The document discusses the implications of recent UK budget announcements and welfare reforms for housing associations' community investment programs. It notes that housing associations currently invest £750 million annually in community activities but will need to reconfigure these programs with less funding. Specifically: 1) Housing associations will retain community investment with reduced resources, refocusing on activities closely aligned with front-line services and improving residents' economic position to pay rents. 2) There will be a greater emphasis on external funding and partnership working to generate social value across associations' businesses. 3) Future community investment is expected to focus on employment, skills, training, education, and co-creation with residents.

1. Recovery planning: the end ofRecovery planning: the end of
community investment?community investment?
6 October 20156 October 2015
Sally ThomasSally Thomas
Head of Community InvestmentHead of Community Investment
North Star Housing GroupNorth Star Housing Group

2. Community Investment: the way we were
The original purpose of housing associations
Tenant involvement – in the 1970s
Tenant participation - in the 1980s
Housing Plus - in the 1990s
Investors in Communities and People for Action - in the 2000s
In Business for Neighbourhoods - in 2003
Community Investment - from 2011

3. Community Investment: the way we are
Nearly £750 million is invested every year by housing associations in community and
social activities
•Community investment strategies and resources
•Social and economic projects and programmes in communities
•Employment and skills, young people, well-being, financial inclusion
•Community investment grants
•Measuring the impact
•Generating and measuring social value across the business

4. The July 2015 budget announcements
Rent reduction… minus 1% a year for four years from 2016/17; previous agreement
torn up – 14% less income for housing associations 2016-2020
Welfare reform… benefit cap reduction, withdrawal of Housing Benefit for young people
(18-21), tax credit reductions, working age benefits frozen; more reforms on the way
Right to Buy… voluntary agreement with Government; associations able to exercise
‘discretion’ on sales in certain circumstances
Pay to stay… higher rents on a joint household income of more than £30K outside
London and £40K inside London

5. The North Star approach to recovery planning
Bottom-up approach to recovery planning – all staff and resident panel involved
Revisions to business plan – impact of reductions in income and changed assumptions
Maintaining the confidence of lenders – ensuring on-going compliance for borrowing
Stress testing – to assess business plan strength and pinch points
Cash flow – re-assessment to ensure association can meet its commitments

6. The implications for Community Investment
Early indications are that organisations will:
•Retain community investment with reduced resources; but reconfigured and refocused
•Want to see a closer alignment and integration with front-line services
•And activity that improves the economic position of residents to pay their rent, sustain
their tenancies and look after their homes
•Want a greater emphasis on external funding

7. What might Community Investment look like?
• Activity focused on employment, skills, training and education
• More external funding and partnership working
• Getting more social value from procurement
• Developing new business opportunities
• Co-creation with customers
• Delivering social value across the business