: Public, Private, Voluntary Partnership

� 3 key strands to proposal:

1. Procure properties from open market

2. Property owner enters lease with VHA (10 – 20 years)

3. VHA manage properties via an SA with Council

What is HALP?

� HALP: Housing Association Leasing Programme

� Split repairing lease; developer external/structural: VHA internal

� Developer insures building: VHA - PL/EL insurance

� For tenants it offers quality homes, quality service and choice

� Scheme will help to build mixed and sustainable communities

HALPRelationships between Partners

LANDLORD/DEVELOPERHELM LANDLORD/DEVELOPER

LOCAL AUTHORITY

Lease

ServiceAgreement

TENANT

Tenancy

DOEHLG

Availability Agreement

Nominations

Castlepollard Private Leasing – Family Scheme

� 22 terraced and semi-detached houses

� Lease Term: 20 years - Split repairing lease

� Market Rent Comparable: 20% below

� Differential rent to tenant

� Scheme Type: RAS/Social Housing

� Purchase option for all units

� Part V purchase option via VHA / private finance

AthyPrivate Leasing – Sheltered Housing

�30 bungalows

� Lease 10 years - Full repairing lease (Developer)

�Open Market Rent 22% below OMV min

�VHA income : Differential rent

�Small service charge to tenant (€5 pw)

�Option to buy for VHA

�Nursing home services - optional

County LouthPrivate Leasing – General Needs

� Dundalk

� 10 houses (incl. 2 Part V)

� Drogheda

� 12 x 2-bed apartments

� Carlingford

� 10 x 3-bed houses

Additional Delivery

� Build & Lease Back (VHA)

� Build & Lease Back (Developer)

� Buy & Lease Back

3 essentials for success

� Partnership

� Planning

� Communication

Irish Council for Social Housing

Biennial National Social Housing Conference 2009

Delivering Housing Solutions for a New Era