2. Overview of presentation
Historical delivery issues
The “ Rochdale “ approach
Issues with lenders
Case study
3. Who are RHI ?
The Boroughs housing partnership
Company part funded by RP’s and RMBC
Develop a wide range of projects
Employment training schemes
Facilitating new developments
Develop new ways of working
Securing funding
But lately we have been specialising in EP
work
4. National Strategy
To increase the number of empty
homes brought back into use
Concentrating on properties that
without LA intervention would remain
empty
No fixed delivery model
Improve and Lease, P & R
Finance available
6. Historical issues
Housing Associations
Asked to tackled worst first
But tools not fit for purpose or fitted with market
dynamics
Nominations
Lease agreements not FFP
Lack of practical help and sharing of information
by LA
Labour intensive compared to new build
7. Historical issues
Local authority
Use of enforcement tools – rarely used
strategically
Recovery of debt ineffective
Mostly reactive
Lack of pro active tools (i.e. offers to
owners)
9. The Hub
Only so many way to bring a property
back into use
Development of a hub
All action revolves around it
Co-ordinates all reactive action
Co-ordinates all positive action
10. What does it do ?
Take the lead on co-ordinating all EP work
Develop partnership working
Co-ordinate action between Council sections
Proactive and reactive work
Develop and market test proactive tools
Develop processes for enforcement measures
Guides enforcement through legal
Main point of contact for both residents,
officers and owners
11. The remit
Target all properties
Reinforce owners
Responsibility and accountability
Zero tolerance approach
Creative use of existing tools
Fast and swift response
Direct contract with residents
Broker deals with owners
Oven ready referrals to partners
12. Tools - proactive
Management only offer
Repair and Lease
between 2 – 10 years
Guaranteed rent – level depends on the
capital input
Purchase
At market value ( whatever that is !! )
13. Tools - Enforcement
Maximising the existing legislation
Liberal interpretation of legislation
Pincer movement to solve the problems
Identification and collection of debt
Secure Charging Orders
Enforced Sales or Order of Sale
EDMO’s
14. Lenders – an emerging issue
Refusing permission to borrowers to
enter schemes
Stymieing delivery
Audit showed a min of 30% have
mortgages
HBOS possibly the biggest market share
16. The problem
BTL gone bad
Owners no money to repair property
Wanted to enter into a Improve and
Lease Scheme
HBOS refused permission
17. The solution
Empty Dwelling Management Order served
with owners consent
Lenders cant stop it
Spliced together with the HCE / DCLG EP
funding
Added value
No public funding needed
All money recycled
Success !