NATIONAL AUDIT OFFICE
REPORT BY THE COMPTROLLER AND AUDITOR GENERAL
WalthamForest HousingAction Trust: Progress in Regenerating HousingEstates
ORDERED BY THE HOUSE OF COMMONS TO BE PRINTED 23 JANUARY 1997
LONOON: The Stationev Office HC 207 Session 1996-97 Published 29 Januaw 1997 E1O.75 Waltham Forest Housing Action Trusk Progress in Regenerating Housing Estates
This report has been prepared under Section 6 of the National Audit Act 1983 for presentation to the House of Commons in accordance with Section 9 of the Act.
John Bourn National Audit Office Comptroller and Auditor General 15 January 1997
The ComptroUer and Auditor General is the head of the National Audit Otice emploflng some 750 staff. He, and the National Audit OfRce, are totally independent of Government. He certfies the accounts of au Government departments and a wide range of other public sector bodies; and he has statutory authori~ to report to Parliament on the economy, efRciency and effectiveness with which departments and other bodies have used their resources. Waltham Forest Housiug Action Trusti Progress h Regenerating Housing Estates
Contents
Page
Smnma~ and conclusions 1
Pati 1: Introduction 5
BackWound 5
Statutory and POHCYframework 6
Waltham Forest Housing Action Trust 7
Housing Action Husts 12
Department of the Entionment and the Government Office for London 13
Scope of the National Audit Office expatiation 14
Part 2: The Trust’s strate~c approach 16
Introduction 16
The strategy 16
Monitoring and evaluating performance 20
Part 3: Management of the programme 25
Introduction 25
Management of the houskg service 26
Management of the redevelopment 29
Management of the shortfa~ h houstig 34
Maagement of the commtity development pro~amme 37 Waltham Forest Houstig Action Trust Progress in Regenerating Housing Estates
Part 4: Effectiveness in regeneration 42
Introduction 42
Tenants’ satisfaction titb the regeneration of the estates 42
Helping tenants into jobs wd training 44
Crime on the estates 48
Exit strategy 50
Appendices
1: Waltham Forest Housing Action Trust Tenants’ Expectation Document 54
2: Walthm Forest Housing Action Trust’s key dates 56
3: The six Housing Action Trusts 59
4: Core performmce measures reported by Waltbam Forest Housing Action Trust 61
5: Methodology for comparhg Waltham Forest Housing Action Trust’s unit costs to the Housing Corporation benchrnwk,the Total Cost Indicators 64 Waltham Forest Housing Action Trust Progress in Regenerating Housing Estates
Summary and conclusions
Backgromd 1 Waltham Forest Housing Action Trust is one of six Housing Action Trusts designated under the Housing Act 1988. The Trust is a hmited tie non-departmental pnbhc body, sponsored by the Department of the Environment, and is responsible for the physical, social and environmental regeneration of four geo~apbicaUy dispersed housing estates kr North East London. When the estates were transferred to the Trust from the London Borough of Waltham Forest on 6 Aprfl 1992, they housed around 6,600 people h 2,422 dweRings in 13 tower, 25 medium rise and 3 low rise blocks. Housing Action Trusts were introduced as a means of focusing resources on housing estates tith problems that were beyond tbe capacity of local authorities to remedy tithin their existing resources.
2 The National Audit Office exatied the early performance of Waltham Forest Housing Action Trust as a case study of the way this initiative had been estabhshed and managed. The National Audit Office found that the Trust bas progressed its redevelopment work and is transforming the estates. The National Audit Office consider that in carrying out its work the Trust has pursued good practice in successful regeneration. It has had a si@lcant impact in achieving a new sense of community and helping tenants become more involved in the management of their homes. Through providing adtice, trting and chddcare the Trust is helping tenants to obtain emplo~ent. Fewer tenants than expected have moved away from the estates and this has contributed to the Trust’s task becoming greater than envisaged at the outset.
3 The Trust has therefore achieved progress in regeneration ad a high level of tenant satisfaction. But this bas been at a high cost to the taxpayer. Up to 31 March 1996 the Trust’s costs tota~ed El 24.9 mfllion, equivalent to E51,600 per dwelling transferred to tbe Trust, and of this E107.8 mRRon was funded from grant-in-aid. The indicative Rfetime cost set by the Department for the Trust in March 1996 was f 180 m~rm to S260 miRion and in Jtiy 1996 the Trust estimated it would require a total of f235 mi~on in grant-in-aid to complete its work by 2001. Follotig tbe Financial Statement and Budget Report in November 1996, the Department have asked the Trust to base its future plans on a Kfetime Waltham Forest Housing Action Trust: Progress in Regenerating Housing Estates
grant-in-aid figure of S227 miRion. This is eqnivdent to S93,700 per dwe~lng transferred to the Trust or 8122,400 per secure tenant household to he rehoused by the Trust in its properties or through alternative rehousing schemes.
4 It is too early to judge the Wehhood of success in sustaining the improvements achieved without continuing grant-h-aid support beyond the Efetime of the Trust. Housing Benefit stiR accounts for nearly 60 per cent of the rent co~ected by the Trust and 55 per cent of tenants rely upon it to pay their rent. The Trust also expects there to be a continuing need for pubtic support for community work.
5 The National Audit Office make tie foUowing key recommendations arising from their review of Waltbam Forest Housiug Action Trust’s experience. These apply not only to the remaining fife of the Housing Action Trust initiative, but potentia~y to other organisations tith responsihihties in the field of regeneration.
i) The balance between cost and quahty shmdd be considered at tbe outset. Budgets shmdd be based on targets for the unit cost of the work, benchmarked where possible to those of other pubhc sector bodies undertaking similar work. In approtig ind]vidud project appraisals or changes thereto, care shotid be taken to document quality features and tieir expected benefits so that these can he weighed against tie increased cost.
ii) The budgetary responsib~lties of the organisation shodd be made expficit. tifetime grant-in-aid budgets shmdd be set at the start of a project. The price base for the budgets shmdd be clear and expectations regarding income generation and the use of private sector and other sources of funding should be speUed out. Where costs or tasks change budgets should be revised, with clear explanations of the need for the adjustment.
iii) Core performance measures ad targets shmdd be set for such initiatives from the outset, with a clear distinction between measures of programme efficiency and outputs, and tidicators of the initiative’s impact. Performmce measures shmdd protide consistency of reporting between years and enable performance to be benchmarked, both internally within an initiative and against external comparators, such as other social landords. To ensure accountabihty for performance, in We with recent Treasury guidance, the Department shotid determine with the Housing Action Trusts which core performance measures ad targets are to be reported in their Annusd Reports.
2 Waltham Forest Housing Action Trust Progress in Regenerating Housing Estates
iv) Evaluation shodd be btit in horn the start of an initiative to cover both performance measures and impacts on the target poprdation. Analysis of cohort groups over time cotid be a partictiarly valuable way of measuring long-term impacts. The Department may tish to assist organisations to use standardised smeys, tith scope for supplementary local questions, to ensure the validity of the survey techniques and to facihtate the use of the restits for comparative purposes. v) Contracts for management services should set clear performance targets and the consequences for non achievement. The Trust shotid use the opportunity of the amual review of the price of the housing management agreement tith the community based housing association, Waltham Forest CBRA, to reconsider whether the incentives for the Association are adequate and secure the best value for money for the Trust.
3 Walthm Forest Housing Action Trust Progress h Regenerating Housing Estates
CHINGFORD
+OlirrJ)CloseEs!ate
kJ r Calhall Ro~p Estate
Oliver Close Estate Calhall Road Estate + ●
Source: National Audit Office Note: The numbers of blocks, dwellings and proposed rebuild units are taken from the f990 Feasibi/i~ Study, commissioned by the Department of the Environment, on the proposal to establish Wa/tham Forest Housing Action Trust. The four estates of the Trust are located in Noflh East London
4 Waltham Forest Housing Action Trust: Progress ti Regenerating Housing Estates
Part 1: Introduction
Back~ound
1.1 Waltham Forest Houstig Action Trust was designated on 9 December 1991. The Trust is a tited Me non-departmental pubfic body responsible for the physical, social and entionmental regeneration of four geographically tispersed housing estates, transferred from the London Borough of Waltham Forest h North East London (Figore 1). The estates housed around 6,600 people in 2,422 dwehgs in 13 tower, 25 medium rise and 3 low rise blocks. By 31 March 1996 the Trust had received E107.8 muon grant-in-aid from the Department of the Entimunent, rehoused 510 households in new homes and begun demohtion work on the tower and medium rise blocks. The Trust plans to complete its task by 2001-02 tithin a total grant-in-aid planning figure of S227 milhon.
By 31 March 1996 the Trust had begun demohtion work on the estates
5 Wdtham Forest Housing Action Trust Progress in Regenerating Housing Estates
Statutory and poticy framework
1.2 Housing Action musts me statutory corporations estabhshed under the Housing Act 1988. They were detised as a means of focusing resources on housing estates tith problems that were beyond tbe capacity of local authorities to remedy tithin their etisting resources. Their aim was to achieve sustainable regeneration through focusing resources on both physical redevelopment and tider community regeneration work.
1.3 The Housing Act 1988 re@ed a majority of secure tenants to vote for the transfer horn local authority omership before a Trust cotid be designated. This reflected a key feature of the initiative, which was that tenants shotid be closely involved in discussion of proposals for setting up Trusts and in the development of their programmed. In addltirm, the Minister for Housing and Platig agreed that Trusts wotid adopt a pohcy of freezing rents on secure tenants’ existing properties untfl the tenmts were rehoused. Tenants were also promised the opportunity to return to being local authority tenants and this was made a statutory right under the Leasehold Reform, Housing and Urban Development Act 1993.
1.4 Some local authorities and tenants were opposed to the concept of Housing Action Trusts and some of the initird proposals for Trusts were either voted down by tenants or not pursued for other reasons. Waltham Forest (London) However, between 1991 and 1994 six Housing Action Trusts were Castle Vale (Shmingham) Liverpool designated (Figure 2) folloting ballots in which, on average, Tower Hamlets (London) 76 per cent of tenants voted in favrmr of transfer to the Trust on a Stonebridge (London) turnout of 74 per cent.
Source: Depatimerrt of the 1.5 The Trusts’ statutory objectives are to: Environment
There are six Housing Action Trusts. . repab or improve the accommodation of their tenants;
. manage and use their housing stock effectively;
. encourage a tider range of housing omership and a greater choice of landord; rmd
. improve the htig, social and entirmuuental conditions in their areas.
6 Wdtham Forest Housing Action Trust: Progress in Regeneratbg Housing Estates
1.6 Trusts are re@ed to acMeve their objectives as soon as practicable and, when theti work is substanti~y complete, to tispose of their properties and submit proposals to the Secretary of State for the Environment for their ow dissolution. The key statutory powers of the Trusts are set out in Figure 3.
. To provide and maintain housing accommodation and facilitate the provision of shops, advice centres and other facilities fortbs benefit of the communities who hve in tbe designated area. . To render such assistance as is reasonable to a local housing authority discharging its duties in relation to the homeless. . To give financial assistance to any person byway of gran@ loans guarantees incurring expenditure on behalf of the person assiste~ or purchasing loan or share capital in a company.
Source: Housing Act 1988
The key statuto~ powers of Housing Action Trusts are set out in the Housing Act 1988.
1.7 Tenants of tie Trusts at the time of transfer remain secure tenants, and this status can onfy be removed as a restit of a Court order for possession. The Trusts ti offer secme tenants a range of options for their future landlord, on completion of their task or phases of the redevelopment. Afl secure tenants have the right to elect to return to a secure tenancy with the local authority or to exercise their right-to-buy. Other options may include taking up a tenancy with another public sector Iandord, preserving their right-to-buy, or with a private landord.
Waltham Forest Housing Action Trust
1.8 In 1986 the London Borough of Waltham Forest surveyed its estates btit in the late 1960s and ealy 1970s, and concluded that they had si@csmt structural and maintenance problems. For example, they needed strengthening of the joints between the concrete panels and rectification of the deterioration of the cladding and windows caused by signiRcant water penetration problems. The Borough drew up plans for redeveloping the estates and pursued a number of options for financing the works, without success. In September 1989 the Department of the Environment proposed the establishment of a Housing Action Trust for four of the Boroughs estates. The Department commissioned Chapman Hendy Associates (speciahst housing consnftants) to carry out a Feasibfity Study based on designs and costings akeady prepared for the Borough. In
7 Wdtham Forest Housing Action Trust Progress in Regeneratin~ Hmrstig Estates
October 1990 this cotiwmed that the four Wdthm Forest estates met the criteria for a Housing Action Trust, under the Housing Act 1988. The Feasibfity Study estimated the cost of rehousing secure tenants in 1,710 new low rise homes and of refurbishing four tower blocks for sde wotid be E171 tihon (at 1990 prices). Atbongh 2,422 homes were transferred, it was esttiated that 1,710 new homes would be sufficient to rehouse W secure tenants, based on a turnover of some five per cent a year over seven years.
1.9 Tenants’ views about the setting up of the Trust were set ont in a Tenants’ Expectations Document, signed in Aprfl 1991 by the Ch~rma Designate of the Trust and the Mtister for Housing and Plming. This document included tenants’ statements on consdtation, rent levels and right-to-huy arrsmgements, together tith the responses and commitments made by the Trust and the Department (Appenti 1). The proposal to transfer the estates to the Trust was put to tenmts in a ballot in August 1991, smd 81 per cent of tenants voted in favonr on a turnout of 75 per cent. . ..—. 1.10 The Trust’s Board is appointed by the Secretary of State, and Fiiei:”ThiTrUS~Stistion‘ ~ includes the Chairman, four elected tenant representatives, one The Trus;s~s~ori is to’’;wor;;ith local counctior proposed by the Borough and five otier members tenants to develop homes, people and commurrfiies which will bring about a who have experience ranging from business, housing law and long-lasting improvement in the housing management to eqmd opportunities. The Chief Executive, quali~of life.’ who is ~so the Accounting Officer, is appointed by the Board with The Trust has a vision to leave behind the approval of the Secretary of State. The Trust’s mission, as set out %eighbourhoods of high-qualiv by the Board, is to achieve a long-lasting improvement to its estates homes occupied by people who have (Figure 4). been empowered to make key choices about ownership and management and who belong to stable, 1.11 The four estates were transferred to the Trust on 6 Aprti 1992. self-sustaining communities” Five months later the Department approved the Trust’s strategy, as required under the Housing Act 1988. This Statement of Proposals Source:WalfhamForest set out the Trust’s aims to: Housing Action RustAnnualReports . demolish most of the existing accommodation using
The Trust is seehng to achieve a reconstruction techniques, redevelop the sites and rehouse the long-lasting improvementto its existing secure tenwts in low rise housing, tith btidmg work on estates and the community. each estate being managed in five phases over an eight to ten year period (Figure 5);
. introduce a housing management system compardle tith best practice elsewhere;
. encourage and provide the necessay support for tenmts to become involved in the management of their estates;
8 Naltham Forest Housing Action Trust ‘regress in Regenerating Housing Estates
. work in partnership with tenants and other bodies involved in social and economic regeneration, to secure for tenants improvements in education, training and employment opportunities, and bring about improvements in their quahty of hfe; and
. transfer its properties in accordance with tenants’ choices, to achieve diverse and stable ownership and management of the estates, no later than the year 2002.
1.12 The work of the Trust has been carried out within three main operational ditisions: redevelopment, community development and housing management, together with a separate finance ditision. The Trust’s Board established sub-committees to oversee the work of the three operating ditisions, who also received reports from each of the tenants’ Estate Steering Groups on tbe four estates. From October 1995, to delegate decision making to the estate level, tbe Board replaced the sub-committees with an Area Committee for each estate covering all aspects of the work (Figure 6).
m
; Housing Redevelopment Finance and Development ~ Management Administration
I J m I I t Contractual agreement [ .frOrn_l~ 1996
‘a Source: Waltham Forest Housing Trust
The Trusts’s organisational structure is based around its three main functions and its main sub-committee work is undeflaken by four Area Committees, one for each estate
10 The programme of phased buflding wc
The rolhng pro~ame is made by tbe L open land surroundtig the estate, L—”——(
PHASE 1
Phase 1 is constructed on the open land, Tenmts from the tower blocks, tidicated by batching, moveinto the new homes, these blocks are then demolished to create tie site for Phase 2 construction.
ite of demolished blocks blocks indicated move to s are then demolished.
Source: Waltham Forest Housing Action Trust The building work on each estate is phased so that as each block is demolished the new propeties are built in the space released. :rk
me continues.
PHASE4
The ro~tig pro~ame conti Waltham Forest Housing Action Trust: Progress in Regenerating Housing Estates
Figure 5: The programme of phased building work on the Oliver Close Estate Waltham Forest Housing Action Trusti Progress in Regenerating Housing Estates
1.13 From Aprfl 1996 the Trust contracted the housing management function and entered into a development agreement with a community based housing association ca~ed Waltham Forest CBHA. The Association was estabhshed for this purpose and was adopted as a subsidiary by the Peabody Donation Fund, who are a charity and registered housing association owning a large portfoho of social housing in London. The Trust intends that tenants shotid be able to elect to transfer to Waltham Forest CBHAwhen they make their choice Oflandlord in the fist baUot to be held in 1998 or in the second btiot to be held in 2001. The Trust’s tenants make up a majority of 10 out of 15 of the members of the Board of the Association, The Association took over the emplo~ent of the Trust’s housing management staff.
1.14 From designation in 1991 to 31 March 1996 the Trust had received a gross income of f124.9 mi~on, comprising E107.8 mtihon grant-in-tid from the Department and 817.1 milhon from housing rental income. Nearly two thirds of the Trust’s costs to 31 March 1996 have been on tbe redevelopment programme (Figure 7). Progress on the Trust’s three main programmed is summarised in Figure 8, and a summary of key dates is at Appenti 2.
Housing Management 224.1 miljon(19“A)
. . 22.2 million (2”A)
Source: Waltham Forest Housing Action Trust Annual Repofls
Note: (1) ‘Other’ represents cash in hand and other aaaeta and liabilities The TrusVs redevelopment programme has accounted for nearly two thirds of its coata to 31 March 1996.
11 Redevelopment . Detailed proposals for the redevelopment over five phases, known as the Masterplan, were approved by the Department in October 1992. . The first house building contract for Phase One was let in Oecember 1993 and the first new homes handed over to the Trust in March 1995. . Phase One works were completed by May 1996. . Phase Two works stated in September 1995, and the demohfion of the first tower block took place on Ohver Close Estate in October 1995. Housing Management . In 1992-93, the London Borough of Waltham Forest continued to manage the estates under a Housing Management Agreement. . From Apti[ 1993 the Trust took over day-to-day management of the estates, except for rent accounting which the Borough continued for a fuflher year on the Trusfa behalf. . From 1 April 1996 the Trust entered into a seven year contract for its housing management funcfiona with a community based housing association, Waltham Forest CBHA. Communifv . The community development strategy was approved by the Department in Oecember 1992. . Key atranda of the Trusfs strategy have been to empower tenanty to mwimise the number of tenants in employment and to improve the social and community infraatmcture. . The Trust has estabhshed a range of community and youth projects, including careers advice and counseling, and two training centre$ and provided grant funding for others, including childcare and communiv health facilities.
Source: Wa/tham Forest Housing Action Rust
Since designation the Trust has made progress in all three areas of its responsibilities.
Housing Action Trusts
1.15 Wdtham Forest was the second of Sk Housing Action Trusts to be esttilished. The Trusts have adopted vmious approaches to the redevelopment of their estates, reflecting the different characteristics of their housing stock and tenants (Appenti 3). In March 1996, the Depwtment asked the Trusts to consider what their Efetime costs might be within a total grant-in-tid for aU six Trusts of between S850 miRion and El ,150 miRion. FoUotig the Finmcial Statement md Budget Report in November 1996 the Department have set Metime grant-in-aid planning figures for the Trusts totalfing S1,095 milfion (Figure 9). The three London Trusts have a higher unit cost than the three elsewhere in England. The Department consider the wide vmiation in the planned cost per
12 Waltham Forest Housing Action Trust: Progress in Regenerating Housing Estates
dweMng transferred from S48,700 to E93,700 can be explained by the different needs and plans of each Trust, together with the timing of their work. For example, Liverpool has a relatively low total cost for the nmnber of dweRings transferred because it plans to refurbish or replace ody a proportion of the properties as there is a dec~ng need for housing in the area. Waltham Forest has a relatively high cost of f93,700 per property transferred because it plans to replace more of its accommodation tith new btid properties.
Housing Action Trust 1 Dwellings Planning figure for lifetime grant-in-aid transferred per dwelling trarrsferredz (f million) (f) North Hull 2,084 115 52,200 Wa[thamForsst (London) 2,422 227 93,700 Liverpool 5,337 260 48,700 Castle Vale (Birmingham) 3,423 205 59,900 Tower Hamlets (London) 1,629 123 75,500 Stonebridce. (London) 1,?77 165 92,900 Ouerall 16;672 1,095 65,700
Source: Depatimerrt of the Environment
Notes: (1) The Housing Action Rusts are Iistedbr designation ordec (2) The planning figure forgrant-irr-aidper dwelling tmnsferred includes the cost of environmental and community work aa well aa the coat ofphyaical redevelopment and refurbishment.
The Department plan the hfefime grant-in-aid for the six Housing Action Trusts will totil fl ,095milion. The planning figure for each dwelting transferred ranges from f48,700 to 293.700.
Department of the Environment and the Government Office for London
1.16 The Department initifly fnnded the Housing Action Trust initiative in its ow right. In Aprif 1994 the Single Regeneration Budget was estahhshed, which brought together the funding of several regeneration pro~ammes, ticluding Housing Action Trusts. The Waltham Forest Housing Action Trust operates mder the provisions set out by the Department of tbe Environment in two key documents:
. the Management Statement, which defines the Trust’s roles and responsibilities, and its relationship with the Department and the Government Office for London at a strategic and pohcy level; md
13 WaJtham Forest Housing Action Trust Progress in Regenerating Housing Estates
● the Financial Memorandum, which sets out Rnmcial mmagement responsibi~ties and tits on the levels of expenditure for which the Trust has delegated authority. Above these Hmits the Trust must seek approval from the Government Office for London. Items of expenditure of more than S5 Won also require the approval of the Treasury. The Trust can ofly borrow funds with approval from the Treasury and with the consent of the Secretary of State for the Environment.
1,17 In June 1993 management constitants, Price Waterhouse, produced for the Depatment a framework for evaluating the Trusts and performance measures for monitoring their progress. In Aprfl 1995 WITA Management Constitancy Ltd developed this into a W working methodology for evaluating the value for money and effectiveness of the Housing Action Trust initiative. N1 sk Trusts are involved in the evaluation.
Scope of the National Audit Office examination
1.18 The National Audit Office examined the early performance of Waltham Forest Housing Action Trust as a case study of this new approach to regenerating run down local authority housing estates. The examination focuses on how effectively the Trust estabhshed its strategy to meet its statutory objectives and requirements (Part 2); how the Trust has managed its progrmnme (Part 3); md what progress the Trust is making towards achietig sustainable regeneration (Part 4),
1.19 To inform their assessment of the fiust’s progress, the National Audit Ofice identied the fo~owing criteria for successfti regeneration work.
. There is a clear expression of the problem to be solved.
● Those affected are involved in estahhshing the plans, overseeing their implementation and in the process of change.
. Regeneration is not tacMed in isolation from the wider community, and there is an integrated approach deabg simtitaneously with housing, employment, training and other issues.
. There is a long-term commitment to sustainable regeneration.
14 Waltham Forest Housiug Action Trus& Progress in Regenerating Housing Estates
These criteria were drawn from Hteratnre on regeneration initiatives, in partictiar the 1996 evaluation of housing regeneration under the Department of the Entiomnent’s Estate Action progr-e’ . The fidings horn this study reinforced the view that housing regeneration work must tactic social and economic problems alongside physical redevelopment work, in order to achieve durable and sustainable improvements.
The National Audit Office report is based on a review of the Trust’s data and workhsg practices, and evidence gathered from the Government Office for London and the Department of the Environment. The National Audit Office retiewed the corporate plans and annual reports of the five other Housing Action Trusts, and obtained further comparative data from the respective ~Redbridgeand Waltham Forest Oisffict Government Offices for the Regions. The National Audit Office also .Health Authofity ( obtained information from other statutory authorities operating in Redbfldge and Wsltharn Forest Family the Waltham Forest area (Figure 10). Health Services: Apthorii .:...... ‘: .:”. .. : :E( 1.21 The National Audit Office employed project and construction ,.....‘C[., management speci~sts, BucbW Auetiu (now caUed Marhn) to ; Ct assist in the review of the Trust’s redevelopment work. Research Audit COm~S~on Sertices Ltd conducted group discussion among tenants to obtain Housing Corporation their views on tie Trust, and tracked the emplo~ent histories of a sample of tenants who had been recorded as taking up employment Source:,~ationalAud( Office with the assistance of the Trust. Tenants’ comments, which are
The National Audit Office obtained iRustrative of the views expressed by tenants during the group information from Government and discussions, are presented in the report. other soumea,
* ~ evaluationofak ewlyEstateActionschemes,mdert&en byWITA ManagementComdtmcyonbeha~oftie Depatient of tbe Entioment, ~SO, 1996.
15 Wsdtham Forest Housing Action Trust: Progress in Regeneratin~ Housing Estates
Part 2: The Trust’s strate@c approach
Introduction
2.1 Wdtham Forest Housing Action Trust’s redevelopment strategy, the Masterplan, was estahhshed on the basis of the assumptions set out in the 1990 Feasfifity Study (paragraph 1.8). The Trust’s commufity development strategy addressed the Trust’s strategic aims of improving social and envirmunentaf conditions, and empowering tenants. The Trust’s annual Corporate Plans have taken forwwd these two strategies. The Government Office for London and the Department have approved the strategies and have reviewed the further plans and performance.
2,2 [n addition, the Department have estabhshed a framework for evaluating the Housing Action Trust initiative over its Metime (paragraph 1.17). In Jdy 1996 MITA Management Constit~cy Ltd reported on the base~ie data to be used in the evaluation. [n 1997 or 1998 the Department plan to commission the co~ection and evaluation of data on the achievements of North HuH Housing Action Trust over its Hfetiie; the mid-term achievements of the other Trusts; and on three local authority estates chosen as comparators to those of Waltham Forest, Castle Vale and Stonebridge Housing Action Trusts.
2.3 This section of the report examines:
. how the Trust has addressed the aims of the legislation within the prevaOing financial constraints under which it operates; and
. whether the fiust has relevant and refiable performmce measures to provide a fwm basis for evaluatig the performance of the Trust in the longer-term.
The strate~
2.4 The Trust’s strate~es have addressed the statutory objectives of improving tenants’ accommodation, housing management, and the hving, social and enviromnentsd conditions of the area. The Trust’s
16 Wdtham Forest Housing Action Trust: Progress in Regenerating Housing Estates
expectation has been that tenants’ choices, over thefi fitwe landords and take up of their right-to-buy on the new properties, ti achieve the statutory objective of encouraging a wider range of housing ownerstip and choice of lan~ord.
2.5 From the outset the strate@es have also taken forward the Trust’s aim to matise tenant involvement, through providing support to tenants’ Estate Steering Groups, other tenant constitative groups and tenant run commtity initiatives (Figure 11). As the Trust’s work has progressed it has sought to deepen tenants’ involvement. Constitants were employed by the Trust to help them consider the possibfity of estabhshing Tenant Management Organisations to be their future landlords. These are tenant run organisatione managing a group of homes under powers agreed by the Secretary of State for the Environment. As an alternative, tbe Trust developed a strategy of estab~shing a cmnmuni~ based housing association, with tenants in a majority on its Board, as a potential successor landord.
Tenants’ /,,, ....-...... —. —.....,,, involvement in the / ,. Trus~s activities ,TenantElectioris>fl=
,,,” “—”-,.,
~ Estate Steeting’ fqy ,/ . Groups Area Committees
‘\ ..\ ,. ,,, , Trust Board
.**
:R:ii” Mr%d ‘edeve’A i ~~:::t
Source: National Audit Oflice
The Trust haa arrangements fnr involving tenants in decision mating
17 Waltham Forest Housing Action Trust Progress in Regenerating Housing Estates
2.6 From September 1993 the Trust considered that the Masterplan proposals for developing the four estates wotid not provide sufficient homes to rehouse dl its secure tenants. The Feasibfity Study provided for the rehousing of 1,710 secure tenants in new homes, whilst the Trust’s latest estimates are that it ti rehouse in total 1,854 secure tenant households. To meet the expected shortfa~ the Trust has introduced alternative rehousing schemes and plans to build additional homes on sites adjacent to its area to rehouse other tenants.
2.7 The expected shortfaU has arisen because annual tenant tinover has been shghtly less than five per cent, the level assumed in the Feasibihty Study. The Trust’s latest estimates are that turnover ~ be significantly lower in its remaining five years, as more tenants move into the new homes. The redevelopment proposals in the FeasibiEty Study also shghtly overestimated the number of properties that cotid be built on the sites and did not make sufficient allowance for changes in housing needs as tenants grew older and their personal situations changed. & a restit the Trust’s initial plans included too many single bedroom properties and too few family sized houses. The Trust’s latest development programme aflows for the building of some 1,600 properties on the Trust’s four estates. In addition, the redevelopment plans co~d not provide for enough new homes in Phases One and Two to meet the commitment in the Tenants’ Expectation Document not to rehouse tenants temporarily prior to moving them into the new homes. The Trust used alternative rehousing options to meet MS commitment (para~aphs 3.35 to 3.37).
2.8 The Trust’s Masterplan was to complete the redevelopment work itself, rather than work in partnership tith other providers of social housing. The Trust’s strate~es have, however, included opportunities to work titb other agencies. The Trust’s emplo~ent and training strategy was built on protiding traiting through centres it established, with support from other agencies. Two centres were established, the fiinity Business SWS Centre in May 1993 and the Lagthorne Construction SkiRs Centre in February 1994. Both received financial assistance from other sources, such as the London East Training and Enterprise Cmmcfl and the European Social Fund, which amounted to 8442,100 up to 31 March 1996 or nearly 30 per cent of the training centres’ running costs. The must’s communi@ strategy has been implemented through the provision of grants and support to tenants and other voluntary woups. In addition, the Trust has worked titb other local statutory agencies and schools.
18 Wdtham Forest Housing Action Trust Progress in Regenerating Housing Estates
2.9 The Trust’s strategies were approved tithout being fdy costed. Based on the BorougKs redevelopment plans and costhgs, the FeasibiH@ Study estimated the Trust’s redevelopment work woufd cost a total of S171 tion (S180 Won at 1995-96 prices). The Feasibtity Study had not been re@ed to include the cost of community development work, housing management costs in excess of the rentaJ income, and adrnitistration costs. Neither was the estimate revised to take account of the subsequent undertakings in the Tenants’ Expectation Document. The Trust’s community development strate~, approved by the Department in December 1992, was costed only for the first two years, at S1.8 mi~on. Budgets thereafter were set out in the Trust’s amual Corporate Plans.
2.10 Lifetime budgets were not initia~y set by the Department, and the Trust’s estimate of its Hfetime costs has increased as its work has progressed. In Jtiy 1995 the Trust estimated in its Corporate Plan that to address the expected shortfaU in properties for secure tenants (paragraph 2.6) it wodd need to extend its development programme to 2005, and this would cost as much as S300 mil~on (E298 milhon in 1995-96 prices). This excluded any income arising from the disposal of properties. The Department indicated that this total cost wmdd be beyond the grant funding avaflable. The Trust estimated that if it addressed the expected shortfa~ eartier using private finance, it could complete its work by 2001, reducing the total grant-in-tid requirement to 8265 milhon less any receipts from the disposal of properties. Within this total cost the redevelopment work for rehousing au its secure tenants wotid account for f200 Won in 1995-96 prices. This compared to the Feasibihty Study estimate off 180 Won in 1995-96 prices, for rehousing secure tenants and refurbishing four tower blocks for sale.
2.11 In March 1996 the Department asked all the Trusts to consider what their Metime costs might be tithin a total grant-in-aid for the sk Trusts of between f 850 Won and El ,150 m~on. At that time the Department considered a total grant-in-aid of less than fl biHion, which was the mid-point of this range, would he achievable. The Department asked au the Trusts to prepare plans and financial forecasts for complettig their work, presenting options and their conseWences for fifetime grant-in-aid costs, The Department’s aim was to set hfetime budgets for the Trusts in December 1996,
2.12 The Department’s indicative grant-in-aid range for Waltham Forest Housing Action Trust was f180 m~on to f260 m~on and they set a target for it to complete its work by 2001-02. The Trust’s Corporate Plan, submitted to the Department in Jdy 1996,
19 Wdtham Forest Housing Action Trust Progress in Regenerating Houeing Estates
estimated its total grant requirement to be S235 Won. Since its previous estimate of S265 m~on tbe Trust had identiied eavings of fi22 mi~on from improved efficiency rmd adopting some further rehousing options, which were estimated to be cheaper than building new homes (paragraph 3.37); ad made a provision for income of S18 mflfion from the sale of surplus land, right-to-buy sales and sales to future landlords frdlmving the tenant baUots. The Trust had also identtled addltionaf costs of C1Otion, comprising E5 million for financing costs for homes to be buift under a private finance arrangement tith the Peabody Donation Fund (paragraphs 3.38-3.40) and E5 miUion for an endmvment for the proposed Development Trust (paraWaph 4.24).
2.13 The Trust has identified four options for reducing its total grant-in-aid cost to S220 million, the mid-point in its indicative range, or lower. These are to complete Phases Three to Five of the building programme in partnership tith a housing association; to ‘The Trust said that for Phase Two they’ve got less money than they had make radical changes to the standards of the remaining homes to be for Phase One. So Phaae Three is built; to remove the proposed endowent for the Development going to be short ...and Four shorter Trust; and to cease community development work before the year than Three. They’re running out of 2000. The Trust considers all of these options wmdd require it to money so they’re cuting back? break commitments made to tenants in the Tenants’ Expectation Document; not he in accordance tith the understanding upon which it entered into its agreement with the Peabody Donation Fund; and jeopardise long-term sustainabihty.
2.14 In December 1996, folloting the Financial Statement and Budget Report, the Department set a planning figure for the totaf Metime grant-in-aid for the Housing Action Trust initiative off 1,095 miDion. Waltbam Forest Housing Action Trust was asked to base its future plans on the total grmt-in-aid of S227 mi~on. TMs is equivalent to S93,700 per dwelling transferred, or E122,400 per secure tensmt household to be rehoused by the Trust in its properties or through alternative rehousing schemes.
Monitoring and evaluating performance
Targets and reporting requirements
2.15 The main target for the Trust over its Metime ie to rehouse aU its secure tenants. No other targets for the Trust’s impact over its lifetime have been set. At the outset the Department considered that Housing Action Truste shotid devise their mvn performance measures and targets, specific to their t~sks. The Trust set 31 performance measures in its Statement of Proposrds (paraWaph 1,11). It has subsequently set many additional meaeuree
20 Waltham Forest Housing Action Trust Progress in Regenerating Housing Estates
in its annual Corporate Plans. The Trust’s performance measures in its Statement of Proposals and Corporate Plans have focused on efficiency and outputs against the four statutory objectives (paragraph 1.5), but have included few measures of its nftimate impact on tenants and the area. In its Corporate Plans tbe Trust bas set twgets for mmy of these measures for the year ahead and the fo~otig tio years.
2.16 In June 1993 the Department asked au the Trusts to calculate 26 core performance measures each year. The core performance measures were identified by management constants, Price Waterhouse, in their report to estabhsh the Department’s framework for monitoring and evaluating the Housing Action Trust initiative. They were intended to be used to make comparisons between aU the Trusts, in terms of their impact on employment levels, tenants’ satisfaction and the final ti of tenure achieved. In April 1995 the core measures were restated in the report by mmagement consdtats, CAPITAManagement Constitancy Ltd. which developed the Price Waterhouse work into a full methodoloW for evaluating the initiative.
Performance reporting by the Trust
2.17 The Trust views tbe Annual Report and Accounts and the Corporate Plan, as its key acconntahRi~ reports. It also produces a Report to Tenants summarizing its activities and performance. Taken together, these reports have provided a lot of usefd information on the Trust’s performance. The National Audit Ofice found, however, that they did not present a coherent picture of the Trust’s efficiency and outputs over time, nor facRitate benchmarking of the Trust’s performance against the other Housing Action Trusts. This was because:
. the performance measures included in the Annual Reports have covered tenant satisfaction, redevelopment, jobs and training, crime and housing mmagement but have varied each year, up to and including 1995-96;
. the Trust has reported its performance for just over half of the 21 core measures which were relevant to that stage of its life, out of the total of 26 measures. For 1995-96 the Trust reported on nine of the 21 core performance measures in its ~ual Report. It presented its performance against a further four in the Corporate Plan. The Trust told the National Audit Office that data are not readily available for some of the other performance
21 Waltham Forest Housing Action Trust Progress in Regenerating Housing Estates
measures (Appenti 4). Ody one of the other five Trusts, Uverprml, has reported its performance against aU of the core measures: and
. the Trust’s Annual Accounts have not strictfy fo~owed the Department’s requirements. For example, the Trust has incorrectly reported rental income received as rental income receivable and not disclosed the amount due in respect of rent arrears.
2.18 The Trust reviewed its annual reportig in the tight of the National Audit Office’sfindings and revised Treasury guidance on Armud Reports and Accounts for non-departmentd pnbhc hoties, wtich is to be apphed from the financial year 1996-97. The guidance states that performance against key targets, as agreed with sponsor Departments, should he prominently displayed and the reasons for any significant variations explained. The Trust’s Armual Report for 1995-96 includes a summary of achievements agtist 25 key targets selected by the Trust.
hnual surveys of tenant satisfaction
2.19 The Trust has surveyed tenants’ views annuaHy since 1993. This has provided importmt feedback on the qntity of the must’s housing management service ~d the impact of the Trust’s work on tenants’ quahty of life. The Trust has used the results in all its pnb~shed documents, partiy to measure performance against some of the core measures and its commitments to tenats under the Citizen’s Charter.
2.20 The National Audit O~ce consider that the Trust cmdd improve the analysis of the restits obtained from these surveys. The Trust has specified the survey questions and selected the company offering the cheapest bid to undertake each survey. The Nationsd Audit Office found that the 1994, 1995 and 1996 surveys obtained views horn a significantly high proportion of women compared to the overaU poptiation on the estates. Furthermore, the 1996 survey included the views of a signiRcantly higher proportion of tenants in new properties, whose views differed si@cantfy from other tenants’ views on such matters as crime. The survey restits were not weighted to make the summary results representative of the population as a whole, The National Audit Office dso found that the wording of questions had changed between years. This has made the resdts less compwable from year to year. However, in some cases the Trust made the changes to bring the questions into We with the core performance measures and this has helped to make the resnfts comparable tith other Trusts.
22 Waltham Forest Houstig Action Trusti Progress in Regenerating Housing Estates
The Department’s evaluation of the Housing Action Trust initiative
2.21 The Department’s approach to evaluating the Housing Action Trust initiative involves the co~ection of a large amount of data on costs and performance across au the Trusts’ objectives and various programes. Through the co~ection of comparable information from local authorim estates in the same, or neighboring, local authority areas, the evaluation aims to identi& the additional costs and benefits of thee of the Housing Action Trusts. The co~ection of this information has been slow, with the report on base~ne measures being produced in 1996, four years after the Waltham Forest Housing Action Trust was designated.
2.22 Many of the basetie data items for the evaluation of Waltham Forest Housing Action Trust have not been found by WITA, either in the Feasibfity Study or from other sources, and there are also gaps in the basehe data for the comparator local authority estate. The Department are currently considering whether and how gaps in the basetie data cotid be med. The Trust has also not been coUecting all of the data for the core performance measures (paraWaph 2.17). The National Audit Office considers it important that data for the core performance measures is coUected on a consistent basis so that the performance of the Housing Action Trusts and local authority estates can be compared.
2’ey:f$&gs:;.:i;.:;>::~$”~::::::,:”’, .’””::;“ ‘.,’:“’’’”‘.’ .:” “::”
on ~trate& J ,: :,;:;::.’:: “j:.’.:‘ .-.. ’.,,...:...... ?~,;, . The Trust set strate~es for its redevelopment and community development work, and fWther developed these in its annual Corporate Plans. Together these have addressed its statutory objectives, md the aim of encouraging a tider range of housing omersbip and tenure ti be achieved though tenants’ choices over their future landords and their take-up of their right-to-buy (paragraph 2.4).
o From the outset the Truet’s strategies have taken fomard its aim to matise tenant involvement (paragraph 2.5).
. Fewer tenants have moved away horn the estates and there is a re@ement for more family houses than was assumed in the Feasibfity Study. This has increased the size of the Trust% task of rehousing au its secure tenants (paragraph 2.6).
23 Waltham Forest Housing Action Trust Progress in Regenerating Housing Estates
. The Depmtment fistasked the Trust to cofim””itS ~e&e ~~-,. budget in March 1996, setting it an indicative grant-in-aid rage of fi180 Won to E260 Won. Prior to that the Trust’s plans were for a total cost of S265 Won less any proceeds horn the disposal of properties. This included a total cost for tie redevelopment work of E200 dion compared to the original Feasibility Study estimate of S180 Won in 1995-96 prices. In Jtiy 1996 the Trust proposed that it shotid complete its work for a total grant-in-aid re@rement of S235 Won. h December 1996 the Department asked the Trust to base its future plans on a total grant-in-aid figure of S227 Won (paragraphs 2.9-2.14). On performance measurement . The Trust’s Annual Reports have not presented a coherent picture of the Trust’s performance over time, nor facfitated benchmarking against the performance of the other fiusts. The Trust has ody reported its performance for just over ha~ of the Depmtment’s 21 core measures which are relevmt at this stage in its Me (paragraphs 2.15-2.18).
. The Bust has carried out annual tenant satisfaction surveys, but cmdd improve the representativeness of the summary information the surveys provide (paragraphs 2.19-2.20).
. The Department have in hand a detafled evaluation of the Housing Action Trust initiative. But the basetine data for the evaluation were not estabhshed nntii 1996. In the caee of Waltham Forest this was four years after the Trust was setup and there are gaps in the data (paragraphs 2.21-2.22).
24 Waltham Forest Housing Action Trnsti Progress in Regenerating Housfig Estates
Part 3: Management of the programme
Introduction
3.1 The Trust’s programme comprises three mati weas housing management (f124.1 Won up to 31 March 1996); redevelopment (879.3 tion); and community development (83.1 Won). In Jwe 1994 the Treaswy completed a staff inspection at the ~st, (whole-time md recommended that to maximise its efficiency the Trust shodd equivalent employ some staff on lower grades and estahhsh an additional numbers) 13 posts. In 1995-96 the Trust employed 114 staff to manage its Housing 67 programme (Fignre 12), management Redevelopment 11 3.2 The Department have not set a target for the Trnst’s total stti and Community 9 administrative costs, and rely on retietig its plans amma~y and development agreeing its budgets. They have set tits for other regeneration Rnance and 27 initiatives. For example, for @denge Fund projects” under the Sigle administration Regeneration Budget the tit for staff and a-trative costs is five Total atafl 114 per cent. To 31 March 1996 some 11 per cent of the Trust’s costs had been spent on stti and administration. Excluding the cost of stti Source: Wa/fham Forest Housing Action 7mst managing the redevelopment programme, protiding housing mwagement md community development activities, which the In 1995-96 the Trust employed the Department consider wodd not be counted as administration under whole-time equivalent of 114 staff, of the Sigle Regeneration Budget, the Tmt has spent six per cent of iti whom some 60 percent were employed in housing management total COSGon stti and administration to 31 March 1996.
3.3 This section of the report examines how efficiently Waltham Forest Housing Action Trust has managed its housing sertice, the redevelopment, and community development programmed. The performance of the Trust was aesessed against the following criteria:
. whether the housing scfice has been managed to best practice standards;
. whether the redevelopment programme has met tbne and cost targets;
, CapitalCh~engeFundprojectsare regenerationschemesl~tig uptosevenysus, whch are selectedfoflotig a competitive biddtigroud andtided mder tie Sbgle RegenerationBudget.
25 Wsdtham Forest Housing Action Trust Progress in Regenerating Housing Estates
1 how cost-effectively the projected shortfd in housing has been dealt with; and
whether the community development programme has been implemented in accordance tith the Trust’s strategy and been subject to cost benefit appraisal.
Management of the housing sertice
3.4 The National Audit OffIce reviewed the Trust’s performsmce on rent co~ection md arrears; minimtshg the number of vacmt properties repairs and maintenance; and housSng management costs. In doing so, the Trust’s performance data were compared, where possible, to the latest data avaflable for housing associations, locsd authorities and the other Trusts. The Trust does not itself make these comparisons on the grounds that it was estabhsbed because of its partictiarly poor Wahty housing stock and the associated management problems, and as a resuU there are no directly comparable social kmrUords.
Rent collection and arrears 3.5 In he with the commitment in the Tenants’ Expectation Document, rent levels on tbe properties transferred to the fiust from the London Borough of Wdtham Forest have been held at 1991-92 levels, an average of E39 per week including water and heating charges (Figure 13). This rent freeze, whch will hold for secure tenants until they move to their new homes, is intended to i 572 f27.50 compensate tenants for tbe noise and dlsruptimr of the bnUdmg 2 844 f39.90 work on the estates. The Trust has increased its rents for 3 1,006 f45.60 non-secure tenants by about Sk per cent a year in he with ,. increases apptied by the Borough to its tenants. Rents for the new Soutie: Wa/tham Forest Housing properties are set by the Borough Valuer at the levels for a stiar Action Rust sized local authority property in Walthmn Forest, an average of
The overall average rent, inclusive of” S62 per week excludlng water and heating charges. water and heating charges in 1994-95 ‘was f39 3.6 In 1994-95, the first year the Trust held full responsibfity for collecting and accounting for rent, it collected 94 per cent of the S4.2 miUion rent due for that year, compared to its target of 96 per cent. TMs was less than the average, using the latest avaUtile data, for au Trusts Inner ~d Outer London Boroughs; and housing associations in the London region titb a stiar size of stock (Figure 14). In 1995-96 the Trust bad improved its rent co~ection rate to 97 per cent of the rent due. The Trust has set
26 Waltham Forest Housing Action Trust Progress in Regenerating Housing Estates
Waltham Forest CBW, who now manage the housing service, the target of coUecting 98 per cent of rent due in 1996-97, although there are no penaltiee for not achieving the target.
est 3.7 Total rent arrears increased to El ,040,000 at 31 March 1996, at which petit some 17 per cent of tenants had total arrears equivalent to more than 13 weeks of rent. The Trust estimates that some 74 per cent of tenants had some arrears when the estates were transferred to the Trust. At 31 March 1996 the Trust had ticreased Outer London Boroughs its estimate of the amount of arrears which it is unlikely to collect to Housing Associational S879,000, from E523,000 at the time it took over rent accounting from the Borough on 1 Aprfl 1994. e o 90 95 100 Rent collection rate ~A) 3.8 Since 1992-93, to combat rent arrears, the Trust has employed
Source: Housing Action Trusts, the money cowe~ors to advise tenants on hantig debt and their Audit Commission, and the Housing rights to claim Houeiug Benefit. The Trust has also recovered from Corporation tenants who are in wrears up to E750 from the S1,500 home-loss and disturbance a~owance which is paid to them when they move Note: (1) Housing associations in the London region with into their new properties. between 1,000 and 5,000 properties. Minimizing vacant properties The TrusVs rent collection rate was below that of other social landlords 3.9 The Trust’s po~cy has been to refurbish and re-let properties which in 1994-95. me not due to be demohshed for a year or more. When the estates transferred to the Trust, five per cent of the properties were vacant. The Trust has reduced this level and in 1995-96 two per cent of propertied were vacant, excluding those due to be demolished within a year, achietig the target set b its Corporate Plan. The Truet has not set Waltham Forest CBHAa target for the time they can take to bring a property back into occupation, but expects the Association to report to it on the level of voids achieved on a montiy basis.
3.10 Properties not required for the Trust’s tenants are made avafiable to the Borough ad voluntary groups, in accordance tith the Truet’s statutory obligation to help house the homeless. In the three years 1993-94 to 1995-96 the Trust has housed 338 homeless people. These tenants are given non-secure tenmcies and do not have a right to be rehoused in the Trust’s new properties.
Repairs and maintenance
3.11 When the Trust took over the estates they were in a very poor state of repair. The Trust is committed, tiough the Tenmrts’ Expectation Document, not to move tenants into temporary accommodation before they move tito their new properties, and to repair tenanted properties to habitable etandards.
27 Wrdtham Forest Housing Action Trust Progress in Regenerating Housing Estates
3.12 By 31 March 1996 the Trust had spent S11.5 miRion on reptia and maintenance. In 1994-95 the Trust’s expenditure on repairs was 28 per cent higher than its estimate of the budget required. In 1994-95, the latest year for which data for other social landlords are available, the Trust’s repairs costs per property were El ,430, well in excess of the average for both Inner and Outer London Boroughs and for housing associations of a similar size in tbe London region (Figure 15). The Trust’s high expenditure restited partly from a I 10uterLondonBoroughs combination of catch-up repairs to make the blocks safe and an emergency Hft replacement costing S51 5,000. By comparison, the Trust considers a London Borough would have only a few estates in ~n” as poor repair as those of the Trust, and a large proportion of 0 500 1000 1500 housing association stock would he relatively new. Costperproperty (f)
3.13 Now that the majority of catch-up repairs have been completed, and Source:Housing Action Jrusts, the Audit Commission, and the Housing tbe number of old properties is reducing, the Trust’s average repairs Corporation cost per property is falhng. In 1995-96 it was S813 per proper~.
Note: (1) Housing associations in the London region with 3.14 The Trust has aimed to attend to emergency repairs in 12 hours, between 1,000 and urgent repairs in 24 hours and routine repairs in 72 hours. These 5,000 propefiiea. were more rapid response time targets than those of housing associations. The Trust has set itself a 90 per cent target for In 1994-95 the Trus~s repairs costs per property were higher than those achieving them. Wllst the Trust has not achieved this, it has of other social landlorda improved its performance each year, and in 1994-95 completed 82 per cent of repairs tithln the planned response times. The Trust has set a target for Waltbam Forest CBHAof achieting 95 per cent of repairs tithlrr target times in 1996-97, and the indltidual targets have been retised to responding to emergencies in two hours and About the repairs sewice completing the repair in 24 hours; completing urgent repairs in “Before, with the Council, you might 72 hours and completing routine repairs in 20 days. have to wait six weeks ...... you can be sure now that the work is done.” Housing management costs
3.15 The Trust’s reported cost of housing management sertices, excluding repairs and maintenance, was El ,022 per property in 1994-95. The National Audit Office calculated a retised housing management cost for the Trust to put the cost on a comparable basia with the latest avaifable data for London Boroughs and housing associations. The retised cost, which includes tbe cost of rent collection, allocations and voids management, hut excludes cmetaking and communal costs, was S672 per property in 1994-95. This was below the average for both Inner and Outer London Boroughs, but the housing associations’ average for a simiim size of stock was 37 per cent lower (Figure 16).
28 Waltham Forest Housing Action Trust Progress in Regenerattig Housing Estates
3.16 Thecost ofhouskg management sertices kexpected toreduceas more tenants move into the new properties, The seven year housing management contract from Aprfl 1996 was awarded to Waltham Forest CBHAat a price similar to the cost of running the service in-house. A number of other parties had expressed an interest in the Trust's advertisement ofitsintention tolet the contract. However, the Trust dld not take these up because of its subsequent decision to incorporate the housing management contract within a development agreement for the provision of 150 homes (paragraphs 3.38- 3.42). The housing management contract makes provision for an annual review of the price. Whilst the contract contains some targets for the 1Housing Associafionsl level of service to be provided it includes no penalties for failure to achieve them. The Trust considered the arrangement as a whole o 500 1000 1500 provided the Association tith sufficient incentive to provide a good Cost perproperty (f) service.
Source: Waltham Forest Housing Action Trust, the Audit Commission, Tenant satisfaction tith housing management and the Housing Corporation 3.17 One of the Trust’s stated aims has been to increase tenant Note: (1) Houshrga ssociatimrsin satisfaction with the housing management service. Overall, each the London region with year, around 90 per cent of those surveyed considered that the between 1,000 and 5,000 propetiies. housing management service had improved or been maintained over the previous year. For 1994, the first year that the Trust managed The Trusfs housing management the housing management service in-house, nearly 75 per cent of costs per property are lower than the London Boroughs, but higher than tenants considered the service had improved over the previous year those of housing asaociationa. (Figure 17).
Management of the redevelopment
Managing Phase One
1...... 3.18 :About th~housirig”rnariagirnent. The Trust ori~nally planned that Phase One work would commence serv[ce in June 1993 and be completed hy Jme 1995, and that Phase Two work wodd commence in August 1994, These plans dld not aUow “1thinkthereasonifs improved is for advance works to be undertaken separately from the main becausewith the Council you could do building contracts for Phase One. The Trust also took longer than basically what you ~ked...... Now they’ll get the law in, m you’ll get planned to specify the tender documents and award the building kickedout.” contracts for Phase One, letting them between December 1993 and August 1994. As a resdt the contract completion dates were later than origina~y planned on the four estates, Phase One work was completed in May 1996 and Phase Two work started in September 1995. The Trust has rescheduled its hnilding phasing plans and still expects to complete the redevelopment work by 2001, as originally planned.
29 Waltham Forest Housing Action Trust Progress in Regenerating Houstig Estates
Percentage Level of Service
100 m — Decreased
75 — Maintained 50 r 25 - Improved
0 1gg3 (1; 1994 1995 L1996 Rve hundred and ten tenants had Tenant aatisfacfionksurvey moved into their new homes by May1996 Source: Waltham Forest Housing Action TrusYs Annual Surveys
Note: (1) The Borough managed the estates on the Trust> behalf up to March 1993.
Since the estates were transferred to the Trust, each year nearly 90 per cent of tenanta surveyed considered the service level had either improved m been maintained over the previous year.
3.19 The delay in stwting Phase One, and the shortfa~ between the number of properties to he btit and the greater than expected number of tenants requiring rehousing as a restit of tbe reduced tenant turnover, have contributed to Mgh levels of concern amongst tenants to be moved in later phases. Subsequent delays h completing the btiding work on Phase One restited ti move dates for some temmts being changed several ties and the fiust pafig compensation of S50 to each of the ten=ts affected on two of the estates. Tenants started moving into the fwst completed new homes from March 1995.
3.20 The total outturn costs for Phase One are expected to be h he with the pre-tender estimate of S52 mi~on. The National Audit Office found that the Trust had let the enabhg works and Rxed price Design and Btid contracts for Phase One in accordance tith best industry practice. The Trust costed the few vwiations to the contract before instructing the contractors. The Trust’s estimated outturn costs take account of compensation expected to be obtained from
30 Waltham Forest Housing Action Trust Progress in Regenerating Housing Estates
the contractors for part of the delay to Phase One on two of the estates, including one of the two for which the Trust had paid compensation to tenants.
3.21 The Trust’s expenditure on constants’ fees for project and construction management for Phase One tota~ed E7.1 dlon, some 14 per cent of the cost of the contracts. During Phase One the Trust employed 12 consultants. This included three quantity surveyors; two architects; two construction engineers and two structural engineers, To act as their agent in managing the various constitants, the Trust employed Botis Construction Ltd as their construction managers. Architects worked with the Trust and the tenants on the layout of the estates and the designs for the new homes, achieving an advanced stage of the design before it was handed over to the contractors. The Trust estimate that this level of design input cost S370,000 more than wodd have been required if the Trust had refied on the designs developed by its contractors as part of the Design and Btid contracts for each of the four estates for Phase One.
Unit costs of the new properties
3.22 The Trust has not set a target unit cost for its new properties. The National Audit Office calctiated that the Phase One works had an average unit cost for each property of E89,200. This average cost includes no land acquisition costs as the Trust’s sites were obtained from the Borough at zero value. However, it includes the costs of clearing and preparing the sites and other costs associated with the Trust’s wider regeneration role, such as btiding a six metre high waU running for 335 metres to reduce the noise of an adjacent dual carriagewa~ diverting a river into a new culverfi and requiring contractors to train and employ tenants of the estates.
3.23 Excluding these costs associated with site preparation and the Trust’s wider regeneration role, the Trust’s average unit cost for btidmg properties in Phase One was S73,500. This average cost was two per cent higher than the benchmark of S72,000, calcdated from Total Cost Indicator tables used by the Housing Corporation to assess the value for money of housing association properties of a simifar size. The Housing Corporation informed the National Audit Office that in the same period the average total costs of all housing associations’ developments in the London region was 20 per cent less than their benchmark figures. Housing associations’ land acquisition costs have been higMy variable, but on average they have accounted for 21 per cent of homing associations’ development costs; works costs have accounted for 66 per cenfi and on-costs
31 Wdtiam Forest Housing Action Trusk Progress in Regenerating Houstig Estates
The old properties at Chin@ord Hall Estate
An aeflal view of the Chingford Hall Estate showing the tower and medium tise blocks ptior to the redevelopment of the estate.
is due for demolition in Phase Two Waltham Forest Housfig Action Trust: Progress in Regenerating Housing Estates
The new properties and streets at Chin@ord Hall
built during Phase One, and the land cleared during demolition at the start of Phase Two.
tenants who previously lived in the tower and medium rise blocks, The tower block is due for demolition in a later phase. Waltham Forest Housing Action Trust Progress in Regenerating Housing Estates
13 per cent*. The methodology used for the unit cost compwison undertaken by the National Autit Office is set out in Appendix 5. Comprehensive data on the other Trusts’ costs of btitig new homes, comparable with the tit costs of Walthm Forest Housing Action Trust, were not avtitile from the Department.
3.24 The Trust buRt its new properties to high space standards. Tenants had been Eting in flats btit to high space stwdards, and tbe Trust considered tiey wotid fmd it too dlfflcuk to adjust to sma~er homes. The fiust’s mti concern was to ensure that motig tenants to their new homes was trouble-free, since any problems cotid have had an impact on the construction process. Taking the difference h size into account in the mit cost comparison, the National Audit Office calctiated that the Rust’s average unit costs were nine per cent higher than the Housing Corporation’s benctiark for the largest properties titb the same probable occupancy as the Trust’s homes.
3.25 The National Audit OffIce found that part of the difference between the Trust’s costs and those of housing associations can be attributed to design features and high quahty specifications, which the Trust consider were reqtired because the density of its new dwehgs was 15 per cent higher than the BorougWs planning guidebes. The National Audit OfRce found the total additional design costs averaged S4,500 per property. They included the choices the Trust a~owed tenants to make on fmtues and fittings costing up to El ,500 per tenant, including front doors, wa~ coverings, carpets, kitchen and bathroom fittings and wardrobes. They also included the protision of garden sheds and higher standards of acoustic and thermal insolation than required under the Btiding Re@ations and the energy efficiency standards of the Housing Corporation. Excluding these costs the Trust’s average unit cost wmdd have been four per cent below the Housing Corporation benchmark of f72,000 for properties of a similar size.
3.26 The Trust studied the Hfe-cycle costs of key components, such as the materials used in flooring, windows and wall coverings before deciding on this specification for the properties. Its fial decisions dso rested on consideration of aesthetic factors, planning requirements and tenant preferences.
* Witi Site:bsesstig valueformoneyh houshg associations’newhtid pro~mes - bytheAuditCoMssion onbehti ofthe HoustigColoration, May1996
32 Waltham Forest Housing Action Trust Progress fi Regenerating Housing Estates
3.27 The Trust also pointed to other features of its development work which had incurred extra costs, but were incorporated because they brought environmental benefits or wotid help towards the long-term sustainabfity of the area. These included strict environmental standards which the Trust had required its contractors to meet to minimise the disruption of the btiding work to tenants hving on the estates; and the use of high quahty materials which were expected to minimise maintenance costs in the long-term.
3.28 The Department considered that it was important for the Trust to btid to high standards, in partictiar to bnOd to Mgh acoustic and thermal insolation standards. However, the Department advised the Trust that they did not consider it appropriate to provide some items, such as power showers. FoUowing this the Trust ensured that power showers were ody ticorporated in the specification for properties for the disabled. The Department approved the Trust’s contracts for Phase One, concluding that the shghtly higher unit costs, compared to the Houstig Cm.poratiolx benchmark, represented value for money.
3.29 The Trust has used the same approach and space requirements in drawing up the design and specflcation for its properties for Phase Two. Tbe Trust considers that equity of treatment between the btiding phases is important to the successfti regeneration of the communities on tbe estates. For Phase Two, no further unit cost compwisons have been made by the Trust or sought by the Department. The National Audit Office found that the Phase Two average uuit cost for building on cleared sites was E69,1OO.This is shghtly less than for Phase One, because of a different mix of properties, and is in he with the equivalent Housing Corporation benchmark for properties of a similar size.
Changes to the Management of Phase Two
3.30 For Phase ~o, instead of seeking fied price Design and Btid contracts for each estate as in Phase One, the Trust has employed Bovis Construction Ltd as its construction manager, to manage the letting of contracts ti discrete packages for each estate (for example site security, demohtion of tower blocks, foundations, and superstructure work). The Trust considered this approach would give it greater control and flexibfity through letting sma~er freed price contracts directly to contractors. The Trust expects to use the flexibfity of this approach to manage its programme better, and to achieve efficiency savings of f300,000, compared to the estimated cost for Design and Btid contracts. This contract strategy is unusual for pubHc sector housing, where there is generally a
33 Waltham Forest Housing Action Trusti Progress in Regenerating Housing Estates
preference for price certatity. The approach leaves the risk of price increases with the Trust, which has sought to reduce the risks of uncontrolled changes in the spectication and delays by sepwately employing quantity surveyors, Dearle and Henderson Ltd. to assist them in reviewing the work of the construction maager, Bovis. By Aprfl 1996 the Trust had tendered the first seven packages for Phase Two works, at a totsd vahse of S9.9 mflhon, out of the total estimated Phase Two cost of E32.7 Won. The tenders were evaluated by B.ovisand Dearle and Henderson and awarded to the contractors submitting the lowest prices, which in W cases were below the Trust’s estimates.
3.31 Tbe National Audit Ofice found that the Trust’s decision to include responsibfity for completing the project management of Phase One in the Phase Two construction m~agement contract reduced the number of potential tenderers for the contract. Out of five companies invited to tender for the construction manager’s contract, two tithdrew because of the risks of taking over the Phase One work from Bovis. One of the three bids submitted was rejected following quahtative review, and the remaining two were adjusted so they could be compared on a hke for hke basis. The Bovis bld was selected by the Hust because its S400,000 higher cost was justied by its quahty. This approach to letting the Phase Two contract is hkely to have favoured Bovis, but brought the Trust the advantage of not having to deal simukaneously with two construction managers on the overlapping Phase One and Phase Two works. The Trust considered using Botis wmdd restit in an overd saving.
Management of the shortfaU in housing
3.32 The Trust identified a shortfaU between the number of properties to be built under the Masterplan, wd the number of secure tenants to be rehoused (pwagraph 2.6). The Trust considered several options for resolving the shortfaU in Phase One: refurbishing the tower blocks; alternative rehousing schemes; and the purchase of land to build additiond properties.
Refurbishing the tower blocks 3.33 The Masterplan allowed for the refurbishment of four of the thirteen tower blocks, at a cost of f24 mtihon, although they were not expected to be needed for the Trust’s secure tenants. By Septetier 1992 the Trust concluded that the two tower blocks on Chingford Hafl wd OHver Close Estates should be demohshed because they were structurdy unsound, but that the two tower
34 Waltham Forest Housing Action Trust: Progress in Regenerating Housing Estates
blocks on the CathaU Road Estate cotid sti be refurbished by tbe Trust or another social housing landord in order to retain the 200 tits.
3.34 In Jtiy 1995 the Trust re-appraised the options for tbe two CatbaU Road tower blocks. The Trust calculated the cost to a third party of undertaking the refurbishment for other social tenants, with a contribution from the Trust for rehousing some of its secure tenants, at E70,000 per property after taking account of rental income. The Trust found that no partners were interested in the scheme at this cost, although the Borough was concerned not to lose tbe social housing. The Trust ruled out the possibfity of refurbishing the tower blocks to meet its shortfa~ in new properties for secure tenants, because tenants did not tish to Uvethere and the flats did not meet the Trust’s need for fatiy accommodation. As a restit, the Trust did not compare the cost of refurbishment agtist the alternative cost of demo~sbg the two tower blocks and disposing of the site and purchasing other land adjacent to the estate for the building of additional homes.
Mternative rehousing schemes
3.35 To resolve the shortfall in Phase One, the Trust sought volunteers for various rehousing schemes from amongst the tenants.
● Voluntary transfer from Phase One to a later phase, involving a compensation payment of El ,500 to a tenant plus removal costs.
. Do It Yourself Shared Ownership, giving tenants a financial contribution towards a property purchased on the open market through a shared ownership agreement with a housing association.
. Cash Incentive Scheme, giving tenants a cash incentive to purchase a home on the open market.
● The Trust purchasing properties off the estates and refurbishing them for its tenants.
. The Trust purchashg rights for its tenants to transfer to a housing association’s new properties.
3.36 By 31 March 1996, most of the shortfa~ on Phase One had been resolved by 31 tenants opting to move back to later phases and 104 tenants opting for schemes involving a move off the estate (Figure 18). Of the latter, 23 were rehoused in properties pmchased on the open market, refurbished as far as practicable to match the
35 Waltbam Forest Housing Action Trusti Progress in Regenerattig Housing Estates
standards of the must’s new properties. The cost of these properties averaged E82,700, some 26 per cent more than the Trust’s original estimate. Purchasing these properties on the open market was considerably more expensive than the option of purchasing rights for tenants to transfer to a new home protided hy a housing association, which no tenants took up. The Trust is pursuing legal action against the contractor, who valued these properties purchased on the open market and costed the repairs, for faifure to provide accurate estimates.
Source: Waltham Fo~st Housing Action Trust
Note: (1) The Trust is pursuing Iegalaction against the contractor who estimated the value and cost of the refurbishment of these propetiies off the estates prior to their purchase.
Thirty one tenants have opted to move to a later phase at a cost of f50,400 and 104 tenants have moved off the estates at a total cost of f3.4 miltion,
3.37 To reduce its lifetime costs the Trust reviewed its plans and in the Corporate Plan 1996 put forward a strategy which involved increasing the number of tenants to be rehoused under these and other alternative housing schemes by 180. The revised plans provided for the rehousing of a total of 1,854 secure tenmts, 284 through sdternative rehousing schemes and 1,570 in new properties in the Trust’s area or adjacent sites.
Btilding additional homes 3.38 To resolve pat of its shortfafl in properties the Trust estimated that it coufd buifd additional homes on sites adjacent to its designated areas. The Trust pursued a negotiated arrangement with the Peabody Donation F~d and its subsidiary, Walthmn Forest CBHA, for the protision of up to 150 homes and a housing m~agement
36 Waltham Forest Houstig Action Trust: ProWess iu Regenerating Houstig Estates
sertice for the fiust’s properties. The Bust had made contact tith other housiug associations but they had expressed no titerest hr protidiug these homes tith the level of risk transfer re@ed. The arrangement was approved by tbe Department and Treaswy, and contracts were si~ed in March 1996. Detafls of the arrangement are set out in (Fi~e 19).
3.39 The total cost of this arrangement to the Tmst ~ depend on tbe outcomes of the ba~ots of tenants, which are to be held b 1998 and 2001, on whether to retmn to the London Borough of Waltham Forest or opt to transfer to Waltham Forest CBHAor another landford. The number of tenants opting for a Iandford other than the Borough W detertie the ammmt the Trust@ pay the Peabody Donation Fud for the freehold of the additional properties. At the same time Waltham Forest CBHAW pay the Must for those properties sold to it as a resuk of the temmt baUots. The Bust has based its Ufetime costs estimate of 2235 milhon on the assumption that 40 per cent of W tenants W opt to transfer to a landlord other than the Borough, tith receipts from the sale of these properties matchg its payments to the Peabody Donation Fuud for the freehold of the additional properties. Outside of the terms of the contract the Peabody Donation Fund has also a~eed that it til give any capital gain it makes from the arrangement to the Development Trust which Waltham Forest Houstig Action Bust is seeking to estabfish to sustati its commtity development work (para~aph 4.24).
3.40 In the discussion woups and meettigs tith Estate Steertig Group members the National Audit Office feud that the majority of tenants stated a stiong preference for the Waltham Forest Housing Action Trust to conttiue as thek landlord, tithout appreciating that the Trust is a tited-Me body. A few tenants stated they might vote to retwn to the Borough as a safer option than transferring to Waltham Forest CBHAor other potential lan~ords. Representatives from the Estate Steering Groups considered that tenants’ decisions W be based on rent levels; secwity of tenwe; right-to-buy arrangements; and perceptions of the fikely quahty of the housing management sertice.
Management of the community development programme
3.41 The commtity development strate~ was approved by the Depatiment of the Entioument h December 1992. The strategy has been concerned tith empowering tenants, maximizing the number
37 Wdtiam Forest Housing Action Trust Progress in Regenerating Housing Estates
WalthamForestHousingAction Trosf Waltham Forest CBHA Peabody Donation Fund
Corporate ldenfiW hmited life non-depatimental public body. Setup as a subsidiary of Peabody A registered housing association Donation Fund on 1 Aofll 1996.
Development Draw down loan of up to 215 Purshaae land and lend to arrangement milhon from Peabody to finance WaUham Forest CBHA up to the development of 150 homes(’)’ f15 milUOn ‘1) Under a building agreement with Wa[tham Fmeat Fund the Trust for the Leaae the land to Waltham Fmeat CBHA, act as lead agent, with Bovis acting as redevelopment of land a~acent to CBHA. construction manager, in building the 150 new the Trust and the building of 150 homes. new homas.
Housing Leaae the 150 properties developed by Waltham Upon their completion, lease the Management Forest CBHA. Lease payments based on 71/2per properties to the Trust. cent fixed rate interest on loan drawn down by Waltham Forest CBHA. Contract with Waltham Forest CBHA to run the Carry out the housing housing management sewice for all the Trua~s management sewice under tenanted properties. Remains the landlord of all contract to the Trust with effect tenanta until the vote for landlord choice. from 1 ADril 1996.
Transfer of the At the end of the lease period the Trust buys the Receives payment from the Trust Repayment received from properties freehold of all 150 homes developed by Waltham and repays the same amount to Waltham Forast CBHA of beWeen Forest CBHA. The cost depends on all tenants’ Peabody f7.5and 222.5 milhon depending votes for their choice of landlord. If the number of on tenants’ choice of landlord. tenants voting for a naw landlord othar than tha Borough is be~eem . 0 and 30 percent the Trust pays Peabody between 27.5 and fl 5 minion;
● 30 and 60 per cent the Trust pays Peabody fl 5 minion; and . 60and 100 percent, the Trust pays beween 215 and f22.5 million. Trust transfers properties to Waltham Forest Paya the Trust the tenanted CBHA in accordance with tenants’ choice of market value for the number of landlord, and receives income from the sale of propeties transferred. pmpertiea to the Aaaociafion(2)
Source: NatiorralAudO Office
Notes: (l) Acei/ingoff15mi//ion has beenp/acedonthe tinanceavai/ab/e fromthe Peabody Oonation FundtoitssubsidiaWto deve/opthe 150 homes. All monetary amounts presented in this Rgure are based on the aaaumption that the maimum loan of f15 million is drawn. (2) The~ustdisposes of theotherpropeflies tootherlandlords ortnnsfersthemto the Borough atzerom/ue, inaccordancewith tenants’ choices.
The Peabody Donation Fund is providing up to fl 5 million for the development of 150 new homes by Waltham Forest CBHA, under an arrangement with the Trust
38 Waltham Forest Housing Action Trust Progress in Regenerating Housing Estates
of tenants in employment, and improving the social and commnuity infrastructure. Tothie endthe Trust hasestahHshed a range of community projects, including careers advice and connselhng operates two trainiug centres; and provides grant fnndlng for other projects, such as childcare and worting tith schools, together tith an initiative to provide a community health centre on Ohver Close Estate. The restits of the programme have heen we~ received by tenants, and the Trust view ths area as key to the sustainabfity of the regeneration.
3.42 The National Audit Office fomdthat tie Trust's projects comphed tith its broad strate~. The major projects were approved in the strategy, buttithout afuRappraisal of alternative options to achieve the desired impact. M apphcations for community development grants were approved, folloting assessment of their releva.nc~ t.othe strategy buttithout benchmark for tbek costs and the levels of outputs expected.
On mana~g the housbg sertice . Rents ontie Trust's oldproperties have beenhozenatl99l-92 levels. The Trust’s rent co~ection rate of 94 per cent in 1994-95 waslowerthm the average foraU London Boroughs andstiar sized houstig associations inthe London region. Butthe Trust’s crdfection rate has improved to 97 per cent in 1995-96 (paragraphs 3.5-3.6).
. The level of accumtiated rent arrears had increased to El ,040,000 by 31 March 1996, of which the Trust estimates E879,000 is nsdikely to be coflected (paragraph 3.7).
. The Trust has reduced the levels of vacant properties, excluding those due to be demolished within a year, to two per cent of its stock (paragraphs 3.9-3.10).
. The Trust has undertaken catch-up and emergency repairs, restiting in repairs costs for 1994-95 being in excess of those of the London Boronghs and housiug associations in the London region. Repairs costs have reduced in 1995-96 (paragraphs 3.11-3.13).
. The Trust’s houeing management cost for 1994-95 was fi672 per property. The average costs of the Trust were lower than the London Boroughs, hut higher than houstig associations (paragraph 3.15). continued,..
39 Wdtham Forest Housing Action Trust Progress in Regenerating Housing Estates
On managing the redevelopment. . Phase One balding works were completed over a year after the initial planned date, at an estimated total cost of S52 tion. Best practice was fo~owed in letting the contracts (paragraph 3.20).
. The average unit works cost of Phase One properties is E73,500, some two per cent above the Housing Corporation’s benchmark for housing association properties of a stiar size, wtist housing associations achieved an average cost of 20 per cent less than the benchmark (paragraph 3.23).
. Higher design standards and choice for tenants of fities and fittigs account for some of the difference in cost, compared to housing associations. In addition, the Trust’s development work was carried out to high envirotiental standards and with the aim of minimizing long-term maintenmce costs. Properties were also bdt to high space standards (para~aphs 3.24-3.29).
. For Phase Two the Trust selected Bovis Construction Ltd as its construction manager, the supefior ~ality of their bid outweighing its higher cost. Construction management involves higher risks thm using Design wd Btid contracts, bnt the Trust has put extra controls in place and tbe fist Phase ~o contracts totalbg fi9.9 Wlon have been let at prices within the Trust’s cost estimates (paragraph 3.30).
. To meet the shortfaU of new properties for secure tenants, the hst has rehoused 104 tenants off the estates, hclu&g 23 who chose the option of tenancies in properties purchased on the open market at an average cost of S82 ,700. Over its remaining life the Trust assumes it ti rehouse a ftither 180 tenants off the estates md others in additiond new homes htit on adjacent sites (paragraphs 3.36-3.37).
. The Trust has entered into an’arrangement with Waltham Forest CBHA,a subsidiary of the Peabody Donation Fund, to btid up to 150 properties (paragraphs 3.38-3.40). continued...
(
40 Waltham Forest Houstig Action Trust Progress h Regenerating Housing Estates
[p.ri**g:~”w*ltY’defeloPrnerit:::::;,;::;:;:; ;::;:;:’::’;:: ‘:,.:; *,,,y,,,:T0,;3;1,March,1gg~,t~e$:~t,ha5 ;Pent ~3:1 ‘*o’n on a.~de. range of projects itied at empowering tenants. Wst these have been weU received md were in be tith the strategy, projects have not always had their costs md benefits My appraised (para~aphs 3.1, 3.41-3.42). Waltham Forest Housing Action Trust: Progress in Regenerating Housing Estates
Part 4: Effectiveness in regeneration
Introduction
4.1 At the time of the National Audit Office examination the Trust’s redevelopment programme had aheady ac~eved major changes to tie estates. Traditional streets of two and three storey terraced housing with gardens had replaced some of the medium and high rise tower blocks. The Trust had dso progressed its wide-ranging community development strate~, protiding training and employment opportunities; estabhsbing a network of chifdcme facihties; htising tith locaf schools; brin@g healthcare onto the estates; and developing community sertices.
4.2 This section of the report examines the progress the Trust has made towards achieting sustainable regeneration in the fist few years of its life. The Natimmf Audit Office assessed the effectiveness of the fiust’s regeneration work against the foUoting criteria
. how far tenants are satisfied tith the regeneration of the estates:
. whether the Trust has helped tenants into training ad jobs;
. whether crime has decreased on the estate; and
. whether the Trust has an exit strate~ to ensure that regeneration work is sustained. About expectations of the ~ust
~“We’ve got a built-in distrust, we don’t betieve any of it until we see it actually Tenants’ satisfaction tith the regeneration happening? of the estates About the physisal changes to the : estates 4.3 Tenants were sceptical at the outset of what the Trust cotid achieve, “We allflved in flats .. .. Now we’ve got although the Tenants’ Expectation Document addressed their something to look foward to, tike a concerns. The Trust has found to date that 91 per cent of tenants new home and a better environment.” are satisfied with their new homes. In the discussion groups run for “We’re trying to getaway from the the National Audit Office, tenants observed there had heen major idea of ita being an estate an~ay~ improvements to the environment on the estates. Tenants said that “lta nice to have a garden instead of a the new streets felt open, encoura~ng good neighborly relations balcony: and allowing improved parental supervision of children. Tenants
42 Waltham Forest Housing Action Trusti Progress in Regenerating Housing Estates
partictiarly valued having their om front door and garden, and believed that they wotid no longer face the stigma of htig on run down estates which restited, for example, in retailers refusing to deHver goods to theh homes.
4.4 The National Audit Office conRrmed tith tenants, through the discussion groups and meetings tith the Estate Steering Groups, that they appreciated the high level of consultation and involvement
“YOUibern to be treated more’hke a they had in the Trust’s work. They particularly welcomed being able human being than just a person who to have input into the design of the new houses and to choose the fives on the estate? decor of their own home. There was some evidence, however, that “I’ve met the architect s...they started tenants considered there was now too great a volume of interacting with us. And I don’t want to information, with some tenants saying they dld not read much of it. sort of boast, but a couple of my ideas On day-to-day concerns, tenants felt they could approach Trust staff were incorporated in the houses.” or go through Estate Steering Group members. At the time of the “YOUcome back in [to your house] discussion groups, tenants had not experienced the new housing and you got a load of paper there.” management arrangements under the contract tith Waltham Forest CBRA, and some participants voiced their concerns as to whether tenants had the skills and commitment required to take responsibility for such an organisation, The Estate Steering Group members were conRdent that as Board Members of the Association they wodd continue to ensure a responsive housing management service.
4.5 The Trust’s high level of constipation tith tenants has cost approtiately 8250,000 each year, the equivalent of over E1OOeach year per household transferred to the Trust, The Trust spent some S125,000 a year on tenant Haison under the redevelopment programme, covering the costs of newsletters, meetings and the administration of tenants’ choices for the decor of their new homes. Support for tenant participation under the community development programme has averaged E125,000 a year for the four years up to 31 March 1996. This included grants avera@g in total E52,000 per year to the four Estate Steering Groups for stationery, leaflets, administration costs and members’ expenses, The remainder was spent on training and development support for tenants. The Trust considered this level of resources was necessary because of the radical nature of the changes being made to the estates and to help ensure the regeneration efforts were sustainable in the longer-term. The London Borough of Wdtham Forest told the National Audit Office that it had budgets totalhng E1OO,OOOfor As part of tenant tiaison, monthly 1996-97 for supporting tenant participation amongst its newsletters am produced for each of 15,800 tenants. These supported tenant initiatives, a tenant the four estates. resource centre, a residents’ association and 38 tenants and residents’ groups,
43 Waltham Forest Housing Action Trust Progress in Regenerating Housing Estates
I 4.6 1[n the discussion groups tenants in emplo~ent were concerned ibout the sharp increase in rent for their new homes, from E39 per week to S62 per week (paragraph 3.5). Some tenants ;onsidered that the rents on the new properties represented good value for money, but others expressed concern about the impact of ~incentive to” go out and get work 1tigher rent levels on those who might be in a position to seek ~~because they thbrk, I couldn’t manage ?mployment. In addition, in the new homes tenants are required to when’1 was in a flat ao how am I ooino pay their utility bills directly, whereas many properties on the old to manage in a houseT - - ~states had district heating and water charges based on average consumption included in the rent. The Trust has endeavored to minimise utility costs in tbe new properties by designing the dweRings to high energy efficiency standards.
4.7 rhe number of tenants coming off Housing Benefit is one of the indicators for measuring the initiative’s success. In the Trust’s fist year, 1992-93, some 61 per cent of tenants were on Housing Benefit and it accounted for 56 per cent of the rent coUected. h 1995-96 the proportion of tenants on Housing Benefit had fa~en to 55 per cent and it accounted for a shghtly higher proportion of the rent collected, amounting to a totsd of some S2 milhon or 58 per cent of tbe rent collected. The Trust’s money counselors help tenants to claim benefits to which they are entitied.
Helping tenants into jobs and training
4.8 The Trust helps tenants into jobs and training by way of two main schemes. The Careers Adtice and Placement Project offers tenmts guidance and connselhng and helps them takeup trtig ad employment opportunities in the Hust’s schemes and in the tider community. The Trust also helps parents who are considertig taking up employment through offering a network of ctidcare places.
4.9 Aongside broader measures of the Trust’s impact, such as changes in levels of emplo~ent and household incomes amongst tenants, the estimated total number of jobs that the Trust has helped create till be required by the Department for the evaluation of the Housing Action Trust initiative. The Trust has set its contractors targets for employing tenants as part of their contractual obhgations. For Phase One the contractors met the Trust’s employment targets for trainees to account for ten per cent of their total workforces (16 per cent achieved), but had not met the 20 per cent target of skilled workers to be recruited locally (18 per cent achieved), or the 20 per cent Tsnants trained at the hngthorns target of the contract price to be procured locally (18 per cent Construction Skills Centre have gained achieved). To August 1996 all Phase ~o contractors were achietig employment on the @statebuilding well in excess of the 20 per cent local Iabour target, with monthly sites. averages ranging from 28 to 41 per cent. The Trust has recorded
44 Waltham Forest Housing Action Trust Progress in Regenerating Housing Estates
that in the three yems to 31 March 1996, some 307 tenants have taken up job opportunities provided by the Trust and its contractors or partner agencies. In addition 12 tenant run businesses have been estabhshed with financial assistance from the Trust since it was set UP. Most of these businesses we sole traders, but the number of tenmts found emplo~ent through these businesses is not known.
4.10 The Careers Advice and Placement Project maintains a s~s database of tenants who have registered and been provided with counse~ng and @dance on education, training and employment matters. Project stdf assess tbe re@ements of the tenant and make referrals either to the Trust’s two tratig centres, the Langthorne Construction SWS Training Centre and Trinity Park Business S~s Training Centre, or to other training colleges or employers (Figure 20). This re~stration helps contractors worting on the Trust’s estates to recrtit their local workforce.
Careers Advice ; and Placement ; Project , .—.,.— Information technologyand Construction adminiatrafimr courses 7 “x courses Langthorne ] Trinity Park ] Construction Skills i Business Skills ~ I Training Centre ~ Training Centre i .—— — .—— —.— —!
% -c
Source: National Audit Office
The Careers Advice and Placement Project helps tenants find employment or take up training.
4.11 To 31 March 1996 the Careers Advice and Placement Project had registered 1,742 tenants, and recorded that it had helped 561 of them into employment and a further 558 into training. The Trust’s
45 Waltbam Forest Housing Action Trusti Progress in Regenerating Housing Estates
training centres have separately recorded that 373 tenants had obtained qutilfications and 95 had gone on born their training into employment (Figure 21).
The trsining centres have recorded that 373 tenant trainees have obtined quahfications and 95 have gone on to obtain jobs up to 31 March 1996.
4.12 The Trust has not tracked tenants’ employment history after the Project has helped them into jobs. The National Audit Office therefore commissioned a telephone sumey of 45 tenants recorded by the Project as hating been helped into employment during 1994-95. The restits showed 13 tenants (29 per cent) had been incorrectly recorded by the Project as hatig been helped into employment by the Trust. Seven of these were stiR unemployed, and the other sk stated that they had obtained their jobs without the Trust’s assistance (Figure 22). The Trust befieves that it now has the systems in place to ensure greater accuracy in recording tenants’ employment history. The Trust dso intends to fo~ow up tenants on a sample basis after their initial job or training placement.
4.13 ~enty four of the 32 tenants (75 per cent) who had obtained a job through the Project were stiR employed over a year later in Aprfl 1996. Most of the eight tenmts who were no longer employed had come to the end of their contractor been made redmdant (Figure 22). These restits were better than those ~oted in research carried out by Glasgow University and ptiUshed in 1995’, which found that a high proportion of people found jobs through simRar housing related emplo~ent initiatives in Drumchapel and East Middesborough subse~ently returned to unemployment. About a third of the tenants in the National Audit Office sample had been
* Btitig futmes Cm localemplo~ent be createdfrom housingexpenditure? SAUSPublicationsh =sociationtiti theJoseph RommeeFomdation.1995
46 Waltham Forest Housing Action Trusti Progress in Regenerating Housing Estates
helped tito jobs k construction. Of these tenants, a lower proportion (65 per cent) were sti employed at the time of the survey. a restit which is more stiar to the Glasgow University findings.
~ Tenants interviewed ! aa pat of the sample (45) 1 Job offered but not accepted (2)
/i Obtained a job =9 . themselves P (6)
Source: Research Services Limited and National Audit Office
Note: (1) The Trust provided names of 139 tenants who had been found employment by the Careers Advice and Placement Project in 1994-95. Of these 74did not have up-to-date telephone contact numbers. The remaining 65 were surveyed, and 45 of these were interviewed, a response rate of 70 per cent.
Of the sample of 45 tenants interviewed, 32 found employment via the Careera Advice and Placement Project, and of these 75 per cent remained in employment one year later in Aptil 1996,
Childcare on the estates
4.14 The Trust attached importance to helping efisting cMdcare groups expand theti sertices and estabhsh new ones, so that there was a fuR range of provision of ctid-minding, nursery care, before and after school care, and out of school term creche facfities available to those in work or training. In 1995-96 there were nine cMdcare goups, protidtig nearly 170 places in over 50 sessions each week, supported by annual grants from the Trust amounting to E54,000.
47 Walthmn Forest Housing Action Trust: Progress in Regenerating Housing Estates
Tenants in the discussion -.mouus who had c~dren considered these were usefti in helping them look for work, and were especiaUy valuable to those tith short-term jobs who needed the faciRties at short notice.
4.15 The Trust has aimed to assist the cbifdcare groups to become self-standing, thereby increasing their chance of being sustainable. Tbe Trust is helping woups to btid the necessary management capacity and business planning to raise their ow income or to seek grants from other sources. As at 31 March 1996 none of the groups had become self-standing and the Trust extended its grants for a further three years. Funding from the must accounts for as much as 70 per cent of some groups’ income ad as htie as 11 per cent for others, titb income also coming horn charitable sources, the Borough and fees from parents.
Crime on the estates
4.16 The Trust aims to reduce the level of crime on the estates and achieve reductions in the fear of crime. The Feasibfity Study (paragraph 1.8) showed that when the Trust took over the estates, fear of crime was high, tith 60 per cent of tenants worried about experiencing crime. The actual crime rate was dso high: one fifth of households bad been burgled in the pretious two years, ttice the level for the rest of the Borough; and over 10 per cent of tenants had been assaulted.
4.17 To combat crime on the estates the Trust has removed the concrete podia which covered large underground car parks where muggings and assatits frequently occurred. The Trust has also improved the security of the old tower and medium rise blocks by providing additional fighting and more effective door locks. In designing the The Trust”rernoved potia, w~ch new estates the Trust sought to incorporate features which wotid covered car parks and finked the old help prevent crime: the street designs are open titb no a~e~ays; blocks, and converted them into safer parkkrg spaces are in sight of the properties; and aU new homes pedesttisn access mutes and have been fitted tith very secure locks. Tbe Trust has dso entered c~ldrens’ play areas. into a joint venture tith the local Pohce to test a community safety project, in which tenants are encouraged to mark their assets tith fluorescent pens to both discourage theft md tid their identiRcatimr sboufd they be stolen.
I 48 , r Waltham Forest Housing Action Trust Progress in Regenerating Housing Estates
Tenants’ perception of crime
4.18 In the discussion groups, tenants described how crime had been a major problem on the estates but that there had heen a decrease in crime since the Trust was estabhshed. This is also the conclusion the Trust has drawn from its surveys of tenants. The Trust found that 57 per cent of those surveyed in 1996 believed that there had been less crime on the estates in the pretious 12 months, whilst ‘They’re still dealing drugs on the 14 per cent thought there had been more and tbe remainder landings: responded that they did not know whether it had increased or decreased.
4.19 The proportion of tenants who perceive particular crimes to have been a problem has also generaUy declined, although the 1995 survey resdts had shorn an increase (Figure 23). In the 1996 survey the proportion of tenants in the old properties who expressed their concern about the crimes Hsted in Figure 23 was similar to the resufts from the 1995 survey, except for assatits and sexual crimes which concerned a sign~lcantly lower proportion of tenants than in the pretious year. Fewer of the tenants who had moved into new properties perceived the Hsted crimes to be a problem on the estates. OverW, the Trust’s suvey for 1996 showed that a majority of tenants stiU considered vandahsm to property to be a problem, but less than a third considered there was a problem from burglaries, car crimes, assadt, sexual and racial crimes. These overall results are affected by the survey results not being weighted to reflect the high proportion of tenants surveyed who had afready moved into the new homes (paragraph 2.18).
Reported level of crime
4.20 The National Audit Office analysed reported crime data protided by Leyton PoHce for the estates. Prior to the establishment of the Trust, the PoEce did not keep separate statistics on the levels of reported crime on the four estates. For the period August 1994 to December 1995, for which there was avaflable data, reported incidents on the CathW Road Estate accounted for 34 per cent of burglaries in the Leyton area and 43 per cent of car crimes, but there was no clear trend in the monthly figures (Figure 24). A simflar picture was presented by the data for the other estates. The PoHce considered that the bmglary rate might be expected to increase on the Trust’s estates in the future because the houses are more accessible than the flats had been. The PoBce also considered that, whilst car crime remained significant, it had decreased on the estate because of the measures taken by the Trust, but that there may have been some displacement of car crime to the surrounding area.
49 Waltham Forest Housing Action Trust: Progress in Regenerating Housing Estates
I
■ 1993 Suwey ❑ 1994 Survey ❑ 1995 Survev
Burglary Car Crime Assaulta Sexual Racial
Source: Waltham Forest Housing Action Trust annual satisfaction aurveya
Despite an increase in 1995 in the propotion of tenanta who considered crimes of all categories as being a problem on the estate compared to previous years, the overall trend has been a decrease overtime.
Number of reported incidents 20
15
Car Crimes 10 Burglary
5
Assault
o Aug Sep Ott Nov OecJan Feb Mar Apr May Jun Jul Aug Sep Ott Nov Oec —1994—. 1995 Source: Leyton Police
Duflng the period August 1994 to December 1995 the number of burglaries, car crimes and assaults repotied monthly on the Cathall Road Estate showed no clear trend,
Exit strate~
4.21 From the outset the Department expected Trusts to address their exit strategies from an early stage. In 1993 the Department issued guidance which stressed that the strate~es shotid address the
50 Waltham Forest Housing Action Trust Progress in Regenerating Housing Estates
Trusts’ statutory objective to encourage diversity of ownership and management of the properties, giving tenants a full range of options for the purchase of their homes or for selecting their future lan~ords. In 1993, in its fwst year of operation, Waltham Forest Housing Action Trust established a working group to consider its exit strate~. Various options were reviewed with the assistance of hdependent housing constitants, HAM Ltd. In 1994 the Trust, taking the advice of its consnftants, decided to pursue an integrated strategy of disposing of both housing and community assets to the same organisation. The Trust considered this would ensure the continuation of improved housing services and its wider regeneration work,
4.22 The Trust considered completing its work on site confd have been made more diffictit if tenants had started to vote on their future landlords, because it might then have had to deal with a variety of lan~ords. It decided, therefore, that tenants should be asked to vote once they had moved into their new homes in one of two baUots in either 1998 or 2001. This aUowed time for the Trust to help est~lish a tenant controUed organisation to gain experience of maaging the houstig, Wdtham Forest CB~, which would then be in a position to bid for tenants’ votes. The Borough informed the National Audit Office of its concern that tbe range of larrrRords which could resuk from tenants’ rights to make individual choices cotid make its responsibihty for some housing management more rfiffictit.
4.23 The detafled arrangements for tenants’ choice of their future lmdords and the disposal of the properties have not yet been determined. The Trust M make proposals which wfll require aPPrOval frOm the Secretary of State for the Environment. The Trust propose to offer tenants a choice between returning to the Borough, transferring to other landords or exercising their right-to-buy. Waltham Forest CBHA and other housing associations wiR be able to offer assured tenancies supported by the Tenants’ Guarantee, whRe the Borough wiR be able to offer continuation of secure tenancies. Potential future lan~ords, other than the Borough, ti make proposals for the price they wiR pay for the properties transferred and the rents they wiR charge tenants. Where tenants choose to return to the Borough the properties W transfer at zero value. The submission to the Treasury for approval of the arrangement tith the Peabody Donation Fund for the provision of up to 150 homes gave an assumed average tenanted market value for each of these properties of E25,000. Waltbam Forest Housing Action Trust Prowess in Regenerating Housing Estates I
4.24 In helping to set up Waltham Forest CBHA,the fiust has moved away from an inteWated efit strategy. Instead it is pmsning the formation of a separate Development must to carry forward community development work in conjunction with the Borough. The Trust’s aim is for the Development Rust to be m independent body, for the benefit of the Borough as a whole and to help reintegrate the estates back into the wider community. Capital funding is being sought from the Emopean Union, to set up a range of income generating projects to help the Development must become self-Rnancing in the longer term. These income generating projects include a partnership with Leyton Orient FootbaU Club to develop community facfities within the South Stand of tbek wound which is located close to Ohver Close Estate; tbe pwchase of shops with workshop spaces; and the refurbishment of w tidustrid estate for leasing as business units. The income generated wotid be used to finance community initiatives in tbe longer term. This wmdd include those started hy the Must, such as the Community Centres and childrens play areas. The must has dso introduced in its Corporate Plan 1996 a proposal to give the Development must a I S5 mil~on endowment. The Must considers this W be necessary because the projects it would hand over to a Development Bust, for example the Community Cen@es and the newly developed shops on the estates, will not be self-financing.
On tenrmts’ satisfaction
● Tenants are very satisfied with the changes to the entionment on the estates and the new homes (para~aph 4.3).
. Tenants have had the opportunity to be fnRy involved in aU areas of the fiust’s activities. The ‘fiust has spent S250,000 per year on Htistig with tenats and encowa~g their patiicipation (pmaWapbs 4.4-4.5).
. Tenants are concerned that their dfity to seek employment may he tiected by the higher rents on the new properties (average 862 per week, excluding water and heating chwges, compared to E39 per week on the old properties, incluting water and heatig charges). The proportion of tenants on Housing Benefit was 55 per cent in 1995-96 and the rent received from this somce represented 58 per cent of the rent collected (paragraphs 4.6-4.7).
continued...
52 Waltham Forest Housing Action Trust Progress in Regenerating Housing Estates
. The Trust’s Careers Advice and Placement Project recorded it had helped 561 tenants into jobs and 558 into training by 31 March 1996. A sample survey of those helped into jobs showed that 75 per cent were st~ employed up to 18 months later (paragraphs 4.11-4.13).
. In 1995-96 the Trust partiafly funded nine c~dcare groups, providing 170 places, in order to assist tenants seeking work or trating (paragraph 4.14).
On crime . The Trust’s 1996 survey found that 57 per cent of tenants believed there had been less crime on the estates than in the previous year. Over the period of the Trust’s work the proportion of tenants who perceive particular crimes to have been a problem has decreased. It is too early to be able to cotiwm changes to the trends in the level of reported crime on the estates (paragraphs 4.18-4.20). On the exit strategy . The Trust has an exit strategy in place to provide for the continuation of tenant involvement in housing management through Waltham Forest CBW; and community facfities through a Development Trust. The Trust is seeking capital funding for the Development Trust from the European Union and proposes to make it an endowment of E5 tilion (paragraphs 4.21 and 4.24),
53 Waltiam Forest Housing Action Trnsti Progress in Regenerating Honsing Estates
I
Appendix 1
Waltham Forest Housing Action Trust Tenants’ Expectations Document I
Tenanta’ repreaentafimr on the Board and voting tights should be There will be four tenant members on the Board and there will be clarified. separate ballots on the proposal for the Trust in each of the four estates. Rents, including service chargea, should be frozen st the Ievela in The Government accepted this proposal. existence on the date the propeties transferred over from the Borough, I until tenanta move into their new pmpetiea. Rents in the new pmpertiea should not be ~gher than the average The Government accepted this proposal. London Borough of Waltham Forast rants for similar proparfias. Right-to-buy diacounta should be retained. The Housing Act f988 ensures that tight-to-buy discounts are retained, and the Government confirmed that discounts will take account of tenants’ time with the Council. Tenanta’ right to be involved in estate management should be The contents of the Tenancy Agreement would be a matter for guaranteed in the Tenancy Agreement. negotiation between the Trust and the tenants. Rent arrears incurred prior to the tranafer of pmpertiea to the Trust To be resolved as pafl of the exercise to identi~ the total value of the should remain the responsibihty of the Borough. estates on tranafer. Relocation expenses should fully compensate tenanta for their removal Tenanta would be appmptiately compensated. coata and associated expenses. Double decanting ahmdd be avoided and should only occur with the The Trust would be expected to arrange for tenants to move directly residen~s agreement. from their existing accommodation into new housing. The Iettinga pohcy drawn up by tenanta should be agreed. The contents of the Iettings pohcy would be a matter for negotiation between the Trust and the tenants. Existing tenants will ba rahoused in tha naw dwalhngs before Ietings The Government expects the Trust to give first ptioti~ in Ietings to the are made to other people. rehousing of existing tenants. There should be suficient homes for all existing tenanta. It is the responsibility of the Trust to ensure that sufficient housing is provided for all existing tenants. The Borough should have guaranteed nomination tights to available It is the statutoy responsibility of the Treat to co-operate with the housing after all existing tenants have been rehoused. London Borough of Waltham Forest on Ieffinga for the homeless, and relet accommodation pending redevelopment.
Essential maintenance and repairs will be carried out until the major It ia the reaponsibilify of the Trust to undetiake repaira and consider redevelopment works go ahead. which impmvementa best represent value for money. The building works will be to an agreed and pubhshed programme. The Trust will consult on its pmgramme, and pubtiah it prior to the vote to establish the Treat.
All the new housing will be available for renting Housing will be available for letting to existing tenants, who may wish to exercise their tight-to-buy or take up shared ownership. continued...
54 Waltham Forest Housing Action Trust: Progress in Regenerating Housing Estates
Ths architects, Hunt Thompson Associates, will be retained and no’ The amhitests will be retained to complete their work, after which time changes made to the proposed schemes without consulting the tenants, they would be required to tender for future work. Building works will be organised to minimise nuisance, hmards and In addition to the atatuto~ requirements, the Trust will introduce pollution. specific requirements to the building contracta in order to minimise nuisance, hmrds and pollution. Money for the project should be guaranteed The Government firmly intends to provide the necesaa~ reaourcea to ensure that redevelopment can be completed and to allow social and economic problems in the area to be tackled. Tenanta should be able to trsnafer their tight-to-buy discount to the The Trust will consider whether they will offer cash incentives to tenants purchaae of a prope~ on the open market. to buy pmpeties off the estates. Housing benefit entitlements should not be changed. There is no reason why entitlements to housing benefit should change. The Trust should adopt the tenants group’s Equal Oppotiunities Policy. The Trust will meet statuto~ equal oppmtunitiea requirements and consult tenanta on ita policy. The Trust should strive to create jobs locally and promote community This falls within the Trua~a atstutmy objectives and funding will be enterprise. available for such work. Tenants should have the fight to choose their future landlord. The Trust will ensure that all existing tenants have the tight to chose their future landlord.
Source: Waltham Forest HousingAction Vust
55
1, Waltbam Forest Housing Action Trust Progress in Regenerating Housing Estates
March 1995 Hand over of tbe first houses completed as part of Phase One to tenants on OEver Close and Boundary Road Estates. I
/ June 1995 Trust receives award from the Tenants Participation Advisory , Sertice for excellence in involting its tenants. ,,
Jdy 1995 Community Centre, built by the Trust, opens on CathaU Road Estate. I
December 1995 The Trust achieved recognition as an Investor in People.
March 1996 Arrangement tith the Peabody Donation Fund and its subsidiary Waltham Forest CBHAfor the protision of 150 homes receives Treasury approval and is signed. Tbe Trust also contracts with Waltham Forest CBHAto protide its housing management sertice. I The Association take over the employment of the Trust’s housing management staff. \ I
December 1996 The Trust receives the Department’s decision on its planning figure I for its lifetime grant-in-aid and confirmation of its proposed tind-up date of 2001-02.
1998 Proposed date for the first ballot of tenants on their future lsmdords.
2001 Proposed date for the second haOot of tenants on their future landlords and completion of the Trust’s work.
2002 Trust’s latest tind-up date in its Statement of Proposals.
Source: Waltham Forest HousingAction Trust
58 Waltham Forest Housing Action Trust Prowess in Rcgcncrattig Housing Estates
Appendix 3
The sh Housing Action musts
grant-in-aid f million
Noflh Hull Jamraw 1998-99 2,084 Predominately ● Refurbish pmpeties, with a 115 (designated 1992 unmodernised small number of new build in July 1991) pre-war housing, conjunction with housing comprising 2 and 3 associations. bedroom cottage . Projects to suppoti parents type houaea. and children. Trust has worked alongside Age Concern, developing suppmt services for elderly tenants. Also working towards improving job oppotiunifies for tenants. Waltham Forest, Aptil 2001-02 2,422 Four estates . Replacement of tower and 227 London 1992 comprising mostly other blocks with new homes. (designated medium and high . Settbrg up of training centres December 1991 ) flse tower blocks. and a Careers Advice and Placement Project, providing better ctildcare and health facilities, hverpool October 2004-05 5,337 67 tower blocks . Eatensive work on catch up 260 (designated 1993 and 10 low flse repairs and refurbishment, FebruaW 1993) blocks, dispersed Replacement of some tower over 35 sites, blocks with new homes. . COmmuni~ sewicea focus on tenant suppofi, social and health care and economic development. continued..
59 Wdtiam Forest Housing Action Trusk Progress ti Regenerating Houstig Estates
date transferred f million
Castle Vale, March 2004-05 3,423 One estate with a . Refurbishment of properOes. 205 Mrmingham 1994 mixed stock of OemoUfion of some tower (designated houses, some low blocks, and new build often in I June 1993) rise and 34 tower conjunction with housing blocks. associations. . Partnership arrangements with employers and other employment inifiativea to help tenants into jobs and training; community health work and improving tenants’ access to leisure facitifies. Tower Hamlets, March 2004-05 1,629 Mifiure of low rise . Mainly new build housing, after 123 London 1994 and tower blocks. demolition of majority of (designated existing stock. June 1993) . Provide training for tenants and maximise the number of tenanta in employment. Stonebridge, London August 2004-05 1,777 170 town houses, . Some new build. Full strategic 165 (designated 1995 6 tower blocks and plan not yet approved. 7 low rise blocks. . July 1994) Communi~ strategy still under development.
Source: flatiorralAudit Ofice
60 Waltham Forest Houstig Action Trust Progress h Regenerattig Houstig Estates
Appendix 4
Core performance measures reported by Waltham Forest Housing Action Trust
Improve the physical condition of the housing stock . Percentage vatiance of outturn against / / approved estimates since last suwey. . Management and maintenance unit costs / / of dwellings duting laat financial year, . Average capita value of dwellings in the 8 / Trust area (above basehne prices). . Pflvate capital investment- ratio of private / / sector capital to Trust capital, . Propotion of tenants who feel that their x x The Trust surveyed its tenants’ views of the old accommodation is of an acceptable size properties at the outset and concluded there was no and standard. need for futiher measurement. The Trust surveys tenan~ satisfaction with their new homes,
Effective management and maintenance of the borrsing stock . Unit cost of Trust management as a x / First reported in Corporate Plan 1996, The Trust had pmpotion of CIPFA average costs for the previously taken consultant advice that ik aPPrOptiate cate90ry of authmi~, during management coats were not comparable to those of the last financial year. local authorities, because the Trust did not have the advantage of economies of scale and the quahty of the housing stock waa particularly poor.
● The proportion of the total amount of rent # due which has been collected duflng last financial year, . Administrative cost of rent collection as a x Repotied in Corporate Plan 1995 proportion of the rent collected duting last financial year . Propotion of responsive repairs completed x within targst fimss.
● Proportion of tenants who say they are Y satisfied with the repairs and maintenance service. Waltham Forest Housing Action Trust: Progress in Regenerating Housing Estates
Improve the social, hving and environmental conditions in Iha area . Number of full time jobs tilled by tenants as a percentage of the number of full time iobs I created. . Percentage of tenants banded in age categories of 16-17,18-24,25-40,41 plus years, taking up training places and vocational experience with which Careers Advice and Placement Projects have Unks. . Percentage unemployed in Trust area The Trust has not been able to identify a source for compared with regional trends. unemployment statistics for its estates. . Average incomes of households Hving in The Trust considers that information collected on the Trust area compared to the average household income would not be very accurate and regional male manual earnings. therefore provide an unreliable measure. . Number of childcare places provided by the x The Trust has no readly available data on the demand Trust as a proportion of demand. for childcare places, but collects information on the number of places provided through Trust suppomed initiatives. . Percentage of dwelings and commercial Substitute measure reported in Annual Report btiltings where securiu ie adequate. 1994-95. . Percentage of tenants with fear of crime (for instance assault, burglary and car crime). . PrOpOflOn of tenants expressing satisfaction with the rapair and cleanness of the environment in the area. . Proportion of tenants who say they hke The Trust has never asked tenants this specific hving in the area. question, but has asked them what they fike and diaflke about the estates.
. Propotion of tenants expressing an x The Trust haa never asked tenants this specific intention to remain hving in the area for question but has asked them what they hke and five years or more. distike about the estates.
62 Waltham Forest Hmrstig Action Trust Progress h Regenerattig Housing Estates
Provide a wider choice of tenure and forms of ownership of dwellings
● Number and percentage of tenants who say @ @ they are happy with the information given to them in respect of tenure choice,
✎ Proportion of planned right-to-buy sales 8 @ The Corporate Plan gives a planned target for completed. right-to-buy propeties stating in 1996-97.
✎ Percentage of dwelhngs soldffransferred @ @ out of the pubhc sector for owner occupation or to housing associations for renting.
✎ Percentage of dwellings sold/transferred @ @ out of the public sector to private landlord for renting.
✎ Number of speculatively built homes @ @ constructed.
✎ Percentage of Woes. of tenure in the Trusts x x The whole of the Truafa area is occuoied., bv ik area. tenants. The Trust considers the measure will become relevant when a significant number of tenants exercise their right-to-buy m take up their future landlord options following the ballots in 1998 and 2001. Key d Core petimmance measure shown in the document / Subtitute measure shown in the document Not shown in the document & NotrelevanttotheHfestage of the Trust Source: Depaflmerrt of the Environment, Wa/tham Forest Hmrs\ngAction Trust and NationalAudit OMce
63 Waltham Forest Housing Action Trust Progress in Regenerating Housing Estates
Appendix 5
Methodolo~ for comparing Waltham 1 Forest Housing Action Trust’s unit costs to ; the Housing Corporation benchmark, the Total Cost Indicators
1 The Housing Corporation have developed a benchmark, known as the Total Cost Indicators, for judging the value for money of housing associations’ apphcations for Housing Association Grant for new social housing. On completion of a scheme, the Homtig Corporation ~ not pay grant of more than Mlrty per cent above the benchmark. The benchmark figures are updated each year to reflect changes in building costs.
2 The National Audit O~ce compared the estimated Waltham Forest Housing Action Trust costs of construction for Phase One and Phase Two, against the comparable benchmark for housing association developments in the London region. This was the benchmark used by the Housing Corporation for judging housing associations’ bids for grant for developments w~ch cotid be expected to be buift in 1993-94 and 1994-95. They were therefore the benchmark whch appfied at the time when the Trust fmahsed its Masterplan and cost plans as approved hy the Department of the Environment.
3 The comparison involved the following stages:
. Calculation ofthe,?fus~~(. Thi:unit costs. were calculated tidng:the.~rus!$ total costs,, ‘., unit costs including “:. including an allowance for fees aid overheads, ii, :. on-costs. accbrdarice with the Housing Corporation procedures.’ . Calculation of the Trus~s Enabhng works will be reflected in the purchase price for a unit costs excluding site site, and so were excluded for comparison against the related work and Housing Corporation benchmark for works only projects. non-housing related 3ite related costs excluded for the Trust were the costs of items. building retaining walls a sound reduction wall on the Chingford Hall Estate where it borders the North Circular Road; diverting Iocsl authoriu district heating system: and undetiaking miscellaneous works outside of the estate. continued..,
64 Waltham Forest Housing Action Trust Progress in Regenerating Housing Estates
~ie;ruA:5bi;gngwork5included:n0n:h0ugngr~ated ~ :,::;,
‘items,relatedto’:ik’ yid~ regbriemtion ‘role wtiih wire. excluded for the otiroosss of the comnatison. These included the co~s o; tenant training requirements within the building contracts; cMldrens play centres and equipment on two of the estate? temporary estate offices replacement shops on the estate$ and Community Centres. . Calculation of the average The average benchmark is based on the sum of the benchmark for properties benchmark costs for pmpefles of similar size for each of of the same size. those built by the Trust. The benchmark costs included additional allowances in respect of wheel chair housing and sheltered housing as appropflate. A deduction of 1.5 percent was made from the benchmark because the Trust used Design and Build contracts. The National Audit OffiCe used a reduced deduction, rather than the 3 percent usually used by the Housing Corporation, because the Trust carfled out much of the design work mther than rely on its Design and Build contractors. . Calculation of the average The size of the propem is the defining characteristic for the benchmark for properties Housing Corporation benchmark. However, for each size of with the same probable prope~ in the benchmark fables the Corporation identify a occupancy. probable occupancy. The Nsfional Audit Office calculated the average benchmarkfmm the sum of the benchmark costs for the largest pmpeties with the same probable occupancy as the Truefs homes.
4 The Housing Corporation collect data on all housing associations’ development costs compared to the benchmark, and calculate an average. The ti of properties in the houeing association average till differ from that of the Trust’s properties,
Source: National Audit Office
65