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2019/20

Annual Report


Contents PART 1: Chair of the Management Committee & CEO Introduction...............................................................................p3-4 PART 2: Financial Management Results......................................................p5-7 PART 3: Update on Progress with our Plans to Invest in the Existing Housing Stock........................................................... p8-10 PART 4: Summary of LHA’s Business Plan for 2020 to 2021........... p11-15

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PART 1: CHAIR OF THE MC & CEO INTRODUCTION

PART 1: Chair of the Management Committee & CEO Introduction Welcome to our 2019/20 annual report We decided to do things differently this year and provide you with a separate annual report and update on our Scottish Social Housing Charter 2019/20 performance which was published in our winter 2020 tenant newsletter. As reported in our last newsletter, during 2019/20 we achieved many impressive performance improvements across all areas of service delivery. Tenant satisfaction levels improved across most indicators and our Customer Services and Asset Management Teams worked closely together to reduce our empty homes letting time from 26 to 18 days. We resolved 99% of anti-social complaints within timescales and achieved an impressive 100% record on gas safety. Despite these great achievements we will continue to focus on improving the services we provide, with a particular focus this year on managing rent arrears and handling customer complaints. The following annual report provides you with a summary of the work we did during 2019/20, including a summary of our finances. It also includes some news on our plans for the future and a summary of the Business Plan.

Irene C McFarlane, CEO

Unfortunately, we are publishing this report whilst the world is still dealing with the COVID-19 pandemic. We do not underestimate the enormous impact this virus is having on every one of us and how life and ways of working changed significantly in March 2020. During the pandemic we have all had to adapt and to learn to live and work in a different environment and comply with new rules to try to contain the spread of the virus. Never have family, friends, community support and local networks been as important to the wellbeing of our customers, and we commend the work of our essential and charitable frontline services in ensuring the most vulnerable in our society continue to be supported. We have all come together in the last few months to help and support each other as best we can. Due to government restrictions our staff have had to adapt to a new blended system of working from home and in the office

Alec Leishman, Chairperson

or tenants’ homes when it has been essential. Whilst we look forward to the day when we can welcome you back to the office and see you in your own home or out and about in the community, the pandemic has provided the opportunity for staff to work in new ways, including working in partnership with other agencies to try to help mitigate some of the challenges our tenants and other customers are facing. A great example of this has been the Govan COVID-19 Temporary Emergency Funding Group (TEFG). Chaired by our CEO, the TEFG is made up Linthouse, Govan and Elderpark Housing Associations, the 4 Glasgow City Council Councillors, along with Govan Thriving Places. So far, the group have secured £400,000 of grant funding from the Scottish Government which has been used by 31 local organisations during the pandemic to deliver much needed goods, services, and support to over 10,000 local people.

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PART 1: CHAIR OF THE MC & CEO INTRODUCTION In addition to providing our customers with essential food and activity packs, the funding helped set up the digital CX Feedback system to help us communicate better, and the Westfield Health Service which provides 24-hour, 7 days a week, free advice and information telephone support to customers and their families. We hope as may residents as possible have signed up to and accessed the confidential guidance Westfield Health provide on medical, legal, or domestic issues from experienced counsellors, lawyers, and medical advisors. Staff in our office can help if you need more information on how to access the Westfield Health Service. Govan, Elderpark and Linthouse have formed a flexible partnership called GEL. GEL have now secured a £200,000 grant to deliver our Energy Redress Scheme which will create a free Govan Energy Advice Service. This project is scheduled to start in April 2021 and will offer support to tackle fuel poverty, fuel debt, and it will help our customers access best value fuel tariffs as well as offering practical support on reducing household energy consumption through advice on better energy usage. Three full time Energy Advisors will be employed for 2 years to provide face to face/phone and email consultations and hold drop-in sessions and workshops with local groups. In addition to these partnership projects LHA has been successful in attracting circa £74,100 in grant funding to support our residents with Covid-19 related issues. Staff will continue to work in partnership with local volunteers, tenants, charities, and other key stakeholders

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“Due to government restrictions our staff have had to adapt to a new blended system of working from home and in the office or tenants’ homes when it has been essential. “ whilst the health crisis continues and in future to tackle the many challenges we may face as the country recovers from the health pandemic. We would like to acknowledge the resilience and flexibility staff and our Committee have demonstrated in the past few months to ensure we continue

to provide our routine and additional support services during these challenging times. LHA must abide by government guidance regarding the service and investment works that we can carry out in your homes. The safety of our tenants, staff and contractors remains our highest priority and this has meant that sometimes things have taken a little longer than usual to resolve or we have disappointingly had to delay investment programmes such as the window replacements to our tenement flats. Finally, we would like to end by thanking you, our customers, for your continued support, patience and understanding whilst we adapt to new ways of working. We hope you find the following report useful and informative and we welcome any feedback or questions you have on the changes we have made to the format this year or any of the articles included. Best wishes, Alec Leishman, Chairperson Irene C McFarlane, CEO


PART 2: FINANCIAL MANAGEMENT RESULTS

PART 2: Financial Management Results The money we collect from rent is the Association’s main source of income, and it allows us to pay for the cost of delivering services to our customers and maintaining our housing stock. The Association’s total income during 2019/20 was £6,541,842. This was made up as follows:

Income

Amount

% of all Income

£4,616,420

70.57%

£53,087

0.81%

£292,304

4.47%

£38,823

0.59%

£0

0.00%

Grants released from deferred income

£1,541,208

23.56%

TOTAL

£6,541,842

100.00%

Rental Income Grant income Other Activities including factoring income Interest Receivable Gain on sale of housing stock

LHA Sources of Income 2019/20 % 100

Rental Income

90

Grant income

80 70.57%

Other Activities including factoring income Interest Receivable

70 60

Gain on sale of housing stock

50

Grants released from deferred incom

40

23.56%

30 20 10 0

0.81%

4.47%

0.59% 0.00%

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PART 2: FINANCIAL MANAGEMENT RESULTS The table and graph below detail how our total expenditure of £6,332,075 was spent by category during 2019/20. Any surplus income versus expenditure in any one financial year is retained by the Association and used for future investment.

Expenditure Item

Amount

Management & Maintenance Administration Costs

% of all Expenditure

Description

£1,949,959

30.79%

What it costs to run Linthouse HA

Service Costs

£179,439

2.83%

Additional services provided to Linthouse HA tenants

Planned & cyclical maintenance including major repairs

£471,541

7.45%

Major repairs, external painting, environmental costs and gas safety checks

Reactive maintenance costs

£730,960

11.54%

Routine maintenance costs, including day to day repairs

Depreciation of social housing

£2,815,769

44.47%

Depreciation on housing properties

£56,679

0.90%

Costs of the factoring activity

-£22,460

-0.35%

Write offs and changes in bad debt provision

£23,492

0.37%

Loss on disposal of assets/investments, pension related costs and

£126,696

2.00%

Interest paid on LHA loans

Other Activities Bad Debts Other Expense Items Loan Interest TOTAL

£6,332,075

100.00%

LHA Expenditure 2019/20 % 100 90

Bad Debts -0.35%

80

60

44.47%

Reactive maintenance costs

40 30.79%

Depreciation of social housing

30 20 10 0

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Service Costs Planned & cyclical maintenance including major repairs

70

50

Management & Maintenance Administration Costs

2.83%

7.45%

Other Activities

11.54% 0.90% 0.37%

2.00%

Other Expense Items Loan Interest


PART 2: FINANCIAL MANAGEMENT RESULTS

Investment in our Housing Stock and Your Homes In 2019/20 we spent just under £2.8 million on improvements, component replacements, buying back shared ownership properties, reconfiguring a redundant, very sheltered housing development into 11 No. individual properties and developing proposals for a new build development. Your rent payments along with funds raised from private

loans secured on our existing housing stock, and significant grants funding from the government* is used to invest in improving your home and to help build new homes for social rent in Linthouse, Langlands or Drumoyne. Without your rent money, this kind of investment would not be possible.

The investment spend in 19/20 can be summarised as:

Type of Work

Component Replacements in existing housing stock (kitchens, bathrooms, boilers, heating systems) Phase1 Window Replacements & Stonework Repairs Major refurbishment of Sheltered Housing*

Amount Spent

Percentage

£1,104,322

39.6%

£300,475

10.8%

£1,082,461

38.9%

Drumoyne Primary School New Build *

£196,183

7%

Shared Ownership Buy Backs

£102,545

3.7%

£2,785,986

100%

TOTAL

If you would like to see a full copy of our audited accounts for 2019/20, please contact the office or access from our website at www.linthouseha.com

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PART 3: Update on Progress with our Plans to Invest in the Existing Housing Stock

PART 3: Update on Progress with our Plans to Invest in the Existing Housing Stock Investment in the existing housing stock is a key priority for the Association and when it is safe to do so, we will be holding public meetings in the 4 distinct communities we are here to serve: Linthouse, Drumoyne, Langland’s and Shieldhall, to outline and discuss our investment plans in more detail with tenants.

Cyclical Maintenance We will spend approximately £780,000 on a range of cyclical maintenance works, including gas servicing and repairs, landscape maintenance, attic fan servicing, legionella testing and gutter cleaning during 2020/2021. We have budgeted for a spend of £795,000 in 2021/2022 for ongoing cyclical works, including further painter work.

Component Replacement Programme Up until the end of the financial year 2019, the Association completed several component replacements contracts across the housing stock in the 4 distinct communities we serve. A summary to date is provided below and overleaf:

£1.5 million Phase 1 was completed in July 2018 and included the completion of 220 units with new kitchens, bathrooms, electrical upgrade works, new boilers at a cost of approximately £1.5 million.

£170,000 Phase 4 involved the installation of new boilers in 81 properties and a new full heating system installed in 9 properties at a cost of £170,000.

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£150,000 Phase 2 included the installation of 71 boilers, with 21 of these units benefitting from new radiators as well. This work was completed in March 2019 at a cost of approximately £150,000.

£760,000 Phase 3 led to 59 properties benefitting from new kitchens, 64 units received new bathrooms and 24 properties benefitted from new, electric storage heating where gas is not present in the buildings. The cost of these works was approximately £760,000.

£550,000 Phase 5 included 51 properties receiving new kitchens, 21 properties receiving new bathrooms and 5 properties received new electric storage heating at a total cost of approximately £550,000.

As well as improving the standards of our properties for our tenants’ benefit, all of these contracts help the Association work towards bringing our properties up to Scottish Housing Quality Standards.


PART 3: Update on Progress with our Plans to Invest in the Existing Housing Stock In setting our programme of works, we used information from an independent stock condition survey completed in March 2017 and new, inhouse stock condition surveys (SCS) carried out by the Association’s staff during 19/20. Our SCS helps us ensure that we can continue to properly programme future works and set timescales reflective of the current condition of the housing stock. The results of the stock condition surveys also enable us to continually update our 30-year financial projections and to set aside the necessary

funding to maintain the housing stock, whilst also improving living conditions for our tenants. In 2021/22 we have set aside £2.9 million for further, component replacement works, including more new boilers and heating systems, one off replacements of kitchens and bathrooms, further electric storage heating at the multi storey properties, new fire doors within the multi storey properties and for Phase 3 of our stonework and windows programme (described more fully below).

Linthouse Tenement Window Replacement and Sandstone Repair Programme The long-awaited fitting of new, double glazed windows within the Linthouse area is already underway. Phase 1 completed winter 2019 and Phase 2, whilst due to commence in the spring of 2020 has been delayed because of COVID-19. Phase 2, which contains 71 units started on site in December 2020 commencing with 2 closes at Hutton Drive. Due to current Scottish Government guidelines and rules, works have had to be halted regarding the window installation; however, the external works in terms of repairing the sandstone and carrying out roof repairs can continue to the first 2 closes in the contract. Full works will resume as soon as Government regulations designed to contain the spread of the COVID-19 virus allow us to do so. We have now turned our attention to Phase 3, which will contain 76 units with a view to these works commencing later in 2021, subject to

completion of the Phase 2 contract. New doubleglazed windows have already been fitted to 6 closes contained within the tenement improvement projects at Hutton Drive and Kennedar Drive, totalling a further 50 improved homes.

Due to site constraints and the fact that we cannot erect scaffolding and have too many vehicles in the area at once, including contractors’ site compounds, the windows will be installed over 7 phases as follows: PHASE NUMBER NO. OF CLOSES

NO. OF UNITS

YEAR OF WORKS

1

2

16

19/20 (complete)

2

8

83

20/21 (on site–delays due to COVID-19)

3

9

76

21/22 (subject to COVID-19)

4

19

140 22/23

5

21

132 23/24

6

24

125 24/25

7

31

104 25/26

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PART 3: Update on Progress with our Plans to Invest in the Existing Housing Stock We have borrowed £5.5 million to fund these works via a loan from Unity Trust Bank and during 2020 revalued our housing stock should we need to borrow more money to compete this or other

component replacement/improvement contracts to properties we own outside the Linthouse community.

New Windows at Luma Gardens Following a survey and report on the condition of the windows by one of our external Building Surveyors, 12 No. properties are due to receive new windows and external doors at the above

Phased buy back of buy back of sharing owners 35% shares in Barnwell Terrace To increase the number of properties we manage to meet the needs of customers, we continue to include an annual budget to buy back the 35% share of up to 4 No. sharing owner properties in Barnwell Terrace per year. This policy enables us to further expand the house types we own and to offer our tenants’ choice whilst helping to meet demand for ground and first floor properties. We have set aside a total budget of £128,000 in 2021/2022. To date, we have bought back 9 of these properties.

Developing New Homes for Rent: Drumoyne Primary School To offer the tenants’ choice and diversify the existing stock base, the Association is now developing the former Drumoyne Primary School site which will create 48 new homes and conversion of a further unit at the ex-janitor’s house. Development at this site will offer much needed 2-storey, low rise housing for families, older people, and people with disabilities. Project costs for this development is circa £10.2 million of which approximately £6.8m million is grant funded via Glasgow City Council. The balance will be met from a private loan that has already been secured from the Unity Trust Bank. The development started on site during November 2020 and is currently scheduled to be complete by March 2022.

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location. To achieve economies of scale and carry out these works as cost efficiently as possible, these works form part of the Phase 2 contract mentioned above.


PART 4: Summary of LHA’s Business Plan for 2020 to 2021

PART 4: Summary of LHA’s Business Plan for 2020 to 2021 The Business Plan sets out LHA’s vision and aims for the future, and the actions we will be taking to achieve our ambitions. The Business Plan affects all our tenants, so we hope you find this summary interesting.

LHA’s vision and future direction Everything starts with our Management Committee setting a clear vision for the future; in other words, the difference LHA wants to make now and in the years to come.

LHA VISION To create and sustain lasting, unique vibrant homes in stable, popular, and ambitious urban communities. To help achieve this vision, the Business Plan sets six objectives, each of them supported by an action plan for 2020/21. The objectives in the Business Plan are: » To deliver excellent services and performance » To provide quality homes in an attractive environment » To be more than just a great landlord » To make sure LHA has strong strategic governance » To sustain LHA’s financial strength and deliver value for money » To develop our leadership and people

LHA is starting from a strong position. We have: » A skilled and committed Management Committee and staff team » A healthy financial position » Positive relationships with the Residents Panel, the Scottish Housing Regulator, Glasgow City Council, and other key voluntary and statutory organisations who impact on our work. » Good and improving standards of service delivery in most areas » Clear, action focused goals to deliver much-needed investment in tenants’ homes, after a lengthy period of under investment

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PART 4: Summary of LHA’s Business Plan for 2020 to 2021

Tenants’ Priorities We know from the feedback we receive that some issues are particularly important to tenants and our Business Plan addresses all these issues, for example:

» Having a high-quality repair service

» Investing in component replacements like new windows to Improving the quality of our housing stock

» Keeping rents affordable

Business Plan Action List 4 Deliver Excellent Services and Performance LHA aims to achieve the following targets for our repairs and housing services in 2020/21: Target for 20/21

Performance 19/20

Average hours to complete emergency repairs

Within 4 hours

2.5 hours

Average working days to complete nonemergency repairs

Within 5 days

4.8 days

Percentage of reactive repairs completed right first time

94%

91%

Percentage of properties with gas safety record renewed by the anniversary date

100%

100%

Gross rent arrears (current and former tenants)

9%

8%

15 days

18 days

90%

89%

Average number of days taken to let empty properties Percentage tenants satisfied with repairs carried out in last 12 months

We will also carry out the following actions in 2020/21, to develop and improve our services: » Complete our office-based staff restructure to ensure we have the staff resources we need to deliver our Business Plan and strategy of revitalising LHA

» Increase our support for tenants who need to apply for in work or out of work benefits to support income maximisation. Our inhouse Welfare Rights Team focus will be on supporting tenants with maximising their incomes, particularly those affected by the Covid-19 pandemic Continued on page 13 >

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PART 4: Summary of LHA’s Business Plan for 2020 to 2021

» Continue to focus on our Listen, Hear, Act change programme in LHA to support staff to achieve higher customer satisfaction, less waste in how we work, and strive for “right first time, every time” results for LHA customers. » Implement a dynamic Tenant Engagement Strategy (with support from Tenants Information Service (TIS) as part of the Scottish Government’s grant funded Next Steps Programme) to put our customers’ voice at the heart of all we do.

» Make our services more efficient by developing our Information Technology and Communications systems » Introduce a new LHA website which is accessible and more user friendly for our customers.

4 Provide Quality Homes in an Attractive Environment LHA will take the following actions in 2020/21: » Continue to implement our programme and plans for investment in tenants’ homes over the next three years.

» Continue to carry out independent audits to ensure LHA’s safety management

» Continue to implement our strategy for the windows and stonework contracts taking account of Government policy and restrictions

» Progress our plans to build new homes on the site of the former Drumoyne Primary School

» Continue with stock condition surveys and prepare our Asset Management Strategy. » Effectively project manage all contracts on site to ensure value-for-money is achieved » Re-procure cyclical and special services contracts » Progress all works necessary at MSFs in accordance with the current Fire Risk Assessment » Progress with Phase 2 of the windows and stonework contract dependent on Government restrictions

» Budget for the buy-back of up to 4 shared ownership homes at Barnwell Terrace » Commission a Masterplan to guide LHA’s future strategies for investment, including the identification of other development opportunities to help address housing need » Continue our dialogue with Glasgow University on their plans to develop a £90 million campus on the site of the former Stephen’s Shipyard in Linthouse with the aim of achieving community benefits for the communities we serve

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PART 4: Summary of LHA’s Business Plan for 2020 to 2021

4 Be More than Just a Great Landlord LHA’s top priority will continue to be providing our customers with excellent housing, repairs and investment services. We also know that our area has some of the highest levels of deprivation and inequality in the whole of Scotland. We want to address this, by providing opportunities that will benefit local people, and services that make our communities clean, safe and inclusive places to live. LHA will take the following actions in 2020/21: » Continue to ensure our in-house welfare rights service help tenants get online, so that they can manage their claims as Universal Credit is rolled out further

» Support housing assistant (special projects) to offer support where required, to access health, social care, and social activities to assist older tenants sustain their tenancies, promote well-being and reduce social isolation

4 Strong Governance and Financial Control LHA must be a well-managed and financially sound organisation if we are to provide tenants with the quality of home and services they want, at a price they can afford. LHA we will take the following actions in 2020/21 » Review the contributions made by our voluntary committee members and provide any training and other support that committee members need » Increase the size of the Management Committee to a “full house” of 15 members (currently 2 vacancies)

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» Continue to review all governance, finance and service policies; improve our use of IT » Complete our programme of internal audits and put the internal audit service out to tender for the next 3 years » Strive to achieve a compliant rating with the Scottish Housing Regulator in our submission of our Assurance Statement


PART 4: Summary of LHA’s Business Plan for 2020 to 2021

4 Improve Financial Strength and Deliver Value for Money Our Business Plan shows that LHA has the financial resources needed to deliver our strategy if we raise additional funds to help deliver our ambitious programmes of planned maintenance and development over the next 10 years. Some of this investment will be directed to new building, but the vast majority will go towards bringing LHA’s existing housing up to modern day standards. Investment in our existing housing will be the overriding priority. We intend to raise the extra funds needed by: » Securing as much grant funding as possible from Glasgow City Council. » Raising additional loans of £5.5 million during 20/21 and keep our borrowing requirements under constant review.

Our Business Plan shows an annual rent rise of 1% above inflation until 2026/27. We will review this approach annually as we continue to phase in our new rent structure which is designed to secure a fairer approach to rent setting.

LHA will take the following actions in 2020/21: » Arrange new loan facilities for planned maintenance /new build identified during 2020/21 » Progress to the next phase of the rent and service charge review » Develop a Value for Money strategy and approach that makes sense to our tenants » Achieve all our operational targets and improve performance on for example rent collection and repairs

» Manage our services in line with or better than budget assumptions We have tested various “what ifs” to make sure the Business Plan can withstand changes in costs and income, for example due to the expansion of Universal Credit. Overall, the financial projections in the Business Plan show that LHA can meet its long-term obligations for the management and maintenance of the housing stock and the debt repayment.

4 Develop our Leadership and Staff LHA is fortunate to have put in place a highly qualified, experienced, and committed staff team. We will support and develop our staff to help achieve LHA’s future goals. LHA will take the following actions in 2020/21: » Produce and deliver a new plan to address the training and development needs of all LHA staff » Keep our staff resources under review to ensure the staff structure supports the delivery of our Business Plan

We hope that our annual report provides you with an overview of our work, achievements, and challenges in 2019/20 and an insight into our exciting and ambitious plans. LHA’s Management Committee will track progress in meeting all the actions described above. We will keep customers informed through our regular newsletter and website, with a full round-up provided in next year’s Annual Report.

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Linthouse Housing Association, 1 Cressy Street, G51 4RB Tel: 0141 445 4418

www.linthouseha.com @linthouseHA

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Linthouse Housing Association  

2019/20 Annual Report

Linthouse Housing Association  

2019/20 Annual Report