ASSET MANAGEMENT – COMMUNITY HOUSING

Assets of the company or an individual are important and need to be preserved – this...
•   CERC’s receive 40% of their rent monies for cyclical maintenance – an
           average of $1,100 per tenement.

    ...
This process in CEHL has improved over the last 2 years and an excellent
    reporting system has been developed to guide ...
set to provide sufficient time to locate another property to ensure the tenant
        is continuously accommodated.
    •...
•    Land is often purchased for this program or where possible CEHL will
         pursue the development of new buildings...
•   Roof tiles or colourbond metal roofs
    •   Fascia metal colourbond
    •   2.5 + rating to roof and 1.5 + rating to ...
• Hot water service – 315Litre for electric with twin element otherwise a gas
       instantaneous unit
   •   TV antenna ...
 Low energy light installations
               Insulation to walls and roof cavities

       •    The aim is to often ex...
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Peter Dunn (Word 64kb)

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Transcript of "Peter Dunn (Word 64kb)"

  1. 1. ASSET MANAGEMENT – COMMUNITY HOUSING Assets of the company or an individual are important and need to be preserved – this is fundamental to the balance sheet of a company. Likewise within a Community Housing Company such as Common Equity Housing Ltd ( CEHL ) who have over 1600 properties it is equally important for the company, the co-operative and the tenant to have a good focus on asset management. A little about CEHL before we delve into the interests of asset management – Common Equity Housing Ltd ‘A unique solution in affordable housing’ Common Equity Housing Ltd (CEHL) is a social housing provider with a unique model: A Housing Association whose homes are tenant-run common equity rental co-operatives (CERCs) of between 7 and 25 properties. Tenant members manage rent collection, lettings, financial management and Property maintenance with the support of professionals at CEHL. We aim to provide secure, affordable housing across the whole life cycle. Purpose-built and spot purchased homes in a wide variety of settings, mean that we meet changing needs.  •STATE -WIDE: OVER 1600 HOMES SPREAD ACROSS VICTORIA  • SECURE & STABLE HOUSING MAKES FOR STRONGER FAMILIES  • HOUSING WITH PARTICIPATION TO MAKE A DIFFERENCE  • HOUSES, UNITS AND RETIREMENT VILLAGES – THE COMPLETE CYCLE OF HOUSING NEEDS  • ENCOURAGING AUTONOMY AND INDEPENDENCE HIGHLIGHTS OF THE CERC PROGRAMME • The CERC’s are responsible under this model for minor maintenance – cyclical with CEHL undertaking the major or emergency maintenance works. • Cyclical maintenance includes – painting ( internal & external ), replacement of appliances ( HWS, stoves, ovens etc ), fencing, replacement of carpets, tap washers and other minor repairs. • Programmed maintenance includes restumping, rewiring, refurbishment of bathrooms and kitchens, reroofing and other major repairs.
  2. 2. • CERC’s receive 40% of their rent monies for cyclical maintenance – an average of $1,100 per tenement. • CERC maintenance is controlled by a Maintenance Director and/or a Maintenance Committee who oversee the requests and action the works to be attended. Asset Management for CEHL as a Community Housing Company incorporates the following aspects – • Good stock balance - balance of property to support the needs of tenants that includes family homes, units for smaller family units and for downsizing and a range of independent living units specifically for the aged. • Good inspection systems that records the conditions of the assets and an equally good reporting system that provides the CERC with a total building management report that can be acted upon with confidence. • Preparedness to sell difficult stock • Budget for ongoing maintenance • A building program to renew the property stock • Building designs for living today. • Incorporating sustainable improvements that are economical for the company, CERC and tenant. Let’s look at these headings and analyse the methodology of good asset management planning and maintenance as approached by CEHL. • GOOD STOCK BALANCE Good stock balance in community housing is about meeting the needs of the CERC’s wherever possible. Our housing model programme started over 20 years ago and basically was a spot purchase of properties by CERC members who sought an appropriate property and location to meet their needs within the financial constraints of that period. The majority of the properties were 3 or 4 bedroom homes to meet family needs at the time. However, over this period families have matured and left home leaving the “Darby & Joan” couple in many instances requiring an opportunity to downsize and leave behind the large allotment to be maintaining. In addition, the CERC’s support many single parent families who with one child find a 2 bedroom unit an ideal housing type. Hence our latest move towards 2 bedroom units to assist CERC’s create some diversity in their stock portfolio allows them the scope “to make moves on the chessboard”. The outcome of this diversity renews the CERC enthusiasm in the program that takes note of their needs. This is a major difference between this model of community housing and direct tenancy with the Office of Housing – it is more responsive and better able to respond to the individual through the CERC program. • GOOD INSPECTION SYSTEMS
  3. 3. This process in CEHL has improved over the last 2 years and an excellent reporting system has been developed to guide the CERC’s with their programmed maintenance. CEHL has 5 Property Officers to cover the State and they inspect each property within a CERC at least once every 3 years. An individual and collective report is prepared following the inspection and presented to the CERC with time frames and approximate costs plus a plan of action according to their financial standing. The data from the asset inspection is compiled into our Property Master File database for reference by Management to check from time to time on the overall exposure to works required to be attended. The CERC have an agreement with the Company called the CERC COMPANY AGREEMENT ( CCA ) in which among other items requires CEHL via the Property Officer to advise the CERC and tenant of the timing of the major company repairs or refurbishments known as 3rd schedule works. Therefore, the process of attending to major items are prioritised and scheduled within the programmed maintenance report that covers a 3 -5 year period CEHL Property Officer’s are in continual contact from time to time with the CERC’s to check their progress pursuant to the report and offer advice upon the issues that they encounter and need guidance. Some group and/or “one on one” training is encouraged with the CERC’s to ensure they are confident with the maintenance process. This contact assists CEHL to understand any issues that the CERC may encounter and also assists the CERC in keeping the maintenance rolling along in accordance with their own budget. The Company expenses on 3rd schedule items are recorded on our data base to ensure that CEHL has a note of all property expenses. The CERC keep their expenditure within their system, recorded either manually or on a spreadsheet program. The CERC and CEHL work together and share the details of their budget and expenditure to ensure good outcomes for the tenants, the CERC as the tenancy Manager and CEHL as the owner of the property. • PREPAREDNESS TO SELL DIFFICULT STOCK Over the last number of years CEHL has sold approximately 35 properties as a result of reporting from the CERC and submitting the property as a “handback”. This situation is activated following a vacancy of the property and the known data on the property from earlier reports that further monies are not to be spent due to the poor condition. The exceptions of expenditure on these properties are emergencies such as electrical wiring, replacement hot water service or sewer blockage etc. Selling stock follows a process that involves keeping all the stakeholders advised – tenant ( if not vacant ), CERC and Property Officer. CEHL has a requirement to backfill a sold property with another property either spot purchased or a new build. The following steps are undertaken – • Where a tenant is involved and the property is to be sold ensure that the tenant’s rights and security of housing is understood – this process is not unalike an owner selling and repurchasing. Dates of settlement need to be
  4. 4. set to provide sufficient time to locate another property to ensure the tenant is continuously accommodated. • An independent Valuation report is obtained • The property is proposed with an agent at a negotiated commission fee. • The property is sold providing it meets the set reserve. • A settlement date is negotiated particularly if there is a tenant involved – usually at least 90 days. • The CERC is notified of the sale and advised of the amount available to consider in regard to a spot purchase replacement. • The CERC searches for a suitable property and in conjunction with our Property Officer an inspection is arranged to check the property from a building aspect and future maintenance. • If the property is found to be suitable an independent valuation is arranged and an offer is submitted and negotiated providing the valuation is at or less than the independent valuation. The Valuation report is a reasonable guide however the purchase price may sometimes exceed the valuation amount if the property is a preferred property. • The normal sale proceeds and a settlement date is arranged particularly if a tenant is to be accommodated from the sold property. • CEHL due to its “Charitable status and being a not for profit” does not endure any stamp duty fees on the purchase. BUDGET FOR ONGOING MAINTENANCE • CEHL provide $700,000 in its current budget per annum for company ( major ) repairs. • On going maintenance is a matter of setting priorities in relation to the budget that each Property Officer administers as per the CCA agreement referred to previously where CEHL needs to advise the CERC about the timing of attending to these major repairs. • In regard to setting these priorities CEHL usually has a predetermined amount of works in the “pipeline” as a result of advising the CERC about proposed works. • All works are done in conjunction with the CERC but depending upon some repairs the CERC may make a contribution if deemed necessary – an example – where a window has not been repaired or painted and consequently parts rot and require replacement – the CERC will need to make a contribution for their lack of attention. • The Property Officers keep in contact with CERC’s to ensure they are keeping to the strategy of the inspection report notwithstanding the need to undertake certain matters deemed necessary as emergency – such as a Hot water service. • On this matter it is worth noting that the Property Division has negotiated special pricing for the installation of Hot Water Services ( HWS ) with a company that has a “one stop shop contact” – one call and the HWS will be co-ordinated – supply and install. A BUILDING PROGRAM TO RENEW THE PROPERTY STOCK • With the sale of some properties the realisation is limited and we are unable to repurchase back into the market despite the often downsizing that occurs from a 3 bedroom house to a 2 bed unit. Some prices within poorer areas have a limiting factor therefore there is a need to pursue a building program that provides for these replacements.
  5. 5. • Land is often purchased for this program or where possible CEHL will pursue the development of new buildings upon existing land opportunities. • The additional monies required to fulfil this new arrangement are supplemented from reserves or small surpluses. • Where possible CEHL will spot purchase but in some instances new builds are adopted. BUILDING DESIGNS FOR LIVING TODAY • CEHL has a set of standards that are followed in regard to new designs and building for today’s needs. They are set out below – SPECIFICATION FOR DESIGN UNIFORMITY/CONSISTENCY FLOOR STRUCTURE – • Slab wherever possible • Conventional floor – stumps etc depending upon site conditions and fall over site • Conventional flooring – concrete pads where possible with span to outer walls Consider the best values for each site FLOOR FINISHES – • Tiles to traffic areas and passages, meals, kitchen, & entrance area inside front door. Tiles to be laid on a rubberised tile adhesive application. OR • Vinyl sheeting of a quality that is easily cleaned etc • Carpet to living & bedrooms BATHROOMS/LAUNDRY • Shower screen doors to be pivotal • Mirror to wall to be 1metre x 1.2metre • Floor – safety vinyl coved to the wall graded & drained to outlet – 100mm • All villaboard linings • Finishes to walls of shower – tiling, lamipanel or vinyl wrap – all joints to be silicone sealed • Tap mixers to shower & basin outlets • Joinery – 3 colour finishes in laminex • Standard tapware to laundry • Laundry trough – vanity type with laminex bench – area at side to be clear bench. • Exhaust fan to laundry ROOFING
  6. 6. • Roof tiles or colourbond metal roofs • Fascia metal colourbond • 2.5 + rating to roof and 1.5 + rating to walls • Eaves to be minimum of 450mm KITCHEN • Joinery – 3 colour finishes in laminex • Check rangehood unit with in line fan ducted to external air. • Flouro to meals & kitchen • Appliances – wall or under bench oven • Set up joinery cabinets for dishwasher install - plumbing & electrical WINDOWS/DOORS • Awning type – aluminium with flyscreens • Security door to be fitted to all sliding doors • Keyalike to all doors • Night latch to entry door from garage. INSULATION • 2.5 + rating to roof and 1.5 + rating to walls EXTERNAL CLADDING • Brick as much as possible • Some cement plank “hardiplank” where necessary if brick is not possible GENERAL DESIGN CRITERIA INCLUSIONS • Floor plan – design to have an entry from garage to entry hall wherever possible. • Garage roller door to be auto operation • Shower screen doors to be pivotal where possible. • Lighting – sensor light to front porch • Downlights to living area • Dome type light to other areas – ie bedrooms, laundry etc • Window furnishings – chain driven “Holland” blinds • Fixing – skirtings/architraves to be “MDF” in lieu of hardwood • Paint work – “Wattyl ID” for internal painting and Wattyl Solargaurd for external or similar. • Heating – space heater – Rinnai or similar to suit size of house/unit. A similar unit to be provided for electric installations. Costs on the installation of Inverta Reverse Cycle Air Conditioners have also been cost effective and provide heating and cooling – often the CERC will cover the additional cost of this unit in order to provide extra comfort levels.
  7. 7. • Hot water service – 315Litre for electric with twin element otherwise a gas instantaneous unit • TV antenna to be installed wherever possible in the roof cavity • Phone points to living room & kitchen • Power outlets – 2 doubles for each bedroom • Clothesline – paraline for unit or rotary line for a house • Paving – concrete or pavers to a mortar base depending upon site conditions. Use F62 mesh in paving to incorporate path to clothesline • Storage to be provided wherever possible as an extension to the garage. Consider separate storage for volatile fuels. • Fences – units 1.8m between units • Garage openings to be min. of 2.7m • Door bell and signage for house/unit to be on the schedule for installation • Ensure that drainage around the site and the house/unit is fully considered with pits and outlets depths to connect sub soil drainage • Awnings to be provided to west facing windows • Wherever possible weather protect the rear laundry door with an awning or similar • Letterboxes to be brick pier type with paper & letter box built into structure of brick panel • Colour charts and boards to be provided wherever possible to demonstrate finishes to CERC and proposed tenant  A typical design plan is shown here - INCORPORATING SUSTAINABLE IMPROVEMENTS • All new building require a 5 star rating to comply with the Building Code. The following items or considerations are used to obtain the 5 star rating or better –  Siting considerations – usually living areas facing north wherever possible for the warm winter sun – orientation.  Concrete slab wherever possible for greater thermal mass.  Highlight windows to allow winter sun penetration.  Double glazed windows  Limit window exposure to the west side  Water tanks  Cross ventilation – passive cooling  Window shielding – awnings or tinting  Solar photovoltaic panels for hot water conservation.  Hot Water ring system – immediate hot water at each outlet to save water – on an average house of 5 persons a saving of approximately 17,000 litres of water. This is a manual or “on demand” switch activation.  Thermostatically controlled heating system  Water tolerant or resistant landscaped garden plantings  Proper planting of trees for the best protection of the house – some evergreen, other deciduous.
  8. 8.  Low energy light installations  Insulation to walls and roof cavities • The aim is to often exceed the 5 star rating and this can be done with proper consideration and little effort and compromise. In addition the construction site should be kept clean and tidy – the builder should be encouraged to practice good housekeeping on the site with bins, signage, earth pits for paint washes as well as good OH&S practices across the site – the principals of a Green Building practice by all persons on site.

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