Part 1
ITEM NO.
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REPORT OF THE STRATEGIC DIRECTOR FOR SUSTAINABLE REGENERATION
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TO THE LEAD MEMBER FOR HOUSING ON 6th JUNE 2011
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TITLE: Updates and Amendments to the Private Sector Housing Assistance Policy
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RECOMMENDATION:
1. Approve the proposed amendments to the Salford City Council Private Sector
Housing Assistance Policy 2007 and the consequent adoption of the Salford
City Council Private Sector Housing Assistance Policy 2011.
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EXECUTIVE SUMMARY:
The Private Sector Housing Assistance Policy 2006 sets out the range of financial
assistance that Salford City Council will make available, together with the eligibility
criteria and the conditions that will be applied to each form of assistance.
In order to manage Council resources more efficiently, to tie in with recent policy
changes approved by Lead member for Housing and to prevent hardship, it is
recommended that the policy be amended and modernised as follows;
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Decreasing the maximum limit of Home Improvement Assistance;
The formal introduction of Direct Financial Assistance with Charge;
The formal introduction of fees to contribute to the cost of the project
management provided by the Home Improvement Agency;
 Provide for the use of the Policy’s loan assistance types by Residential
Leaseholders;
 Provide for the use of DFG applicants who cannot afford their contributions;
and
 Improve local procedure to provide for consideration in the case of
exceptional hardship.
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BACKGROUND DOCUMENTS:
(Available for public inspection)
Private Sector Housing Assistance Policy Lead Member Report March 2007
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KEY DECISION:
YES
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DETAILS:
1. Background
1.1.
Salford City Council Private Sector Housing Assistance Policy 2011 (the
Policy) is made under Article 3 of the Regulatory Reform (Housing
Assistance) (England and Wales) Order 2002 Statutory Instrument No.1860
(the RRO). (Annex 1 – the Policy).
1.2.
The Policy sets out the range of financial assistance that Salford City Council
will make available, together with the eligibility criteria and the conditions that
will be applied to each form of assistance. The Policy sets out the Council’s
policy for providing assistance under the RRO, and applies in addition the
provision of assistance which can be made under alternative statutory
powers such as the provision of mandatory Disabled Facilities Grants under
the Housing Grants Construction and Regeneration Act 1996 (as amended).
1.3.
The Policy is an amended version of the 2006 (amended 2007) policy
originally adopted by Cabinet in March 2007 and replaces the previous
policies adopted by Cabinet in 2003 and amended by Lead Member for
Housing in 2004, 2006 and 2007.
1.4.
The amended Policy is proposed to come into force on 1st July 2011, after
Lead Member and Cabinet approval and the amended version is to govern all
applications made from that date. Fully completed valid applications made
by 31st June 2011 will be processed under the terms of the previous editions
of the Policy.
1.5.
The Policy makes provision for a number of types of assistance:
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Home Improvement Assistance including Repayment Loan, Appreciation
Loan and Direct Financial Assistance;
Relocation Assistance including Relocation Loan, Temporary Decant and
Homeswap;
Adaptations Assistance including Relocation Assistance Provision,
Adaptation Loan Provision and Discretionary Top Up Grant;
Home Improvement Agency Services and Handy Persons Scheme;
Block Improvement Assistance including Block Improvement Schemes;
Theme Based Assistance including:
o Energy Efficiency Assistance;

1.6.
o Empty Property Assistance;
o Conversion Assistance;
o HMO Assistance;
o Security Assistance;
o Environmental Improvements; and
Advice/ Support and Signposting.
The amount of assistance to be given each year will be dependent upon the
level of capital resources available through the Housing Capital Programme,
which is funded from a number of different sources, and will be determined
annually by the Council when it adopts its Housing Capital Programme.
2. The Amendments
2.1.
Decreasing the maximum limit of Home Improvement Assistance - The
Policy makes provision for a number of forms of assistance towards the cost
of works that are required for the repair of dwellings. There are strict eligibility
criteria and the assistance is administered by the Home Improvement Agency
who support older and vulnerable owner occupiers to retain independence
and manage their own homes.
2.2.
The reason for the amendment is to manage the capital budget for such
works to ensure that it is used to assist as many people as possible. In
addition it has been the case that inappropriately high value loans have been
agreed because the current Policy makes provision for some types of loans
up to 50% of the value of the property.
2.3.
It is proposed to reduce the limits as follows:
2.3.1.
2.3.2.
2.3.3
Repayment Loan from £20,000 to £10,000;
Appreciation Loan from 50% of the open market value of the
property with total borrowings secured against the property not
exceeding 100% to £10,000; and
Direct Financial Assistance from £20,000 to £10,000.
2.4.
The policy will maintain the opportunity to amend the upper limit for individual
cases, based on discretionary powers of Lead Member for Housing.
2.5.
The formal introduction of Direct Financial Assistance with Charge –
Direct Financial Assistance has always been a feature of the Policy, and is
provided where a loan is inappropriate. This amendment makes provision for
a charge (nil interest loan) to be put on the property to recover the Direct
Financial Assistance after sale of the property.
2.6.
The reason for the amendment is to recover the maximum amount of
assistance provided through the Policy and to clarify where Direct Financial
Assistance without a Charge is to be used. The Policy clarifies the provision
for Direct Financial Assistance without a Charge where there is a compelling
reason to deliver the work that outweighs the cost to the public purse of
proceeding without the registering of a charge.
2.7.
The formal introduction of fees to contribute to the cost of the project
management provided by the Home Improvement Agency – To secure a
contribution to the management of the Home Improvement Agency at a level
in line with those fees charged by Specialist Housing Services for the project
management of Disabled Facilities Grants and similar work.
2.8.
The reason for the amendment is that fees are a current feature of the Home
Improvement Agency but are not confirmed by Policy.
2.9.
Provide for use of the Policy’s loan assistance types by Residential
Leaseholders – the leaseholder will first be assessed for a Statutory
Leaseholder Loan and where the statutory loan is shown to be inappropriate
or unsuitable, the provisions set out in this policy regarding Repayment Loan
and Property Appreciation Loan shall apply.
2.10.
The reason for the amendment is to link into the new Major Capital Works
Charging Policy for Residential Leaseholders Policy whereby Residential
Leaseholders receiving major capital works, such as through a block
improvement scheme for Decent Homes, may seek to secure assistance to
help finance these works. The Major Capital Works Policy makes provision
for the Statutory Leaseholder Loan.
2.11.
Provide for the use of DFG applicants who cannot afford their
contributions – Where an applicant requires an adaptation and is required
to pay but cannot afford a means tested DFG contribution, the Council may
make available financial assistance in the form of Repayment and/or
Appreciation Loans
2.12.
The reason for this amendment is that the policy already makes provision
where an applicant requires an adaptation that costs in excess of the
maximum mandatory DFG limit, but there is currently no provision for
assistance in the case of clients who cannot meet the means tested DFG
contribution.
2.13.
Improve local procedure to provide for consideration in the case of
exceptional hardship caused by the policy – in the case of recovery of the
loan from the estate of a deceased or from the proceeds of the sale. If at any
time during the life of any loan, the Council is satisfied that a failure to waive
repayment on whole or in part, or a failure to remove any legal charge, will
result in unnecessary hardship to the applicant or their household, the
Housing Review Panel may convene and take such steps as are necessary
to alleviate that hardship.
2.14.
The reason for the amendment is to include, in policy, consideration for a
‘management move’ within the Choice Based Letting system. Provision will
also be made for Housing Advice and signposting to appropriate Independent
Financial Advice.
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KEY COUNCIL POLICIES:
Salford City Council Private Sector Housing Assistance Policy 2007
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EQUALITY IMPACT ASSESSMENT AND IMPLICATIONS:The policy is designed to target those in most need - those suffering from poor
housing standards who are economically disadvantaged and a full Equality Impact
Assessment of the Policy has been undertaken.
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ASSESSMENT OF RISK:
Medium Risk – If Lead Member does not approve then the main efficiencies
contained within the recommendations cannot be made.
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SOURCE OF FUNDING:
Only financial impact from the policy is on the Disabled Facility Grant
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LEGAL IMPLICATIONS Supplied by Tony Hatton ext 2904
No legal implications as such and the report is noted for monitoring purposes. Any
other legal implications will be considered if / when Legal is requested to prepare,
approve or review documentation referred to in respect of the assistance provided.
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FINANCIAL IMPLICATIONS Supplied by Alison Swinnerton X 2585
There are no specific financial implications from this report as it is a policy change.
Agreeing to the change in policy will allow officers to allocate the resources each
year to vulnerable people and to allow capital budget for such works be used to
assist as many people as possible.
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OTHER DIRECTORATES CONSULTED: Consultation has taken place widely
across Salix Homes and Sustainable Regeneration Directorate
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CONTACT OFFICER: Clare Ibbeson
TEL. NO. 793 2228
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WARD(S) TO WHICH REPORT RELATE(S): All wards
110519 Annex Private Sector Housing Assistance Policy.doc