Housing Renewal Funding Policy
What is Housing Renewal?
This is a means by which the local authority endeavours to
ensure that the housing stock in its area is maintained in an
appropriate (fit) state. Previously, Improvement, Renovation and
Home Repair Assistance Grants were made available. As a result of a
change in central government policy, a different regime has been
put in place aimed at encouraging owners to maintain their property
using their own funds wherever possible.
The policy has developed out of objectives 5-
Promoting a
Healthier Community and 6-
Enabling Better Housing,
contained in the Council's
Community
Strategy Creating a Better
Future. In turn, the Council's
Housing Strategy Statement for the
period 2002-2007 has two specific Strategic Priorities
Making
Best Use of Existing Housing (Priority 3) and
Improving
the Quality and Suitability of the Housing Stock (Priority 4)
which commits to:
- Targeting grants on low income, elderly and disabled
households
- Promoting the availability of grants to these groups, both
directly and through Southern Focus Trusts Home Improvement
Agency
- Seeking funding to support the agencys work through
Supporting People in order to ensure that vulnerable
people can take full advantage of the grant system
- Exploring in the longer term alternatives to traditional grant
funding which release equity from homes to pay for renewal. We
believe that this is a fairer and more efficient use of resources
and we will aim to introduce a scheme based on equity release
pending government guidance.
Policy - Part I
1. All applications for financial assistance towards the repair
or improvement of private sector housing will be considered on
their individual merits.
2. When considering an application, the Council will have regard
to the ability of the applicant to fund the relevant works through
other means. In particular, the following matters will be taken
into account:
- the age of the house and the nature of the relevant works;
- the ability of the applicant to fund the works and service any
loans;
- the level of equity in the house (i.e. the value of the house
compared to any outstanding mortgages or secured loans) and the
capacity for that equity to be released;
- the suitability of the house for the applicant and their family
(i.e. would a move to a different house achieve the
objective);
3. The matters above will inform the
decision to be taken. The Council has agreed that in seeking to
ensure the maintenance of the housing stock, the following
mechanisms should be discounted before any public funds are
committed:
- the applicant to use their own income, capital or assets;
- the applicant to use their own borrowing power, derived from
any source, to secure funding from the private sector;
- the applicant to move to another house which meets their
needs;
- the powers available to a Local Authority to compel repair,
improvement, closure or demolition:
- the value of the house compared to the cost of the works.
4. Should it be decided that there is a need for the Council to
become financially involved, there will be a hierarchical approach
to any assistance:
N.B. The term "Loans" includes mortgages,
equity sharing or other financial vehicle, the details of which
will be agreed in each case by the Corporate Director.
5. Where a grant or loan is deemed appropriate, it will be
assessed in accordance with a means test.
6. No grant or loan will exceed the value of the relevant works
and will not be paid until the works are executed, (but see item 8
in the Supplementary Provisions of Part 11 below).
7. No works, which are the subject of an application, can be
started until written approval is to hand.
8. All financial assistance is at the discretion of Havant
Borough Council and is contingent upon monies being available.
Policy - Part
II
Who qualifies for assistance?
Normally only owners or long-lease holders of houses more than
25 years old, in Council Tax bands A-D qualify. They must have
owned the property for at least three years prior to any
application for assistance. Tenants should talk to their landlord
about repairs or improvements in the first instance.
What type of works could qualify for Council
assistance?
In simple terms, those works of a substantial nature necessary
to keep the property weather-tight; to provide facilities such as
an adequate kitchen or a bathroom; to eradicate serious dampness
and to deal with serious disrepair. Repair or redecoration work of
a routine nature will not qualify.
Professional fees (architects, solicitors, Home Improvement
Agency or financial advice) may form part of the necessary building
works.
N.B. Adaptations for the benefit of persons with
disabilities are dealt with under a separate grant scheme,
details of which are available from the address at the end of this
document.
What is the application procedure?
A preliminary questionnaire must be
completed. This will tell us about the items for which assistance
is sought. It will give us details about the financial
circumstances of the applicant including the value of their house
and any mortgages or loans secured on it. It will also ask what
steps have already been taken to find the money to fund the
works.
We will then advise the applicant whether or not they are
eligible to receive Council assistance and how long they may have
to wait for money to become available. If appropriate, we will
arrange to visit the property to carry out an inspection of the
house to enable the preparation of a schedule of eligible works and
undertake a means test. We will also offer advice
on completing the formal application documents and
getting plans and estimates.
If there is no eligibility for Council funds, we will offer
guidance to a source of information on private sector bodies which
offer loans.
What is the entitlement?
Any assistance is at the discretion of the Council and is
dependent upon money being available.
There is no automatic right to any
assistance.
If funds cannot be found elsewhere and the council agrees to
offer assistance, it may be in the form of a loan (see item 4 in
Part I above) or a grant if all other methods of assistance are
inappropriate.
How much assistance is available?
Any assistance will be means tested and an applicant may be
required to make a contribution. The amount will be directly
related to the estimated cost of the works. The maximum level of
assistance is £25,000 and will be based on competitive estimates
from appropriate builders and tradesmen.
When can the works be started?
No work can be started until the Council has sent written
approval.
Supplementary Provisions
- No assistance will be given unless the relevant works are
substantial.
- The means test to be used will be that used for Housing
Benefits assessment, modified to take into account equity.
- Successive applications may be made, but no more than one in
any 24 month period. The assistance level shall not exceed the
current maximum when aggregated with all assistance for that
property over the preceding 7 years.
- As a condition of any assistance, all properties shall be
insulated to a modern standard, but no assistance under this scheme
will be given. Advice on any alternative sources of assistance will
be provided.
- At the completion of any works, the property shall be fit as
defined in the Housing Act 1985 (as amended) or any subsequent
modification thereof.
- Any approval of assistance will expire after 12 months if the
works have not begun.
- Payment of any assistance may be postponed to a date not more
than 12 months from the date of approval and in any case will only
be paid when works have been carried out to the value of a
payment.
- Interim or stage payments may be made up to 90% of the
grant.
- Formal applications (which term includes all estimates, proofs
of title etc.) will be determined within 6 months of receipt.
- As a condition of any assistance it will be a requirement that
any grant or loan, including any outstanding interest, be repaid
when either the house is sold or it ceases to be occupied by the
applicant.
- In exceptional cases, the Council may choose to waive or vary
any of the schemes criteria.
- This policy will be reviewed and published annually unless
unforeseen demand or funding issues supervene.
- The policy will commence on 18th July 2003.
- The policy was reviewed on 14th July 2004.
- Complaints about the policy or its implementation should be
made to the address at the end of this document.
Further details are available from:
Customer Services
Havant Borough Council
Civic Offices
Civic Centre Road
HAVANT
PO9 2AX
or Tel. 023 9244 6019