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 was 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 had 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:

 

 

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:

 
  1. the age of the house and the nature of the relevant works;
  2. the ability of the applicant to fund the works and service any loans;
  3. 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;
  4. 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:

 

  1. the applicant to use their own income, capital or assets;
  2. the applicant to use their own borrowing power, derived from any source, to secure funding from the private sector;
  3. the applicant to move to another house which meets their needs;
  4. the powers available to a Local Authority to compel repair, improvement, closure or demolition:
  5. 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:

  1. Loans
  2. Council grant.

 

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 £50,000 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
 
  1. No assistance will be given unless the relevant works are substantial.
  2. The means test to be used will be that used for Housing Benefits assessment, modified to take into account equity.
  3. 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.
  4. 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.
  5. At the completion of any works, the property shall be free of Category 1 hazards  as defined in the Housing Act 2004  (as amended) or any subsequent modification thereof.
  6. Any approval of assistance will expire after 12 months if the works have not begun.
  7. 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.
  8. Interim or stage payments may be made up to 90% of the grant.
  9. Formal applications (which term includes all estimates, proofs of title etc.) will be determined within 6 months of receipt.
  10. 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.
  11. In exceptional cases, the Council may choose to waive or vary any of the schemes criteria.
  12. This policy will be reviewed and published annually unless unforeseen demand or funding issues supervene.
  13. The policy will commence on 1st January 2009.
  14. The policy was reviewed on 1st January 2010.
  15. 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

Public Service Plaza

Civic Centre Road

HAVANT

PO9 2AX

or Tel. 023 9244 6019

Direct Gov UK
Havant Borough Council, Civic Centre Road, Havant, Hampshire PO9 2AX