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Local Delivery Process PART 2 Community Green Deal A process forPART 2 local delivery in communities Community Green Deal A process for local delivery in communities PART 2 Community Green Deal A process for local delivery in communities Companion Guide Nick Dodd and Charlie Baker URBED Overview of the presentation • Our brief • Methodology • The need for a local delivery process • How the process could work - Key enabling requirements - Examples Community Green Deal programme • Developing the financial model Housing area work stream brief ‘To develop and publish a Model Management Standard for the Management and Coordination of Retrofit and Neighbourhood Improvement Schemes for Housing Areas, including both Social and Private Sector Housing, led by or closely engaging Social Housing Organisations and Pathfinders.’ Methodology • Pioneering community-scale projects • Workshops and steering groups • Four ‘for instance’ example communities - Walsall, Birmingham, Stoke-on-Trent, Shropshire • Outline financial modelling - Supported by Grant Thornton The policy context for delivery • The Government’s ‘Green Deal’ - Private sector delivery according to the ‘Golden rule’ • Local Authority climate change action plans - Providing an overall driver for domestic carbon reduction? • Locally adopted targets and standards - For example, the ‘Beyond Decent Homes’ standard • Potential ‘Community Green Deal’ delivery bodies - Social landlords pool resources in order to attract finance The need for a local delivery process • It will need to be street by street, house by house • Effective local delivery to drive take-up and buy-in • Must engage owner occupiers and private landlords • Building trust to respond to a complex challenge: - The technical solutions and whether they work - Financial products and loans to pay for work - How works will be managed and by whom - Who will benefit from FIT/RHI income A questionFigure 2.1 of trust? Bodies trusted to deliver ‘sustainable community infrastructure’ % Local authorities 24% National Government 20% A local community group coming together to form a co-operative business model 14% A newly set up local utility company, working in partnership 13% Regional Goverment 10% The main gas & water utilities 7% A newly set up local utility company 7% None of these 3% Other large company expanding into this area (e.g. Tesco) 1% Source: Ipsos MORI (2009) 2.2 How the model could work ! Managing complexity: Existing stock ‘on the ground’ improvement programmes will need to be tailored to the distinct property archetypes The funding and delivery of community-scale found in each local area, and in response refurbishment programmes is a complex to the distinct concerns and aspirations of challenge. To do it successfully a model is each local community. The model should needed that works at a number of levels to therefore support communities to identify address the needs of participating and design a replicable refurbishment ‘kit communities and funding providers, and to of parts’ which can then be used to build support investment in the supply chain. the supply chain. Based on research we have identified four ! Building trust: The ability to fund main challenges which the model would need refurbishment programmes will depend on to address: the level of take-up by communities, and this will only be forthcoming if there is a ! Controlling cost: Unless economies of good level of trust that the refurbishment scale (and concentration) can be achieved will be carried out to a high standard and the cost of delivering programmes will be that everyone will share in the benefits. too high and additional Government The model should therefore bring together subsidy will be needed. The model should trusted local partners to ensure the therefore aggregate existing stock success of programmes. improvement programmes, enabling procurement processes to be standardised and partnerships with lead contractors developed. 28 Building block 1 Identifying opportunities and needs Marketing, arrangement, co-ordination and delivery of home energy saving programmes will by necessity have to take place in streets and neighbourhoods across communities. Community champions and trusted local delivery agents will be essential to reach out in order to identify the opportunities and needs, and to promote the benefits. Existing stock improvements and home opportunities and the needs for improvement energy saving programmes will need to be on the ground. delivered ‘on the ground’ in local communities. Because it could involve Areas of focus would be agreed with the significant disruption it will be essential to Local Authority and social housing landlords, work directly with communities, rather than reflecting the communities perspective on treating it as a large scale housing how improvements should be selected, management exercise. targeted and marketed. The process by which communities are Community champions could be constituted engaged in the financing and delivery of into a Community Green Deal steering group works will underpin the Community Green or association to which delivery bodies would Deal model. For instance, community be accountable. This could be based on.a set champions together with local organisations of model rules and structures could be directly involved in identifying the PerceptionsTable 2.1 of target communities Different perceptions of what a target ‘community’ is… From the point of view of people living there… Neighbourhood, village, street or close From a Local Government point of view… Ward, regeneration framework or intervention area From a Housing Managers point of view… Estate, archetype or tenure From a utilities point of view… Super Output area, housing blocks or hard to treat properties 31 Castle Vale HAT, Birmingham Northmoor, Manchester Plymouth Grove, Manchester Summerfield, Birmingham Goole, East Riding of Yorkshire Aberdeen Heat & Power How the process could work Phase 1: Sub-regional scale Phase 1 activities Phase 2: Community scale 2.3 Developing the financial model A detailed financial model has been order to create revenue streams and an developed for a Community Green Deal asset base, programme using one of the four example areas as a template. ! Household electricity and gas consumption is ‘deemed’ for a mix of The model suggests that a programme of archetypes, with the figures weighted to approximately 3,000 properties could be reflect the average household financed over a 25 year term with an interest consumption for selected Mid Layer Super rate of 5.25%. This is based on programme Output Areas. delivery by a Delivery Body working across several communities. ! Households repay the cost of whole home improvements over a 25 year term with the The model is intended to reflect the potential payments calculated to be at least 80% of benefits of a community-scale programme. It the average ‘deemed’ energy savings, takes the activities set out by the local with the remaining 20% being kept by the delivery process and creates a 25 year cash- household, flow for the programme. The model is based on the following basic assumptions: ! A reduction in on-costs and capital costs is achieved over time through economies ! Investment in technologies that are eligible of scale, learning by contractors and for Feed-in-Tariff (FIT) and Renewable Heat supply chain development. Costs start at Incentive (RHI) revenues is front loaded in an average of £31,301 and decline to £13,273 per home. WorkingFigure 2.2 together to drive take-up Indicative cumulative programme take-up by tenure WP5 In!uencing & regulating private landlords OO WP4 Supporting WP3 other occupiers Cross tenure RTB WP2 streets WP1 Investing in Pilot home social housing PL makeover cumulative number of properties Social Housing SH Programme Completion time Programme Completion OO! Owner Occupier PL! Private Landlord RTB ! Right to Buy SH! Social Housing 65 Phase 2 activities Seven key enabling requirements 1. Legal agreements and financial products 2. Project management to manage complexity/timing 3. Procurement protocols for contractors and utilities 4. Customer care charter to build trust and confidence 5. Evolving specifications and components for archetypes 6. Standardising Building Regulations and planning 7. Ongoing maintenance and aftercare Four example programmes Example area 2 Northfield, Birmingham Map 2.1 Northfield housing archetypes Northfield is a suburb in the south of Birmingham. The area of Northfield chosen 125 predominantly consists of Council housing stock and the distinctive Austin Village. Although a relatively stable community it is still recovering economically from the loss of the nearby Longbridge car plant. Start-up from the local community including the Small-scale phase Northfield Eco Centre and the Hampstead House community centre to Birmingham City Council would act as a bring forward a pilot Community Green Community Green Deal ‘Delivery Body’ Deal area – with a focus on three specific bringing together other Housing super output areas. Associations and private landlords that own and manage stock within the city. Each partner in the bid makes an early The body would enable the City and other commitment to arrange pilot whole home partner landlords, to cost effectively improvements. Working with the finance and deliver Community Green Community Green Deal Delivery Body the Deal programmes. City Council would also run a competition amongst the right to buy owner occupiers The City Council would join together with to provide a number of subsided whole Midland Heart, the
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