1. Community-Led Housing and theCommunity-Led Housing and the
Role of Housing AssociationsRole of Housing Associations
A HACT Learning EventA HACT Learning Event
Sally Thomas
Head of Community Investment May 2014
2. North Star Housing GroupNorth Star Housing Group
• Parent company for Endeavour Housing Association and
Teesdale Housing Association
• 3,200 homes in urban Teesside and rural Teesdale
• 630 supported housing units for a wide range of needs
• A two-year programme of organisational development and
cultural consolidation
• Distributed leadership, being local, co-creation
• Strong Community Investment activity and ethos
• Think big, act small, start now ……
3. Strengthening communitiesStrengthening communities
• Traditional community relationships focus on needs and problems;
can reinforce a dependency culture
• Need to focus on community strengths: the capacities, skills,
intelligence and expertise of people living in neighbourhoods
• A relationship-driven, rather than transaction-driven, approach
4. Community-Led Housing ProjectsCommunity-Led Housing Projects
• Housing Co-ops
Langridge and Norton Grange – 92 units - development and management /
repairs
• Community-based housing
Darlington HA, 4 Quaker Societies / charitable trusts – 265 units –
management / repairs
• Community-owned housing
Middlesbrough CLT – 5 units - management / repairs
• Empty Homes Programme
Five Lamps – 4 units - management / repairs
5. ElementsElements
• Agreements and contracts – tailored templates
• Funding – sew and grow, earned income
• Services – enabling, development, management,
maintenance
• Locking in community interest – asset development
• Relationships – long-term
6. Gresham, MiddlesboroughGresham, Middlesborough
Study the past if you wouldStudy the past if you would
define the futuredefine the future
• Post-industrial decline
• Housing Market Renewal
• Controversy and confrontation
• Strong social networks / value base
7. It takes a community to make aIt takes a community to make a
community……community……
• From Communities Under Threat to
Community Land Trust
• Asset transfer of three houses for £3
• Local lettings at affordable rent
• Added values – social and economic
• voluntary effort / sweat equity
• community construction team
• local spend / community-led regeneration
8. Alone we can do so little; together weAlone we can do so little; together we
can do so muchcan do so much
• The residents of Gresham
• North Star Housing Group
• Middlesbrough Council
• Community Campus
• HCA, HACT, Isos, Jon Fitzmaurice
9. To lead the people; walk behind themTo lead the people; walk behind them
• Community leadership
• Relationships not transactions
• The collective economy / the social
community
• Letting go and giving up; small is beautiful
• Next steps: more EHs, new-build, Neighbourhood Planning,
Social Enterprises in Lettings and Repairs / Voids)
10. Successes and barriersSuccesses and barriers
• Shared purpose and ethos – mutual benefits
• Making unequal partnerships work; working with difference
• A geographical / neighbourhood / practical focus
• Community-led delivery model; a focus on assets
• Money – diverse and flexible, income streams
• Developing whole organisational understanding
• Institutional barriers
Editor's Notes
(1)
Quite often the main covenant is known as interest cover: just like with our mortgages banks like to see that our income, after all of our outgoings, is sufficient to pay the interest on the money we have borrowed.
In the early years of our existence it is impossible for us to have sufficient income to cover the payments due on our bank loans. This is because our stock investment programme means that we will produce deficits rather than surpluses for approximately the next 10 years.
So we need to devise an alternative covenant with the Bank. What they have agreed with us is to measure our performance against the cash deficit we plan to make.
Eg If our business plan anticipates a deficit for the year of £500k, the bank allow us a tolerance of 10% of that balance. If we stay within £550k (10%) at the year end we will have satisfied our lenders covenants. The actual covenant for 2009-10 is £523k.
(2)
This tolerance acts as a real constraint over our capacity to grow our business in the first years of our existence. Growth invariably requires borrowing. Borrowing means higher interest costs, higher interest costs threaten our capacity to meet our covenants with the banks.
(3)
What happens if we breach these covenants? The banks will look to reprice our loan facilities with them. Currently we enjoy rates of 0.05% above LIBOR (base) rates. Our borrowing would therefore be much more expensive than it is now which would constrict our capacity even further.
(1)
Quite often the main covenant is known as interest cover: just like with our mortgages banks like to see that our income, after all of our outgoings, is sufficient to pay the interest on the money we have borrowed.
In the early years of our existence it is impossible for us to have sufficient income to cover the payments due on our bank loans. This is because our stock investment programme means that we will produce deficits rather than surpluses for approximately the next 10 years.
So we need to devise an alternative covenant with the Bank. What they have agreed with us is to measure our performance against the cash deficit we plan to make.
Eg If our business plan anticipates a deficit for the year of £500k, the bank allow us a tolerance of 10% of that balance. If we stay within £550k (10%) at the year end we will have satisfied our lenders covenants. The actual covenant for 2009-10 is £523k.
(2)
This tolerance acts as a real constraint over our capacity to grow our business in the first years of our existence. Growth invariably requires borrowing. Borrowing means higher interest costs, higher interest costs threaten our capacity to meet our covenants with the banks.
(3)
What happens if we breach these covenants? The banks will look to reprice our loan facilities with them. Currently we enjoy rates of 0.05% above LIBOR (base) rates. Our borrowing would therefore be much more expensive than it is now which would constrict our capacity even further.
(1)
Quite often the main covenant is known as interest cover: just like with our mortgages banks like to see that our income, after all of our outgoings, is sufficient to pay the interest on the money we have borrowed.
In the early years of our existence it is impossible for us to have sufficient income to cover the payments due on our bank loans. This is because our stock investment programme means that we will produce deficits rather than surpluses for approximately the next 10 years.
So we need to devise an alternative covenant with the Bank. What they have agreed with us is to measure our performance against the cash deficit we plan to make.
Eg If our business plan anticipates a deficit for the year of £500k, the bank allow us a tolerance of 10% of that balance. If we stay within £550k (10%) at the year end we will have satisfied our lenders covenants. The actual covenant for 2009-10 is £523k.
(2)
This tolerance acts as a real constraint over our capacity to grow our business in the first years of our existence. Growth invariably requires borrowing. Borrowing means higher interest costs, higher interest costs threaten our capacity to meet our covenants with the banks.
(3)
What happens if we breach these covenants? The banks will look to reprice our loan facilities with them. Currently we enjoy rates of 0.05% above LIBOR (base) rates. Our borrowing would therefore be much more expensive than it is now which would constrict our capacity even further.
