Appendix A: Asset Management Strategy 2008-12

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Appendix A: Asset Management Strategy 2008-12

  1. 1. Hackney Homes Asset Management Strategy 2008 – 2012 Asset Management Plan 2008 - 2037 Version 5.0 August 2008 Category Strategy Issue Date 2008-12 Version Number 1.0 Owner Alan Turner Directorate Property Services Equality Impact Assessment Date Approved By Hackney Homes Board Approval Date March 2008 Asset Management Strategy
  2. 2. Hackney Homes Asset Management Strategy 2008 CONTENTS: PART 1........................................................................................................................................3 SECTION A - EXECUTIVE SUMMARY......................................................................................3 ..........................................................................................................................................................5 SECTION B - INTRODUCTION ...............................................................................................11 SECTION C - STRATEGIC CONTEXT.....................................................................................13 PART 2......................................................................................................................................22 SECTION A - STOCK PROFILE...............................................................................................22 SECTION B - OUR VISION FOR THE HOUSING ASSETS....................................................25 SECTION C - HOUSING NEED AND ECONOMIC SUSTAINABILITY...................................26 SECTION D - ENVIRONMENTAL SUSTAINABILITY.............................................................32 SECTION E - STOCK INVESTMENT.......................................................................................36 SECTION F - WORKING WITH OUR RESIDENTS.................................................................50 SECTION G - VALUE FOR MONEY.........................................................................................55 SECTION H - DATA AND PERFORMANCE MANAGEMENT................................................60 PART 3......................................................................................................................................65 SECTION A - MEDIUM TERM PLANNING FORECAST.........................................................65 SECTION B - THIRTY YEAR ASSET MANAGEMENT PLAN................................................66 SECTION C - ESTATE PLANS................................................................................................70 APPENDICES............................................................................................................................72 APPENDIX A: AFFORDABLE WARMTH STRATEGY...........................................................72 APPENDIX B: ECONOMIC SUSTAINABILITY SPREADSHEET...........................................86 APPENDIX C: OUTPUTS FROM PLANNED MAINTENANCE PROGRAMME 2007/08........87 CORE VERSION 9th September 2008 Page 2 of 89
  3. 3. Hackney Homes Asset Management Strategy 2008 PART 1 SECTION A - EXECUTIVE SUMMARY 1. Hackney Homes was set up in April 2006 as an Arms Length Management Organisation taking over the management and maintenance of the housing stock of the London Borough of Hackney (LBH) until 2011. The Housing stock owned by LBH totals some 33,000 homes, the majority of which is predominantly post war, medium or high rise flats and maisonettes. 2. Our overall asset management vision is for: “A sustainable portfolio that provides safe, affordable and well maintained homes for our residents, within estates and communities in which people choose to live.” The objectives of this Asset Management Strategy are • To ensure that all existing LBH rented stock meet the Decent Homes Standard by the date set by Government, currently December 2012. • To bring stock up to a common standard and enable a programme of planned preventative maintenance to be implemented from a sound base thereafter. 3. It is a document that sets out our achievements so far, work in progress and aspirations for the future. 4. The structure of the Document is in three parts • Part 1 summarises, introduces and sets in context the strategy. • Part 2 describes in detail how the strategy is implemented and delivered and has sub divisions for six key delivery areas that are critical to our success: o Housing Need and economic sustainability o Environmental Sustainability o Stock Investment o Working with our residents o Value for Money o Data and performance management • Part 3 contains detailed appendices for the 30 year Asset Management Plan CORE VERSION 9th September 2008 Page 3 of 89
  4. 4. Hackney Homes Asset Management Strategy 2008 5. Hackney is a borough in the East of London and adjacent to the City of London. It has a population of over 210,000 which is one of the most ethnically diverse and most socially deprived in the United Kingdom. 6. Since 1981 the proportion of houses rented from the council has decreased by 26.8 per cent, largely as a result of the ‘Right to Buy’ policy and stock transfer to registered social landlords including all sheltered housing. Overall, social rented stock which is comprised of properties rented from the Council and from registered social landlords has increased by 12.8 per cent. 7. Most people in Hackney live in social housing but over one-third of these homes are below national Decent Homes standards. 8. Hackney Homes has collated data on its own customers in Hackney Homes Customer Profile. Amongst the findings are that 60% of customers are female, 28% are retired, 26% in full or part time employment and over 55% describe themselves as Christian. 66% of requests for translation or interpretation are for the Turkish language. 9. Expected changes: From a population of 207,000 in 2006, the population of Hackney is expected to grow to around 210,000 by 2011, 219,000 by 2021 and to 225,000 by 2029. This will place strains on both the private and social rented sector, in terms of demand for residential units and also overcrowding. Housing demand in Hackney continues to grow as the borough’s population increases. 10. Hackney Homes has delegated responsibility for providing housing management and maintenance services, receiving a management fee for this service. The budget for 2008/09 is composed of revenue expenditure of £116.8 million and income of £106 million. The 2008/09 capital budget is £47.1 million which includes £20 million for decent homes works. 11. The Council has delegated to Hackney Homes stock investment decisions, delivery of investment programmes and repairs ordering i.e. asset management: • Cyclical and Planned Maintenance • Decent Homes works • Reactive Repairs Service • Void Management • Grounds maintenance and estate cleaning • Management of the Right to Buy and services to leaseholders • Implementation of housing regeneration schemes • Asset Management Services including programme planning, consulting and informing tenants on matters which are Hackney Homes’ responsibility 12. The Council has retained these functions: • Overall housing strategy and enabling • Policy and procurement decisions on housing regeneration to the point of implementation CORE VERSION 9th September 2008 Page 4 of 89
  5. 5. Hackney Homes Asset Management Strategy 2008 13. Asset profile 13.1 As at 28th February 2006 the Council owns and Hackney Homes manages approximately 33,000 homes, 22% of which are owned by leaseholders. The majority of stock is post war, medium or high rise flats and maisonettes. Most of the non- traditional stock has been demolished or transferred in previous years. 13.3 Further blocks and estates requiring major works have subsequently been identified for regeneration, transfer or disposal, as part of our approach to meeting the Decent Homes Standard and the Council is currently pursuing these proposals. 13.4 High rise (1945-1974) and medium rise property (1945-1964) bands comprise the majority of the stock. As would be expected, the newer the stock the lower the incidence of failure against the Decent Homes Standard. 14. Housing need and economic sustainability 14.1 According to the LBH Housing Strategy 2004 - 2007 the greatest demand is for small homes with one or two bedrooms. We have undertaken an assessment of the profile of the current housing stock against the current need for housing in order to begin the process of developing a Sustainability Assessment. 14.2. The major influence on the very high demand for homes of all sizes and in all locations is that the cost threshold for refurbishment before other options are considered is comparatively high. Bed-sit properties remain unpopular and in some cases it is hard to achieve the necessary space standard to comply with Decent Homes. In such cases options for future investment are considered. 14.3 Hackney successfully delivered in the 1990s the Governments agenda for mixed communities and made successful bids to the Single Regeneration Budget on its Comprehensive Estates Initiative and to the Estates Renewal Challenge Fund where we transferred 7,035 units of our stock in poorest condition to RSLs. 14.4 We are implementing sustainable regeneration at Woodberry Down, (one of the largest regeneration schemes in the UK and a National Mixed Communities Demolition Project), West Haggerston & Kingsland and Kings Crescent estates. The regeneration of Woodberry Down alone has reduced the Council’s decent homes funding requirement by at least £50m. The Woodberry Down Master plan proposal is to replace 1,458 units of social rented housing with 1,470 new units. In addition, 2,546 homes for private sale will be built and 312 shared ownership homes. 14.5. On seven blocks (455 homes) – Alexandra National House, Rendlesham House and Ottaway Court, Bridge and Marion Houses, Tower Court, and Colville Estate, The council is progressing with redevelopment by RSL partners. 14.6. We are delivering 40 units of new Council housing at Laurel & Briar Courts via a self- funding arrangement with a developer. 14.7 We are exploring the more efficient use of HRA land, through the Estates Plus Programme. CORE VERSION 9th September 2008 Page 5 of 89
  6. 6. Hackney Homes Asset Management Strategy 2008 15. Environmental sustainability 15.1. Hackney Homes will continue to contribute to the Council’s Climate Change Strategy. Corporately the Council’s housing stock generates 45% of the carbon emissions in the Borough. 15.2 Hackney Homes will aim to ensure we take every practical opportunity to conduct our activities and use resources today in a responsible and sustainable manner. We aim to protect the environment and meet the needs of the present without compromising the needs of future generations. We will also take the lead for provision of advice and support to our residents to enable them to contribute to this undertaking. 15.3 The current Programme to implement an Affordable Warmth Strategy is funded from within the Decent Homes budget, and is delivered through Decent Homes, cyclical, planned and reactive repairs programmes and works. 15.4 We regularly review the SAP targets to ensure that we continue to meet or exceed previously stated targets. 14.5 From 1st October 2008 we will be producing Energy Performance Certificates where required. 16. Stock investment 16.1 We plan our programmes of work through the use of our Asset Management data base to maximise the synergies between programmes, with effective sequencing of works programmes, leading to comprehensive estate plans. 16.2 This section describes each of the principal service streams within asset management and explains the outputs from them and the challenges that each of them face in delivering our over-arching vision for our assets. 16.3 Cyclical Maintenance • Gas Servicing • Lift inspections, repair and improvements • Play equipment inspection and repair • Water tanks and mains inspection and repair • Electrical Inspection and repair/renewals • Dry riser inspection and maintenance • External Repair and decorations • OAP decorations CORE VERSION 9th September 2008 Page 6 of 89
  7. 7. Hackney Homes Asset Management Strategy 2008 16.4 Planned maintenance • Door Entry renewal and installation • District Heating renewal or replacement • Estate lighting renewals and installation • Environmental Improvements • Roads and footpaths renewal • CCTV renewal and installation • Communal renewal and repair 16.5 Decent Homes 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 Total rented stock 23,551 23,254 23,154 23,054 22,954 22,854 Number of homes becoming decent 688 400 1,555 1,759 2,600 1,800 Decent homes at end of year 12,858 13,258 14,813 16,572 19,172 20,972* Non-Decent homes at end of year 7,842 7,772 6,217 4,458 1,858 0 % of currently non-decent homes at end of year 33.3% 32.0% 25.4% 17.9% 6.2% 0.0% 16.6 Reactive repairs • We will continue to use repairs data to help inform future planned programmes of work. • To provide an effective and value for money reactive repairs service which can be easily accessed by our residents. • To monitor the quality and value of the work delivered by our repair partners and to monitor and enhance the service to increase resident satisfaction, and, • To maximise the proportion of jobs completed at first visit. • It has been recommended that there should be a 60:40 split between planned and reactive activity. Our ratio at present is 56:44. CORE VERSION 9th September 2008 Page 7 of 89
  8. 8. Hackney Homes Asset Management Strategy 2008 16.7 Void repairs • To re-service routine void properties within agreed timescales according to the condition of the property concerned. Routine voids are classed as requiring either 3, 5, 10 or 15 working days to complete. • To consistently achieve the Hackney Homes “Letting Standard” and achieve savings in re-servicing costs through innovative use of basket rates and contractors • To ensure that all void properties reach at least the minimum Decent Homes Standard during voids re-servicing. • To take advantage of the access opportunity to complete enhanced Decent Homes works to a property which was omitted for some reason in the past and, • To convene a “voids panel” to appraise options when dealing with void properties that require expensive and/or complex works and make recommendations to Hackney Council for disposal where justified and minimise the number of long-term voids. • To ensure that all voids activity is monitored throughout the process to minimise delay, improve quality, obtain value for money and improve tenant satisfaction. 16.8 Asbestos management • To ensure that our data, operating procedures and communications with stakeholders minimises the health & safety risk to individuals and meets our obligations under the Control of Asbestos at Work Regulations 2006. 16.9 Equipment & adaptations • To ensure that those individuals requiring equipment or adaptations to their dwellings receive an appropriate and timely service, without discrimination, in line with statutory requirements and individual needs. 17. Working with our residents 17.1 Hackney Homes is committed to full participation of residents in all key decisions that affect them and their homes. 17.2 This is done at three main levels of involvement: • Strategic – Resident involvement in the prioritisation and scoping of projects and neighbourhood investment through various forums • Programme Delivery – Resident involvement in selection panels on the procurement of major works contracts and in monitoring through specific project boards and contract progress meetings. More use of tenant involvement in assessing resident satisfaction from our programmes is proposed. • Quality Control and Customer Feedback – resident involvement in analysis of customer feedback from questionnaires through focus groups and receive Key performance CORE VERSION 9th September 2008 Page 8 of 89
  9. 9. Hackney Homes Asset Management Strategy 2008 Indicator statistics through project boards and Neighbourhood Investment Boards. There is a need to reflect the level of customer complaints in KPI performance. 17.3. We provide a range of information to our customers on service standards. Our Customer Charter shows out approach to customer care. Service standards are reported on a quarterly basis both on posters in the Neighbourhoods Office and on our website. 17.4 Satisfaction with the repairs service is systematically measured through a minimum of 500 customer call-backs per month. We are in the process of exploring a new telephone call-back system that will refine our approach and provide more robust performance management data. 17.5 The Estate Plans project has been piloted on six estates and will be rolled out across the borough from October 2008. The plans will take a holistic approach to the issues that impact on the estate quality of life and promote a more co-ordinated use of resources. All estates in HH will have their own estate plan detailing the improvements/changes which need to take place on the estate to achieve the community’s vision. This will ensure that the resident’s views are systematically feeding into the long term asset management plan. 18. Value for Money 18.1 Hackney Homes has embarked upon a complete overhaul of the organisation including: • A comprehensive restructure of senior management and the creation of three operational divisions; • The replacement of the former direct labour organisation (HTS) with a streamlined Property Services division resulting in the reduction of up to 20% of staff numbers and a potential cost saving of up to £2m capital and revenue costs per annum; • Tendering of several major contracts covering housing management, capital works and repair and maintenance; • Tackling poor performance in key areas such as arrears and voids turnaround. CORE VERSION 9th September 2008 Page 9 of 89
  10. 10. Hackney Homes Asset Management Strategy 2008 18.2 The VFM strategy focuses on five main themes: • The Medium Term Financial Forecast (MTFF) – ensuring that the projects undertaken in accordance with the strategy are designed to have a demonstrable impact on the MTFF; • The Improvements in Service Delivery theme covers all the projects designed to secure measurable and sustainable improvements in service delivery throughout Hackney Homes. The objective is to identify both qualitative (quality related) and quantitive (measurable) improvements in services and to obtain the better use of resources throughout the organisation, which is part of a strong VFM culture that is understood and owned by staff throughout the organisation; • The Reducing Costs theme covers all the projects aimed at reducing Hackney Homes’ costs. • The Maximisation of Income theme covers all the projects designed to maximise housing rental and other income sources throughout Hackney Homes; • Establishing a Value for Money Culture this theme concerns the need to establish a VFM culture in the hearts and minds of staff throughout the organisation and also to involve residents in all aspects of the process from developing strategy through to involvement in projects and reviewing outcomes. 19. Data and performance management 19.1 We strive for continuous improvement in all asset management services. • Our Decent Homes Strategic Alliance involves the partners in monitoring and improving performance. • Our Operations Boards of Hackney Homes officers for Decent Homes and for Planned Maintenance regularly and rigorously monitor performance indicators and challenge. • The Board of Hackney Homes scrutinise performance monthly. • And we test all our services with regular satisfaction surveys of customers. Residents and staff work together to analyse data, draw conclusions, consider options for improved performance and make proposals. CORE VERSION 9th September 2008 Page 10 of 89
  11. 11. Hackney Homes Asset Management Strategy 2008 PART 1 SECTION B - INTRODUCTION 1. Housing in Hackney 1.1 Since 1981 the proportion of houses rented from the council has decreased by 26.8 per cent, largely as a result of the ‘Right to Buy’ policy and stock transfer to Registered Social Landlords including all sheltered housing. Overall, social rented stock which is comprised of properties rented from the Council and from registered social landlords has increased by 12.8 per cent. 1.2 In 2006 Hackney Homes was formed as an Arms Length Management Organisation (ALMO) to manage the remaining housing stock owned by LBH, totalling approximately 33,000 homes. 2. Hackney Homes 2.1 Hackney Homes’ primary purpose, on being established, was to deliver the target of securing the ‘Decent Homes Standard’ on the housing stock under its management by the subsequently revised target date of December 2012. 3. The Role of Asset Management 3.1 Asset Management, at a strategic level, is often defined as having “the right properties in the right place at the right time”. In terms of the management of the housing stock, that philosophy holds true, and our role at Hackney Homes is to: • Work in partnership with the London Borough of Hackney in taking a strategic view on the overall demand for social housing within the Borough, seeking to identify our part in meeting that demand, • Review the changing demographics and housing needs of the Borough, to map out how the characteristics of the housing stock meets both current and future needs and aspirations, • ‘Re-engineer’ the housing stock portfolio where possible and as necessary to meet changing social, economic or demographic needs and aspirations of residents, • Maintain and improve the housing stock in a sustainable way, to ensure that it meets current and future standards and aspirations, • Manage the portfolio in a manner that contributes to the overall corporate objectives of the London Borough of Hackney, and, • Take a long term view on investment and disinvestment decisions that reflect ‘whole life’ costs and benefits. • Maintain good quality records relating to all assets. • Involve residents in the decisions that affect their homes. 4. Purpose of This AMS CORE VERSION 9th September 2008 Page 11 of 89
  12. 12. Hackney Homes Asset Management Strategy 2008 4.1 This Asset Management Strategy sets out how our strategic and operational activities deliver against the objectives set out in paragraph 3.1 above. It is a document that sets out our achievements so far, work in progress and aspirations for the future. 5. Data Quality Standards 5.1 Hackney Homes is committed to producing and using data of good quality. The Audit Commission and CIPFA have recently issued a set of standards for better quality data “Improving information to support decision making”. The data produced on the Decent Homes programme is compliant with these standards and is subject to annual audit by the Audit Commission following the publication of National Indicator (NI) 158. Hackney Homes is committed to using the standards across the organisation and to using the CodeMan 4 database with validated and regularly updated data. CORE VERSION 9th September 2008 Page 12 of 89
  13. 13. Hackney Homes Asset Management Strategy 2008 PART 1 SECTION C - STRATEGIC CONTEXT 1. About Hackney - Borough Profile 1.1 Hackney is a borough in the East of London and adjacent to the City of London. It has a population of over 210,000 which is one of the most ethnically diverse and most socially deprived in the United Kingdom. 1.2 Hackney has a young and growing population of strong communities with links around the globe. The area has been a site of settlement for people from overseas for hundreds of years with communities from all corners of the world leaving their mark. Past and present communities include: French Protestants, Sephardic Jews, Irish, Germans, Afro-Caribbeans, Cypriots, Vietnamese, South Asians, West Africans, Turks, Somalis and Kurds. Currently over a half of Hackney residents come from ethnic minority groups. There are established patterns of migration to and from the regions of Britain and different parts of London. 1.3 The level of ethnic diversity in Hackney varies geographically across the borough and also in terms of housing tenure. Using the Shannon-Weiner Index values (ranging between 0 and 1, with 1 denoting good diversity and 0 denoting poor diversity) Hackney has a relatively high level of ethnic diversity amongst the population living in socially rented housing (0.655). This diversity is lower amongst owner occupied (0.499) and private rented (0.460) accommodation. 1.4 Household and family structures are influenced by many factors including societal values, cultural traditions, economic forces, housing opportunities and lifestyle choices. The largest household type in Hackney overall and in each of the borough’s wards is that of single person households (see Chart 1 below). CORE VERSION 9th September 2008 Page 13 of 89
  14. 14. Hackney Homes Asset Management Strategy 2008 Chart 1: Household structures in Hackney (Source: 2001 Census) 1.5 Despite being adjacent to the wealth of the City of London, Hackney has one of the worst levels of deprivation in the country, regardless of which scale of measurement is used. Unfortunately there is little evidence to suggest that the gap between the deprivation levels in Hackney and the rest of the country is narrowing. 1.6 The borough suffers from low skill levels, high unemployment rates and low incomes. Many residents have poor literacy and numeracy skills, having left school with few qualifications. Means-tested and disability benefits support approximately 40% of families in the borough which means that most children in Hackney are in families dependent on benefits. Our older population also predominantly live on a low income and are reliant on state pensions. Some residents in the borough additionally face discrimination in their search for employment. 1.7 Crime levels in the borough are high and so is the fear of crime. Street crime is six times the national average and both burglary rates and vehicle crime rates are double the national average. 1.8 Most people in Hackney live in social housing but over one-third of these homes are below national Decent Homes standards. Private rented housing conditions are poor. There are high levels of homelessness and overcrowding. Private housing prices are beyond most people’s reach with the average home costing seven times the average annual income. Due to the high cost of housing, there are pressures on land used for employment, to be replaced by housing. 1.9 Housing tenure differs among Hackney’s wards as shown in Chart 2 below. Haggerston and Hoxton have the highest proportion of social rented property which includes local authority and registered social landlord homes. CORE VERSION 9th September 2008 Page 14 of 89
  15. 15. Hackney Homes Asset Management Strategy 2008 Chart 2: Housing tenure distribution across Hackney (Source: 2001 census). 2. Expected Changes 2.1 From a population of 207,000 in 2006, the population of Hackney is expected to grow to around 210,000 by 2011, 219,000 by 2021 and to 225,000 by 20291. This will place strains on both the private and social rented sector, in terms of demand for residential units and also in relation to overcrowding. 2.2 Housing demand in Hackney continues to grow as the borough’s population increases. The effects of a persistent overall shortage of housing have been made worse by a lack of affordable housing and the high cost of private housing, both to buy and to rent. The borough has the third highest population density of all council areas in the country, the second highest proportion of households living in social housing in London and the sixth highest level of overcrowding nationally (rising to third highest for serious overcrowding), which is particularly high amongst black and minority ethnic communities. A high level of homelessness, with more than a thousand households in temporary accommodation, is a further outcome of housing shortage, and reflects the much lower numbers of social housing properties becoming available for re-let compared to the mid-1990s. 2.3 Increased house prices have, in recent years, put the price of home ownership in the borough beyond the reach of many people with moderate incomes, including people in ‘key’ jobs for the local economy. Shared ownership and cost rent schemes have attempted to meet some of the needs of these groups. However these are also often beyond their means. It is a priority for the borough to build and maintain a mixed and balanced community, to prevent polarisation between the better off and those living in poverty and to support economic development. Getting the housing balance right, as well as providing good quality public services for residents, is key to achieving this goal. This means providing homes for families at prices they can afford. 1 Subnational Population Projections: Office of National Statistics (2007) CORE VERSION 9th September 2008 Page 15 of 89
  16. 16. Hackney Homes Asset Management Strategy 2008 2.4 The London Borough of Hackney is actively promoting intermediate affordable housing products in the borough, including equity shares as low as 25% with its Housing Association partners. The report “Developing Intermediate Housing Products in Hackney” explains the approach and demand in more detail. 2.5 Hackney Homes has collated data on its own customers in Hackney Homes Customer Profile. Amongst the findings are that 60% of customers are female, 28% are retired, 26% in full or part time employment and over 55% describe themselves as Christian. 66% of requests for translation or interpretation are for the Turkish language. 3. ALMO – Background and Governance 3.1 As the agent for the London Borough of Hackney we manage the Council’s retained housing stock, in a relationship where that housing stock remains in the freehold ownership of the Council. 3.2 Accordingly our approach to managing the stock and undertaking our functions, services and duties must reflect the objectives, priorities and strategic outcomes that have been adopted by the Council. These are set out below. 3.3 There are two levels (the strategic and the operational) at which Hackney Homes is held to account by the London Borough of Hackney Council. 3.4 At the strategic level Hackney Homes is accountable to the Council as the sole owner of the company registered as Hackney Homes Ltd. These lines of accountability operate according to the provisions contained within the Memorandum and Articles of the company. In addition, at the strategic level, the Council’s Scrutiny Commission and the elected Mayor have powers to hold Hackney Homes to account. 3.5 At the operational level Hackney Homes is accountable to the Council through the structures for accountability and performance monitoring which is set out within the Management Agreement. In practice this involves a series of monthly and quarterly performance monitoring meetings. 3.6 The ALMO, Hackney Homes (HH), is managed by a board that is made up of six elected resident representatives comprising five tenants and one freeholder/leaseholder, five Councillors nominated by Hackney Council and five independents. 3.7 The Board meets regularly and all meetings are open to the public and include a section where written questions from tenants and leaseholders can be answered. 3.8 Hackney Homes’ Board is subject to the provisions of the Companies Act. Its Governance documents include: • Memorandum & Articles of Association • Terms of reference for the Board • Code of conduct • Duties • Ethical framework CORE VERSION 9th September 2008 Page 16 of 89
  17. 17. Hackney Homes Asset Management Strategy 2008 • Equality • Expenses • Committee Structures • Board Renewal • Audit • Separation of responsibilities – Board & Chief Executive 4. London Borough Of Hackney Corporate Objectives • Making Hackney a Better Place “Achieving balanced, sustainable communities and neighbourhoods, which celebrate our diversity and share in London’s growing prosperity, to enable a good quality of life for all.” • Mayor’s Priorities: o Mayor’s Priority 1: Making sure the Council is high performing and efficient. o Mayor’s Priority 2: Improving services and increasing opportunities for all, raising the life chances of the most disadvantaged. o Mayor’s Priority 3: Providing effective community leadership and involving the whole borough in what we do. • Community Strategy Outcomes o A good place to grow o A dynamic creative economy o Thriving, healthy communities o Better Homes o A Safer, cleaner place to live o A sustainable borough The London Borough of Hackney’s Asset Management Plan identifies the following priorities: • Modernising the borough • Modernising customer services • Investing in a safe, clean and green Hackney • Investing in our people • Meeting the Decent Homes target for council housing • Renewing or improving every school in the borough 5. London Borough of Hackney Corporate Plan 5.1 The housing stock is owned by LBH and managed by Hackney Homes under a formal management agreement through to 2011. As such our management approach must reflect the objectives, goals and values of LBH. This must also carry through to our strategic asset management vision and decisions around the portfolio. CORE VERSION 9th September 2008 Page 17 of 89
  18. 18. Hackney Homes Asset Management Strategy 2008 5.2 LBH has adopted a Corporate Plan for the period 2007/08 to 2010/11, which aligns to the period of our management agreement with them. Out of the LBH Corporate Plan, Neighbourhood and Regeneration Directorate Storyboard come a number of priorities for this period. Those that impact upon our management and operations are set out below. 5.3 Neighbourhoods and Regeneration Directorate (LBH) Story Board 2007/08 – 2010/11 • To make Hackney a place where people want to live by planning a built environment and developing the local economy to support sustainable, mixed communities (regeneration Strategy). • To bring all of Hackney’s 23,700 rented homes up to the Government ‘Decent Homes’ standard by 2012. (Decent Homes Strategy). • To deliver new and sustained mixed use communities (Estate Renewal Programme). • To increase re-housing of overcrowded families. 5.4 Alongside the Corporate Plan, there sits the Community Strategy which has been developed in partnership between LBH and the Hackney Strategic Partnership. The key themes adopted for the strategy are: • A good place to grow • A dynamic creative economy • Thriving, healthy communities • Better Homes • A Safer, cleaner place to live • A sustainable borough 5.5 Hackney Homes is also signed up to the objectives of the Better Homes Partnership in Hackney’s Local Area Agreement. These are: • Decent and Affordable Homes • Reducing overcrowding and homelessness by securing additional affordable homes • Increasing the availability of homes in Hackney that are attractive to those unable to afford market prices • Improving the condition and management of housing and housing estates in the borough 6. HACKNEY HOMES OBJECTIVES AND VALUES AND LINKS TO LBH CORPORATE PLANS 6.1 Our mission statement is: “To deliver excellent, accessible services, and quality homes that people want to live in”. As a managing agent for Hackney Council, Hackney Homes is contributing to the Council’s community vision: CORE VERSION 9th September 2008 Page 18 of 89
  19. 19. Hackney Homes Asset Management Strategy 2008 “To achieve balanced, sustainable communities and neighbourhoods, which celebrate their diversity and share in London’s growing prosperity, to enable a good quality of life for all.” 6.2 Our key objectives as stated in the Draft 2008/09 Hackney Homes Delivery Plan: • Delivering excellent, accessible services and homes that people want to live in. We will do this by understanding the needs of our customers, working closely with our housing management providers and achieving top quartile on our performance and resident satisfaction. We will keep residents’ views at the heart of what we do, learn from others and strive to improve and be the best. • We will provide modern homes and modern estates where people want to live. We will do this by achieving the Decent Homes standard by 2012 and working to achieve the Hackney Standard for all our homes. We will invest in our estates and neighbourhoods and work with residents and partners to deliver local priorities. • We will deliver high quality, efficient services, aligned to residents’ needs and priorities. We will do this by managing resources effectively and achieving efficiencies over time. We will keep our promises, invest in our staff and maximise opportunities for additional investment. • We recognise that as the largest provider of affordable housing in Hackney, we have a significant role to play to help deliver the physical, social and economic regeneration of our neighbourhoods. We will deliver for our residents by engaging with and working with local communities, playing our part as a partner to LBH and identifying opportunities for regeneration and community investment. 6.3 Our values at Hackney Homes: SERVICE: Service delivery culture aware of, and responsive to, the needs and views of all our tenants and leaseholders. HONESTY: Open, honest, informative and fair with our residents, staff and agencies with whom we work. ACHIEVEMENT: Delivering on our service promises whilst remaining cost conscious. RESPECT: Seeking and respecting the views on and ideas for services and investment of our tenants and leaseholders, staff and partner agencies. PRIDE: Pride in Hackney Homes and Hackney borough as a diverse place to live and work. 7. Hackney Homes (ALMO) - Roles and responsibilities 7.1 Hackney Homes has delegated responsibility for providing housing management and maintenance services, receiving a management fee for this service. The budget for 2008/09 is composed of revenue expenditure of £116.8 million and income of £106 million. The 2008/09 capital budget is £47.1 million which includes £20 million for Decent Homes works. CORE VERSION 9th September 2008 Page 19 of 89
  20. 20. Hackney Homes Asset Management Strategy 2008 7.2 In addition, housing management services to tenants and leaseholders are carried out by three housing management partners (Pinnacle, Pathmeads and Mouchel Parkman), operating from five neighbourhoods. 7.3 The full range of Local Authority Housing functions & services fall into six areas: • Affordable Homes • Regeneration • Housing Needs • Homelessness • Estate Management, and • Asset Management 7.5 Housing services contribute to people’s health and well-being by securing environments that support good health and through enabling those suffering ill health or disability to maintain independent lives through suitable housing and support services. 7.6 People in Hackney experience high levels of poor physical and mental health and physical disability. Many people with special needs live in social rented housing and the borough has a variety of means to support people. This includes sheltered housing and group homes for people with learning disability, as well as ‘floating’ support to people in their homes. 7.7 A new programme for meeting the needs of vulnerable people in their homes, the Supporting People programme, was introduced in 2003. The Council’s Community Services take the lead on this programme that also involves many partners in the wider housing and voluntary sector services. 8. Functions Retained by LBH Include: • overall housing strategy and enabling; • determining policies on lettings and anti-social behaviour (in consultation with Hackney Homes) and rents; • managing the Supporting People programme; • homelessness, general housing advice; • administration of the housing Register and choice based letting scheme (CBL), and • policy and procurement decisions on housing regeneration to the point of implementation. 9. Functions Delegated to Hackney Homes as the ALMO Can be Summarised as Follows: • stock investment decisions, delivery of investment programmes and repairs ordering • rent, collection, dealing with arrears and debt counselling; • consulting and informing tenants on matters which are Hackney Homes’ responsibility • promoting tenant participation, including involving tenants in monitoring and reviewing service standards; • enforcement of tenancy conditions • similar functions for leaseholders; • managing lettings, voids and under-occupation; CORE VERSION 9th September 2008 Page 20 of 89
  21. 21. Hackney Homes Asset Management Strategy 2008 • estate management, caretaking and housing related support services under the Supporting People programme, and implementation of housing regeneration schemes. 10. Housing Asset Management Services 10.1. Hackney Homes undertakes the following Asset related functions, in fulfilling its commitments as an ALMO: • Cyclical and Planned Maintenance • Decent Homes works • Reactive Repairs Service • Void Management • Grounds maintenance and estate cleaning • Management of the Right to Buy and services to leaseholders • Implementation of Estate Renewal • Asset Management Services including programme planning CORE VERSION 9th September 2008 Page 21 of 89
  22. 22. Hackney Homes Asset Management Strategy 2008 PART 2 SECTION A - STOCK PROFILE 1. Summary 1.1 As at 28th February 2006 LBH owns and Hackney Homes manages approximately 33,000 homes. This includes TMOs and leasehold units. Flats and maisonettes predominate. This total comprises 66% of rented stock and 22% of leaseholders; the remaining 12% is made up of a mixture of sold properties where Hackney Homes continue to hold a liability regarding external and communal maintenance, pre-void, void and right to buy properties. 1.2 The majority of stock comprises post war, medium or high rise flats and maisonettes. Most of the non-traditional stock has been demolished or transferred in previous years, leaving four un-improved concrete system blocks on the Gascoyne estate. This non- traditional stock is currently undergoing an option appraisal prior to concluding its future. 1.3 Over the last few years LB Hackney has played a lead role in stock transfers and disposal of economically unsustainable homes and estates. Further blocks and estates requiring major works have subsequently been identified for regeneration, transfer or disposal, as part of our approach to meeting the Decent Homes Standard and L.B. Hackney is currently pursuing those proposals. 1.4 High rise (1945-1974) and medium rise property (1945-1964) bands comprise the majority of the stock. As would be expected, the newer the stock the lower the incidence of failure. CORE VERSION 9th September 2008 Page 22 of 89
  23. 23. Hackney Homes Asset Management Strategy 2008 1.5 Table 1 below shows a breakdown of the stock by age and type (archetype) Grand Archetypes Leaseholder Rentable Total 1945-64 Bungalows 20 20 1945-64 High Rise Flats 1104 4116 5220 1945-64 Medium Rise Flats 2764 7391 10155 1945-64 Small Bedsits 1 4 5 1965-74 Bungalows 83 83 1965-74 High Rise Flats 766 3279 4045 1965-74 Houses 5 282 287 1965-74 Medium Rise Flats 947 1948 2895 45-64 Other Houses 2 120 122 Post 1974 Bungalows 14 14 Post 1974 High Rise Flats 22 196 218 Post 1974 Houses 40 1146 1186 Post 1974 Medium Rise Flats 821 1631 2452 Post-1945 low rise flats 118 401 519 Pre 1945 High Rise Flats 92 358 450 Pre 1945 Medium Rise Flats 585 1794 2379 Pre 45 Other Houses 3 447 450 Pre 45 Semi-Detached Houses 9 9 Pre-1945 Low Rise Flats 206 312 518 Grand Total 7476 23551 31027 Table 2 Storey height of rentable stock No. of units LOW RISE 1,615 1-2 storeys MEDIUM RISE 14,063 3-5 storeys HIGH RISE 4,988 6-10 storeys HIGH RISE 1,961 11-16 storeys HIGH RISE 1,005 17-23 storeys CORE VERSION 9th September 2008 Page 23 of 89
  24. 24. Hackney Homes Asset Management Strategy 2008 Chart 1 Archetypes of Hackney Homes housing stock Breakdown of Archetypes for Rentable Dwellings including Regeneration units as on 1st April 2008 8000 7391 7000 6000 5000 4116 4000 3279 3000 1948 1795 1631 2000 1146 1000 20 282 196 401 358 446 312 4 83 120 14 9 0 s s se s es s s Po Ris ws s s s ts 65 ll B s s Bu sits 45 m R use ise s ow i-D ther ats ow ts s se s se at at at t th Flat at gh e fla w use la 19 74 B ous lo Flat 19 Fla lo Fl Fl Fl ou ou al al Fl ed Fl Sm e F o ga ng ng H se o se H ise H se H ris e Pr 1 94 ise 45 ed H is un 4 Bu Ri Ri er Ri 74 Ri R -7 w R a R h h 65 m 4 4 h Pr um e- tach m O ig ig O Lo -7 19 45-6 ig iu iu 5 19 P o d iu Hi H H st 9 4 45 H i ed ed 4 ed Po st 1 -6 4 4 -6 e 45 e 74 19 19 M M -6 -7 M e 45 M 19 - 19 st Po 45 65 4 4 m 45 19 74 -6 -7 19 Se e st Pr 19 45 19 65 45 19 19 e st Pr Po e Pr Chart 2 Bedroom sizes of Hackney Homes housing stock Breakdown of Bedrooms for Rentable Dwellings including Regeneration units as on 1st April 2008 8708 9000 8000 6500 7000 6123 6000 5000 4000 3000 2000 1194 863 124 30 9 1000 0 it s s s m s s s ds m m om m m m oo Be oo oo oo oo oo ro dr dr dr dr dr dr ed Be Be Be Be Be Be B ne ve ur o x e n Si Tw O re ve Fo Fi Th Se CORE VERSION 9th September 2008 Page 24 of 89
  25. 25. Hackney Homes Asset Management Strategy 2008 PART 2 SECTION B - OUR VISION FOR THE HOUSING ASSETS 1. Introduction 1.1 Our vision for the housing assets must reflect and complement all the various objectives and themes mentioned in Part 1 above. We have therefore adopted an overall asset management vision statement which shows that we are aiming to build an asset base which creates: “A sustainable portfolio which provides safe, comfortable and well maintained homes for our residents, within estates and communities where people choose to live.” 1.2 In seeking to achieve this vision we have developed six key delivery areas that are critical to our success, and that help explain what our vision means in practical terms. The strategy document is grouped into these headings below: (1) Housing Need and Economic Sustainability (2) Environmental Sustainability (3) Stock Investment (4) Working with our residents (5) Value for money (6) Data and Performance Management Clearly, the extent and pace of achievement against our vision is always dependent upon availability of resources, and individual delivery programmes and initiatives will be prioritised around available funding. CORE VERSION 9th September 2008 Page 25 of 89
  26. 26. Hackney Homes Asset Management Strategy 2008 PART 2 SECTION C - HOUSING NEED AND ECONOMIC SUSTAINABILITY Housing Need and Economic Sustainability Environmental Sustainability Stock Investment Working with our residents Value for money Data and Performance Management 1. Housing Need and Economic Sustainability 1.1 There are severe pressures in meeting the housing needs of the Borough. According to the LBH Housing Strategy 2004 - 2007 the greatest demand is for small homes with one or two bedrooms. Table 3 below sets out the shortfall in delivery of social housing as at 2003. Table 3: Delivery of social housing need (source: LBH Housing Strategy 2004 – 2007) 1.2 The overall demand for accommodation remains high in all sectors. The major influence on the very high demand for homes of all sizes and in all locations is that the cost threshold for refurbishment before other options are considered is comparatively high. Notwithstanding this, bed-sit properties present difficulties in that they remain unpopular and in some cases hard to let and it is sometimes problematic to achieve the necessary space standard to comply with the Decent Homes standard. 1.3 In cases where the investment required is unsustainable in relation to the housing need that the properties in question might meet, options for future investment are considered. 1.4 As at the end of October 2007 there were over 14,000 people on the housing waiting list. Annual turnover of housing stock currently is running at between 6% and 7%. CORE VERSION 9th September 2008 Page 26 of 89
  27. 27. Hackney Homes Asset Management Strategy 2008 1.5 Table 4 - the bedroom size requirements for those on the waiting list at that time is shown below: Number of bedrooms Number on housing % of housing required waiting list (Oct. waiting list (Oct. 2007) 2007) Not specified 6 0.04 1 7066 49.93 2 3886 27.46 3 2558 18.08 4 534 3.77 5 84 0.59 6 12 0.08 7 4 0.03 9 1 0.01 1.6 This suggests a slight shift over the past few years towards an increased demand for smaller homes. 1.7 The profile of our housing stock by property type and bedroom number in shown in Table 5 below. Further work is required to assess the preferred housing location of those on the waiting list and to compare this against the existing stock. Number of Bungalow Flat Houses Maisonettes % of Housing bedrooms Stock Bedsit 11 1289 1 2 4.02 1 54 7505 27 186 23.4 2 10 8624 270 2880 36.3 3 43 3168 2253 4619 31.06 4 29 410 632 246 4.06 5 13 118 25 0.48 6 2 25 4 0.09 7 7 0.02 1.8 This would seem to suggest that the demand for smaller properties is not reflected in the profile of our existing stock. 1.9 LBH is to undertake a further Housing Needs Survey during 2008 and alongside this they will also be adopting a new Housing Strategy 2008 – 2011. These two key pieces of work are critical in formulating a sustainability appraisal that is well informed and makes the right choices about investment and disinvestment in the stock or in specific estates. CORE VERSION 9th September 2008 Page 27 of 89
  28. 28. Hackney Homes Asset Management Strategy 2008 1.10 Table 6 - Housing Association New Provision in Hackney 2007/08 and 2008/09 Number of 2007/08 2008/09 % of new build bedrooms total units total units provision 1 182 343 31.5 2 185 437 37.3 3 97 243 20.4 4 25 118 8.5 5 19 12 1.9 6 0 7 0.1 1.11 However, the Housing Association sector in Hackney is building large numbers of smaller units, as can be seen from the above table. LBH’s Housing Strategy takes a view across all tenures whereas Hackney Homes is managing only the HRA stock. 2. Outputs 2.1 The overall demand for accommodation remains high in all sectors, and such is that demand that we have no difficulty letting any categories of accommodation in any location. However, this is not to say that the profile of our portfolio is economically sustainable in every respect or that the supply of housing is appropriate and proportional to demand, either now or in the future. Further work is needed in this area. 2.2 In cases where the investment required is unsustainable in relation to the housing need options for future investment are considered. The Council has a strong track record on this area of work (see above). 2.3 We have undertaken an assessment of the current supply side (the profile of the current housing stock) against the demand side (the current need for housing in order to begin the process of developing a sustainability Assessment. Further work will be undertaken in this area between now and March 2008. 3. Economic Sustainability Assessment 3.1 The Audit Commission have recommended that a comprehensive sustainability assessment of the Hackney Homes stock is carried out. This has been completed and is summarised in the Economic sustainability Matrix in Appendix B. 3.2 The major influence on the very high demand for homes of all sizes and in all locations is that the cost threshold for refurbishment before other options are considered is comparatively high. Notwithstanding this, bed-sit properties present difficulties in that they remain unpopular and in some cases it is hard to achieve the necessary space standard to comply with Decent Homes. In such cases options for future investment are considered. 3.3 Resources to re-engineer the portfolio through conversion, demolition or disposal may not be available to implement a strategy, in the short or medium term, and capital receipts may have to be generated from other sites to fund such schemes. CORE VERSION 9th September 2008 Page 28 of 89
  29. 29. Hackney Homes Asset Management Strategy 2008 4. Delivering Sustainable Homes A summary of our achievements and estate renewal schemes. 4.1 Hackney is in a very strong position on estate renewal, regeneration and building sustainable communities. 4.2 Hackney successfully delivered in the 1990s the Governments agenda for mixed communities and made successful bids to the Single Regeneration Budget on its Comprehensive Estates Initiative and to the Estates Renewal Challenge Fund on its Estates Regeneration Strategy. The ‘Estates Transfers’ table shows that we transferred 7,035 units of our stock in poorest condition to RSLs. Table 7 Hackney estates transfers details Estate No. of Status Group Properties Haggerston 163 Transferred to: Kingsland 42 Canalside Housing Partnership 1 Whitmore 502 29 March 1999 Morningside 547 Transferred to: 2 Old Gascoyne 1 291 Sanctuary Housing Association Old Kingshold 180 12 March 1999 Shore 138 Kingsmead 978 Transferred to: 3 Kingsmead Homes (Hackney) Ltd 30 March 1998 4 Pembury 1264 Transferred to: Peabody Trust 6 March 2000. High Hill 91 Transferred to: 5 Northwold 580 CCHT Southwold 114 22 March 1999 Wigan House George Downing 135 Transferred to: Hillside 131 Southern Homes 6 March 2000. 6 Hindle House 103 Keats 28 Kennaway 119 Stamford Hill 517 Clissold 150 Transferred to: Newlon Housing Trust 8 November 1999 Sheltered Housing 962 Transferred to: Hanover in Hackney HA 9 October 2002 West Haggerston & 440 Transferring to London & Kingsland Quadrant HA In November 2008 CORE VERSION 9th September 2008 Page 29 of 89
  30. 30. Hackney Homes Asset Management Strategy 2008 4.3 CEI applied to our five largest large panel systems estates where, through partnerships with RSLs and private developers, we levered in over £400 million to refurbish, demolish and replace with high-quality housing of owner-occupied, shared ownership, RSL and Council tenure. The net result was a loss of 1,500 units 4.4 The Woodberry Down regeneration project and Review Estates Phase 1 and Estates Plus are complementary to the Decent Homes programme and will develop hugely significant numbers of additional, affordable housing. The DCLG’s sustainability agenda is being addressed on a large scale already. 4.5 We are implementing sustainable regeneration at Woodberry Down, (one of the largest regeneration schemes in the UK and a National Mixed Communities Demolition Project), West Haggerston & Kingsland and Kings Crescent estates. The regeneration of Woodberry Down alone has reduced the Council’s decent homes funding requirement by at least £50m. The Woodberry Down Master plan proposal is to replace 1,458 units of social rented housing with 1,470 new units. In addition, 2,546 homes for private sale will be built and 312 shared ownership homes. 4.6 We are exploring the more efficient use of HRA land, through the Estates Plus Programme (see below). 4.7 On seven blocks (455 homes) – Alexandra National House, Rendlesham House and Ottaway Court, Bridge and Marion Houses, Tower Court, and Colville Estate, The council is progressing with redevelopment by RSL partners. 4.8 We are delivering 40 units of new Council housing at Laurel & Briar Courts (Holly Street 6b) via a self-funding arrangement with a developer. 4.9 The Council is developing a new strategy for those Hackney estates that have further opportunities for increasing housing supply, and which also have investment needs to ensure their long term sustainable future, through the Estates Plus Programme. 5. Estates Plus 5.1 Assessments have been periodically made of the need for investment in longer term regeneration schemes, such as Woodberry Down. The development programme for this scheme stretches well beyond 2010 and the medium term investment needs of the stock which will not be demolished before 2010 have been addressed within the projects’ business plan. Allowance has been made in the Hackney Homes maintenance projections beyond 2010 for maintenance works to these blocks, prior to demolition. 5.2 The Estates Plus initiative has broadly been diverted into two separate streams. One stream is Hackney Council Neighbourhoods & Regeneration Department’s Tranche 1 / Phase 2 development proposals. The second stream is their Estates Plus development initiative. 5.3 A feature of this programme is the potential to release up to £50m of capital receipts which will directly benefit the local host estates. Most schemes will involve infill CORE VERSION 9th September 2008 Page 30 of 89
  31. 31. Hackney Homes Asset Management Strategy 2008 development on existing estates or selective demolition of garages and blocks to release more substantial parcels of land. 5.4 The proposals have undergone substantial consultation with stakeholders with the Hackney Council Cabinet. A procurement process from March – December 2007 proved not to be successful with the developer consortium and the Council failing to agree development proposals. A second procurement process is now underway. 5.5 The progress and cash flow forecasts for the regeneration projects – Woodberry Down, Kings Crescent, and West Haggerston are difficult to anticipate and progress on any one of these is sensitive to a range of factors. Allowances have been made within the financial model; however variances to this could impact on other budgets or programmes. 6. Economic Sustainability Assessment 6.1 In order to enable us to focus objectively on taking investment decisions in relation to stock, we have devised an economic sustainability matrix. 6.2 The matrix, which is reproduced in Appendix B, contains a range of data derived from the asset management database and other sources. This, largely numerical, data is employed to assess the sustainability of each of our 328 estates. 6.3 The factors assessed for each estate are: • Estate Details - % of leaseholders • Energy rating – comparison to borough average • Decency status – Decent, In progress, Funded and non-Decent • Reported crime – comparison to Borough average • Investment need – comparison to income • Transfer requests - comparison to Borough average • Complaints – categorised and compared to Borough average 6.4 The outcomes of each assessment are scored and denoted as Red, Amber or Green. The aggregate of the assessments also result in a score. Currently, estates in the bottom 20 of the aggregated scores are denoted as Red, those in the Top 20 are Green and the remainder are Amber. 6.5 This approach will be developed in association with our local Asset Management Strategies – Estate Plans, which are referred to elsewhere, to assist in our prioritisation of estates requiring further review prior to taking investment decisions. 6.6 Street properties are included within this matrix but detailed repairing costs are included from Decent Homes surveys, rather than stock condition sampling, given the varied nature and conditions of such units. CORE VERSION 9th September 2008 Page 31 of 89
  32. 32. Hackney Homes Asset Management Strategy 2008 PART 2 SECTION D - ENVIRONMENTAL SUSTAINABILITY Housing Need and Economic Sustainability Environmental Sustainability Stock Investment Working with our residents Value for money Data and Performance Management 1. Environmental Sustainability – Summary of Activities 1.1. Hackney Homes works in partnership with Hackney Council towards achieving our sustainability vision across the whole of Hackney. 1.2 Embodied within the Asset Management Strategy is this environmental sustainability Mission Statement: “Hackney Homes will aim to ensure we take every practical opportunity to conduct our activities and use resources today in a responsible and sustainable manner. We aim to protect the environment and meet the needs of the present without compromising the needs of future generations. We will also take the lead for provision of advice and support to our residents to enable them to contribute to this undertaking.” 1.3 The current Programme to implement an Affordable Warmth strategy is funded from within the Decent Homes budget, and is delivered through Decent Homes, cyclical, planned and reactive repairs programmes and works. There is currently no separate programme of such works and it is not intended that there should be unless funding demands require it. 1.4 We will adopt an approach which addresses the issues surrounding affordable warmth to ensure that no family has to spend more than 10% of their income on heating; any further improvements on this target will also be reviewed whenever possible. These objectives will be implemented within the operational delivery of the Asset Management Strategy, rather than through separate programmes of work. 1.5 We aim to achieve year-on-year improvement in the SAP ratings of units. The SAP ratings (a government measure of energy efficiency within dwellings) are being improved by installing or replacing boilers and Central Heating Systems, replacing windows and improving roof and cavity wall insulation. CORE VERSION 9th September 2008 Page 32 of 89
  33. 33. Hackney Homes Asset Management Strategy 2008 1.6 We regularly review the SAP targets to ensure that we continue to meet or exceed previously stated targets. 1.7 The impact of sustainability will be considered by Hackney Homes in all investment decisions. 1.8 We have developed a sustainability communications strategy to ensure staff; residents and stakeholders are informed and engaged in sustainability issues. 1.9 We actively support residents to enable and empower them to be involved in initiatives at a personal level and to make a positive contribution on environmental sustainability issues. 1.10 From 1st October 2008 we will be producing Energy Performance Certificates where required. 1.11 Hackney Homes will continue to contribute to the Council’s Climate Change Strategy. Corporately the Council’s housing stock generates 45% of the carbon emissions in the Borough. 1.12 Sustainability is a cross-cutting issue which goes beyond the Management of Assets into areas requiring cultural change, training and awareness-raising, in addition to investing in the stock in a sustainable manner. 2. Environmental Sustainability - Outputs 2.1 We have already implemented a number of environmental sustainability initiatives such as replacing older and less efficient central heating systems to reduce energy consumption, and to increase insulation to walls and roofs. The energy rating of Hackney Homes is in the top Quartile in London. 2.2 In order for us to deliver on our mission statement we need to ensure that there is increased awareness of sustainability issues in general both within the organisation and by our residents. We recognise that resources may have to be re-directed in order to implement these policies. 2.3 We are currently implementing a “Green Estates” initiative, working with local residents, LBH and a variety of agencies to pilot our approach to a wide range of sustainability issues. As part of this project we have held an event on the estate, provided energy and sustainability advice and have fitted “smart meters” provided free by NPower to tenants who have agreed to be part of an on-going energy study. The study is supported by LEEL and by university students who will be carrying out follow-up research. 2.4 The estate chosen has characteristics common too much of our stock and the intention is to replicate this approach having determined from the pilot the measures and strategies which offer the most beneficial outcomes. CORE VERSION 9th September 2008 Page 33 of 89
  34. 34. Hackney Homes Asset Management Strategy 2008 2.5 We have distributed 26,000 free, low energy light bulbs to Hackney Homes residents through our gas servicing contract and at public events. We provide advice on energy reduction and recycling and other sustainability issues in newsletters and at ‘fun-days’. 2.6 We work closely with the Council on Sustainability Policy and strategy. We are considering the installation of CHP but recognise that to be economically viable a cross- service approach is likely to be required and are working with Council officers to evaluate proposals. 2.7 Our current SAP ratings already exceed HECA targets and are in the top quartile in London. We aim to in continue to meet or exceed the HECA targets. 2.8 The Best Value Performance Indicators stated within the year’s HECA Report (2006– 07) confirmed the continuing improvements. These were: TABLE 8 – HECA Targets 2005-2011. HECA Target Actual SAP Rating Target for 2005 / 2006 = 69 69.2 SAP Rating Target for 2006 / 2007 = 70 70 SAP Rating Target for 2007 / 2008 = 72 72 SAP Rating Target for 2008 / 2009 = 73 tbc SAP Rating Target for 2009 / 2010 = 74 SAP Rating Target for 2010/ 2011 = 75 2.9 The existing Affordable Warmth Strategy (AWS Appendix A) has been updated to become part of the wider Hackney Homes Sustainability Strategy embedded within the AMS to deliver outcomes in a co-ordinated, efficient and effective manner. 2.10 In the last two years we have been successful in attracting Energy Grant funding totalling over £100,000. It is intended that this be re-cycled into further sustainability projects. 3. Environmental Sustainability - Challenges 3.1 Legislation: The current social and political emphasis on the Climate Change issue will result in tougher legislation that will be incrementally introduced and impact on most aspects of building activity related to housing. Government (DCLG) guidance already exists recommending how organisations can reduce their Carbon and Environmental ‘footprints’. 3.2 Carbon Footprint: The challenge of measuring and then reducing the Carbon Footprint of Hackney Homes is something that we are currently assessing, and this will take into account both our operations and our buildings. At present the housing stock represents 45% of the Corporate Carbon footprint. 3.3 Sustainable Resources: Wherever practical or reasonable to deliver within current economic frameworks, we will make use of sustainable resources or use resources in the most efficient way possible. Might also change heading to Use of Resources. CORE VERSION 9th September 2008 Page 34 of 89
  35. 35. Hackney Homes Asset Management Strategy 2008 3.4 Stock Energy Consumption: To achieve our 2009 target of replacing all obsolete and open flue boilers we will need to continue replacing old systems (approximately 450 per year) & upgrading old boilers (approximately 650 per year). 3.5 Renewable Energy Sources: We are also currently assessing other energy sources from March 2008 onwards (e.g. solar hot water to achieve the 2009 target which would also help to retain our high position (position 5) Vis a Vis other Local Authorities in London. To achieve this Hackney Homes are exploring the installation of field trials for solar hot water systems for installation under the Central Heating Programme using our three main boiler manufacturers and three main installers. 3.6 Resident Behaviour: There are limitations on the scope we have to influence behaviour of individual residents in their day-to-day decisions and choices. Awareness raising initiatives will continue to be a feature of our approach to assist with the required cultural change. CORE VERSION 9th September 2008 Page 35 of 89
  36. 36. Hackney Homes Asset Management Strategy 2008 PART 2 SECTION E - STOCK INVESTMENT Housing Need and Economic Sustainability Environmental Sustainability Stock Investment Working with our residents Value for money Data and Performance Management 1. Stock Investment 1.1 Hackney Homes delivers the vision for the asset portfolio through the following range of service streams. This section describes each of the principal streams and explains the outputs from them and the challenges that each of them face in delivering our over- arching vision for our assets. 1.2 The costs of maintaining the assets as described within this strategy are set out in Part 3 over a 30 year period. 1.3 Cyclical and Planned Maintenance – Strategic Role: • To undertake cyclical and planned maintenance works to building fabric and services to protect and extend the useful life of the stock, through the application of national standards of good practice. • To accurately assess the requirement for capacity and resources to ensure compliance with existing and new demands, and, • To ensure that all homes reaching the Decent Homes Standard, continue to meet that standard in the long term. 1.4 The work we include in this area of activity is divided into Mechanical & Electrical work – (some of which is related to statutory obligations) and repair, renewal and decoration activity intended to extend the life of the assets. 1.5 Our emphasis is on targeting a reduction in the incidence and cost of reactive repairs, through increased cyclical and planned maintenance programmes, the enforced use of warranties, extending maintenance cycles and removing maintenance altogether by eliminating the need for painting, or servicing between renewal intervals through application of appropriate materials and design. 1.6 This activity is more than simply undertaking a technical assessment of condition, and then responding with repair programmes. All cyclical and planned repairs have to be prioritised depending upon the strategic need for individual homes and estates, and also CORE VERSION 9th September 2008 Page 36 of 89

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