Board Agenda – 12 February 2020

BOARD AGENDA – 12 FEBRUARY 2020

ITEM AGENDA ITEM ACTION PRESENTED BY PAGE NO TIME Attendance & 1 Noting Chair 3 Apologies 2 Declaration of Interest Noting Chair -

3 Minutes - 5.30pm

Minute of Meeting 19 3.1 Approval Chair 5 November 2019 - Head of 3.2 Action Sheet Noting 9 Executive Office 5.45pm Date of Next Meeting 4 Approval Chair - 18 March 2020 Director of 5 Health & Safety Approval - Operations

ITEM AGENDA ITEM ACTION PRESENTED BY PAGE NO TIME

6 Items For Decision - Business Plan 6.1 Approval Chief Executive 10 5.45pm Consultation

6.2 Budgets 2020/21 Approval Director of F&CS 22 - Asset Management Director of 6.3 Approval 44 Strategy Consultation Operations 6.15pm Management Report to 6.4 Approval Director of F&CS 86 31 December 2019

ITEM AGENDA ITEM ACTION PRESENTED BY PAGE NO TIME

7 Policies & Strategies -

7.1 Health & Safety Policy Approval Chief Executive 108 Fraud Policy & Fraud 7.2 Approval Director of F&CS 124 Checklist Investment Programme Director of 7.3 Approval 138 Monitoring Report Operations 6.15pm

7.4 Whistleblowing Policy Approval Chief Executive 143 - Procurement Policy & 7.5 Procurement Strategy Approval Director of F&CS 155 6.45pm 2020/21 7.6 Time of in Lieu Policy Approval Chief Executive 181 Head of 7.7 Parental Leave Policy Approval 189 Executive Office Director of 7.8 Asbestos Policy Approval 197 Operations

ITEM AGENDA ITEM ACTION PRESENTED BY PAGE NO TIME

8 Monitoring Reports - Performance Monitoring Verbal 6.45pm 8.1 Noting Chief Executive Report Update Quarterly Treasury Report - 8.2 Noting Director of F&CS 209 to 31 December 2019 Development 7.00pm 8.3 Noting Chief Executive 215 Programme Update

MEETING GOES INTO PRIVATE SESSION

Agenda Item 1

Board Meetings 2019/20 Board Members Notes 29-Aug-19 19-Nov-19 Norman Macleod 2 Calum Mackay Alasdair Mackenzie 1 Alexander Gardner 1 David Blaney Fiona Macleod Iain Macmillan Norman A Macdonald Paul Finnegan Roddy Mackay Roddy Nicolson Mairi Bremner 3

1 - Appointed as a Tenant Member on 29 August 2019 Member present at meeting 2 - Appointed as a Community Member on 29 August 2019 3 - Mairi Bremner passed away on 22 September 2019 Member not present at meeting

Cancellation of travel due to weather/ technical problems

Member not required to be present at meeting

Special Leave Board Training 2019/20 Freedom of Information Board Members Notes Training 20-Nov-19 Norman Macleod 2 Calum Mackay Alasdair Mackenzie 1 Alexander Gardner 1 David Blaney Fiona Macleod Iain Macmillan Norman A Macdonald Paul Finnegan Roddy Mackay Roddy Nicolson Mairi Bremner 3

Cancellation of travel due to weather/ technical problems Member not required to be present at meeting

Special Leave S Agenda Item 3.1

HEBRIDEAN HOUSING PARTNERSHIP

Board

Minutes of Meeting held in HHP Board Room, Creed Court on Tuesday, 19 November 2019 @ 5.30pm

ATTENDANCE & APOLOGIES

1 Attendance & Apologies Present Staff & Consultants In Attendance Norman M Macleod (Chair) Dena Macleod (Chief Executive) Calum Mackay (Vice Chair) John Maciver (Director of Operations) Roddy Mackay Donald Macleod (Director of Finance & Corporate Services) Roddy Nicolson Anna Coyle (Head of Executive Office) Norman A Macdonald Jonathan Fairgrieve (Corporate Services Officer – Minute Taker) Fiona Macleod (via telephone) Donalda Mackinnon (Area Manager) Alex Gardner Katia Petteloot (Finance Manager) Paul Finnegan Angus MacNeil (Assets & Contracts Manager) Isabel Macmillan (Debt Management Officer) Apologies Peter O’Donnell (Investment Manager) Iain Macmillan Gary Macleod (Service Development Manager) David Blaney Angus Smith (Corporate Resources Manager) Sawan Morrison (Fixed Asset Accountant) Tina Cook (Training & Development Officer)

As this is our first Board Meeting since the passing of long standing Board Member, Mairi Bremner, Norman Macleod took the opportunity to pay tribute to Mairi and a minute silence was observed by all present as a mark of respect. Roddy Nicolson was nominated to fill the Community vacancy created by the passing of Mairi Bremner and he accepted this nomination.

The Board noted that earlier in the day Roddy Nicolson had been appointed at Chair of the Audit & Risk Committee and alongside Roddy Mackay as Vice-Chair.

Nominations were taken to fill the vacancy on the Audit & Risk Committee. Calum Mackay nominated Iain Macmillan which was seconded by Roddy Mackay. As Mr Macmillan was not present the Company Secretary was asked to confirm if his nomination is accepted.

PRELIMINARY PROCEDURAL MATTERS

2 Declaration of Interest No declarations of interest were made.

3.1.1 Minute of Board Meeting 28 August 2019 The minute of the Board meeting of 28 August 2019 was submitted and approved as a true and accurate record of the proceedings of the meeting.

3.1.2 Minute of Board Meeting 29 August 2019 The minute of the Board meeting of 29 August 2019 was submitted and approved as a true and accurate record of the proceedings of the meeting.

3.2 Action Sheet Nothing to report. The Action Sheet was noted.

4 Date of Next Meeting The date of the next meeting will be 12 February 2020. The Chief Executive took nominations to attend the CIH Annual Conference on 3 & 4 March 2020, Alex Gardner expressed interest in attending. Calum Mackay was nominated to present long service awards to staff on 13 December 2019.

5 Health & Safety The Director of Operations advised Board Members the flagstones outside the office had been repaired. ITEMS FOR DECISION

6.1 Budget Timetable 2020/21 The Budget Timetable 2020/21 was presented to the Board for consideration and approval including rent consultation. The Director of Finance & Corporate Services advised members that a meeting of the Finance Working Group had been scheduled for 18 December 2019 to discuss the rent consultation. Mr Calum Mackay and Mr Alasdair Mackenzie raised concerns about the consultation period. It was agreed that this would be discussed further at item 7.1 on the agenda. The Board approved the 2020/21 Budget Strategy for consultation, including the Budget Timetable.

6.2 Board Skills Assessment & Board Training Plan The Report advised of the outcome of the Board Skills exercise carried out in September and October 2019 and detailed a training plan which took account of Board Members’ responses. The report also sought approval for delegation to be given to the Chair and Chief Executive to finalise the 2020 Board Development Plan following the Development Session. The Board: a) approved the Draft Board Training Plan; b) agreed that the development session led by the Chair would be held on 12 December 2019; and c) delegated responsibility for finalising the 2020 Board Development Plan to the Chair and Chief Executive.

6.3 Management Report to 30 September 2019 The Finance Manager presented the Management Report to 30 September 2019 to the Board for review. The Board were asked to note the Management Report and to approve that savings of £140K on interest paid be vired to reserves. The Director of Finance & Corporate Services advised budgets are set on a basis of assumptions. Any delay to development would therefore have an impact on rental income if we cannot occupy the property in line with the assumptions made in the budget. The Chief Executive advised some delays are down to site availability and not necessarily contractor default. The Board: a) noted the Management Report to 30 September 2019; and b) approved savings of £140K on interest paid be vired to Reserves.

6.4 Investment Programme 2020-22 & 2019/20 Update The Investment Programme for 2020-22 was presented for approval. The Assets & Contracts Manager proposed the approval of a two year Investment Programme to assist the packaging and procurement of works and potentially deliver some savings. It was proposed that some works packages be procured for two years. An update was provided on the 2019/20 Investment Programme with no issues to report. The Assets & Contracts Manager advised members that the Occupational Therapy (OT) Aids & Adaptation budget was fully committed for the remainder of 2019/20. It was proposed to vire £30K to the OT Budget for referrals and avoid waiting times. The Board approved: a) the Investment Programme for 2020-22; b) tendering of up to 80% of the Investment Programme subject to work not being committed until budgets are agreed in February 2020 and 2021 for respective annual programmes; and c) a virement of £30K to the Occupational Therapy budget from the Investment Unallocated budget to enable works to progress during 2019/20. The Board noted: d) the 2019/20 Investment Programme progress; and e) the financial update.

6.5 Development Programme Update The Development Manager provided an update to the Board on the progress with the Development Programme 2018-21. Members were advised there is a risk that the remaining phase at Mackenzie Avenue may slip into January 2020. There was no further update to the briefing issued to the Board week beginning 11 November 2019 on Tarbert. The Low Flyer, Balivanich was in a similar position. The contractor for Torlum and Winfield Way was being pushed for site start as soon as possible. The contract for the Scotland Street, Stornoway site had been agreed and signed with a view to a September 2020 handover. The Board agreed the purchase of land made available by the Church of Scotland in Barra and also to progress the development of the Garrabost Care Unit, An Glib site. The option for the name of the Scotland Street development were considered and it was agreed that Lady Matheson Court would be the name of the development. A supplementary Board Report detailing possible developments in Barvas and Shawbost had been prepared. Members agreed to take this paper in Private and Confidential due to commercial sensitivity. The Development Manager advised members the interest in the Shared Equity properties being built at Pairc Niseaboist, Horgabost was low. It was agreed that a report on the success of Shared Equity would be given to the Board in February 2020. The Board approved: a) the purchase of identified land in Barra; b) progressing Garrabost Care Unit conversion; The Board noted: c) the update on the site at South Dell; d) the development progress report; e) the overview of developments; f) the feasibilities update; The Board agreed: g) the name of the Scotland Street development be Lady Matheson Court, 74 Keith Street, Stornoway; and h) that Stornoway Historical Society be asked to provide wording for a plaque on the wall at the Development commemorating Duncan ‘Major’ Morrison and Lady Matheson.

6.6 Gas Audit The Investment Manager presented a report on the Gas Audit carried out during October 2019. The Board were asked to note the report and approve that Gas Audits be carried out on a two-year cycle rather than the current one-year cycle. Mr Norman Macleod raised concerns on safety issues with a two yearly audit. Members were advised that having an audit on a yearly basis rather than a two yearly basis would not have a major impact on costs. Members agreed that they would feel more comfortable to remain with a yearly audit cycle rather than switching to a two yearly cycle. The Board: a) noted the report; and b) agreed that Gas Audits should remain carried on a yearly cycle.

POLICIES

7.1 Rent & Service Charges The Area Manager presented the Rent & Service Charges Policy to the Board. The Policy had been updated with minor changes. Alasdair Mackenzie asked if the RPI for October could be used for future rent setting rather than November to allow a longer consultation period with tenants. The Chief Executive advised it would be beneficial to consult on both the Annual Rent Increase and the Rent Policy simultaneously. It was agreed the Rent & Services Charges Policy would go for consultation alongside the Annual Rent Increase and responses would be taken to the Board Meeting on 12 February 2020. It was also highlighted that the current policy position was November RPI. The Board approved the Rent & Service Charges Policy for consultation.

7.2 Attendance & Absence Policy The Head of Executive Office presented the revised Attendance & Absence Policy and sought approval for consultation with staff and the Union. Members were updated on the amendments made to the policy and advised that these were mainly to add clarity in certain areas. The Board approved the draft Attendance & Absence Policy for consultation with staff and the Union. 7.3 Policy Consultation Reponses (Paternity Leave) Following a consultation period minor amendments were made to the Paternity Leave Policy which was presented to the Board for approval. The Board approved the Paternity Leave Policy

7.4 Freedom of Information The report advised the Board of work undertaken in preparation for the classification of Registered Social Landlords as public bodies for the purpose of the Freedom of Information (Scotland) 2002 Act (FOISA) from 11 November 2019. The Board were provided with details of the FOISA, our Guide to Information and an updated Openness & Confidentiality Policy for noting. The Board noted: a) the work undertaken in preparation for FOISA, including the Guide to Information; and b) the update to the approved Openness & Confidentiality Policy. 7.5 Policy Review (Safeguarding) The report updated the Board regarding the compliance of our Safeguarding Policies with OSCR guidance. The Board noted the review of policies in respect of Safeguarding.

MONITORING REPORTS

8.1 Business Planning The Chief Executive presented the Business Planning timetable and progress report on the Strategic Goals to the Board. It was agreed a Business Planning day to review the vision and risk appetite would be held on Wednesday 15 January 2020. The Chief Executive advised the Partnership had a very encouraging visit from Scottish Housing Network recently, showing a big improvement in performance. Mr Norman Macleod commended all involved. The Board: a) agreed a Business Planning day be held on 15 January 2020; b) noted the Business Planning Timetable; and c) noted Quarter Two Progress on Strategic Goals.

8.2 Quarterly Treasury Report to 30 September 2019 The Treasury Management activities for the second quarter of 2019/20 were presented for review. The Director of Finance & Corporate Services advised there had been no movement on outstanding loans. The Board were advised the current Annual Financing Strategy showed funds would be drawn down in this financial year but draw down was now expected in 2020/21. The Board noted: a) the quarterly report of the Analysis of Investment and Borrowing; b) the outstanding loans at 30 September 2019 of £4.91 million; and c) the cash balance at 30 September 2019 of £7.729 million.

8.3 Five Year Development Plan/SHIP The Board were advised of the updated Strategic Housing Investment Plan (SHIP) which had been submitted to Scottish Government for approval by the Comhairle. The draft SHIP had been discussed with members of the Asset Management Working Group. The Comhairle’s SHIP will inform our Five Year Development Plan which will be presented to the Board in March 2020. The Board noted the report and the SHIP.

8.4 Welfare Reform The Area Manager informed the Board of the impact that Universal Credit Full Service has had a year after implementation on 26 September 2018. Despite the hard work of officers, arrears have increased and waiting times to receive payments remains long. Claimants are waiting at least 5 weeks to receive their first payment but in exceptional circumstances, some are waiting for 7 weeks or longer to receive a payment. Members were advised DWP have pledged to improve the Landlord portal which will help arrear tracking. The Board noted the report.

8.5 Board Plan 2020 The Report outlined the plan for items to be considered by Board during 2020. The Board noted the Board Plan for 2020.

8.6 Allocations Policy Update (Key Workers Status) The revised Allocation Policy introduced provision for Key Workers and the Area Manager presented to the Board the practical aspects of how the Key Workers Status would operate. Members agreed this report should be issued to key partners and an update be provided to the Board as part of the Allocation Report in June 2020. The Board noted the report.

MEETING GOES INTO PRIVATE SESSION

Chairperson Mr Norman M Macleod

SIGNED ………………………………………………………

DATE ………………………………………………………

ITEM NO 3.2 Board Action Sheet

Action MINUTE Point NUMBER ACTION TO BE TAKEN DEADLINE/ ACTION BY PROGRESS TIMESCALE

1 19 Nov 19 Company Secretary to write to Iain Macmillan asking if he will 30 November Company Secretary Accepted nomination from 1 April 2020. fulfil the nomination for membership of the Audit & Risk 2019 (1) Committee.

2 19 Nov 19 Stornoway Historical Society to be asked to provide wording Development Request made to Stornoway Historical Society on 9 for a plaque on the wall at the Scotland Street Development Manager December 2019. Awaiting response. (6.5) commemorating Duncan ‘Major’ Morrison and Lady Matheson

3 19 Nov 19 Rent & Service Charges Policy to be taken for consultation Director of Finance Complete simultaneously with the Annual Rent Consultation. & Corporate (7.1) Services

4 19 Nov 19 Attendance & Absence Policy Consultation document to be 20 December Head of Executive Consultation completed and report to Board sent to Staff and Unison 2019 Office February 2020. (7.2)

5 19 Nov 19 Business Planning Day to be held on 15 January 2020. 15 January 2020 Chief Executive Complete (8.1)

6 19 Nov 19 Key Workers Policy to be issued to key partners Area Manager Complete (8.6)

7 28 Aug 19 Chief Executive to email OHCPP Co-coordinator to chase up Chief Executive Agreement signed at OHCPP meeting in November. the signing of the agreement. (3.2)

8 28 Aug 19 Report to Board on media engagement. 31 March 2020 Head of Executive Office (8.1)

9 19 Jun 19 First time refusals for existing stock to be added to future June 2020 Area Manager Planned. allocations reports. (6.6)

10 19 Jun 19 End Violence at Work Charter initial assessment to take place 31 March 2020 Chief Executive Discussed at JCC meeting. with a view to being fully compliant by 31 December 2019. (7.3) ITEM NO 6.1

Making our house your home

BUSINESS PLAN CONSULTATION Board 12 February 2020

Report by Chief Executive

Purpose of Report

1.1 To review and approve the consultation document for the 2020 review of the Business Plan 2019/20 - 2023/24. Summary

2.1 The Board and Managers met on 15 January 2020 to review the Business Plan and identify changes required to ensure the Plan is up to date and captures any new actions required to deliver our vision. 2.2 Four areas were looked at in depth: Climate Change, Asset Management, Tenant Engagement and Digital Transformation. A consultation document has now been prepared which looks for the views of tenants and partners on the changes being proposed for inclusion in the 2020 Business Plan update. The consultation document is at Appendix 1. 2.3 The consultation will run from 13 February 2020 to 5 March 2020 and will be available on our web page. There will be an option to submit the consultation document by e-mail, hard copy or to complete an on line survey. Competence

3.1 There are no financial or legal constraints to the recommendation being implemented. Recommendations

4.1 It is recommended that the Board consider and approve the Business Plan consultation document at Appendix 1.

APPENDIX 1: Business Plan Consultation Document Background Papers: 2019/20 to 2023/24 Business Plan Writer of Report: Dena Macleod Tel: 0300 123 0773

Jackie Macleod 23-Jan-2020 APPENDIX 1

2020 CONSULTATION DOCUMENT

HHP is a registered society under the Co-operative and Community Benefit Societies Act 2014, Registered Number: 2644R(S),Registered Office: Creed Court, Gleann Seileach Business Park, Willowglen Road, STORNOWAY, Isle of Lewis HS1 2QP. It is a charity registered in Scotland, Charity Number:SCO35767, registered as Registered Social Landlord with the Scottish Housing Regulator, Registration Number:359 and registered as a Property Factor, Registration Number PF000183

Email: [email protected] Web: www.hebrideanhousing.co.uk Phone:0300 123 0773

 Page 2

Introduction Last year we prepared a new five year Business Plan outlining our vision and four Strategic Goals. A copy of the Business Plan can be found on our webpage at www.hebrideanhousing.co.uk. We are now in the process of reviewing the Plan for 2020 to make sure it up to date and that we capture any new actions required to deliver our vision.

The Board and Senior Managers met on 15 January 2020 to begin the review process and we would like your views on the some of the changes we are proposing to make to the Plan.

We are aware you are constantly being asked to give your views by many different agencies and we appreciate the time taken to complete responses and thank you in advance.

Dena Macleod Chief Executive

Why are we consulting you?

We know that we don’t have all the answers for the challenges we are facing over the next four to five years so we want to provide opportunities for our customers and partners to give us their views.

There is a consultation form attached to help you share your views with us. We will collate all the responses received and they will be considered by the Board before they finalise the Business Plan for 2020 at the Board meeting on 18 March 2020.

If you would prefer to give your views via Survey Monkey please follow this link https://www.surveymonkey.co.uk/r/BusinessPlanConsultation2020

Consultation Period The consultation will run from 13 February 2020 to 5 March 2020.

 Page 3 What we would like your views on

Climate Change

We are working with the Community Planning Partnership on how we address or mitigate the impact of Climate Change. We will be developing a Carbon Management Policy to make sure we are contributing to the achievement of the Government Carbon targets.

What do you think we can do to help reduce our carbon footprint as a business?

How can we help our customers reduce their carbon footprint?

Managing our properties

Along with delivering a new build programme on behalf of the Comhairle we are also investing significantly in our older stock with new heating, windows, kitchens and bathrooms. Tenants have previously told us they would also like investment in the exterior of their houses and the surrounding estate.

What are your priorities for our investment programme?

 Page 4

Tenant Engagement

We currently have four spaces on our Board for tenant Board Members but over the years we have always struggled to interest tenants in becoming part of the Board. We will be reviewing our constitution during the year which will give us an opportunity to change things

Why do you think we are struggling to encourage tenants to become Board Members?

Would you be interested in a Tenants Panel?

What are your thoughts about creating a Youth Board which would report to the main Board?

Population Challenge

The declining population and changing demographics is a key priority of the CPP and we are committed to working with them to play our part in addressing the problem.

What do you think we should be doing to grow the population and change the demographic?

 Page 5

Digital Transformation

Work is underway on our digital transformation strategy with a view to having services available on line for customers who prefer self- service.

What services would you like to see available on line?

What are your views about developing an App to access the on line services?

Kinloch, Isle of Lewis

 Page 6

CONSULTATION RESPONSE 1 What do you think we can do to help reduce our carbon footprint as a business?

2 How can we help our customers reduce their carbon footprint?

3 What are your priorities for our investment programme?

4 Why do you think we are struggling to encourage tenants to become Board Members?

5 Would you be interested in a Tenants Panel?

6 What are your thoughts about creating a Youth Board which would report to the main Board?

7 What do you think we should be doing to grow the population and change the demographic?

8 What services would you like to see available on line?

9 What are your views about developing an App to access the on line services?

Name:

Please send your response to [email protected]

 Page 7 How we will deliver this goal:

STRATEGIC GOAL 1 We will Placing tenants at the  Keep rents affordable by carrying out affordability checks on an annual basis  Deliver our Value for Money Strategy centre of everything we do  Complete & implement a revised rent structure  Engage with our customers to ensure we are delivering services that they value  Profile our customer’s needs to ensure we align our services to maximise benefit uptake  Support the Western Isles Housing Association Communities Forum, RTO’s and informal tenant’s groups  Provide feedback to tenants on suggested service improvements  Further develop Tenants Scrutiny as part of our service improvement agenda  Continue to provide dedicated Tenant Participation support and resource  Ensure tenants maximise their opportunities to access digital services  Develop a digital transformation strategy  Help and support tenants who may be isolated or vulnerable by going the extra mile to solve problems TENANTS  Benchmark our services with other housing associations

How we measure success

1. % of satisfaction with our overall services > 90% 2. Maintain all our homes ensuring they meet or exceed the SHQS 3. Respond to complaints 100% within SPSO targets 4. Level of current arrears at 2% of Gross Rent Debit 5. Voids at <1% of Gross Rent Debit 6. Provide options for a rent guarantee period 7. 88% of tenants satisfied with opportunities to participate in decision making  Page 9

STRATEGIC GOAL 2 How we will deliver this goal:

Investing in an We will environmentally sustainable  Develop an Environmental Strategy way in tenants’ homes  Deliver our Asset Management Strategy including a review of the viability of all housing stock  Deliver annual investment programmes by February each year  Ensure our delivery of Energy efficiency in Scottish Social Housing (EESSH) is carried out in a tenant centred way and prioritises for the tenant the fuel poverty they are facing  In partnership with the Comhairle, deliver new build homes in line with their SHIP  Deliver 50 extra care units by 2021  Remain committed to reducing the levels of fuel poverty for tenants wherever possible

How we measure success

8. Deliver 216 new build units by 2021 9. Deliver 50 extra care units in Stornoway by 2021 10. Reduce % of tenants in Fuel Poverty to under 25% by 2023 (subject to fuel prices) 11. 100% properties achieving EESSH by 2020 12. 100% of stock assessed in terms of long term viability

 Page 10

STRATEGIC GOAL 3 How we will deliver this goal: Being a good employer that We will attracts and retains high  Support and motivate all staff to ensure a healthy atmosphere where there is trust, quality staff openness and leadership  Provide opportunities for staff to gain qualifications relevant to their role  Offer shadowing, coaching opportunities to all staff  Ensure team building events are delivered on an annual basis  Hold ‘round table’ discussion sessions with managers to encourage learning and development  Develop the use of appraisals on our on-line HR system  We will recognise high achievement and excellent performance  Deliver annual training plan

How we measure success

13. Flexible working policy in place by 2020 14. Staff survey in 2020 showing positive feedback 15. 10% of staff pursuing and obtaining qualifications 16. 100% of Vacancies filled on first attempt 17. Sustain a minimum level of 65% of HHP staff with a service length greater than 3 years 18. % of staff turnover at less than 10%

 Page 11 How we will deliver this goal: STRATEGIC GOAL 4 We will:

Working with partners to  Work with the Comhairle to deliver its Local Housing Strategy 2017-2022 in relation to the delivery of new affordable homes contribute to the wellbeing  Work with the Comhairle and other partners to develop and deliver new approaches of communities throughout to Homelessness  Make our neighbourhoods greener and cleaner by working with community groups the Outer Hebrides to improve common areas  We will support local people to become empowered and take responsibility for delivering community initiative and work with others to deliver new initiatives  Work with local partners to identify and reduce social isolation and develop measure to identify isolation  Identify opportunities to generate income or social value particularly in relation to supporting fragile communities and the OHCPP’s population retention/growth agenda  Support the Community Planning Partnership to deliver its aims  Work closely with local voluntary sector to improve the delivery of joined up services

How we measure success

19. New arrangement in place for the delivery of accommodation for the Foyer by 1 April 2019 20. Population Forecasts decline + demographics 21. Increased demand for housing in rural areas 22. Community Benefit measures delivered across our communities and on all contracts 23. 95% of tenants satisfied with management of the area they live in

 Page 12 ITEM NO 6.2

Making our house your home

BUDGETS 2020/21 Board 12 February 2020

Report by Director of Finance & Corporate Services

Purpose of Report

1.1 To present for consideration and approval the proposed 2020/21 budgets including charges for rents, garages and services. 1.2 To provide an update to the Board following the consultation with tenants on the Rent & Service charges policy. Summary

2.1 The draft budgets at Appendix 1 have been prepared taking into account the cash planning limits for 2020/21 set in the revised 30 Year Business Plan which will be presented to our funder in March for annual approval. 2.2 2019/20 rents were increased by RPI following consultation with our tenants. A consultation exercise on the proposed rent increase for 2020/21 ended on 31January 2020 with 2 options being given to tenants. An RPI Only Increase (2.2%) or an RPI + 0.5% (2.7%). The outcome from the consultation is presented at Appendix 3. 2.3 The Finance Working Group met on 18 December 2019 to review the rent proposals for 2020/21. A note of the meeting can be found in the Board Information Bulletin. 2.4 Management costs have increased as a result of the increased number of units in the plan and changes in our housing Insurance premium. 2.5 It is proposed to move the inflation index in the current Rent and Service Charge policy to October RPI following tenant consultation. Competence

3.1 The legal, financial and other implications are detailed in paragraph 5.1 - 8.4 of this report.

Donald MacLeod 21-Jan-20 Recommendations

4.1 It is recommended that the Board approve: a) the increase of house rents for 2020/21 at RPI Only (2.2%) Average Increase of £1.75 per week to £81.34 per week, following feedback from the consultation process; b) garage rents and garage site rents for 2020/21 be increased by 2.2%; c) all other services and charges for 2020/21 as shown at Appendix 2 be increased by 2.2% in line with RPI at November 2019; and d) the Rent & Service Charges Policy at Appendix 4. 4.2 It is recommended that the Board note that detailed budgets will be submitted for approval on 18 March 2020 subject to the required funding being in place.

APPENDIX 1 Proposed Budgets for 2020/21 APPENDIX 2 Service Charges 2020/21 APPENDIX 3 Rent Consultation 2020/21 & Rent & Service Charge Policy – Feedback APPENDIX 4 Rent & Service Charges Policy Background Papers: None Writer of Report: Donald MacLeod Tel: 0300 123 0773

Donald MacLeod 21-Jan-20 Competence

Financial 5.1 The report considers the resources the Partnership requires for 2020/21. The 30 year business plan will be presented to our funder for approval by 31 March 2020. 5.2 The budget has been set in accordance with current accounting standards. 5.3 The budget being presented requires no additional borrowing requirements. Development aspirations are higher than what has been provided for in the 30 year financial projections. Provision has only been made for all known and developable sites up to 31 March 2021. Legal 6.1 The Partnership’s Rule 69 states that “The Partnership must keep proper books of account to cover its income, expenditure, spending, assets and liabilities in line with sections 75 and 76 of the Co-operative and Community Benefit Societies Act 2014. It must also set up and maintain a suitable system for controlling its books of accounts, its cash and its receipts and invoices”. 6.2 The Board has ultimate responsibility for the Partnership’s finances and in accordance with the Financial Regulations the Board has the responsibility to approve the annual budgets. 6.3 Material changes in the assumptions used in the 2020/21 budgets from those approved in the 30 Year Business Plan will require the approval of our Funder. The updated Business Plan which takes account of the 2020/21 budgets will be submitted to the Funder for approval in March 2020 with approval expected by the end of April 2020. Regulatory Guidance 7.1 The Regulatory Standards checklist has been completed and there is nothing in the report which would result in a breach of the standards. Risk 8.1 The major risk to setting the rents is that the income for the financial year is set incorrectly and the Partnership is unable to meet financial commitments. This risk is mitigated by setting prudent Bad Debt and Void assumptions in the 30 Year Business Plan and by modelling how the plan responds to changes in these assumptions. 8.2 It is anticipated that Brexit will bring challenges in terms of cost pressures on the Partnership. We continue to monitor the situation to ensure any post Brexit impacts are minimised where possible. 8.3 Development of new homes is based on known/identified sites in the CNES approved SHIP up to 31 March 2021. The delivery of the remainder of the units identified in the SHIP will require additional borrowing facilities to be put in place. It is not prudent at this stage to put additional borrowing facilities in place to fund unidentified development sites. 8.4 Increasing development costs continue to drive up the build cost per unit. Any shortfall between the unit cost and Scottish Government grant contributions will need to be met through our private finance or CNES grant. Each project will be appraised by the Director of Finance and Corporate Services before it is progressed to tender stage. Any increases in our private finance contribution will need to be agreed by Board.

Donald MacLeod 21-Jan-20 Report Details

9.1 Budgets are set each year which identify the income available to the Partnership and the funds required to deliver: a) the promises made to tenants as part of the Stock Transfer; b) the objectives of the current approved Business Plan; c) Regulatory requirements; and d) Scottish Government requirements in relation to the standard of the housing stock. 9.2 Budgets are set in the context of the 30 Year Business Plan making amendments as required to ensure the Partnership is still in a position to repay the funds borrowed. 9.3 A strategy and timetable for completing the 2020/21 budgets was approved by the Board in November 2019. 9.4 The Rent & Service Charges policy was reviewed by the Board in November 2019. Tenants were consulted on the policy with the main focus of the consultation being the time tenants felt they needed to consider rent changes prior to them being implemented. Rent Increase 9.5 The cash planning limits assume that the rent increase will be RPI only based on November RPI. 9.6 RPI at November 2019 was 2.2% which gives a rent increase of 2.2%. 9.7 RPI for December has remained at 2.2%. 9.8 A budget overview is provided at Appendix 1 showing the areas where funds will be spent. 9.9 The 2020/21 budget does not include any carry forward proposals. Any carry forward proposals will be included in the detailed budgets presented to the Board in March. Consultation Exercise 10.1 Tenants were consulted through a survey on our website. The closing date for comments was 31 January 2020. 10.2 The consultation feedback can be found at Appendix 3. 10.3 Option 1 (2.2% rent increase) was the most popular choice of those who responded (77%). 10.4 The consultation responses on the Rent & Service Charges policy suggest that 75% of tenants would like up to 60 days to consider rent changes prior to them being implemented. 10.5 The current Rent & Service Charges policy uses November RPI as the index upon which any rent increases are based. It is proposed to move this to October to provide tenants with more time to consider future rent changes. 10.6 It is recommended that budgets should be set based on up to date inflation statistics to avoid any potential risk of movement in these indices prior to the final approval of the budget. 10.7 The Finance Working Group will meet towards the end of February 2020 to review the detailed budgets and conduct appropriate scenario stress testing. 10.8 Our business planning day was held on 15 January 2020 where scenario stress testing was performed on the initial budgets.

Donald MacLeod 21-Jan-20 APPENDIX 1

Hebridean Housing Partnership

For the Nine Months Ending 31 December 2019 2016/17 2017/18 2018/19 2019/20 2019/20 2019/20 2020/21 ACTUAL ACTUAL ACTUAL INITIAL REVISED ACTUAL INITIAL OUT-TURN OUT-TURN OUT-TURN BUDGET BUDGET DECEMBER BUDGET CHANGE CHANGE % Notes Income & Expenditure

Dwelling Rent (Net) £8,189,277 £8,214,570 £8,725,493 £9,039,389 £9,039,389 £6,929,588 £9,254,030 (£214,641) (2.4%) 1 Non Dwelling Rent (Net) £13,229 £13,200 £14,522 £13,223 £13,223 £12,740 £15,570 (£2,347) (17.8%) 2 Sale of Assets (£127,511) (£102,480) (£242,482) £0 £0 £11,322 £0 £0 0.0% Grant Funding £253,535 £120,000 £624,038 £120,000 £205,000 £466,995 £270,000 (£150,000) (125.0%) Other Income £64,136 £44,450 £48,061 £65,750 £70,693 £63,930 £51,400 £14,350 21.8% Total Income £8,392,666 £8,289,740 £9,169,633 £9,238,362 £9,328,305 £7,484,574 £9,591,000 (£352,638) (3.8%)

Supervision & Management £1,869,213 £2,368,270 £2,232,238 £2,646,737 £2,694,607 £1,571,742 £2,767,300 (£120,563) (4.6%) 3 Response Repairs £1,362,825 £1,234,790 £1,532,319 £1,465,233 £1,472,364 £1,028,688 £1,517,000 (£51,767) (3.5%) Planned Maintenance £622,310 £645,580 £650,768 £719,724 £916,215 £561,356 £755,600 (£35,876) (5.0%) 4 Estate Works £32,559 £172,900 £129,289 £106,720 £125,236 £65,289 £84,500 £22,220 20.8% Total Operating Expenditure £3,886,906 £4,421,540 £4,544,614 £4,938,414 £5,208,421 £3,227,074 £5,124,400 (£185,986) (3.8%) Operating Surplus/(Deficit) £4,505,760 £3,868,200 £4,625,019 £4,299,947 £4,119,883 £4,257,500 £4,466,600 (£166,653) (3.9%) Grant Amortisation (£1,208,821) (£1,200,000) (£1,288,781) (£1,230,000) (£1,230,000) (£922,500) (£1,380,000) £150,000 (12.2%) Interest & Depreciation £2,685,608 £3,114,900 £3,257,514 £3,314,850 £3,174,850 £2,270,713 £3,728,100 (£413,250) (12.5%) Surplus/(Deficit) £3,028,974 £1,953,300 £2,656,286 £2,215,097 £2,175,033 £2,909,287 £2,118,500 £96,597 4.4%

Capital Investment Housing Investment Programme £4,227,978 £4,072,430 £4,170,409 £4,991,801 £5,116,982 £2,692,216 £3,964,100 £1,027,701 20.6% Non-Housing Investment Programme £13,656 £30,000 £210,783 £58,710 £159,250 £94,220 £102,700 (£43,990) (74.9%) Development Programme £1,127,082 £1,641,060 £2,075,589 £3,785,665 £3,207,230 £956,778 £11,608,700 (£7,823,035) (206.6%) LIFT £351,210 (£488,720) £401,739 £327,701 (£626,395) £713,145 £0 £327,701 100.0% £5,719,926 £5,254,770 £6,858,520 £9,163,877 £7,857,067 £4,456,359 £15,675,500 (£6,511,623) (71.1%)

Notes 1 Dwelling rent increase of 2.4% driven by increased number of units in 2020/21 coupled with annual rent increase of 2.2% 2 Increase driven by annual rent increase and budget being aligned to reflect actual garage rental income 3 4.6% Increase due to the increase in the number of properties year to year which have a direct impact on costs. E.g., Housing Insurance Premiums 4 5% increase compared to initial budget but down compared to revised budget due to additional planned maintenance works needed in 2019/20 E.g., EICR / Legionella / Fire Door testing APPENDIX 2

SERVICE CHARGES

2019/20 2020/21 2020/21 ADDITIONAL RENTAL CHARGES INCREASE (rent increase is inflation = 2.2% increase INCREASE BY INFLATION = RPI 2.2% CHARGES CHARGES

50 Macaulay Road, Rooms 1-3, Stornoway, Isle of Lewis Additional Charge (white goods & Council Tax) £15.41 £15.75 76a Keith Street, Rooms 1-3, Stornoway, Isle of Lewis Additional Charge (white goods & Council Tax) £12.05 £12.31 76B & 76C Keith Street, Stornoway, Isle of Lewis Additional Charge (white goods charge) £0.97 £0.99 27 -29 & 31-34 Doig Crescent, Stornoway, Isle of Lewis Additional Charge (white goods charge) £0.99 £1.01 27 -29 & 31-34 Doig Crescent, Stornoway, Isle of Lewis Communal Maintenance (cleaning) £2.08 £2.13 36 Doig Crescent, Stornoway, Isle of Lewis Additional Charge (white goods charge) £0.88 £0.90 30 Doig Crescent, Stornoway, Isle of Lewis Additional Charge (white goods charge) £0.76 £0.78 2 Muirneag Court, Keith Street, Stornoway, Isle of Lewis Additional Charge (white goods charge) £0.99 £1.01 3, 9-13 & 15 Mackay Court, Stornoway, Isle of Lewis Additional Charge (white goods charge) £0.99 £1.01 Service Levy (external & stair light, access control, satellite control 1-15 Mackay Court, Stornoway, Isle of Lewis box £2.48 £2.53 35-37 Torquil Terrace, Stornoway, Isle of Lewis Additional Charge (white goods & serv levy house) £1.14 £1.17 38-40 Torquil Terrace, Stornoway, Isle of Lewis Additional Charge (white goods & serv levy flat) £1.39 £1.42 49 Westview Terrace, Stornoway, Isle of Lewis, HS1 2HP Additional Charge (white goods & serv levy house) £1.14 £1.17 1 & 4 - 22 Elizabeth Haldane Court, Stornoway, Isle of Lewis Communal Lighting £2.85 £2.91 1 & 4 - 22 Elizabeth Haldane Court, Stornoway, Isle of Lewis Communal Maintenance £3.41 £3.49 2 & 3 Elizabeth Haldane Court, Stornoway, Isle of Lewis Adapted Properties - Amenity Lighting £1.48 £1.51 2 & 3 Elizabeth Haldane Court, Stornoway, Isle of Lewis Adapted Properties - Amenity Maintenance £2.03 £2.07 3-10 & 15-22 Cearn Tharasaidh, Stornoway, Isle of Lewis Communal Maintenance £1.82 £1.86 3-10 & 15-22 Cearn Tharasaidh, Stornoway, Isle of Lewis Ground Maintenance £0.60 £0.61 23 Calabhaigh, Lochboisdale, Isle of South Uist Additional Charge (white goods charge) £0.88 £0.90 6 Calabhaigh, Lochboisdale, Isle of South Uist Furniture £31.84 £32.54 6 & 8 Calabhaigh, Lochboisdale, Isle of South Uist Additional Charge (white goods charge) £7.13 £7.29 1-11, 13-15, 18-22 & 24 Calabhaigh, Lochboisdale, Isle of South Uist Service Charge (TV Aerial) £0.56 £0.57 Ceann an Ora, Bunavoneader, Isle of Harris Service Charge (TV Aerial) £1.26 £1.29 Ardanmhor Court, Kenneth Street, Stornoway, Isle of Lewis Service Levy (com lights, door entry, satellite dish) £2.85 £2.91 Ardanmhor Court, Kenneth Street, Stornoway, Isle of Lewis Service Maintenance (time clock, door entry, satellite dish) £1.48 £1.51 Manor Drive, Stornoway, Isle of Lewis Communal Maintenance (Grounds Maintenance) £0.88 £0.90 5-14 Manor Drive, Stornoway, Isle of Lewis Service Levy (com lights, door entry, satellite dish) £3.31 £3.38 26-33 Manor Drive, Stornoway, Isle of Lewis Service Levy (com lights, door entry, satellite dish) £2.00 £2.04 5-13 Manor Drive, Stornoway, Isle of Lewis Service Maintenance (time clock, door entry, satellite dish) £2.23 £2.28 26-33 Manor Drive, Stornoway, Isle of Lewis Service Maintenance (time clock, door entry, satellite dish) £1.12 £1.14 Shared Ownership Flats 2, 4 & 5 Ranol Court, Keith Street, Stornoway, Isle of Lewis Management Fee £8.78 £8.97 Shared Ownership Flats 2, 4 & 5 Ranol Court, Keith Street, Stornoway, Isle of Lewis Management Fee VAT £1.47 £1.50 Shared Ownership Flats 2, 4 & 5 Ranol Court, Keith Street, Stornoway, Isle of Lewis Staircase Lighting £1.07 £1.09 Shared Ownership Flats 2, 4 & 5 Ranol Court, Keith Street, Stornoway, Isle of Lewis Building Insurance £1.53 £1.56 Shared Ownership Flats 2, 4 & 5 Ranol Court, Keith Street, Stornoway, Isle of Lewis Cyclical Fund £6.47 £6.61 Shared Ownership Flats 2, 4 & 5 Ranol Court, Keith Street, Stornoway, Isle of Lewis Ground Maintenance 2 £0.32 £0.33 1-6 & 9-13 Gibson Gardens, Ripley Place, Stornoway, Isle of Lewis, HS1 2AG Communal Maintenance £1.53 £1.56 1-6 & 9-13 Gibson Gardens, Ripley Place, Stornoway, Isle of Lewis, HS1 2AG Service Maintenance £0.26 £0.27 7,8 & 14-24 Gibson Gardens, Ripley Place, Stornoway, Isle of Lewis, HS1 2AG Communal Maintenance £3.66 £3.74 7,8 & 14-24 Gibson Gardens, Ripley Place, Stornoway, Isle of Lewis, HS1 2AG Service Maintenance £0.79 £0.81 1-6 & 9-10 Gibson Gardens, Ripley Place, Stornoway, Isle of Lewis, HS1 2AG Service Levy £0.53 £0.54 7,8 & 14-24 Gibson Gardens, Ripley Place, Stornoway, Isle of Lewis, HS1 2AG Service Levy £1.30 £1.33 2019/20 2020/21 2020/21 ADDITIONAL RENTAL CHARGES INCREASE (rent increase is inflation = 2.2% increase INCREASE BY INFLATION = RPI 2.2% CHARGES CHARGES

Langley Apartments, Stag Road, Stornoway, Isle of Lewis, HS1 2AJ Communal Maintenance £1.85 £1.89 Langley Apartments, Stag Road, Stornoway, Isle of Lewis, HS1 2AJ Service Charge £1.54 £1.57 Langley Apartments, Stag Road, Stornoway, Isle of Lewis, HS1 2AJ Service Maintenance £4.88 £4.99 GARAGES Weekly Rent £5.24 £5.36 GARAGE RENT VAT VAT (20% where applicable) £1.05 £1.07 GARAGE SITE RENTS Annual Rent £89.53 £91.50 GARAGE SITE RENT VAT VAT (20%) £17.91 £18.30 Houses services by septic tank Sewerage Charges Aligned to Council Tax Increase TENANCY REFERENCE CHARGE (RPI) add VAT Fee per chargeable tenancy request £44.71 £45.69 Balivanich Boardroom Hire Chargeable per hour £10.32 £10.00 Balivanich Office Hire to FES Annual Charge £5,902.64 £6,032.50 2019/20 MANAGEMENT/FACTORAGE CHARGES INCREASE CHARGE DESCRIPTION Annual management fee, staircase lights & grounds maintenance + 100% OWNERSHIP Flats 1,3 & 6 Ranol Court, Keith Street, Stornoway, Isle of Lewis VAT on all charges £262.74 £268.52 100% OWNERSHIP Flats 1,3 & 6 Ranol Court, Keith Street, Stornoway, Isle of Lewis Annual VAT £52.55 £53.70 LIFT PROPERTIES Annual management fee, service levy & maintenance, building ARDANMHOR COURT LIFT PROPERTIES insurance & Cyclical maintenance + VAT where appropriate £517.83 £529.22 Annual management fee and ground maintenance + VAT where 1-4 MANOR DRIVE LIFT PROPERTIES appropriate £76.97 £78.66 Annual management fee, service levy & maintenance, building 18-25 MANOR DRIVE LIFT PROPERTIES insurance, cyclical maintenance & grounds maintenance + VAT where appropriate £617.96 £631.55 LIFT PROPERTIES CHANGE OF OWNERSHIP CHARGES Additional administration costs which is added to the seller’s final account. £33.24 £33.97 Where documentation (e.g. Building Warrants, Certificates, Local Authority Certificates, etc) is required. £55.39 £56.61 Where a solicitors request information less than five days prior to the settlement date of the sale. £166.18 £169.84 APPENDIX 3

Rent Consultation Outcome

Rent Increase Option

23% Option 1 (2.2% - £81.34 per week)

Option 2 (2.7% - £81.74 per week)

77%

Method of Response

Online Submission Paper Submission

93% APPENDIX 3

Surevey Monkey Results - 76 Responses Collected

* 46 responses received on 26 January 2020. The spike in responses corresponds with a post on the Western Isles Noticeboard Facebook page on the same day. APPENDIX 3

Responses Received by MAIL - 6 Responses Collected

Rent Options Results Option A RPI Only (2.2% £81.34 per week) 1 Option 2 RPI + 0.5% (2.7% £81.74 per week) 5 APPENDIX 3

Rent Consultation Survey 2020 You have selected Option 2 which will generate £40K additional Rent per annum. Please give your views on areas of spend you would like to see this money spent? Answered 13 Skipped 63

Respondents Responses 1 insulation of houses to keep the fuel bills and the house warm 2 Energy saving 3 New Builds/upgrades 4 Upkeep of garden fences and pressure washing of house and roof. Reviews of heating systems. Windows and doors checks for wear and tear. 5 So much money every month 6 Upgrade of exteriors 7 Repair and improving homes 8 Double glazing, Fixing houses Making them look better 9 Building new ones New roofing 10 Children's play area 11 Garden clearances 12 Additional repairs not covered in investment works ie interior skirtings/door facings, internal door furniture. 13 Dealing with damp and upgrading bathrooms 14 I have no issue with paying more rent per month if it means that we have better services that HHP wish to provide. 15 It would be good for service to improve than remain static. 16 Good Idea to improve services. 17 Improvements have to be covered and bring more appeal to areas. 18 It would be nice to see the housing in Daliburgh having work on the painting of them and other works that need doing on the properties. APPENDIX 3

Rent Consultation Survey 2020 Please provide any further comments with regards to the Rent & Service Charge Policy? Answered 26 Skipped 50

Respondents Responses 1 I have looked at the policy and I am shocked at the amount of rent the 1 apartment tenants pay in the HHP compared to other housing associations. 2 More support to single people they should be paying much less. 3 None 4 N/A 5 Over the last 13 years my rent has increased by over £30pw. Will this rise continue. 6 It’s good to see improvements to housing and rent money being used wisely 7 N/A 8 Need time and lots of notice 9 It’s a lot of money every month 10 Rents for those who work should be in line with their pay, which doesn't always rise with rpi. 11 None 12 Nil 13 I think the rent is too high as it is 14 They need to be in line with cost of living, wages and benefit increases 15 No problem with rent increase, it is a fair rent price and hhp are a good landlord, repairs are dealt with quickly,plus we had new heating last year,cant complain. 16 Rent goes up every year but nothing geta done to the houses at all 17 I think the rent is ok and hhp look after the houses they make sure every one is ok and or homes are ok to wonderful people wonderful serives .rose 18 N/a 19 I don't understand how there's a choice in average weekly rent or why anyone would choose the higher amount? 20 i have none 21 A month or two seems reasonable - a lot of tenants are low income and small changes could be significant to their budget. 22 No further comments 23 I do not object to paying a bit more as long as work is carried out to improve the houses! 24 No further comment

To me it seems as if HHP is planning investments without listening to the tenants needs and therefore spending some money where it's not needed and not enough where it is desperately needed. For example: to take out all the fireplaces was a total mismanagement in my eyes. To leave tenants on the island without a fireplace was not a good decision. The new fences weren't really needed and especially the decision to take away the back gates was a very poor move. The money that was spent for the fencing should rather have 25 been spent on new heating systems. Once that process is finished HHP could have thought about new fences. The house I live in doesn't need complete new windows. Some of the panes need replacing because of condensation inside the double glazing. I have requested that ever since I moved in. In July 2019 I was told that in 2021 the windows will be replaced completely. A total waste of money. If instead HHP would work on the house to make it more airtight and put in a ground floor insulation, that would really help the energy efficiency. As long as HHP plans such investments without involving the affected tenants to be more efficient I am against any raises of rents and charges. 26 believe we are already paying too much & are forgotten about in Lemreway 27 Very Fair APPENDIX 4

Rent & Service Charges Policy

Effective Date:  February 2020 Review Date:  February 2023 Approved by HHP Board: 12 February 2020 TABLE OF CONTENTS INTERPRETATIONS & ABBREVIATIONS

INTRODUCTION ...... 2 AIMS & POLICY OBJECTIVES ...... 2 LONG TERM FINANCIAL VIABILITY ...... 3 AFFORDABILITY ...... 3 COMPARABILITY ...... 4 CONSULTATION ...... 5 RENT STRUCTURE ...... 5 SERVICE CHARGES ...... 6 RENT GUARANTEES ...... 6 ANNUAL RENT & SERVICE CHARGES REVIEW ...... 6 RENTAL INCOME COLLECTION ...... 7 MONITORING AND REVIEW OF POLICY ...... 7 POLICY CHANGE HISTORY ...... 8 INTERPRETATIONS & ABBREVIATIONS ...... 9

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RENT & SERVICE CHARGES POLICY

INTRODUCTION

1.1 The purpose of this document is to set out our policy in relation to rent and service charges of all our properties, including new build properties. 1.2 The Rent & Service Charges Policy will ensure full compliance with regard to the relevant rent and service charge provisions of the Housing (Scotland) Act 2001 and Scottish Government guidelines. 1.3 This will include using a fair system for apportioning rents between different properties, consulting tenants, and having regard to their views on proposed rent and service charge increases, and making available to tenants, on request, information about the Rent and Service Charges Policy. 1.4 The Policy will be agreed by the Board and will be implemented by our officers until amended by the Board.

AIMS & POLICY OBJECTIVES

Aims 2.1 The aim of the policy is to ensure that the Partnership has sufficient rental income to fund its Business Plan whilst charging affordable rents over the lifetime of that Business Plan. We seek to balance the requirement for rent to be affordable, to be comparable with other social landlords and to deliver long-term sustainability. Objectives 3.1 Our vision is to provide good quality and affordable homes and to secure consistently excellent housing services throughout the Outer Hebrides. Key objectives in our 30 year Business Plan are: • Providing efficient effective housing management services of the highest quality whilst keeping rent and service charges affordable; and • Delivering value for money. 3.2 Our Rent and Service Charges Policy objectives are to: • Ensure that the rent and service charges meet our relevant costs in order to provide high quality homes for rent and ensure the long-term viability of the Partnership. • Ensure, whenever possible, that rent and service charges are affordable for those in low paid employment but who do not qualify for Housing Benefit or Universal Credit; • Ensure, wherever possible, that rent and service charges are comparable with rents of other Registered Social Landlords providing similar accommodation in similar areas. • Consult tenants on rent and service charge increases; and • Ensure full compliance with regard to the relevant rent and service charge provisions of the Housing (Scotland) Act 2001 and Scottish Government guidelines.

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LONG TERM FINANCIAL VIABILITY

4.1 Ensuring the long-term viability of the Partnership is a key objective of our Rent and Service Charges Policy as the majority of income to fund expenditure comes direct from rents. 4.2 The rent and service charge income for our houses must ensure that: • Funds are available to meet HHP’s relevant costs such as management and maintenance costs and the servicing of loan interest and charges; • Funds are available to meet long term repair costs and investment in such items as windows, external doors, kitchen units and roofs; and 4.3 We will continually seek to achieve good value for money, as set out in the Value for Money Strategy, for the goods and services purchased which are ultimately funded from rental income. In keeping control of overheads, we will ensure that proposed rent increases are kept to a minimum.

AFFORDABILITY

5.1 Another key objective of the Rent and Service Charges Policy is to ensure, wherever possible, that rents are affordable for those in low paid employment but whose income is above Housing Benefit or Universal Credit thresholds. 5.2 Providing homes for affordable rent is core business for any housing association and in guidance to housing associations on rent setting, the Scottish Federation of Housing Associations (SHFA) recommended the following Affordability Measure: For a rent (including service charges) to be affordable, households with one person working 35 hours or more should only exceptionally be dependent on Housing Benefit or Universal Credit in order to pay it. 5.3 The Welfare Reform Act 2012 introduced radical changes to the Benefit system with the introduction of Universal Credit. The changes to benefits have underscored the need to keep rents affordable to households on low incomes. 5.4 In assessing the issue of affordability, we must take into account current measures of affordability and how current rent levels compare to those measures. 5.5 We recognise that a conflict can arise between setting rents that ensure financial viability and achieving affordable rent levels. We will aim to balance both these requirements when reviewing rent levels. 5.6 We will seek to gather information on rent affordability and will work with SFHA and other partners to achieve this. 5.7 The sustainability of communities in remote areas of Scotland depends on people being able to afford to live there. A study produced by the Highlands and Islands Enterprise, on “A Minimum Income Standard for Remote Rural Scotland” concluded that: Households in remote rural Scotland require significantly higher incomes to attain the same minimum living standard as those living elsewhere in the UK. The high living costs threaten the sustainability of local communities by making it harder for people from a range of backgrounds and ages to live there at an acceptable standard.

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The budgets that households need to achieve a minimum acceptable living standard in remote rural Scotland are typically 10-40 per cent higher than elsewhere in the UK. These premiums are most modest for pensioners and greatest for single people and families supporting children. For households living in the most remote island locations, too far from towns to make regular shopping trips and those relying on heating oil in older homes, additional costs can be even greater than 40 per cent.

COMPARABILITY

6.1 The Rent and Service Charges Policy seeks to ensure, wherever possible, that rents are comparable with those of other Registered Social Landlords providing similar accommodation in comparable communities. 6.2 The objective is not to seek full financial comparability since there will always be non-financial reasons why tenants choose certain houses/estates over broadly similar houses/estates provided by other social landlords. 6.3 In addition, other social landlords have different rent structures, forms of funding and strategic objectives which means that rents will never be fully comparable. 6.4 Over time we will collect available data on rent levels to allow a benchmark comparison between the various rents charged between local social landlords and social landlords within our peer group. 6.5 The table below provides a comparison of rent levels as published by The Scottish Housing Regulator on Scottish Registered Social Landlord Statistics 2018/19: Properties All other Size of home HHP Difference owned Landlords 1 apartment 13 £77.73 £65.25 +19% 2 apartment 648 £71.70 £77.95 -8% 3 apartment 806 £79.01 £82.76 -5% 4 apartment 641 £84.18 £89.11 -6% 5 apartment 64 £92.42 £99.34 -7% Overall 2172 £78.74 £85.01 -7%

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CONSULTATION

7.1 The Housing (Scotland) Act 2001 Sections 25 and 54 require tenants to be consulted on all rent increases. We will consult on any proposals for rent increases and rent restructuring and on any changes to this policy. 7.2 We will take tenant/tenant organisation consultation feedback into consideration before taking a decision on increases in rents and charges.

RENT STRUCTURE

8.1 A new rent structure was agreed in principle on 27 June 2012 and suspended due to the changes introduced by the Welfare Reform Act 2012. This is now being progressed through the business planning process. 8.2 Our current rent structure is based on 4 separate rent structures. These structures derive from transferred CnES properties, transferred ex Scottish Homes properties, transferred 5 local Housing Association properties and new build properties. 8.3 Transferred CnES Properties The historic rent structure of the ex CnES properties was based on: Rent Groups 1 Pre War 2 Post War 3 Improved and/or Pre Regionalisation 4 “A” Range 5 “B” Range From the rent groups the properties were then sub divided into: Sub Groups ranging from 1 – 30 sub groups The sub groups were split into type of property (house or flat), size of the property, permitted persons and Swedish Timber properties were in a different sub group. 8.4 Ex Scottish Homes Properties Scottish Homes properties transferred to CnES in May 2004 and they implemented their own rent structure. This structure was mainly based on age, size and location of the property. The Scottish Homes rent structure remains unchanged. 8.5 Ex Local Housing Association Properties The 5 local Housing Association properties transferred to HHP in April 2007 and they implemented their own rent structure. The Housing Association rent structure remains unchanged. 8.6 New Build Properties The rent structure for new build properties is set in accordance with Scottish Government assumptions for grant funding.

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8.7 Mortgage to Rent Properties The rents on Mortgage to Rent properties purchased after November 2013 will be set on an individual basis and be dependent on the level of private finance required to enable the purchase to proceed. Where the private finance requirement exceeds the 35% of the price the rent charged will be derived from the Government’s assumed rent. It will not exceed the Government’s assumed rent but may be higher than similar properties in the area. The agreed rent will be increased in line with other rents and will remain for 30 years after purchase or until the applicant vacates the property permanently.

SERVICE CHARGES

9.1 Our current Service Charges are based in part on historic arrangements. 9.2 Services Charges are based on the principle that specific services provided to some properties should be met directly by the tenants of these properties rather than being pooled across the whole of the housing stock. 9.3 Service Charges are levied where there are 2 or more properties where charges for specific services are associated with the properties. These charges are mainly in relation to communal charges such as heating systems, staircase lighting, ground maintenance and repair/replacement of white goods. 9.4 The cost of the specific services will be based on estimated costs and these charges will be reviewed against actual cost each year. 9.5 Service Charges will be reflected separately from rental charges. 9.6 Service charges will not be set at a level as to generate excess income. 9.7 Service Charges will not be tied to any rent guarantee. 9.8 Following the introduction of the Property Factors (Scotland) Act 2011 on 1 October 2012, the services in developments where there are owner/occupiers were reviewed and the owners have been notified of the related service charges.

RENT GUARANTEES

10.1 We are required to regularly review rent and service charges and to give tenants and tenant organisations the opportunity to give their views on any proposed changes. 10.2 The potential to provide rent increase guarantees to tenants for a period of time will be considered. The rent guarantees, as well as providing tenants with certainty and security, contribute to our stated aim of delivering affordable rents and of achieving greater comparability with the rents charged by other social landlords.

ANNUAL RENT & SERVICE CHARGES REVIEW

11.1 The Partnership will review rent and service charge levels on an annual basis. 11.2 Rent and service charge increases will reflect any rent guarantees that are in place.

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11.3 Rent and service charge increases will normally take place once every twelve months and tenants will be informed of the annual rent increase at least four weeks before the beginning of the rental period for which the increase applies. 11.4 Where rent increases are represented in terms of inflation or ‘inflation plus’ inflation figure used will be the preceding October retail prices index figures (unless otherwise agreed with the Board). 11.5 Percentage rent increases for existing properties, including existing new build properties, will be applied to the current annual rent as recorded on our rent accounting system. 11.6 Percentage increase in service charges will normally be represented in terms of inflation only except where actual service provision costs are charged, in which case the increase will reflect the service cost.

RENTAL INCOME COLLECTION

12.1 We will offer a range of payment methods to provide choice and flexibility to tenants and to make it as easy as possible for them to pay rent and service charges. These methods will be kept under review to assess their appropriateness and value for money. 12.2 New payment methods which become available as technology develops will be evaluated and their appropriateness for tenants in the Outer Hebrides context assessed.

MONITORING AND REVIEW OF POLICY

Policy Review 13.1 This Policy will be reviewed at least every three years. Equality & Diversity 14.1 We operate under the overarching duty of a Registered Social Landlord to provide housing accommodation and related services in a manner which encourages equal opportunities and in particular the observance of equal opportunity requirements as specified in the Housing (Scotland) Act 2001. 14.2 No person or group of persons occupying our properties or applying for our housing will be treated less favourably than other persons or group of persons because of their sex, marital status, family circumstances, race, ethnic or national origins, disability, age, religion, political orientation or sexual orientation.

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POLICY CHANGE HISTORY

Version Change Applied Date By Update and incorporation of the 27 November Joan Mary 2.0 previous Rent Policy for New Build 2013 MacKenzie Properties

Review and update of Policy and 16 November 3.0 John MacIver rent levels from other landlords 2016

Removal of reference to ‘SCORE’ 16 November 3.0 John Maciver system which is no longer in place 2016

19 November Donalda 3.0 Update to include Universal Credit 2019 MacKinnon

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INTERPRETATIONS & ABBREVIATIONS

The following interpretation and abbreviations are used in this policy:

SFHA Scottish Federation of Housing Associations

Includes Relevant Costs Management costs; Routine Maintenance; Planned Maintenance; Major Repairs; Voids & Bad Debt; Depreciation; Interest Payable

All references to the masculine gender in this policy shall read as equally applicable to the feminine gender

Making our house your home

ASSET MANAGEMENT STRATEGY DRAFT FOR CONSULTATION 2020-2024 Board 12 February 2020

Report by Director of Operations Purpose of Report

1.1 To seek approval of the draft Asset Management Strategy 2020-2024 for consultation. Summary

Asset Management 2.1 The Asset Management Strategy seeks to maintain and enhance the value of properties and estates. It seeks to set out a long term strategy based on the principles of sustainability and a clear understanding of the needs and issues in local communities. 2.2 This Strategy is structured on guidance from the Scottish Housing Regulator. It has been updated to reflect regulatory changes on fire prevention & detection and audit work commissioned on Health & Safety from ACS Physical Risk Control Ltd. 2.3 The Strategy also seeks to reflect the increasing concerns around climate change and the need for us to contribute to this agenda. 2.4 It is intended to consult on the Strategy and it is envisioned that it will be finalised during the Business Planning cycle. 2.5 The consultation will seek views on:  Our plans to review the long term viability of houses  Our plans for investment in tenants houses and steps being taken to reduce fuel poverty  Issues which stakeholders believe should be prioritised in support of the climate change agenda  The approach to be taken to new development  Whether stakeholders believe it is important that we continue to build new homes Competence

3.1 The financial, legal or other constraints to the recommendations in this report are contained in paragraph 5.1 – 8.3. Recommendations

4.1 It is recommended that the Board approve the Asset Management Strategy at Appendix 1 for consultation.

Jackie Macleod 27-Jan-20 Competence

Financial 5.1 There are no new financial implications arising from the Asset Management Strategy in this report. The Strategy is based on a financial framework as set out in the Business Plan and 30 year financial projections. The Asset Management Strategy and Business Plan are linked. Legal 6.1 The Asset Management Strategy reflects our legal duties as a landlord and draws heavily on guidance from the Scottish Housing Regulator. Regulatory Guidance 7.1 The regulatory standards checklist has been completed and there is nothing in the report which would breach the standards. Risk 8.1 There are no specific risks associated with the report. However, the Asset Management Strategy is part of our overall approach to addressing and mitigating risk and ensuring that the housing stock is managed prudently and efficiently in the long term. 8.2 The Strategy seeks to make the most of our assets, primarily as places to live; but also as assets on which the organisation is built. Decisions made based on poor asset management information may result in wasted resources and long-term inefficiencies. 8.3 There are further relevant risks highlighted in the Risk Register concerning the health of the local economy, demographic change, climate change and affordability for tenants.

Report Details

Asset Management Strategy 9.1 The Asset Management Strategy sets out our plans for the housing stock for the period 2020-2024. The Strategy is closely linked with the Business Plan and other strategic documents. It sets out a framework for the ongoing review of our housing stock and for identifying and addressing areas or groups of houses where further assessment is required as to their long-term viability. 9.2 It also identifies the need to develop actions and interventions to address the risks of climate change. This will focus on improving the energy efficiency of our houses and on our approach to new build, both in terms of construction and location. 9.3 There is also a requirement from the Scottish Housing Regulator that RSLs have a clear and robust Strategy for managing their housing stock and other assets. The Regulator’s guidance sets out a 10 -strand approach to Asset Management and the Draft Strategy is structured around these. Feedback from the Regulator on the previous Strategy has also been taken into account. 9.4 This framework will classify houses into 3 categories; core stock, under review and non- core stock. The will involve an assessment of the physical condition of the property, and also of the wider environmental issues and particularly the level of demand for the area. 9.5 A number of other issues are captured in the Strategy including:

Jackie Macleod 27-Jan-20  The importance of a comprehensive Asset Management Database to inform and manage investment decisions and monitor performance.  The need to maintain the housing stock at Scottish Housing Quality Standard (SHQS) level and to address exemptions and abeyances.  Achievement of the Energy Efficiency Standard in Social Housing (EESSH) by 2020 and EESSH 2 post 2020.  The need to be aware of and explore technological change whether in construction, fittings such as heating systems or in the move to electric vehicles.  Co-ordination with the 30 year Business Plan to ensure that investment in the housing stock delivers homes which meets the aspirations of our customers.  Continuing to work with partners to contribute to the wellbeing of communities throughout the Outer Hebrides 9.6 Progress on the Strategy and Action Plan will be reviewed annually and updates reported to Board.

APPENDIX 1: Asset Management Strategy 2020-2024 Background Papers: None Writer of Report: Angus MacNeil Tel: 0300 123 0773

Jackie Macleod 27-Jan-20

APPENDIX 1

Asset Management Strategy (2020-2024) Draft for Consultation

Effective Date:  Review Date:  Approved by HHP Board:

TABLE OF CONTENTS INTERPRETATIONS & ABBREVIATIONS

INTRODUCTION ...... 3 STRATEGIC AIMS ...... 4 Links to Strategic Priorities ...... 5 ASSET PROFILE ...... 6 THE 10 STRAND APPROACH ...... 7 STRAND 1 - STRATEGIC CONTEXT - A WHOLE ORGANISATION APPROACH ...... 7 STRAND 2 - UNDERSTANDING CUSTOMERS ...... 8 Fuel Poverty ...... 8 Tenant Feedback ...... 10 STRAND 3 - RISK BASED AND PROPORTIONATE ...... 10 STRAND 4 - GOOD INFORMATION ...... 11 STRAND 5 - JOINED UP PLANNING ...... 12 STRAND 6 - LOOKING AFTER CORE STOCK ...... 13 Repairs and Maintenance ...... 13 Void Repairs ...... 14 Planned and Cyclical Maintenance ...... 15 Investment Works ...... 15 Energy Efficiency ...... 17 Climate Change ...... 18 Estate Management ...... 19 Adaptations ...... 20 Land and Open Spaces ...... 20 Unadopted Infrastructure ...... 20 Previous Right to Buy ...... 21 Factoring ...... 21 Garages ...... 22 STRAND 7 - COMPLIANCE WITH STANDARDS ...... 22 Planned and Cyclic Maintenance ...... 22 Asbestos ...... 23 Gas Installations ...... 24 STRAND 8 - DEALING WITH “CAUSE FOR CONCERN STOCK” ...... 24 STRAND 9 - NEW DEVELOPMENT ...... 25

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STRAND 10 - VALUE FOR MONEY ...... 26 FUTURE REVIEW AND MONITORING FRAMEWORK OF THE STRATEGY ...... 27 POLICY CHANGE HISTORY ...... 28 INTERPRETATIONS & ABBREVIATIONS ...... 29

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ASSET MANAGEMENT STRATEGY

INTRODUCTION

1.1 This Strategy sets out our plans for the management of our assets from 2020 – 2024. It updates and builds on the previous Strategy for 2016 – 2020 and is structured around the Scottish Housing Regulators guidance on Asset Management Planning. 1.2 The Regulators guidance sets out a 10 strand approach to Asset Management which forms the core of this Strategy. 1.3 The Strategy seeks to ensure that decisions related to management and investment in the housing stock are based on sound planning principles and meet the needs of customers through the provision of good quality affordable homes, and are sustainable in the long term. 1.4 Good asset management requires understanding and ownership right across the organisation – not just the ‘property professionals’. 1.5 The Asset Management Strategy sets out our plans for the housing stock and is integrally linked with the Business Plan and is heavily influenced by the wider strategic environment. 1.6 The Strategy is developed within the financial resources identified within the Business Plan. The expenditure proposals within the Plan can be summarized as follows:  Major investment in homes of around £4m per annum to maintain stock in line with Stock Condition Survey findings and to improve the energy efficiency of homes.  Annual and Cyclical Planned Maintenance programmes of £0.85m per annum which includes statutory duties on elements such as gas servicing, fire door inspections, legionella inspections and electrical testing.  Reactive repairs and void property repairs of £1.2m per annum. 1.7 The Asset Management Strategy identifies the need to consider the inter- relationship between new build and the existing stock in each area and whether the New Build Programme provides an opportunity to replace stock which has a limited future life span or where demand is a serious concern. 1.8 In addition to the core Housing stock, we also own a small number of non- housing assets; those include our offices in Stornoway and Balivanich. 1.9 The Strategy has been developed around the following key drivers:  Assessing the extent to which the assets meet current and future needs.  The continuing development of our comprehensive Asset Management Database to inform and manage investment requirements and monitor performance.  The need to maintain the housing stock at Scottish Housing Quality Standard (SHQS) level and to address exemptions and abeyances.  Achievement of the Energy Efficiency Standard in Social Housing (EESSH) by 2020 and EESSH 2.

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 Co-ordination with the 30 year Business Plan to ensure that investment in the housing stock results in a continuing sustainable product which also meet the aspirations of our customers.  Working with partners to contribute to the wellbeing of communities throughout the Outer Hebrides 1.10 Progress will be monitored via the associated Action Plan at Appendix 1 with an annual update being provided to the Board.

STRATEGIC AIMS

2.1 The Asset Management Strategy is structured into 10 sections based on the Scottish Housing Regulators Asset Management recommended Guidance. There are a number of key aims, which the Strategy seeks to achieve and deliver over the Strategy period 2019 – 2022. The key aims are: Comprehensive Asset Information • Ensure that a comprehensive asset database is in place that informs planning and decision making • Develop and refine an approach to assess the long term viability of stock • Continually review sustainability and demand and reflect these in investment decisions Integrated with the 30 Year Business Plan • Ensure that the Asset Management Strategy and Business Plans are integrally linked • Provide effective financial planning information in relation to investment in housing stock and related assets • Provide robust information for risk, sensitivity analysis and options appraisal in relation to the future management of the stock Protecting Assets • Ensure effective property management through a combination of reactive and empty homes repairs, planned maintenance and investment programmes • Engage with owners to promote and encourage participation in both SHQS and EESSH related works and the regular maintenance of common blocks where appropriate • Ensuring effective action is taken to address ‘cause for concern’ stock Customer Engagement and Consultation

• Enable customers to contribute to and inform decisions relating to the investment in the housing stock • Manage customer expectation, maximize satisfaction and provide opportunities for customer choice

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Future Review of the Strategy • Ensure that the Strategy is regularly reviewed and updated, as a tool for effective asset management, planning and decision-making Links to Strategic Priorities 2.2 The Asset Management Strategy should be viewed within our 30 year Business Plan and detailed 5 year updates. These set the framework within which the Strategy is developed and are in turn influenced by the Asset Strategy as issues emerge. 2.3 In the wider context the Comhairle’s Local Housing Strategy sets out the broad strategic context in which we are operating. We also seek to work with the Comhairle in developing this and to shape and influence the final Strategy. We also work in partnership with other local agencies and in particular through the Community Planning Partnership to maximize the contribution that we can make to the Outer Hebrides, and to address the issues affecting our communities. 2.4 We work closely with the Integrated Health and Social Care Service and are supporting them to meet the current and future care needs of the Outer Hebrides. In particular we are currently on site with a major new Care Home and Housing with Extra Care project which will provide accommodation for 102 of our most vulnerable elderly people. 2.5 A number of internal Policies sit alongside the Strategy and provide detail on operational processes and delivery mechanisms. 2.6 These include:  Repairs Policy  Procurement Policy  Investment Programme  Asbestos Policy  Gas Safety Policy  Water Management and Legionella Policy  Fire Safety Policy  Electrical Safety Policy  Play Area Policy  Estate Management Policy  Development Policy  Special Needs Policy  Allocations Policy  Rental & Service Charge Policy  Financial Regulations  Annual Financing Strategy

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ASSET PROFILE

3.1 We own properties across the Outer Hebrides. The island chain measures around 120 miles from Barra in the South to the Butt of Lewis in the North and there are small schemes of houses in most communities. The geography and scattered nature of the stock present additional challenges in delivering services and in the management and maintenance of properties. 3.2 The table below shows the distribution of the housing stock by island, property type and size.

Table 1 – Housing stock by island and number of apartments

Grand Type of Stock/ Bedrooms 1 2 3 4 5 6 Total Lewis 509 637 429 50 4 1 1630 Housing 500 615 419 42 3 1 1580 Wheelchair Adapted Stock 9 22 10 8 1 50 Uist 94 117 143 6 4 364 Housing 94 112 141 5 4 356 Wheelchair Adapted Stock 5 2 1 8 Harris 44 48 47 3 142 Housing 44 48 46 3 141 Wheelchair Adapted Stock 1 1 Barra 29 30 26 2 87 Housing 29 30 26 2 87 Grand Total 676 832 645 61 8 1 2223

Table 2 – All stock by property type and number of bedrooms

Type of Stock/ Non Grand Bedrooms 1 2 3 4 5 6 Housing Total Housing 641 801 636 52 7 1 13 2151 House 89 414 571 46 6 1 1127 Bungalow 365 227 46 3 1 642 Flat 34 28 1 63 Tenement flat 132 119 1 4 256 Maisonette 2 2 2 6 4 in a block 21 11 16 48 Bedsit 9 9 Wheelchair Adapted 9 28 13 9 1 60 Garage 42 42 Garage Site 56 56 Commercial Unit - Office 2 2

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Commercial Unit - Shop 2 2 Commercial Unit - Community Facility 2 2 Store 1 1 Grand Total 650 829 649 61 8 1 118 2316 3.3 The majority of the stock is terraced or semi-detached at over 75%, which presents further challenges particularly in relation to the extent of the surrounding environment with large amounts of infrastructure requiring maintenance such as fencing, pathways and common areas.

THE 10 STRAND APPROACH

STRAND 1 - STRATEGIC CONTEXT - A WHOLE ORGANISATION APPROACH

4.1 Good Asset Management is core business and spans everyone in the organisation. The Board take a long term view on decisions and a 30 year Business Plan is in place. We use our BRIXX Business Planning Model to inform and facilitate forward planning. The investment needs of the stock, as identified by our 2013 Stock Condition Survey, is one of the key drivers of the Business Plan. 4.2 The Board Business Planning sessions consider the relationships between the local economy, demographic change, housing need and demand and the potential changes in the client base for our homes. Locational issues and the different influences and pressures in different parts of the Hebrides are further key concerns. 4.3 The long term downward trend in population within the Outer Hebrides particularly for the younger age groups is a continuing concern and is an issue which the Board are discussing and will continue to monitor closely. Table 3 below shows that the population is expected to fall by around 10% over the next 20 years. Percentage change in population NHS Board areas, 2012 - 2037 Table 3 – population change by NHS area 2012 - 2037

25 20 15 10 5

0 % change % -5 -10 -15

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4.4 During this period the percentage of the population aged over 65 is projected to grow from 24% to over 37% while the percentage of under 16s will fall by around a third. These demographic trends are a key context for decisions taken during the period of this Strategy.

4.5 These are issues which are covered more fully in the Business Plan and have obvious implications for asset management.

4.6 There is also a trend within the islands for population to become concentrated in the larger centres and this is an issue which we will seek to explore further and would wish to see addressed in the Local Housing Strategy.

4.7 We are also aware of the connections between quality services, attractive and safe estates and housing demand. The importance of, for example, our Repairs, Estate Management and Allocation services being complimentary and co- ordinated is recognised and that these combine to ensure that areas are attractive to live in.

4.8 Asset Management is seen in this wider business and strategic sense and is not purely the domain of technical or financial teams.

STRAND 2 - UNDERSTANDING CUSTOMERS

5.1 We will continue to develop our understanding of customer’s needs and aspirations over the period of the Strategy and we recognize that these will change over time. TPAS have been engaged since 2015 to develop and improve communication channels with tenants and to enhance their involvement and participation in developing services and in decision making processes. This work and relationship is continuing. The repairs service and investment programmes are key issues for tenants, and tenants have been involved in our procurement of investment and repairs & maintenance contracts. 5.2 We carried out a tenant survey in 2018 and will repeat this in 2021 and will continue at regular intervals thereafter. The survey collected information on tenants’ views on a wide range of issues including aspects of their homes, which they would like to see improved or enhanced. We use this information to inform our service and investment planning and we will track changes over time to assess whether tenants aspirations are being met.

Fuel Poverty 5.3 Fuel poverty is a very significant issue in the Outer Hebrides and our Stock Condition Survey carried out in 2013 reported that 61% of tenants were in fuel poverty and that 22% were in extreme fuel poverty. The 2017 survey has indicated that the respective figures have reduced to 48.3% and 14.5%.

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There are 3 main drivers in fuel poverty:  Household income and ability to pay for domestic energy;  The cost of energy; and  The energy efficiency of individual properties We can directly impact of the last of these. We are investing heavily in our own housing stock to improve energy efficiency and to address and alleviate fuel poverty. 5.4 During the 2017 Stock Condition Survey tenants were asked to participate in a voluntary and anonymous household income and fuel poverty survey. 5.5 48.3% tenant households spend in excess of 10% of annual income on fuel and are in fuel poverty; 14.5% tenant households spend in excess of 20% of annual income on fuel and are in extreme fuel poverty. These figures compare with 26.5% of households nationally in fuel poverty, and 7.5% in extreme fuel poverty (Scottish House Condition Survey 2016). 5.6 Fuel poverty is strongly income driven although energy efficiency differentials are also apparent. The median income of households in fuel poverty is estimated at £9,360 compared to £17,680 for households not in fuel poverty. Dwellings occupied by households in fuel poverty exhibit lower energy levels although differentials are less marked than for income. 5.7 Households pay different prices for home energy, with the best tariffs for gas and electricity available for customers who shop around for on-line tariffs and pay by direct debit. Such tariffs are often out of reach for some households and particularly low-income ones. 5.8 Households were asked how easy or difficult it was to meet the cost of heating their home to a comfortable level in winter, and what level of heating they could comfortably achieve.  519 households (36%) found it quite easy to heat their home  a further 489 households (33.9%) could just afford it  435 households (30.1%) experience some level of difficulty in heating their home

5.9 Not surprisingly, households in fuel poverty experience the greatest difficulty in heating their home - 49.5% of households. High fuel costs and financial restrictions often lead to a reduction in heating within the home through selective heating of some rooms. 781 households (54.1%) stated that they heated all rooms in the winter; 291 households (20.2%) heated most rooms while 370 households (25.7%) heated only some rooms or one room. 5.10 We will also continue to work with others such as Tighean Innse Gall and the Citizens Advice Bureau to impact on the drivers of fuel poverty. For example through work on income maximization and by encouraging utility switching which can provide significant savings for individuals and improve their disposable income.

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5.11 We will also continue to lobby DECC, OFGEM and SSE to make the case for measures to be put in place to deal with the very high fuel pricing in the Highlands and Islands.

Tenant Feedback 5.12 Customer feedback is sought on an ongoing basis on key issues such as repairs, investment works, allocations and gas servicing. This information is used to identify areas for improvement and to review and ascertain if the services provided meet tenant aspirations. Systems to obtain feedback will continue to be developed and built upon with TPAS. In particular, we will seek to collect data at the point of service delivery and will work with our contractors to achieve this. 5.13 We will continue to provide information to tenants about the investment programme, repairs service and planned and cyclical maintenance systems in a variety of ways including:  The Homeward Newsletter  Our website  Leaflets and further letters and guidance 5.14 We will also continue to engage tenants using a variety of methods and within the framework set out in our Tenant Participation Strategy. For example, we will engage with Registered Tenant Organizations (RTO’s), use focus groups, establish a tenant panel and encourage local ‘tenant voices’. We will also work to increase the number of RTOs where there is interest from tenants. 5.15 The Housing (Scotland) Act 2014 details specific areas where tenant consultation is a statutory requirement. This includes the standard of service in relation to housing management and repairs and maintenance and we continue to work to provide opportunities for customers to be involved in ways that suit them. 5.16 On a more practical level, we will continue to provide tenants with choice as we replace kitchens and bathrooms in their homes and seek to meet their aspirations as far as possible.

STRAND 3 - RISK BASED AND PROPORTIONATE

6.1 We have a comprehensive approach to managing risk which covers all business areas. The Risk Register is reviewed and updated on a regular basis by Managers, at Audit and Risk Committee and Board. Measures to control and mitigate risk are detailed in the Risk Register. 6.2 Some of the currently identified risks are common to all RSL’s such as the threat that Universal Credit is presenting to income and therefore to services and investment. Other risks are more specific to HHP such as the demographic challenges facing the Outer Hebrides.

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6.3 Particular risks in the register, which are relevant to this strategy, include the health of the local economy, the impact of severe weather events and climate change and the risk of contractor failure. Measures have been put in place on each of these. We will continue to consider a level of self-insurance to mitigate against the cost of insurance cover. 6.4 In addition, the Board annually review their Risk Appetite across a range of issues.

STRAND 4 - GOOD INFORMATION

7.1 An up to date, comprehensive and reliable information base is a fundamental part of good asset management. This enables analysis on performance, value for money and the value that homes are bringing to business. 7.2 We carry out Stock Condition Surveys on a regular basis with the next being due in 2022. This information is a key driver in our investment and business planning. The key findings from our most recent stock condition survey in 2017/18 were:  Life cycle projections across a 30-year planning period including EESSH improvements indicated a need for investment of £127m gross. Repairs were stated as being in good order.  Catch-up repairs remain of a minor or localized extent with no failure identified within the SHQS.  Across surveyed properties non-compliant with EESSH, energy improvement costs were estimated at £1.107m.  The 5-year investment programme 2019 to 2024 was prepared in cognizance of the survey data and EESSH requirements. 7.3 Our integrated housing management system (Active H) has an asset management model which holds data on all properties and provides life cycle costings for the stock. It also enables us to manage our investment programmes and tender information. Contract management is also recorded and managed through the system. Improvement works are updated to the database on completion of works. 7.4 The linkages between the Asset Management system and our Asset Register and Business Planning tool will be developed further to ensure we have one robust source of original data, which then drives all other modules. 7.5 We are working to update cloned information where this is appropriate and we will carry out a new Stock Condition Survey during the span of this Strategy. 7.6 We are developing dynamic connections between this database and our customer interface systems. This will provide for example, improved repairs diagnosis as information will be drawn from the database and pre-populated into repairs orders.

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7.7 An approach to categorising assets to assess whether they are adding value to the business is being developed. This includes condition data, construction type/age and data concerning allocations, demand and refusals and length of void periods. 7.8 Stock is being categorised into  Core Stock o Stock in good condition and where there is no concern over its ability to continue to meet quality standards in the longer term. There will also be a reasonable demand for vacancies and no long term voids.  Under Review o Where the houses may not continue to meet appropriate standards in the longer term, primarily due to their construction type. This will also include properties where demand is a concern and long term voids are common  Non – Core Stock o This would be stock considered for disposal or demolition/re- provisioning. This would be stock which had been reviewed and where properties were not considered to be a positive asset either because of their physical characteristics or because there was no viable demand for the houses. 7.9 The Director of Finance & Corporate Services will undertake a financial evaluation of assets which are identified for review. This will include:  Annual Rental Income Assumptions  Key Component Replacement Requirements – this would cover any additional cost implications beyond what is already modelled in our 30 year plans.  Management Cost Assumptions – this represents the cost of overheads associated with managing the property.  Routine/Planned Maintenance assumptions – this would cover all maintenance requirements. 7.10 Recommendations on assets which are not considered to be positive contributors to the business will be brought to the Board.

STRAND 5 - JOINED UP PLANNING

8.1 The Regulator’s Guidance states that ‘a strategic asset management approach needs to complement, not duplicate, other strategies and plans. This is especially true of the relationship between the Asset Management Strategy and the Business Plan’. 8.2 Our Asset Management Strategy sets out our plans for the housing stock and this is closely linked with the Business Plan and the wider strategic environment.

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8.3 The Board is responsible for the strategic direction of the Partnership and has placed particular emphasis on delivering the Comhairle’s SHIP to 2021, rent affordability, our role is protecting the future of the islands, listening to customers and service delivery. 8.4 We have a 30 year Business Planning model. The model enables risks to be assessed and the impact on the business quantified. All assumptions can therefore be monitored on a regular basis and updated in the Plan should they alter significantly. Changes in the operating environment can be assessed and options to address these analyzed. This would entail a review of Asset Management Planning. Any change required would be consistent with the Business Plan which always establishes the financial framework for the management of assets.

STRAND 6 - LOOKING AFTER CORE STOCK

9.1 We are committed to delivering a quality maintenance and investment service. This Asset Management Strategy sets a framework in which the stock will be managed. A quality responsive repair and maintenance service is essential to deal with day to day maintenance requirements and to meet tenants’ expectations. The Strategy aims to further strengthen the focus on planned and cyclical programmes and thereby seek a reduction in responsive work. 9.2 The housing stock meets the SHQS. However there are a significant number of exemptions and abeyances, and we will continue to address these as opportunities arise. Exemptions are primarily linked to the energy efficiency requirements and we continue to address these through insulation and heating programmes. 9.3 The Housing Repairs Policy describes the arrangements for making sure that properties are well maintained and kept in good and safe condition. The Policy details the our commitment to our customers in terms of service and explains customer and landlord responsibilities. The repairs and maintenance services has 3 main components:  Responsive Repairs;  Void Repairs; and  Planned Cyclic Maintenance.

Repairs and Maintenance 9.4 Responsive repairs are repairs that arise through wear and tear or as a result of damage to the property, including weather. They are generally low in value and usually tenant driven, which makes them more difficult to plan for. Responsive repairs are split into three groups and the response time for each one is different. • Emergency repairs – This category will include any repair where there is a threat to health or safety or is required to avoid serious damage to property.

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• Urgent repairs – This category will include any repair that may prevent or remove serious inconvenience to tenants or which could lead to serious damage of the property if not attended to . • Routine appointment repairs – These are repairs that do not fall into the emergency or urgent categories and which can wait a short time before they are dealt with. 9.5 Our responsive repairs budgets continue to be under pressure on an annual basis and this is an ongoing challenge. We will continue to work to limit the level of responsive repairs while being mindful of tenant service and our statutory obligations. Challenges identified in the previous strategy with Air Source Heating Systems continue to be monitored but have stabilized as the technology develops. Some of these issues have been due to technical matters while others are user related. 9.6 Repairs being issued are monitored on a daily basis. Our maintenance contractors’ engineers are required to report issues and recommendations for further inspection or instruction where these are identified. Specifications are also kept under review to identify items where changes may be required in our investment and new build programmes. 9.7 There continues to be a focus on a ‘right first time’ approach and on working with contractors to maximize efficient working and productivity levels. 9.8 Our current Repairs and Maintenance contract expires in 2020. The incumbent contractor FES FM Ltd have been successful in winning the new contract which is on a five year + two + two period. The mobilisiation of the contract is underway and will commence on 1 April 2020. The procurement process involved consultation with tenants groups and with our Asset Management Working Group. All services for response repairs, planned maintenance and voids were reviewed. 9.9 We will evaluate options for the first contract extension towards the end of this strategy. Void Repairs 9.10 Rental income is crucial to the business and the importance of letting houses quickly is a priority for allocation and property teams and for our contractor to achieve this. We will continue to seek improvements in performance. Turnover of stock is relatively low and averages around 9% per annum. This is consistent with other RSL’s and is not currently an area of concern. 9.11 The Partnership has a Housing Letting Standard that all houses must meet prior to letting. This standard was reviewed as part of the Repairs and Planned Maintenance Procurement process and all houses will be:  safe  secure  clean  in a good state of repair

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9.12 In addition, gas safety checks will be carried out prior to re-let. Safety certificates will be provided when our registered gas engineer has carried out the appropriate tests to ensure the system is in good order. All properties with gas heating or solid fuel systems will have at least one carbon monoxide detector fitted. 9.13 EPC’s (Energy Performance Certificates) are also produced on each void. The information gained from this provides data which informs future investment works. 9.14 Satisfaction with the condition of voids as reported in the 2017 tenant’s survey was fairly low. This is an area which has been reviewed with a tenant scrutiny group and some changes were made to processes. We will review this further with tenants and consider options for further improving satisfaction. Satisfaction levels of new tenants is measured as part of our ongoing survey works following re-let. The reported satisfaction for 2019/20 is improved at 84% with 10% of tenants being neither satisfied nor dissatisfied. Planned and Cyclical Maintenance 9.15 We operate a five year planned maintenance cycle to ensure stock is maintained in good condition. This focuses on the external fabric of properties and on health and safety issues. Cyclical maintenance includes statutory servicing and testing to ensure systems are operational and free from defects. Investment Works 9.16 A key aim of the investment programme is to achieve best value by replacing components just before they would require significant responsive repairs. The Board have agreed a 5 year investment programme for the period 2019 – 2024, which is based on the 2017 Stock Condition Survey. This is built into the Business Plan and is subject to annual review through the budget setting process. Tenants have also been advised of the plan and of the works intended to be carried out to their individual homes up until 2024. Over £19.6m will be invested in the housing stock through the investment programme during the period of this Strategy as shown in tables 5 & 6 below. Table 5 - 2019-24 Investment Plan - Summary Investment Year £ 2019/20 £ 4,673,829 2020/21 £ 3,796,169 2021/22 £ 3,528,357 2022/23 £ 3,701,117 2023/24 £ 3,919,561 Grand Total £ 19,619,033 That investment is planned to deliver the programme detailed in Table 6.

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Table 6 – 5 Year Planned Investment Works

Investment Works/ Financial Year 2019/20 2020/21 2021/22 2022/23 2023/24 Grand Total

Bathroom & Shower 528,841 171,981 117,405 339,514 313,927 1,471,669

Kitchen 318,859 123,751 430,851 381,301 254,509 1,509,271

Heating 1,643,311 1,629,330 967,244 768,942 1,298,421 6,307,247

Heating 2nd time 819,521 669,503 624,147 2,113,172

Roofing (Gutters and downpipes) 82,761 381,365 464,126

Roughcast 221,406 282,946 504,351

Windows 109,368 221,352 323,806 746,977 432,907 1,834,409

Fire Doors 252,595 252,595

Environmental 98,726 198,304 285,403 437,277 1,019,709

Gas Heating 218,455 273,018 162,331 146,650 204,260 1,004,713

Insulation 181,456 135,135 121,081 88,562 526,235

Smoke detectors 373,820 373,797 747,617

Electrical Works - rewire 128,875 781,491 639,602 313,950 1,863,918

Grand Total 4,673,829 3,796,169 3,528,357 3,701,117 3,919,561 19,619,033

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9.18 We have a four year framework contract in place for the delivery of this investment programme which expires in 2023. We will review options in 2022 for the future delivery of investment works taking account of the lessons learned from the current framework. During this framework period work will continue with contractors to improve delivery and the customer experience when major works are being carried out in their homes. 9.19 There are a number of significant benefits associated with an effective investment strategy which we will continue to pursue: • More efficient and effective procurement of work leading to cost savings • Material specification to limit maintenance issues • Tenant satisfaction is enhanced through long term planning and therefore known replacement dates • Owner participation is improved due to longer lead-in times which will assist with participation • Once in place the strategy can be reviewed to reflect changing investment priorities, statutory and health and safety requirements, and improved product lifecycles and the contracting market 9.20 An effective planned maintenance and capital investment programmes should reduce the level of responsive repair. However, there are limits to this as some individual components will almost inevitably fail within their expected lifespan.

Energy Efficiency 10.1 The Energy Efficiency Standard for Social Housing (EESSH) was introduced in March 2014 and requires landlords to improve the energy efficiency of social housing in Scotland. This supports the Scottish Government’s vision of warm, high quality, affordable, low carbon homes and a housing sector that helps to establish a successful low carbon economy across Scotland.

10.2 The standard requires all properties to achieve a SAP score of 65 by 2020 and we are working towards this. Achieving the standard is more challenging where gas is not available and only 18% of our stock is on the gas network. It is also more challenging for older houses. 10.3 Current stock achieving EESSH is 80.3% with a forecast of a further 143 properties achieving EESSH in 2019/20 and 79 in 2020/21. 10.4 There are a number of measures that we are pursuing to further improve the efficiency of harder to treat homes. We have around 400 ‘Room in Roof’ properties and will progress work to complete the insulation of the coombes in these properties. We have also undertaken external wall insulation to 16 Swedish timber houses in conjunction with SSE and will continue to work with partners to maximize improvement measures. 10.5 Where properties fail the EESSH standard, we will evaluate the options available to bring them to the standard. We will also continue to monitor new innovations and ideas which could provide solutions in the islands.

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10.6 We have invested heavily in heating replacement over recent years and will continue to do so. In particular, we have installed over 800 renewable systems, primarily air source heating. We believe that Total Heating Total Control (THTC) storage heating systems are a significant contributor to fuel poverty and the problems that tenants can experience with condensation and mould growth. These systems pose challenges for many tenants in terms of both controllability and affordability. 10.7 We currently have around 600 such systems within the stock and have plans to replace half of them by 2024. However, we now aspire to replace all THTC systems over the period of this Strategy and are working to identify resources to enable this. 10.8 We will continue to maintain the fabric of houses through investment and planned maintenance programmes and will pursue works and funding opportunities to improve the thermal efficiency of buildings. This will include the continued replacement of cavity wall insulation and the fitting of external and internal insulation.

Climate Change 11.1 Climate change predictions indicate major Impacts on our people, assets, infrastructure, environment and ecosystems. Many of our tenants live in low lying coastal areas accessed via causeways and increasingly being threatened by coastal erosion. Biodiversity, landscapes and clean beaches attract tourism which in turn support employment and demand for housing. Climate change poses a huge threat to all of these. We must understand this threat more fully and plan with other agencies on how we can mitigate the risks. 11.2 The Scottish Government have declared a Climate Emergency and the Community Planning Partnership have established a Climate Emergency Working Group to review and develop local actions and targets around climate issues. 11.3 Within the Housing sector actions can be taken. The UK social housing sector accounts for around 17% of all homes and as such bears a significant responsibility for reducing our national CO2 emissions. Importantly, we also have a responsibility to ensure that new and existing homes are adapted to meet the forthcoming impacts of climate change. 11.4 The transition to a low carbon Scotland will require significant lifestyle changes for most people, impacting on the ways we get around, how we heat our homes, buy our food, and the goods we consume. This will mean a major cultural shift over the coming years. 11.5 We will develop our actions to meet these challenges as quickly as possible. This involves our roles as a landlord, developer and as a business. We will consider and pursue the following:

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a) Energy Efficiency of Homes – we will continue to increase energy efficient ratings of assets focusing on the building and fabric, low carbon and renewable technologies (EESSH and EESSH 2). We will explore modern methods of construction to minimize carbon emissions both in the construction and supply chains. b) Reduction of waste to landfill – We will work with contractors to maximize recycling and will promote programmes and activities for our staff and tenants to prevent and reduce food waste and encourage composting c) Green spaces – Open areas will be assessed to establish green spaces and to implement tree planting where possible within new and existing stock.

d) Electric Vehicles – We will promote the use of electric vehicles by contractors and suppliers and we will continue to consider the need and practicalities for electric car charging points new developments and existing estates. We have already purchased an electric vehicle for staff use to lower carbon emissions during travel on estate visits and inspections.

e) Climate Resilience – The existing stock will be assessed for flood risk as sea levels rise. We will also take account of these risks when carrying out feasibility studies for new developments.

f) We will actively pursue external funding to enhance our actions on energy efficiency and our climate change response.

Estate Management 12.1 We are committed to ensuring that our housing schemes provide an attractive and safe environment in which to live. Strong partnership working with communities and other agencies is an important element of this. We work closely with agencies such as Cleansing, Environmental Health, Criminal Justice and the Police to address issues as they arise and take a pro-active approach through partnerships and especially the Community Safety Partnership which includes membership from all the key players in the islands. 12.2 An annual estate management inspection programme is in place to review the condition of estates and their environment and to identify issues that require attention. These inspections help to maintain the external appearance of properties and the wider environment within housing schemes. Involvement from tenants and residents in this process is very important and we will work to facilitate this. However, the large number of small schemes makes this challenging. 12.3 This inspection programme aims to complement investment and planned maintenance programmes to protect the investment made. We will strive to ensure that data from estate management visits informs these programmes.

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Adaptations 13.1 We have been successful in obtaining significant grant funding from the Scottish Government over recent years for the installation of aids and adaptations. Over £1.5M has been invested over the last 5 years providing huge benefit to tenants and improving their quality of life. The need within the tenant population reflects the age profile of the islands. Many of our tenants have been assisted to remain in their own homes through this investment. 13.2 Individual tenant’s needs are assessed by the Occupational Therapy Service of the Western Isles Health Board with whom we work closely. They provide recommendations on the work required and prioritise works based on risk. 13.3 Adaptation works represent a significant investment on behalf of elderly and disabled residents and a number of fully adapted properties have also been built through our development programme. 13.4 To ensure best value properties which have been adapted will be allocated to individuals or families with appropriate needs, if possible. The Housing Allocation Policy facilitates this process.

Land and Open Spaces 14.1 We own some areas of land and open space. These may have development value for housing or for other forms of development and it is intended that these be reviewed on a regular basis. There may also be some potential for community use such as allotments and these options will be explored as opportunity arises. 14.2 We have partnered with the Comhairle to deliver grounds maintenance work for areas for which we have responsibility through the Comhairle contract for the period 2015 to 2019. Other areas of land we own are maintained by the Comhairle in accordance with the provisions of the stock transfer agreement. We are in discussions with the Comhairle regarding their proposals for this work from 2020 onwards. 14.3 In addition, we provide a Garden Assistance Scheme to approximately 75 tenants who meet the qualifying criteria. They are helped through the summer period of April to September. We will review our approach to this ahead of the current contract ending in March 2021.

Unadopted Infrastructure 15.1 We own roads, paths and septic tanks which have ongoing maintenance implications. Some of these will also have a shared responsibility with owners. We will pursue adoption where this is appropriate and are currently pursuing this for 2 of the septic tanks. In the meantime, we have introduced a charge for septic tanks and will maintain these in good working order. 15.2 We are exploring ways of mapping our housing areas and the condition of surrounding infrastructure and the extent of Shared Ownership. This will be a

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resource heavy undertaking. We are carrying out a test survey using a drone and we will evaluate the results to determine whether this is a viable approach.

Previous Right to Buy 16.1 The pattern and distribution of mixed tenure because of sales under Right to Buy legislation is not a major concern in terms of works to properties, as much of the housing stock is terraced or semi-detached. However, there are a number of properties where we have an interest in the co-operation and participation of owners in planned and cyclical programmes. 16.2 There are a significant number of properties that have been categorised as abeyances under the SHQS as it has not been possible to secure the agreement of all owners for the work. These are primarily related to installation of controlled door entry systems. We will review these abeyances on an annual basis throughout the period of this strategy to ascertain if they can be addressed. 16.3 We will engage with owners as necessary in the day-to-day maintenance of the common parts of their block, through a combination of reactive and cyclical work. 16.4 Historically the lack of defined cyclical or planned work and the reliance on reactive repairs meant that owners were being asked to participate in an unstructured and ad hoc manner. We have developed a more structured approach to common repairs and will continue to build on this and to attempt to obtain the ‘buy-in’ of owners to repair work, particularly where this could be detrimental to the long-term condition of the property. We will also review options to require owners to participate and consider the financial implications of cost recovery. 16.5 Corrective conveyancing will be carried out as issues are identified which need to be addressed and there will be some costs associated with this

Factoring 17.1 We provide a factoring service to properties and are registered as a property factor. The service provided to the great majority of properties factored is limited to grounds maintenance of common areas within housing schemes. This has a very low financial value.

17.2 We do provide a more traditional factoring service to a small number of shared equity and shared ownership properties. We recognize the need to improve the service we provide and the transparency of charges. However, the small volume of properties involved does not justify additional resource to be deployed and this continues to be a challenge. We continue to improve the information on servicing and checks carried out in order to provide improved information to factored owners.

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Garages 18.1 We own a small number of garages and garage sites throughout the island areas as shown in Table 7. The garages are single vehicle size. Garage sites are unserviced plots on which the lessees construct their own units in line with local authority planning requirements.

Table 7 - Garage and garage sites

Type of Stock Non Housing Grand Total Garage 42 42 Stornoway 24 24 Tarbert 1 1 Balivanich 16 16 Castlebay 1 1 Garage Site 56 56 Stornoway 56 56 Grand Total 98 98

18.2 These assets will be assessed to determine whether they provide value to the business. Alternative uses will be examined such as new build development or use as open space or other community use.

STRAND 7 - COMPLIANCE WITH STANDARDS Planned and Cyclic Maintenance 19.1 We will continue our approach to planned and cyclical maintenance to ensure compliance with statutory requirements and to protect the Health and Safety of tenants. Cyclical maintenance covers the regular maintenance of elements of a property including mechanical and electrical plant. 19.2 Cyclical maintenance programmes are in place as follows: • Annual gas servicing • Annual Fire Safety Installations • 5 year electrical Testing • Communal door entry system • Annual Communal lighting • Annual Water Management Testing • Portable Appliance Testing • Septic tank cleaning • Annual skew inspections • 5 year planned programme of external fabric repairs and maintenance. One fifth of the stock is inspected annually 19.3 We commissioned an audit from the ACS Risk Group in 2019 on our responsibilities as a Landlord for Health and Safety. Following this we amended and updated our policies and further developed our inspection and testing

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regimes. A further audit will be carried out in 2020. The following programmes are in place:  Electrical Safety inspections o A 5 year cyclical programme has been established in addition to testing carried out during investment works such as kitchen, bathroom and heating refurbishments  Fire Safety o Fire Safety in Housing Stock and Common Areas - new legislative requirements are being implemented to install additional smoke, heat and CO detectors in residential properties. Expiry dates on detectors are recorded on our asset database. All new detectors installed are required to have a 10 year lifespan. o Emergency lighting in common parts will be replaced if necessary. o Fire doors to flats leading onto common areas will also undergo regular inspection and some are being replaced where necessary.  Water Systems and Legionella o Risk assessments are being undertaken on a sample of the stock. These will be tested further if necessary. o Additional works is being undertaken on voids to reduce legionella risks. o Advice to tenants will be published regularly in the Homeward newsletter.  Play Park Safety o Annual safety inspections and servicing will be undertaken. o Weekly inspections are also undertaken. 19.4 The 5 year planned maintenance programme focusses on work to maintain the fabric of properties and their environment and seeks to take a preventative approach to avoid the need for reactive works. The work is identified following a full external inspection of each property. Priority is given to maintaining the external fabric of homes and particularly roofs, render, rainwater goods and path and access arrangements. Repair works to fencing and more cosmetic work is carried out if resources permit. 19.5 Data will be recorded in our Active H asset management database. This will inform ongoing decision making on investment.

Asbestos 20.1 The Partnership will ensure that any asbestos located within the housing stock is managed in accordance with the requirements of the Control of Asbestos at Work Regulations 2006 (CAR 2006). Technical staff have received Asbestos Awareness and Sampling training and this will be updated during the period of the Strategy. The asbestos register is held on the Active H system. ACS Risk Group

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have been appointed to carry out sampling works and to update the Asbestos Register. 20.2 We will review the information and advice provided to tenants on a regular basis.

Gas Installations 21.1 Annual safety checks are carried out on all of our properties that have a gas supply. We audit our processes and the quality of work through an external agency. Currently this is carried out on an annual basis. We will continue to review the frequency of the audits annually. 21.2 The audit provides an assessment of the quality of work undertaken by contractors by sampling recently completed jobs and verifying the works have been undertaken correctly. 21.3 Audit work will also be carried out to check internal policies and procedures to ensure they are fully compliant with our statutory obligations.

STRAND 8 - DEALING WITH “CAUSE FOR CONCERN STOCK”

22.1 The majority of our housing stock is traditionally built and is low rise. Over 75% of the stock is semi-detached or terraced housing. Consequently, there is little concern about properties for purely technical reasons. We are however aware that assets can become liabilities and we will therefore continue to monitor the performance of the stock both in terms of its physical condition and also in the wider social and environmental context.

22.2 The Asset Management Strategy will consider the inter-relationship between new build and the existing stock in each area and whether our development programme provides an opportunity to replace stock that has a limited future life span or where demand is a serious concern. 22.3 Low demand is a continuing and growing concern across the Outer Hebrides. This is particularly an issue in the most rural areas with some properties regularly taking several weeks or longer to let. The reasons for this continue to be explored but it appears most likely that this is to a large extent due to the declining and ageing population in the islands. 22.4 There is also apparent centralisation of population in the larger population centres, particularly around Stornoway, but also to a smaller extent in Tarbert, Balivanich and Castlebay and the implications of a further concentration of development in these areas needs to be considered in the wider strategic planning framework. 22.5 We continue to work closely with the Comhairle and to seek to influence the development of housing and other strategies. The Local Housing Strategy will be updated in 2022 and we will emphasise the need for the Comhairle’s Housing Strategy to be aligned with other corporate strategies and associated actions.

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In addition, we will work with the Health & Social Care Service and Community Planning Partnership to examine these issues and to consider policy responses to them.

STRAND 9 - NEW DEVELOPMENT

23.1 We will continue to work with the Comhairle on meeting needs and our Board have a clear aspiration to continue to provide new housing across the islands. However, they are also aware of the need to take a long-term view on development and to ensure that this represents benefit to HHP. The most recent Housing Needs Assessment carried out by the Comhairle gave an indicative need for new social housing of around 35 units per year. This will be required to be updated during this strategy.

23.2 The amount of grant funding the Scottish Government made available to the Comhairle for the delivery of new affordable homes for the period 2018-2021 is at the highest level since we were established. This funding has provided an opportunity to build new homes throughout the Islands as well as bringing a significant economic benefit through the provision of work for contractors. It has also enabled us to develop a land bank for future years and work is continuing to secure this.

23.3 Our promise at Transfer was to build 250 houses by 31 March 2016. By March 2020, we will have built 400 with a further 166 in progress. As the key delivery partner of the Comhairles’ strategic plans for affordable housing we have put resources in place to enable the delivery of the SHIP up to 2021. This includes committing unprecedented levels of our own funding to deliver 50 Housing with Extra Care flats which are currently under construction. This enables the Comhairle and the Health and Social Care Partnership to deliver on their desire to reprovision 2 care homes in Stornoway.

23.4 However, housing demand as evidenced by waiting list numbers is falling and this is particularly apparent in rural areas. At the same time, the population is aging and levels of dementia in particular are projected to increase significantly. These challenges and trends must be carefully considered as decisions are taken on future development. Our Board will be carefully considering the implications of these trends and the implications for the business of continuing to increase housing supply when demand and population are falling.

23.5 There is an obvious tension between the Comhairles’ aspiration to build new houses in rural areas when public services are being withdrawn. The financial risk associated with this currently sits with us. It is imperative that all agencies work collaboratively to share risks and to deliver on such aspirations.

23.6 We will review the need and potential for other housing options such as mid- market rent and will continue to provide home ownership opportunity initiatives

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where there is demand through schemes such as the Governments Shared Equity Scheme.

23.7 Where development is undertaken we will consider new innovations in construction, modern methods of construction and energy efficiency and green initiatives. The impacts of poor housing on issues such as health, poverty and children’s attainment are well known. Consequently, the benefits that high quality housing can provide to the well-being and health of our population is important for us to consider when determining our future approach to development.

STRAND 10 - VALUE FOR MONEY

24.1 We have a Value for Money strategy. We will continue to review our asset management systems and processes to seek efficiencies and to improve our services.

24.2 We also recognise that procurement practices present an opportunity to improve value for money. A new Repairs and Maintenance contract has been awarded to FES FM Ltd and will commence on 1 April 2020. We will work in partnership with FES over the next five years to deliver improvements for tenants and to increase the efficiency of service delivery. We will also provide opportunities for our young people through apprenticeships and training during the duration of this contract.

24.3 Local communities and charities have benefited through our contractual community benefit requirements and our encouragement of contractors to maximise their contribution to the wider community. These benefits have included monetary contributions and work in kind and we will continue to deliver these opportunities.

24.4 We will continue to assess the investment we are making and to review the extent to which this is delivering value particularly in the context of component life spans and repair and maintenance requirements. Our current 4 year investment framework contract ends in 2022. We will review our approach to the delivery of investment works during the first 18 months of this strategy and will build on the lessons learnt from the current arrangements. 24.5 As noted earlier in the strategy we are developing a model which will enable us to assess the contribution that groups of houses make to the business and to identify properties or areas which require more detailed attention or investigation. This would seek to capture both physical and social factors and will identify priorities for action and intervention. 24.6 Our investment delivers value far beyond our immediate role and responsibility to our tenants. This investment is an important contributor to creating sustainable communities and to supporting the local economy. Over the next five years through our Repairs, Investment and Development Programmes we will be

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making a significant contribution to the local economy, supporting jobs, local suppliers and communities.

24.7 We anticipate spending a total of £69m over the lifetime of this business plan providing a level of certainty for local contractors enabling them in turn to provide apprenticeship opportunities for young people allowing them to live in the Outer Hebrides whilst gaining valuable skills for the future.

24.8 This investment delivers value far beyond our immediate role and responsibility to our tenants.

FUTURE REVIEW AND MONITORING FRAMEWORK OF THE STRATEGY

25.1 The Strategy and associated Action Plan will be reviewed annually and updated as required in conjunction with the Business Plan and Risk Register. 25.2 An Action Plan for the delivery of the Strategy is set out at Appendix 1. Progress on this will be reported annually to the Board and will be used as an ongoing monitoring tool by managers.

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POLICY CHANGE HISTORY

Version Change Applied Date By 1.0 First version 23 Feb 2011 A E MacNeil 2.0 Second version 2 Feb 2016 A E MacNeil 19 November 3.0 Third version A E MacNeil 2019

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INTERPRETATIONS & ABBREVIATIONS

The following interpretation and abbreviations are used in this policy:

Word Interpretation HHP or Partnership Hebridean Housing Partnership Board Means the Board of the Hebridean Housing Partnership Board Members All Members of the Board including co-opted Members SAP Standard Assessment Procedure SHQS Scottish Housing Quality Standard EESSH Energy Efficiency Standard in Social Housing Regulator Scottish Housing Regulator

All references to the masculine gender in this policy shall read as equally applicable to the feminine gender

If there is a conflict between this Strategy and any statutory provision or regulation, the latter shall prevail.

APPENDIX 1

ASSET MANAGEMENT STRATEGY – ACTION PLAN

REF ACTION RESPONSIBLE TIMESCALE PROGRESS STRATEGIC 1 Influence Local Housing Strategy on:  Demand Chief Executive October 2022 Ongoing meetings with CNES on  Population change annual SHIP programme and through  Population movement the Investment Delivery Board.  Development requirements 2 Continue to review current and Chief Executive Each Board Cycle emerging risks and mitigation measures Risk Register reviewed on a regular (including Climate Change agenda ) basis by Managers and Audit & Risk Committee.

3 Monitor low demand and report on Area Manager Ongoing and Ongoing analysis of long term voids financial impact amended report and hard to let assets. Further analysis to Board in June on reasons for relets and demand in each year differing areas across island chain. 4 Continue to work with partners to lobby Director of Ongoing Continued lobbying of OFGEM and on fuel pricing Operations energy suppliers with other Highlands & Islands landlords. Partnering arrangement with Citrus Energy to facilitate search for improved tariffs for tenants. Continue to contribute to Hebrides Energy. Lobbying with partners reflected in Scottish Government acceptance of the need for rural income issues to be reflected in definition of fuel poverty.

APPENDIX 1

REF ACTION RESPONSIBLE TIMESCALE PROGRESS TENANT ENGAGEMENT AND FEEDBACK 5 Carry out tenants survey Director of September 2021

Operations 6 Continue to develop ongoing Tenant Satisfaction Survey and point of satisfaction measurements service data collected on voids,

repairs and investment work and used  Assess satisfaction with homes to inform services. and environment Service Daily analysis of repairs being issued in  Collect, analyse and use data Development terms of nature of works, value, priority. on ongoing basis on repairs, Manager Patterns of repairs analysed in investment, new lets and conjunction with other patterns for environment recall visits, multiple visits to same properties.

Reasons for voids and relets analysed

and compared with socio economic  Develop 2 way communication demographics published by CNES. channels Recommendations from contractor reviewed daily and actioned.

7 Develop digital self-service for repairs Service March 2021 Project being scoped. and maintenance work Development Manager INFORMATION MANAGEMENT

8 Carry out Stock Condition Survey Director of December 2022 Operations

APPENDIX 1

REF ACTION RESPONSIBLE TIMESCALE PROGRESS 9 Review and document all processes for Service Ongoing monthly Data reviewed monthly to QA check data input with Q A system integrated Development all data provided by Contractor. Data

Manager is robust.

Electronic invoicing being explored as December 2020 next step of system development. This will be reflected in new Repairs and Maintenance Contract. 10 Continued development of Active H LCC plans being developed with Planned Maintenance module:- ongoing uploads of investment and

new build attribute data. Stock  Life cycle cost (LCC) plans Service Ongoing Condition Survey information Development Annual update uploaded. Data updated as Manager investment works completed.

 Investment programme Investment Programme Management March 2021 management process is completed. It is now being reviewed and refined. Regular meetings to improve reporting systems

 Cash flow management and QA of data input against programmes.  Interfaces with financial systems Cash flow is prepared via system with system refinements to be carried out by MIS. 11 Develop interfaces between asset Service March 2021 System development between information and customer interface Development modules ongoing internally and with software particularly on repairs Manager system provider – interfaces now in diagnosis place.

APPENDIX 1

REF ACTION RESPONSIBLE TIMESCALE PROGRESS PROTECT CORE STOCK 12 Pursue measures to control reactive Service Ongoing repairs demand Development Daily reports and analysis carried out Daily and Monthly Manager/Asset & and circulated to members of staff. process in place. Contract Regular reporting to Board on patterns Manager/Investm of repairs and estimated outturns. ent Manager 13 Pursue increased focus on planned Asset & Contract Ongoing Annual and 5 year cycles in place. and cyclical maintenance Manager Monthly meetings with Contractor to review programme and budget. 14 Address SHQS abeyances and Investment March 2021 Abeyances being addressed as exemptions Manager opportunities arise.  Replace all solid fuel heating systems

 Continue engagement with owners 15 Review and agree Investment Asset & Contract November

Programme Manager Annually PROCUREMENT 16 Review options for delivery of Repairs & Director of March 2024 Maintenance work Operations

Decision on whether to invoke contract March 2024 extension to be taken Director of Operations

APPENDIX 1

REF ACTION RESPONSIBLE TIMESCALE PROGRESS 17 Review outcomes of current investment Asset & Contract March 2022 framework contract Manager

18 Determine procurement route for Asset & Contract June 2022 Procurement options evaluated and investment programme post 2023 Manager new framework or alternative approach in place for 2023. ENERGY EFFICIENCY AND FUEL POVERTY 19 Investigate and pursue replacement of Director of March 2024 all THTC systems within housing stock by Operations end of strategy period 20 Assess and report on progress against Investment May Annually Assets assessed against new EEESH Standard Manager guidance. Discussion with members from other organisations in regard to information share. 21 Evaluate options to address EEESH Investment May Annually Areas of failures and SAP calculations failures Manager evaluated against possible areas for improvements. 22 Assess implications of EESSH 2 standard Investment May 2021 Engagement through RIHAF to Manager influence standard and definitions. 23 Monitor new and emerging solutions to Investment Ongoing Ongoing information sharing with improve energy efficiency Manager members of other organisations. Attendance at Government meeting to discuss energy efficiency ratings for Infra red systems as SAP does not currently provide rating.

APPENDIX 1

REF ACTION RESPONSIBLE TIMESCALE PROGRESS ENVIROMENT 24 Carry out annual environmental estate Area Managers February Annual estate surveys carried out. management inspections and link to Annually Grounds maintenance programmes/ planned maintenance and investment sites reviewed annually. programmes Garden Assistance programme reviewed annually. Contract awarded for 2019 and 2020. Continued issues with Scottish Water sites and shared tenure.

LAND AND UNADOPTED INFRASTRUCTURE 25 Review land assets on regular basis and Asset & Contract Yearly Review Of consider potential uses including Manager Each Site disposal 26 Survey unadopted roads and footpaths Asset & Contract March 2022 Unadopted Infrastructure surveys and assess maintenance needs, cost Manager being prepared. implications and shared ownership Surveys will cover responsibilities  Roads  Footpaths  Kerbing  Drains/ covers  Parking  Lighting

APPENDIX 1

REF ACTION RESPONSIBLE TIMESCALE PROGRESS 27 Evaluate use of drones for survey work Asset & Contract December 2020

Manager 28 Review effectiveness and specification Asset & Contract March 2020 of grounds maintenance arrangements Manager with CNES 29 Update contracts with new sites as Asset & Contract Ongoing

developments complete Manager 30 Pursue adoption of septic tanks and Asset & Contract November 2020 Adoption being pursued through TIG ensure adequate maintenance regime Manager on some sites. Maintenance being is in place carried out as required.

31 Compile survey of existing septic tanks December 2020 Tender issued. and implement recommendations

ENGAGEMENT WITH OWNERS AND FACTORING 32 Explore opportunities to assist owners to Asset & Contract Ongoing HHP undertakes surveys and obtains participate in maintenance works Manager costs and can inform owners of works particularly in relation to SHQS works and costs. Take up is very limited but is encouraged. 33 Explore enforcement options for shared Asset & Contract March 2021 Participation from private owners responsibilities with owners if Manager continues to be problematic across all appropriate programmes. Enforcement options require development to ensure HHP stock and estates do not fall into disrepair.

APPENDIX 1

REF ACTION RESPONSIBLE TIMESCALE PROGRESS 34 Improve factoring service delivery and Area December 2020 Data collected checked for detail to owner satisfaction Managers/Servic ensure clear information is provided to e Development owners. Improvements being made to Review processes and implement Manager logs for annual servicing. Works improvements identified programmed annually. 35 Carry out annual planned and cyclical Asset & Contract Annually maintenance programmes Manager Ensure good communication with owners

‘CAUSE FOR CONCERN’ STOCK 36 Monitor stock and investigate issues as Asset and Ongoing Investigate issues identified via they are identified and identify options Contracts Investment, Planned and Cyclical Manager Maintenance and daily repairs. Regular review of data on hard to let and long term voids or patterns of frequent relets to the same property.

37 Develop a model to enable an Director of June 2020 assessment to be made of the value of Operations/Asset

properties to the business & Contract Manager Review stock and classify as:

 Core Stock  Under Review  Non-core Stock

APPENDIX 1

REF ACTION RESPONSIBLE TIMESCALE PROGRESS Carry out title checks on non-core stock As required

PROGRESS MONITORING 38 Report to the Board on progress against Director of May/June – this Action Plan Operations Annually

SKY DISHES 39 Review whether provision of communal Asset and March 2021 Sky services should be provided due to Contracts broadband services providing access Manager/ to separate online streaming services Housing Managers

ITEM NO 6.4

Making our house your home

MANAGEMENT REPORT TO 31 DECEMBER 2019 Board 12 February 2020

Report by Director of Finance & Corporate Services

Purpose of Report

1.1 To present the Management Report for the month ended 31 December 2019 to the Board for review. Summary

2.1 This is the Management Report to 31 December 2019 and the information is presented in compliance with regulations to provide Board Members with assurance that expenditure is within approved budgets and income collected is on target. A copy of the report is at Appendix 1. 2.2 The management accounts show that the financial covenant will be met for the year ended 31 March 2020. 2.3 Development continues to be challenging. The forecasted out-turn has been amended to reflect slippage to date. 2.4 Investment works are on track and it is anticipated that the majority of budget will be spent by 31 March 2020. Competence

3.1 The financial, legal, or other constraints to any recommendation in this report are contained in paragraph 5.1 - 8.1. Recommendations

4.1 It is recommended that the Board: a) note the management information at 31 December 2019 as detailed in Appendix 1; and b) approve further savings of £104K on interest payable be vired to reserves.

APPENDIX 1: Management Report to 31 December 2019 Background Papers: None Writer of Report: Katia Petteloot Tel: 0300 123 0773

Katia Petteloot 23-Jan-20 Competence

Financial 5.1 The Board approved budgets for 2019/20 in February 2019, which projected a surplus for the year of £2,215,097. The forecasted out-turn is £2,758,661. 5.2 The higher forecast out-turn is mainly driven by grant funding on RHI and OT of £275K, £244K saving on interest payable and £60K saving on Professional Fees for 2019/20. Legal 6.1 The following Partnership rule is applicable: Rule 69 - The Partnership must keep proper books of accounts to cover its income, expenditure transactions and its assets, liabilities and reserves in line with Part 7 of the Co-operative and Community Benefit Societies Act 2014. It must also set up and maintain a suitable system for controlling its books of accounts, its cash and its receipts and invoices. Regulatory Guidance 7.1 The Regulatory Standards checklist has been completed and there is nothing in the report which would result in a breach of the standards.

Risk 8.1 The key risk is that we do not meet our Financial Covenants on an ongoing basis. The covenant for 2019/20 has been formally approved by our Funders. The covenant is forecast to be met in March 2020.

Katia Petteloot 23-Jan-20 APPENDIX 1

Hebridean Housing Partnership Registered Scottish Charity SCO 35767

Management Reports To 31 December 2019

2019/20 Hebridean Housing Partnership 2 Management Reports

Introduction The Management Reports for 31 December 2019 are attached and if Board Members or Managers have any areas of concern or would like additional information they should contact the Finance Manager or the Director of Finance & Corporate Services.

The Management Reports are made up of three sections:

Section 1: High Level Summary • Written by the Director of Finance & Corporate Services. This section shows in graphical format how HHP is performing in relation to the annual budget for 2019/20. Section 2: Management Accounts • Prepared by the Finance Manager. Provides an Income & Expenditure Account, Balance Sheet and detailed operational budgets for the period. The Management Acounts include a more detailed commentary from Budget Managers on performance. Section 3: Key Financial Performance Measures • Prepared by the Finance Manager including a review of Financial Covenants to provide the Board with assurance that the Covenant for 2019/20 will not be breached.

Hebridean Housing Partnership 3 Management Reports

Section 1-High Level Summary

Commentary on Performance by Director of Finance & Corporate Services £ Initial approved Surplus 2,215,097 Virements (60,388) Virement/Adjustment current period 50,324 Revised Surplus 2,205,033

Changes identified this financial year Changes to Income increases/(decreases) 261,012 Cost (increases)/decreases 120,611 Depreciation - Grant Amortisation - Forecast Surplus to 31 March 2020 2,586,656

Decrease in funds required to meet forecast out-turn (381,623)

Hebridean Housing Partnership 4 Management Reports

Expenditure

Development

Investment

Repairs & Maintenance

Management Costs

Interest

0 20 40 60 80 100 120

Above Below On Target

Income

Other Income

Grants Income

Rental Income

0 20 40 60 80 100 120

Above Below On Target

Development underspend is predominately driven by delays in getting on site in Balivanich and programme slippage at Tarbert and Goathill.

Grant income is forecast to come in higher than budget due to RHI Income received to date of £275K.

Gross Rental Income is forecasted to be £107K below budget due to slippage on new build properties which will in turn have an impact on when we will be able to occupy the properties. This is offset by savings on voids of £82K.

The management accounts show that the financial covenant will be met for the year ended 31 March 2020. Hebridean Housing Partnership 5 Management Reports

Section 2: Management Accounts

Page

Summary Income & Expenditure Account 6

Balance Sheet at 31 March 2020 7

Rental Income 8

Supervision & Management Costs 9

Repairs & Maintenance 10

Estate Works 11

Aids & Adaptations 12

Investment 13

Non-Housing Investment 14

Development 15

Hebridean Housing Partnership 6 Management Reports

Income & Expenditure Account

For the period ended 31 December 2019 Line CURRENT YEAR BUDGET BUDGET ACTUAL BUDGET VARIANCE BUDGET REMAINING FORECAST OUT-TURN Initial Revised to Spend to Budget Budget to Revised Revised Over/ at Budget Budget 31-Dec-19 31-Dec-19 to date date Budget Budget (under) 31-Mar-20 £ £ £ £ £ % £ % £ £ 1 Dwelling rents (net) 9,039,389 9,039,389 6,801,910 6,929,588 (127,678) -2% 2,109,800 23% (27,149) 9,012,239 2 Non Dwelling rents (net) 13,223 13,223 9,990 12,740 (2,749) -28% 483 4% 1,839 15,062 3 Sale of Assets - - - 11,322 (11,322) (11,322) 11,322 11,322 4 Grant Funding 120,000 205,000 156,000 466,995 (310,995) -199% (261,995) -128% 275,000 480,000 5 Other Income 44,450 49,393 29,690 44,793 (15,103) -51% 4,600 9% 49,393 6 TOTAL INCOME 9,217,062 9,307,005 6,997,590 7,465,438 (467,848) -7% 1,841,567 19.79% 261,012 9,568,016

7 Supervision & Management 2,646,737 2,694,607 1,986,315 1,571,742 414,574 21% 1,122,865 42% (60,000) 2,634,607 8 Response Repairs 1,465,233 1,472,364 1,100,730 1,028,688 72,042 7% 443,676 30% 43,526 1,515,889 9 Estate Works 106,720 125,236 113,900 65,289 48,611 43% 59,947 48% - 125,236 10 Planned/Cyclical Maintenance 719,724 916,215 668,308 561,356 106,953 16% 354,859 39% - 916,215 11 Total Operating Expenditure 4,938,414 5,208,421 3,869,254 3,227,074 642,179 17% 1,981,347 38.04% (16,474) 5,191,947

12 Operating Surplus/(Deficit) 4,278,647 4,098,583 3,128,337 4,238,364 (1,110,027) -35% (139,781) -3.41% 277,486 4,376,069

13 Interest received 21,300 21,300 15,975 19,136 (3,161) -20% 2,164 10% 21,300 14 Interest paid 554,850 414,850 398,613 200,713 197,899 50% 214,137 52% (104,137) 310,713 15 Surplus/(Deficit) 3,745,097 3,705,033 2,745,699 4,056,787 (1,311,088) -48% (351,754) -9.49% 381,623 4,086,656

16 Depreciation 2,760,000 2,760,000 2,070,000 2,070,000 - 0% 690,000 25% 2,760,000 17 Grant Amortisation (1,230,000) (1,230,000) (922,500) (922,500) - 0% (307,500) 25% (1,230,000) 18 Surplus/(Deficit) 2,215,097 2,175,033 1,598,199 2,909,287 (1,311,088) -82% (734,254) -33.76% 381,623 2,556,656

CAPITAL INVESTMENT 19 Housing Investment Programme 4,991,801 5,116,982 3,353,353 2,692,216 661,137 20% 2,424,766 47% - 5,116,982 20 Non Housing Investment 58,710 159,250 160,099 94,220 65,879 41% 65,030 41% (28,600) 130,650 21 Development Programme 4,113,366 2,580,835 2,562,341 1,669,923 892,419 35% 910,912 35% (888,117) 1,692,718 9,163,877 7,857,067 6,075,793 4,456,359 1,619,435 27% 3,400,708 43.28% (916,717) 6,940,350 Commentary on Performance Income Line 1 Dwelling Rents Gross Rental income is expected to be below forecast by £107K due to slippage in completion of new build properties. This is offset by savings on voids YTD of £82K. The YTD variance to budget is driven by the phasing of bad debts (£46K).

Line 4 Grant Funding The forecast out-turn has been increased by £275K to reflect the anticipated RHI income for the year.

Expenditure Line 7 Supervision & Mgt Professional fees are antipcated to be £60K lower than budget. This is mainly due to savings on property consultants £40K and general consultancy of £20K.

Line 14 Interest Paid Due to the slippage on development, there is no requirement to drawdown any of our loan facility this financial year. As a result a saving of £104K has been recognized in the Forecast Out-turn.

More detailed explanations of variances can be found on pages 8 to 14 Hebridean Housing Partnership 7 Management Reports

Balance Sheet at 31 December 2019

31 December 2019 31 March 2019 £ £ Notes Fixed Assets 1 Tangible assets-social housing 1 81,635,588 83,824,774 2 Development & Investment Programme 2 4,456,359 3 Tangible assets - property, plant and equipment 972,261 972,260 4 Landbank 1,313,013 1,313,011 5 Investments 2 2 88,377,222 86,110,047

Current Assets 6 Stock 672,649 672,649 7 Trade and other debtors due within one year 3 752,536 2,014,284 8 Debtors due after more than one year 167,751 167,751 9 Short-term deposits 3,304,147 5,681,883 10 Cash at bank and in hand 4 2,413,237 620,447 11 Loan to subsiduary 16,565 16,552 7,326,886 9,173,566

12 Creditors: amounts falling due within one year 5 (2,142,147) (2,663,407) Net current assets 5,184,739 6,510,159 Total assets less current liabilities 93,561,961 92,620,206

13 Creditors: amounts falling due after more than one year 6 (10,028,341) (10,877,254) 14 Deferred capital grants 7 (46,403,306) (47,331,167) 15 Pension Liability (2,055,000) (2,055,000) 16 Net Assets 35,075,314 32,356,785

Capital and Reserves 17 Share Capital 208 206 18 Revenue Reserve 35,075,106 32,356,579 35,075,314 32,356,785

Commentary on Performance Note 1 Fixed Assets Fixed Assets are shown at gross cost and are reduced by the depreciation charge for the period. Note 2 Development The value of work in progress, net of Grant, on current properties and new & Investment developments More detailed information is available in the Performance Report. Note 3 Cash HHP currently hold RTB receipts of £0.385 million. £500K has been repaid to Scottish Government in December 2019. Hebridean Housing Partnership 8 Management Reports

Rental Income

For the period ended 31 December 2019 Line CURRENT YEAR BUDGET BUDGET ACTUAL BUDGET VARIANCE BUDGET REMAINING FORECAST OUT-TURN Initial Revised to Spend to Budget Budget to Revised Revised Over/ at Budget Budget 31-Dec-19 31-Dec-19 to date date Budget Budget (under) 31-Mar-20 £ £ £ £ £ % £ % £ £ 1 Dwelling Rent Gross 9,419,039 9,419,039 7,064,439 6,975,465 88,974 1% 2,443,573 25.94% (107,125) 9,311,913 2 Non Dwelling Rent Gross 15,573 15,573 11,889 12,799 (911) -8% 2,773 17.81% 15,573 3 Voids - Dwelling (189,250) (189,250) (118,696) (38,720) (79,976) 67% (150,530) 79.54% 79,976 (109,274) 4 Voids - Other (2,350) (2,350) (1,898) (60) (1,839) 97% (2,290) 97.45% 1,839 (511) 5 Bad Debts (190,400) (190,400) (143,833) 0 (143,834) 100% (190,400) 100.00% (190,400) 6 TOTAL 9,052,612 9,052,612 6,811,900 6,949,485 (137,585) -2% 2,103,127 23.23% (25,310) 9,027,300

Commentary on Performance

Line 6 Total Income:

Gross Rental Income is forecasted to be £107K below budget due to slippage on development which will in turn delay when we can occupy these properties. This is offset by savings on voids of £82K.

The budget to date variance is driven by the phasing of bad debts which are provisioned at the year end.

Hebridean Housing Partnership 9 Management Reports

Supervision & Management Costs

For the period ended 31 December 2019 Line Heading CURRENT YEAR BUDGET BUDGET Actual BUDGET VARIANCE BUDGET REMAINING forecast out-turn Initial Revised to Spend to Budget Budget Revised Revised Over/ at Budget Budget 31-Dec-19 31-Dec-19 to date to date Budget Budget (under) 31-Mar-20 £ £ £ £ £ % £ % £ £ 1 Salaries & Wages 1,403,724 1,403,724 1,053,796 1,036,410 17,386 2% 367,314 26% 1,403,724 2 National Insurance 139,188 139,188 104,324 97,979 6,345 6% 41,209 30% 139,188 3 Pension Costs 272,744 265,613 193,813 184,151 9,662 5% 81,462 31% 265,613 4 Other Employee Costs 51,208 53,518 40,715 26,178 14,537 36% 27,340 51% 53,518 5 Travel & Subsistence 24,670 24,670 17,530 7,466 10,064 57% 17,204 70% 24,670 6 EMPLOYEE COSTS 1,891,534 1,886,713 1,410,179 1,352,184 57,995 4% 534,529 28% - 1,886,713 7 Premises Costs 57,200 68,600 56,379 45,395 10,984 19% 23,205 34% 68,600 8 IT & Telecoms 173,830 175,130 123,835 121,937 1,898 2% 53,193 30% 175,130 9 Area Offices 26,040 26,076 19,530 19,557 (27) 0% 6,519 25% 26,076 10 Payroll & Cashdesk 14,200 14,164 12,150 7,575 4,575 38% 6,589 47% 14,164 11 Property Management Fees 4,010 4,010 3,341 3,008 334 10% 1,003 25% 4,010 12 SUPPLIES & SERVICES 275,280 287,980 215,235 197,472 17,763 8% 90,508 31% - 287,980 13 Postage, Printing & Stationery 45,680 43,680 32,059 22,453 9,606 30% 21,227 49% 43,680 14 Admin Furniture & Equipment 2,600 2,600 1,980 5 1,975 100% 2,595 100% 2,600 15 Training Courses 52,475 72,475 61,455 16,529 44,926 73% 55,946 77% 72,475 16 Community Support 27,140 25,440 18,186 13,995 4,191 23% 11,445 45% 25,440 17 Health & Safety 9,920 9,770 7,200 4,472 2,728 38% 5,298 54% 9,770 18 Recruitment Costs 6,000 6,000 4,500 1,173 3,327 74% 4,827 80% 6,000 19 ADMINISTRATION COSTS 143,815 159,965 125,380 58,627 66,753 53% 101,338 63% - 159,965 20 Professional Fees 415,082 450,082 234,526 133,961 100,565 43% 316,121 70% (60,000) 390,082 21 Insurance 254,375 243,095 171,754 171,755 (0) 0% 71,340 29% 243,095 22 Affiliation Fees 46,775 47,725 38,480 26,844 11,636 30% 20,881 44% 47,725 23 Charitable Donations 5,000 5,200 5,200 5,200 - 0% - 0% 5,200 24 Governance 39,850 38,820 32,630 7,847 24,783 76% 30,973 80% 38,820 25 Bank Charges 9,500 9,500 7,125 5,134 1,991 28% 4,366 46% 9,500 26 Public Relations / Marketing 15,080 15,080 11,295 2,628 8,667 77% 12,452 83% 15,080 27 CORPORATE EXPENSES 785,662 809,502 501,011 353,369 147,641 29% 456,132 56% (60,000) 749,502 28 Fees Charged to Capital (437,053) (437,053) (256,114) (378,692) 122,578 -48% (58,361) 13% (437,053) 29 VAT Received - Partial Exemption (12,500) (12,500) (9,375) (11,219) 1,844 -20% (1,281) 10% (12,500) 30 RECHARGES (449,553) (449,553) (265,489) (389,910) 124,422 -47% (59,643) 13% - (449,553) TOTAL SUPERVISION AND 31 MANAGEMENT COST 2,646,737 2,694,607 1,986,315 1,571,742 414,574 21% 1,122,865 (8) (60,000) 2,634,607 Commentary on performance

Line 15 Training Courses YTD training costs are £45K below budget. The training plan is being reviewed and will be presented to the Board in February. Any savings on this budget in 2019/20 will be rolled forward to fund the new training plan if required.

Line 20 Professional Fees A saving of £60K has been recognized in the Forecast Out-turn for professional fees. This is driven by a reduction in the spend anticpated on property consultants £40K and general consultancy of £20K.

Corporate legal fees are £20K lower than budget YTD but it is expected that this will be required to fund a number of live corrective conveyancing cases.

The Treasury Management budget is £15K under budget YTD but training is scheduled for January with the Board and thereafter our Treasury Management Policy will require updating.

Hebridean Housing Partnership 10 Management Reports

Repairs & Maintenance

For the period ended 31 December 2019 Line Heading CURRENT YEAR BUDGET ACTUAL BUDGET VARIANCE BUDGET REMAINING FORECAST OUT-TURN Initial Revised to Spend to Budget to Budget to Revised Revised Over/ at Budget Budget 31-Dec-19 31-Dec-19 date date Budget Budget (under) 31-Mar-20 £ £ £ £ £ % £ % £ £ 1 Responsive Repairs 935,325 935,325 683,318 631,604 51,713 8% 303,721 32% 935,325 2 Void Repairs 264,000 264,000 197,402 170,980 26,423 13% 93,020 35% 264,000 3 Handyperson 95,303 102,434 78,522 75,096 3,426 4% 27,338 27% 102,434 4 GENERAL REPAIRS 1,294,628 1,301,759 959,242 877,680 81,562 9% 424,079 33% - 1,301,759 5 Decoration Allowance 46,530 46,530 34,220 35,545 (1,325) -4% 10,985 24% 46,530 6 Council Tax empty properties 19,800 19,800 14,775 9,851 4,924 33% 9,949 50% 19,800 7 Minor Aids & Adaptations 500 500 500 - 500 100% 500 100% 500 8 Compensation 7,695 7,695 5,271 5,057 214 4% 2,638 34% 7,695 9 SPECIFIC ITEMS 74,525 74,525 54,766 50,453 4,313 8% 24,072 32% - 74,525 10 Rechargeable Repairs 66,900 66,900 50,130 83,356 (33,225) -66% (16,455) -25% 33,120 100,020 11 Rechargeable Repairs Recoverable (28,700) (28,700) (21,468) (46,639) 25,171 -117% 17,939 -63% (18,242) (46,942) 12 Insurance Repairs 55,000 55,000 33,210 147,988 (114,778) -346% (92,988) -169% 106,388 161,388 13 Insurance Claims Recoverable (27,500) (27,500) - (100,240) 100,240 72,740 -265% (77,740) (105,240) 14 RECOVERABLE EXPENDITURE 65,700 65,700 61,872 84,464 (22,593) -37% (18,764) -29% 43,526 109,226 15 Commercial Properties 1,200 1,200 900 - 900 100% 1,200 100% 1,200 16 Communal Lighting 29,180 29,180 23,950 16,091 7,859 33% 13,089 45% 29,180 17 NON DWELLING REPAIRS 30,380 30,380 24,850 16,091 8,759 35% 14,289 47% - 30,380 18 Gas Servicing 60,000 60,000 50,400 33,209 17,191 34% 26,791 45% 60,000 19 Estate Management 16,820 47,922 35,528 31,364 4,164 12% 16,558 35% 47,922 20 Other Servicing (incl. heating) 599,574 761,344 543,961 460,223 83,738 15% 301,121 40% 761,344 21 Stair Lifts and Door Entry Systems 2,080 3,808 3,428 3,428 - 0% 380 10% 3,808 23 Gutter Cleaning 32,400 34,291 34,291 32,625 1,666 5% 1,666 5% 34,291 24 Sewage Pumps 700 700 700 506 194 28% 194 28% 700 25 Dun Berisay Heat 8,150 8,150 - - - 8,150 100% 8,150 26 CYCLICAL MAINTENANCE 719,724 916,215 668,308 561,355 106,953 16% 354,860 39% - 916,215 27 TOTAL REPAIRS & MAINTENANCE 2,184,957 2,388,579 1,769,039 1,590,043 178,995 10% 798,535 33% 43,526 2,432,104 Commentary on performance

Line 1 Responsive Repairs

Repsonsive repairs are £52K under the YTD budget as we enter the winter season. The last quarter of the financial year typically sees an increase in the number and value of responsive repairs. The first half of January has seen an increase in repairs but it is anticipated the Forecast Out-turn for the year is unaffected.

Line 10 & 11 Rechargeable Repairs and Rechargeable Repairs Recoverable

The net position on rechargeable repairs shows a slight increase to the revised budget (£15K). This is however down £19K compared to last year. The shortfall will be funded from reserves.

Line 12 & 13 Insurance Repairs & Recoverable

Forecast Out-turn has been uplifted to reflected the increased costs incurred to date and respective recoverable amounts. The shortfall will be funded from reserves.

Line 16 Communal Lighting

Actual costs are in line with YTD budget. It is anticipated that the remaining works will be completed in Q4.

Line 20 Other Servicing

EICR (Electrical Installation Condition Reports) works are being combined with investment works and this is contributing to the YTD underspend. The full year savings generated are being calculated and will be reflected in the January forecast out-turn. Hebridean Housing Partnership 11 Management Reports

Estate Works

1 Garage Repairs 4,610 4,610 4,540 - 4,540 100% 4,610 100% 4,610 2 Unadopted Infrastructure 46,240 46,240 37,964 9,254 28,709 76% 36,986 80% 46,240 3 Grounds Maintenance 55,870 74,386 71,396 56,034 15,362 22% 18,352 25% 74,386 4 Paths ------5 TOTAL ESTATE WORKS 106,720 125,236 113,900 65,289 48,611 43% 59,947 48% - 125,236

Hebridean Housing Partnership 12 Management Reports

Aids & Adaptations

Hebridean Housing Partnership 13 Management Reports

Investment Expenditure

For the period ended 31 December 2019 Line Heading CURRENT YEAR BUDGET BUDGET ACTUAL BUDGET VARIANCE BUDGET REMAINING FORECAST OUT-TURN Initial Revised to Spend to Budget to Budget to Revised Revised Over/ at Budget Budget 31-Dec-19 31-Dec-19 date date Budget Budget (under) 31-Mar-20 £ £ £ £ £ % £ % £ £ 1 Roofs - 185,913 184,087 184,087 0 0% 1,826 1% 185,913 2 Insulation 181,460 181,460 90,732 3,701 87,031 96% 177,759 98% 181,460 3 Total Roofs 181,460 367,373 274,819 187,788 87,031 32% 179,585 49% - 367,373 4 Kitchen 318,850 308,207 164,376 176,916 (12,540) -8% 131,291 43% 15,070 323,277 5 Bathrooms 307,868 251,562 185,993 176,095 9,897 5% 75,467 30% 21,670 273,232 6 OT Aids & Adaptations 120,000 235,000 216,000 191,791 24,209 11% 43,209 18% - 235,000 7 Showers 220,963 128,186 93,062 76,958 16,104 17% 51,228 40% 3,410 131,596 8 Heating 2,681,220 2,477,758 1,827,865 1,594,239 233,625 13% 883,519 36% 159,632 2,637,390 9 Rewiring 551,020 473,090 362,001 190,245 171,756 47% 282,845 60% (100,587) 372,503 10 Total Internals 4,199,921 3,873,803 2,849,296 2,406,244 443,051 16% 1,467,559 38% 99,195 3,972,998 11 Windows 361,960 269,635 110,892 24,637 86,255 78% 244,998 91% 33,660 303,295 12 Roughcast house & wall - 31,793 24,200 2,315 21,885 90% 29,478 93% 31,793 13 Other 50,390 136,276 94,146 71,231 22,915 24% 65,045 48% 136,276 14 Externals 50,390 168,069 118,346 73,546 44,800 38% 94,523 56% - 168,069

Total Investment excl. Unallocated 15 Exp/Efficiency Saving 4,793,731 4,678,880 3,353,353 2,692,216 661,137 20% 1,986,664 42% 132,855 4,811,736 16 Unallocated Expenditure 198,070 438,102 - - - 438,102 100% (132,855) 305,247 17 Efficiency Savings 18 Total Investment 4,991,801 5,116,982 3,353,353 2,692,216 661,138 20% 2,424,766 47% - 5,116,982 Commentary on Performance Line2 Insulation SSE have been preparing proposals for external wall insulation at timber clad properties. Discussions are ongoing and SSE are optimistic delivery can be completed before the end of March. However, at this stage given the pace of finalising any proposals, this is unlikely to be delivered within this timescale and the budget will be reviewed in January for slippage.

Line 5 & 7 Bathrooms and Showers Forecast Out-turn has been adjusted to reflect additional replacements which have been instructed in relation to specific tenancy issues.

Line 8 Heating This is progressing but delays in commissioning are slowing down release of payments. Works are anticipated to be complete before end of financial year. Additional works are being instructed for former refusals and bespoke failures for completion before the end of the financial year.

Line 9 Rewiring/ Smoke Detectors Savings of £250 per unit has been recognised in the Forecast Out-turn. The savings have been partially offset by additional assets identified on the smoke detector programme from works brought forward and from a revisit at all non-accesses.

Line 11 Windows Works include fire door replacements which are progressing with anticipated completion before the end of the financial year. Some snagging work is outstanding which is delaying release of payments to date.

Line 12 Roughcast Leonard Place is delayed due to cost and lack of availability of contractors to undertake the works. Discussions have been held with various contractors. FES are currently, exploring options with a sub-contractor who may have capacity. However, a quotation is yet to be received and timescales confirmed.

Hebridean Housing Partnership 14 Management Reports

Non Housing Investment

6 Total 58,710 159,250 160,099 94,220 65,879 41% 65,030 41% (28,600) 130,650 Commentary on Performance Line 1 Furniture & Fittings

The budget will not be spent this year as we were able to acquire new desks and chairs at no cost. Some of the savings will be used to fund the installation of an Electric Vehicle charge point.

Hebridean Housing Partnership 15 Management Reports

Development Expenditure

For the period ended 31 December 2019 Line CURRENT YEAR BUDGET BUDGET ACTUAL BUDGET VARIANCE BUDGET REMAINING FORECAST OUT-TURN Initial Revised Budget to Spend to Budget to Budget to Revised Revised Over/ at Budget Budget 31-Dec-19 31-Dec-19 date date Budget Budget (under) 31-Mar-20 £ £ £ £ £ % £ % £ £ 1 New Build 14,482,398 11,608,573 7,931,122 5,075,512 2,855,610 36% 6,533,061 56% (1,463,512) 10,145,061 2 LIFT 2,109,312 2,421,401 2,259,003 1,790,016 468,987 21% 631,384 26% 2,421,401 3 Land 100,000 100,000 100,000 25,465 74,535 75% 74,535 75% 100,000 4 Total Development Costs 16,691,710 14,129,974 10,290,125 6,890,993 3,399,132 33% 7,238,981 51% (1,463,512) 12,666,462

5 Housing Association Grant 6 HAG - New Build (10,716,733) (8,467,343) (5,633,176) (4,184,948) (1,448,228) 26% (4,282,395) 51% 574,280 (7,893,063) 7 HAG - Lift (781,201) (1,280,960) (968,097) (885,372) (82,725) 9% (395,588) 31% (1,280,960)

8 Other Grants & Sales proceeds 9 Other Grants - LIFT Sales (1,000,410) (1,766,836) (1,092,511) (191,500) (901,011) 82% (1,575,336) 89% (1,766,836) 10 Other Grants - Land (100,000) (100,000) (100,000) - (100,000) 100% (100,000) 100% (100,000) 11 Total Grants (12,598,344) (11,615,139) (7,793,784) (5,261,820) (2,531,964) 32% (6,353,319) 55% 574,280 (11,040,859)

12 Private Finance required 13 New Build 3,765,665 3,141,230 2,297,946 890,564 1,407,382 61% 2,250,666 72% (889,232) 2,251,998 14 LIFT 327,701 (626,395) 198,395 713,145 (514,750) -259% (1,339,540) 214% - (626,395) 15 Development - Abortive Costs - - - 1,115 (1,115) (1,115) 1,115 1,115 16 Feasibility 20,000 66,000 66,000 39,634 26,366 40% 26,366 40% 66,000 17 Land - - - 25,465 (25,465) (25,465) - 18 Private Finance required 4,113,366 2,580,835 2,562,341 1,669,923 892,419 35% 910,912 35% (888,117) 1,692,718 Commentary on Performance

Overall Spend to Date:

Goathill site enabling works commenced in July 2019 but have been affected by adverse weather. The main construction phase is due to start in January 2020 which will result in an increase in spend. The impact of daleys has been assessed and is reflected in the revised budget for the year.

The Forecast Out-turn has been updated to reflect the slippage at the Tarbert Police Station site which is to be re-tendered in January 2020. There is some slippage in the rural Uist sites as handover is expected to be slightly delayed.

We are on target to drawdown our Grant RPA (Resource Planning Assumption) for the year.

Hebridean Housing Partnership 16 Management Reports

Section 3: Key Financial Performance Measures

Page

Financial Covenants 17

Key Ratios 19

Cash flow Forecast 20

Hebridean Housing Partnership 17 Management Reports

Financial Covenants

For the period ended 31 December 2019

The revised facility agreement with our Funders has one Financial Covenant, Interest Cover. Where a deficit is projected in any financial year, the covenant is based on an absolute sum rather than a percentage, so the covenant for 2019/20 is a maximum cash flow deficit of £5,977,400. The financial covenant for 2019/20 has been approved by our Funders. The covenant is forecast to be met in March 2020.

Interest Cover

Covenants for 2019/20 Deficit (£5,977,400)

Forecast to 31 December 2019 (£2,758,661)

Tolerance available £3,218,739

Reduction in expenditure required to achieve covenant £0 Hebridean Housing Partnership 18 Management Reports

Annual Cash flow Deficit

Line Detail Current Position Forecast Income £ £ 1 Dwelling rents (net) 6,929,588 9,012,239 2 Non Dwelling rents (net) 12,740 15,062 3 Grant Funding 466,995 480,000 4 Other Income 44,793 49,393 5 Grant received for New Build 4,184,948 7,893,063 6 Sale of LIFT received 191,500 1,766,836 7 Grant on LIFT received 885,372 1,280,960 8 Insurance Receipts 100,240 105,240

9 Total Income 12,816,176 20,602,793 Expenditure 10 Supervision & Management 1,950,433 3,071,660 11 Response Repairs 1,028,688 1,515,889 12 Estate Works 65,289 125,236 13 Planned/Cyclical Maintenance 561,356 916,215 14 Investment Programme 2,313,524 4,679,929 15 Office Alterations and IT 94,220 130,650 16 LIFT Costs 1,790,016 2,421,401 17 Opening Balances 18 Development Costs 5,075,512 10,211,061

19 Total Expenditure 12,879,039 23,072,041 20 Net Operating Cashflow (62,863) (2,469,248)

21 Interest Paid 200,713 310,713 22 Interest Collected (19,136) (21,300) 23 Total Interest 181,577 289,413 24 Annual Cashflow Surplus/(Deficit) (244,439) (2,758,661)

Interest Ratio -289% -12%

Covenant Requirement Maximum Annual Cashflow deficit (5,977,400) (5,977,400)

Tolerance 5,732,961 3,218,739 -174% -98%

Hebridean Housing Partnership 19 Management Reports

Financial Ratios

For the period ended 31 December 2019

Key Ratios Current Forecast 2018/19 Current Ratio 3.34 4.71 3.00 (Current Assets/Current Liabilities)

Net Debt Per Unit Borrowing/ stock units £2,266.39 £4,455.48 £2,260.13

Voids% 0.55% 1.18% 0.63% Voids as % of Rental Income Due

Bad Debts % 0.00% 2.04% 0.46% Bad Debts written off as % of Rental Income Due

Staff Cost/Turnover % 18.11% 19.66% 17.08%

Gross Surplus 56.77% 45.28% 54.51% Operating Surplus/Turnover

Net Surplus 38.97% 26.32% 35.69% Net Surplus/Turnover

Cash Flow Forecast 2019/20

The below cash flow shows the actual income received and the payments made for the period to December 2019.

Monthly Cash Flow Forecast

Year Ended 31-Dec-19 31-Jan-20 28-Feb-20 31-Mar-20 Total 31-Mar-19 Month 9 Month 10 Month 11 Month 12

Cash on Hand at beginning of month 1,646,226 2,366,616 1,803,430 1,212,579 1,673,478

Cash Receipts

Rent 589,004 828,343 574,507 689,507 9,153,207 Sale of Assets - 385,800 606,250 806,000 2,114,550 Grant Income 862,613 682,365 851,073 801,383 9,228,303 Other income 61,016 90,855 - - 524,100 Transfer from Deposit - - - - - Total 1,512,632 1,987,363 2,031,830 2,296,890 21,020,159

Total Cash Available 3,158,859 4,353,979 3,835,259 3,509,469

Cash Paid Out

Payroll 163,749 165,000 165,000 165,000 1,873,871 Management Costs 48,873 24,839 24,839 26,928 887,612 Repairs 263,868 200,883 200,883 200,883 2,329,368 Investment 470,278 583,058 547,864 837,783 4,997,516 Development 1,158,262 1,516,294 1,684,094 1,995,292 13,014,809

Total 2,105,029 2,490,074 2,622,680 3,225,887 23,103,176

Cash Paid Out (Non P & L)

Loan Interest 8,284 60,000 - 110,104 373,030 Deferred RTB Receipts 500,000 500,000 Refunds 2,701 476 - - 19,028 Transfer to Deposit Account (1,823,771) - - (1,500,000) (3,928,834) Total (1,312,787) 60,476 - (1,389,896) (3,036,776)

Total Cash Paid out 792,243 2,550,549 2,622,680 1,835,991 Cash Position at End of Month 2,366,616 1,803,430 1,212,579 1,673,478 -

Deposit Acct At end of Month 3,290,030 3,290,030 3,290,030 1,790,030

Total Funds Available 5,656,646 5,093,460 4,502,609 3,463,509

ITEM NO 7.1

Making our house your home

HEALTH & SAFETY POLICY Board 12 February 2020

Report by Chief Executive

Purpose of Report

1.1 The report seeks approval for the Health & Safety Policy following the annual review. Summary

2.1 Our Health & Safety Policy is subject to an annual review, and was last reviewed in February 2019. 2.2 Following this year’s review, no changes have been identified. The policy is at Appendix 1. 2.2 The Safety Testing and Risk Assessment Programme is at Appendix 2. Competence

3.1 The financial, legal or other constraints to any recommendations in this report are contained in paragraph 5.1 – 6.2. Recommendations

4.1 It is recommended that the Board review and approve the: a) Health & Safety Policy at Appendix 1; and b) Safety Testing and Risk Assessment Programme at Appendix 2.

APPENDIX1: Health & Safety Policy APPENDIX 2: Safety Testing and Risk Assessment Programme as at January 2020 Background Papers: None Writer of Report: Angus Smith Tel: 0300 123 0773

Kirstin Danks 07-Jan-2020 Competence

Financial 5.1 There are no financial implications arising directly from consideration of this report. Legal 6.1 The Health & Safety at Work etc Act 1974 imposes statutory duties for Health & Safety on employers and employees. 6.2 The Corporate Manslaughter and Corporate Homicide Act 2007 allows companies and corporations to be prosecuted for Corporate Homicide (in Scotland). Regulatory Guidance 7.1 The Regulatory Standards Checklist has been completed and there is nothing in this report which would breach these standards. Risk 8.1 Health & Safety is included in our Risk Register. It is essential that Health & Safety is given high priority to minimise risk to employees, contractors, tenants and general public. ACS Physical Risk Control Ltd undertake an annual review and audit of our Health and Safety Policies and Procedures, highlighting any area of concern or where further action is required.

Kirstin Danks 07-Jan-2020

APPENDIX 1

Health & Safety Policy

Effective Date:  12 February 2020 Review Date:  February 2021 Approved by HHP Board: 12 February 2020 TABLE OF CONTENTS INTERPRETATIONS & ABBREVIATIONS

AIMS ...... 2 HEALTH AND SAFETY STATEMENT ...... 2 RESPONSIBILITIES ...... 3 RISK MANAGEMENT ...... 8 EMERGENCY PROCEDURES ...... 8 HEALTH AND SAFETY MANUALS AND STANDARDS ...... 9 FIRST AID PROVISIONS ...... 9 HEALTH AND SAFETY TRAINING ...... 9 CONTRACTORS ...... 9 VIOLENCE AT WORK ...... 9 MONITORING AND REVIEW OF POLICY ...... 10 POLICY CHANGE HISTORY ...... 11 INTERPRETATIONS & ABBREVIATIONS ...... 12

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HEALTH AND SAFETY POLICY

AIMS

1.1 The aim of this policy is to set out the responses of the Partnership to its responsibilities to manage Health & Safety for its employees and across all its activities.

HEALTH AND SAFETY STATEMENT

2.1 The Board of Management of Hebridean Housing Partnership is responsible for the conduct of the business of the Association. 2.2.1 The Health and Safety at Work etc. Act 1974 imposes statutory duties on employers and employees. To enable these statutory duties to be carried out, it is the policy of Hebridean Housing Partnership so far as is reasonably practicable, to ensure responsibilities for safety and health are assigned, accepted and fulfilled at all levels of the Partnership. The Partnership will ensure that all practicable steps are taken to manage the health, safety and welfare of all employees and to conduct the business in such a way that the health and safety of visitors, to any premises under our control, is not put at risk. 2.2.2 It is the intention of the Partnership, so far as is reasonably practicable, to ensure that:- a) The working environment of all employees is safe and without risks to health and that adequate provisions are made with regard to the facilities and arrangements for their welfare at work. b) The provision and maintenance of machines, equipment and systems of work which are safe and without risks to health to employees, contractors and any other person who may be affected with regard to any premises or operations under our control. c) Arrangements for use, handling, storage and transport of articles and substances for use at work are safe and without risks to health. d) Adequate information is available with respect to machines and substances used at work detailing the conditions and precautions necessary to ensure that when properly used they will be safe and without risk to health. e) Employees are provided with such instruction, training and supervision as is necessary to secure their health and safety. f) The Health and Safety Policy will be reviewed at least annually. Communication of any such changes will be made to all employees. 2.3 It shall be the duty of all employees at work to ensure:- a) That reasonable steps are taken to safeguard the health and safety of themselves and of other persons who may be affected by their acts or omissions at work. b) Co-operation with the Board of Management so far as is necessary to ensure compliance with any duty or requirement imposed on the employer, or any other person, under any relevant statutory duties.

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RESPONSIBILITIES

Overview of Responsibilities 3.1 The Partnership recognises that all individuals within the organisation have a responsibility to ensure their own safety and that of others. Consequently, all employees will have the potential to be held liable if their negligent acts or omissions result in harm being caused to any other persons. Those in positions of responsibility have additional obligations, by virtue of their ‘managerial’ functions. Indeed, the Health and Safety Executives (HSE) Enforcement Policy Statement, HSE41, Paragraph 43 notes the following on ‘Prosecution of individuals’: “enforcing authorities should identify and prosecute or recommend prosecution of individuals if they consider that a prosecution is warranted. In particular, they should consider the management chain and the role played by the Chief Executives and Directors, and should take action against them where the inspection or investigation reveals that the offence was committed with their consent or connivance or to have been attributable to neglect on their part and where it would be appropriate to do so in accordance with this policy. Where appropriate, enforcing authorities should seek disqualification of Directors under the Company Directors Disqualification Act 1986.” 3.2 The following sections set out the principal Health & Safety related responsibilities of individuals within the organisation. These duties will be in addition to the general duty on all individuals to ensure the Health, Safety and Welfare of themselves and all others who may be affected by their undertakings. Responsibilities - Board 4.1 The Board, headed by a Chairperson, comprises ‘lay persons’ from the local community, acting as a body to oversee the operations carried on by the Partnership. 4.2 It is recognised that the Board, while not actively involved in the daily running of the organisation, is collectively responsible for providing leadership and direction on Health & Safety. The Chief Executive shall be responsible for implementing any audit recommendations identified for the improvement of HHP’s Health & Safety. 4.3 The Board will endorse the Health & Safety policy and Control Manual and the Chairperson will sign the Health & Safety Policy Statement along with the Chief Executive. Where there is a change of personnel, the incoming Chairperson will sign the policy to ensure the commitment on behalf of the Board remains current. 4.4 The Board will place ‘Health & Safety’ as a standing item on the Agenda of all general meetings. This will allow the Chief Executive to report on safety performance, funding requirements, safety failures and other Health & Safety related issues. The Board will give all such issues due consideration and will make available all reasonable funding and support as may be required. 4.5 The Board will review the findings of all internal and external Health & Safety audits carried out within the organisation and will authorise the use of all

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reasonable support required to rectify any significant non-compliances identified by the audits. 4.6 The Board will take an active interest in the investigation of any significant safety failure, making available all reasonable resources for a full investigation and for the taking of adequate measures to rectify any deficiencies in the existing arrangements. 4.7 All Board members will undergo training in ‘Health & Safety Awareness’ and in management responsibilities. This will ensure that all members have a working knowledge of the topic, which will assist in the discussion of Health & Safety at all meetings. This should also assist the Board in determining whether the Chief Executive is managing Health & Safety adequately within the organisation. 4.8 All Board Members shall review their responsibilities at least annually. Responsibilities – Chief Executive 5.1 The Chief Executive is responsible for the general day to day running of the Partnership. It is recognised that this function incurs the overall responsibility for Health & Safety management within the organisation and the following procedures will be adopted to ensure adequate provisions are made and maintained. 5.2 The Chief Executive will endorse the Health & Safety policy and Health and Safety Manual and will sign the Health & Safety Policy Statement along with the Chairperson of the Board. Where there is a change of personnel, the incoming Chief Executive will sign the policy to demonstrate commitment and acceptance of responsibilities. 5.3 The Chief Executive will hold ultimate responsibility for the organisation’s policy, procedures and arrangements and for the implementation of such. To this end, and to comply with the duties set out in the Management of Health and Safety at Work Regulations 1999, the Chief Executive will appoint an adequate number of competent persons to achieve and maintain legal compliance. This will include a Health & Safety Administrator. The Chief Executive will also take all appropriate action to reduce the risks to Health & Safety arising from the business undertaking and to improve the organisation’s safety performance. 5.4 The Chief Executive will report on safety performance, funding requirements, safety failures and other Health & Safety related issues at each Board meeting, as well as make available all internal and external audit reports to the Board. Fully justified requests will be made to the Board for any resources, support or funding required for Health & Safety purposes. 5.5 The Chief Executive will ensure that Health & Safety considerations are taken into account for all new investment opportunities and in the organisation’s purchasing policy. The objective will be to minimise risks as early in the purchasing chain as is reasonably practicable. 5.6 The Chief Executive will be responsible for maintaining an adequate programme of Risk Assessment, allocating duties and funds as appropriate to keep assessments and control measures current. 5.7 The Chief Executive will be responsible for maintaining an adequate programme of staff training in Health & Safety issues, ensuring that all staff are

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given appropriate instruction, information and training to reduce the risks associated with their work to an acceptable level. 5.8 The Chief Executive will ensure that adequate communication channels exist throughout the entire organisation to allow Health & Safety issues to be dealt with timeously and effectively. All staff will be given the opportunity to raise any safety related queries with appropriate management staff. 5.9 The Chief Executive will ensure that all significant safety failures are fully investigated and reported to the Board. The Chief Executive will also ensure that all necessary support is sought to adequately investigate the situation and develop suitable remedial measures to reduce the likelihood of a similar incident recurring. 5.10 The Chief Executive will give due consideration to all Health & Safety related requests from H&S Administrator, Heads of Departments and all other staff, taking appropriate action where necessary and requesting support/approval from the Board of Management where required. 5.11 The Chief Executive shall review their responsibilities at least annually. Responsibilities - Directors 6.1 The Director of Finance & Corporate Services and Director of Operations provide operational support to the Chief Executive and discharge many of the day to day management tasks required in the running of the organisation. It is, therefore, recognised that this function incurs some significant responsibility in terms of Health & Safety. In particular, the Directors may be held liable where Health & Safety offences are committed with their consent or connivance or as a result of their negligence. 6.2 The Director of Finance & Corporate Services and Director of Operations will take an active participation in the Health & Safety Committee. This will involve the raising of pertinent issues for consideration by the Board and the reporting of Board concerns to the Chief Executive and other staff as may be appropriate. 6.3 The Director of Finance & Corporate Services and Director of Operations will take an active role in the Risk Assessment programme, arranging for the undertaking of all appropriate risk assessments and reviews, for the dissemination of findings and for seeking approval from the Chief Executive for remedial measures required to be taken. The Director of Finance & Corporate Services and Director of Operations will also ensure that any remedial measures agreed with the Chief Executive are effectively actioned. 6.4 The Director of Finance & Corporate Services and Director of Operations will give all safety related queries due consideration, liaising with the Chief Executive, H&S Administrator, Team Leaders, EVH Health & Safety Support Service and all other relevant bodies as appropriate. Responsibilities – Managers 7.1 Due to the function performed by Managers, it is recognised that they may be held liable where Health & Safety offences are committed with their consent or connivance or as a result of their negligence. 7.2 Managers will take an active participation in the Health & Safety Committee. This will involve the identification of Health & Safety concerns within their

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departments, the raising of pertinent issues for consideration by the Committee and the actioning of all measures identified by the Committee and management staff as being required. 7.3 Managers will implement all relevant policies, procedures and arrangements within their departments, as required by the Health and Safety Manual, the Health & Safety Committee and management staff. 7.4 Managers will ensure that adequate communication channels exist throughout their team to allow Health & Safety issues to be dealt with timeously and effectively. All staff will be given the opportunity to raise any safety related queries with their Line Managers or Directors. 7.5 Managers will ensure that all staff adopt safe working procedures, work in accordance with any training provided and properly use any control measures, protective equipment etc. that are appropriate for the work carried out. 7.6 Where Managers identify the need for further training or any other form of risk control for staff, the issue will be reported without undue delay to the Health & Safety Committee or appropriate Director. 7.7 Where Managers identify any significant breach of Health & Safety procedures, appropriate action will be taken to reduce the risk in the short term, and the issue will be reported to the appropriate Director without undue delay. Responsibilities – Employees 8.1 While the duties of management have been made clear in previous sections, it is recognised that ALL employees have general duties to ensure their own safety and that of others. Indeed, the Health and Safety at Work etc. Act 1974 notes the following in respect of employees’ duties: “It shall be the duty of every employee while at work – (a) to take reasonable care for the health and safety of themselves and of other persons who may be affected by his/her acts or omissions at work; and (b) as regards any duty or requirement imposed on his/her employer or any other person by or under any of the relevant statutory provisions, to co-operate with him/her so far as is necessary to enable that duty or requirement to be performed or complied with.” 8.2 The procedures as set out in the Health and Safety Manual will, therefore, be adopted by all employees to ensure their duties are adequately discharged. 8.3 Employees will comply with the policies, procedures and arrangements set out in the Health and Safety Manual and with any information, instruction and training provided. In addition, any risk control measures and equipment provided to ensure safe working practices will be properly used. 8.4 Employees will report to their Team Leader or other member of management any identified breaches of Health & Safety procedures, any accidents or safety related incidents and any aspect which appears to them to give rise to a significant risk to the Health & Safety of employees or other persons. Such reports will be made without undue delay. 8.5 Employees will inform their Team Leader or other member of management, without undue delay, where they believe that further training or other risk

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control measures would be beneficial. Tasks will not be carried out where the employee believes significant risk to be present. 8.6 Employees will co-operate in all safety programmes, training, risk assessments and other initiatives that are intended to reduce risk and will actively implement any control measures identified as being required. 8.7 Employees will not participate in horseplay, practical jokes or other acts which may result in harm being caused to themselves or to other individuals. Responsibilities - H&S Committee 9.1 The H&S Committee will provide an open forum for the discussion of all Health & Safety related issues raised by members of the Committee and by any other relevant sources. 9.2 All Committee members will undergo suitable training, which will include as a minimum ‘Health & Safety Awareness’. This will ensure that all members have a working knowledge of the topic, commensurate with their role in the Committee and within the organisation as a whole. 9.3 The Committee will suggest solutions and initiatives for issues arising, which will be minuted and presented to the Chief Executive following each meeting, without undue delay. 9.4 Where appropriate, the Committee will draft and revise policy, procedures and arrangements, for ultimate approval by the Chief Executive and Board. 9.5 The Committee will delegate, with the Chief Executive’s approval, to members and to other appropriate persons within the organisation, actions required to be taken to implement policies, procedures, arrangements and any other initiatives authorised by the Chief Executive. 9.6 The Committee will review the Health & Safety performance of the organisation, analysing accident statistics, reported breaches of policy and procedures, audit and inspection reports and data from other information gathering exercises. Recommendations on options to improve safety performance will be made to the Chief Executive without undue delay. Responsibilities - H&S Administrator 10.1 The function of the H&S Administrator is, by definition, one of ‘administration’ as opposed to ‘management’. The H&S Administrator will be fully supported by the Chief Executive, Directors and Heads of Departments. 10.2 The H&S Administrator will undergo suitable training, which will include as a minimum ‘Health & Safety Awareness’ and instruction in the implementation of the policies, procedures and arrangements set out in the Health and Safety Manual. 10.3 The H&S Administrator will maintain the master Health and Safety Manual and the record keeping system in an up to date and tidy condition. This will include the dissemination of all Manual updates to Manual holders and the filing of appropriate records. 10.4 The H&S Administrator will comply with his/her duties as set out in the Health and Safety Manual and will report the findings of any inspections, audits and other information gathering exercises to the H&S Committee without undue delay. Where the H&S Administrator has reason to believe that personnel are,

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or may foreseeably become, exposed to significant risk, direction will be sought from the Chief Executive without undue delay. 10.5 The H&S Administrator will provide assistance to the Chief Executive, Directors, Team Leaders and the H&S Committee in the undertaking of risk assessments, control implementation, policy development, etc. This may include expert advice on Health & Safety. It should be noted that the H&S Administrator will not be solely responsible for developing corporate policy, merely for assisting in its development and implementation.

RISK MANAGEMENT

11.1 The Partnership will pursue progressive improvements by the development and implementation of a risk management strategy in relation to health and safety, to contribute to the reduction of occupational injuries and ill health. 11.2 The Chief Executive will ensure that a risk assessment programme is drawn up. The Corporate Resources Team will implement this programme. 11.3 The Health and Safety Administrator will provide advice and, where necessary, arrange for training in risk assessment techniques. 11.4 While the Management of Health and Safety at Work Regulations 1999 require all work activities to be assessed, other more specific regulations require that particular activities receive more attention - Use of hazardous substances (COSHH), Display Screen Equipment (DSE), Manual Handling Operations (MHO), Exposure to Noise and Personal Protective Equipment. 11.5 In addition specific policies have been developed in relation to: Alcohol and Drug Use; Fire Safety; Lone Working; New and Expectant Mothers; Stress Management; Violence and Aggression (see Section 18); and Young Workers.

EMERGENCY PROCEDURES

12.1 Procedures to be followed by any person at work if situations presenting serious and imminent danger arise will be established in accordance with Regulation 7 of the Management of Health and Safety at Work Regulations 1999. These procedures will set out the role and responsibilities of competent persons nominated to implement any detailed actions and will ensure that other employees know who the competent persons are and understand their own role. Where appropriate, they will also contain special action required for the evacuation of disabled persons.

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HEALTH AND SAFETY MANUALS AND STANDARDS

13.1 The Chief Executive will ensure that the Policy is supported through a suitable Health and Safety Manual. 13.2 The Health and Safety Administrator will compile procedures where they are required or specific major hazards are identified in any work activity.

FIRST AID PROVISIONS

14.1 Sufficient numbers of trained First Aid Personnel will be appointed in each team to deal with workplace accidents and injuries as indicated by the results of a Risk Assessment. 14.2 A nominated First Aider will be appointed in each office. 14.3 Training will be through an HSE-approved body, selected by the Health & Safety Administrator, and each Team Leader must nominate a responsible person(s) to co-ordinate the training needs of their service and liaise with the chosen training body.

HEALTH AND SAFETY TRAINING

15.1 The Health and Safety Administrator is responsible for ensuring that all employees are trained in all the health and safety aspects of their work activities. Such training is necessary for all employees: (a) On joining the Partnership; and (b) When the risks faced alter or increase due to:  a significant change in activities or responsibilities;  a significant change in equipment or technology; and  a significant change in the system of work. 15.2 Training must be repeated or updated as necessary. Training must extend to supervisory and managerial staff and must cover legal and organisational responsibilities as well as practical training. Relevant records must be maintained.

CONTRACTORS

16.1 The Partnership will define the standards required from and will monitor the activities of contractors carrying out work for the Partnership in order to minimise risks to employees, other persons on site and members of the public. 16.2 Contractors will be required to provide a detailed Health & Safety Method Statement and any health & safety documentation relevant to the contract. 16.3 The Partnership will develop a document on ‘Safety Rules for Contractors’ and distribute it to all approved Contractors

VIOLENCE AT WORK

17.1 The Partnership will establish systems and working practices that recognise the potential risk to staff from acts of violence. The Partnership will develop mechanisms by which acts of violence to the staff are eliminated or minimised wherever possible.

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17.2 The Partnership realises that violence, whether physical or in the form of verbal threats, including online and social media threats, must be considered in the course of risk assessment and teams are expected to take suitable preventive and protective measures, including the drawing up of suitable written standards and the provision of training where necessary.

MONITORING AND REVIEW OF POLICY

Review of Policy 18.1 The Partnership’s Health and Safety Policy and any revision of it will be drawn to the attention of every employee of the Partnership. The contents of the documents produced under the policy will be brought to the attention of all employees to which the contents are relevant. 18.2 The policy and any documentation produced under it will be added to or modified as required and will be reviewed every three years. The lists of approved Contractors and Consultants reviewed annually. 18.3 The Board of Management or relevant sub-committee will receive the annual reports on the working of this policy and Health and Safety will be a standing item on the Board’s agendas. Scheme of Delegation 19.1 Responsible Committee Board of Management

To whom delegated Formulation and monitoring of Board policy Policy Amendments Board Implementation of policy Chief Executive Formulation and implementation Chief Executive of relevant procedures

Breaches of Policy 20.1 If a Board Member knowingly breaches the conditions of this policy this will be grounds for removal from Office in accordance with the Partnership’s procedures for removal of a Board Member. 20.2 If a staff member knowingly breaches the conditions of this policy this will be grounds for disciplinary action.

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POLICY CHANGE HISTORY

Version Change Applied Date By 3.0 General review of policy. Minor 15 October 2013 Seonaid Paton amendments to reflect changes to other HHP policies; to reflect updates received from EVH and reformatting to meet HHPs Corporate Standard.

3.1 Review of policy 19 February 2014 Chief Executive

3.2 Review of policy 19 February 2015 Chief Executive

3.3 Policy reviewed by Executive Team 22 January 2015 Chief Executive and no change required.

3.4 Policy reviewed by Executive Team 18 January 2017 Chief Executive and no change required.

Policy reviewed by Executive Team 3.5 23 January 2018 Chief Executive and no change required.

Minor changes to clarify responsibilities, update job titles and 22 January 2019 Angus Smith 3.6 spelling.

Review of Policy – no changes 07 January 2020 Kirstin Danks 3.7 required

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INTERPRETATIONS & ABBREVIATIONS

The following interpretation and abbreviations are used in this policy:

Word Interpretation HHP or Partnership Hebridean Housing Partnership Board Means the Board of the Hebridean Housing Partnership Board Members All Members of the Board including co-opted Members COSHH Control of Substances Hazardous to Health DSE Display Screen Equipment MHO Manual Handling Operations A systematic process of evaluating the potential risks Risk Assessment that may be involved in a projected activity or undertaking.

All references to the masculine gender in this policy shall read as equally applicable to the feminine gender

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APPENDIX 1

SAFETY TESTING AND RISK ASSESSMENT PROGRAMME AS AT JANUARY 2020

Risk Assessment Last Completed Date Due Date Fire Call Points Carried out weekly (Wednesday: 0930) Carried out weekly (Wednesday: 0930) Water (Legionella Tests) Carried out monthly (1st of each month) Carried out monthly (1st of each month) First Aid Risk Assessment February 2019 February 2020 Office General Risk Assessment March 2019 March 2020 Stress Management Risk Assessment June 2019 June 2020 Customer Services Risk Assessment June 2019 June 2020 Occupational Driving Risk Assessment June 2019 July 2020 Fire Alarm/Drill October 2019 March 2020 Lone Working Risk Assessment July 2019 July 2020 Manual Handling Risk Assessment July 2019 July 2020 Working at Height Risk Assessment July 2019 July 2020 Violence and Aggression Risk Assessment DSE Every 2 years for each employee unless Every 2 years for each employee unless changes to employee workstation changes to employee workstation Expectant Mothers Risk Assessment *As required A&R ITEM NO 8 BOARD ITEM NO 7.2 Making our house your home FRAUD POLICY & CHECKLIST Audit & Risk 12 February 2020 Board 12 February 2020

Report by Director of Finance & Corporate Services

Purpose of Report

1.1 To present for consideration and approval the updated Fraud Policy and Annual Fraud Checklist. Summary

2.1 The Fraud Policy was approved in March 2016 and is due for review every 4 years. 2.2 Scott Moncrieff conducted a fraud internal audit in August 2019 and the policy has been updated to include any recommendations made. 2.3 The main changes to the policy are updating job titles that have changed since 2016. The whistleblowing policy has now been referenced and clarity has been provided with regards to the reporting limit on fraudulent transactions. 2.4 The Fraud Policy requires a Fraud Checklist to be prepared and presented to the Audit & Risk Committee and Board annually. Competence

3.1 The legal and financial and other implications are detailed in paragraph 5.1 - 8.1. Recommendations

4.1 It is recommended that the Audit & Risk Committee review the internal controls, risk evaluation and corporate governance implications of the updated policy and checklist and recommend for approval to the Board.

4.2 It is recommended that the Board review and approve: a) the Fraud Policy at Appendix 1; and b) the Fraud Checklist at Appendix 2.

APPENDIX 1: Fraud Policy APPENDIX 2: Fraud Checklist Background Papers None Writer of Report Donald Macleod Tel: 0300 123 0773

Donald Macleod 08-Jan-20 Competence

Financial 5.1 The implementation and operation of a robust internal control system is critical to the prevention and detection of fraud. The Partnership has employed Internal Auditors to ensure regular checks are carried out on the Internal Control system in place. Internal Auditors report to the Audit & Risk Committee areas of weakness and recommend action to address those weaknesses. 5.2 Loss arising from fraud will be reported to the Audit & Risk Committee and the Board in line with the Fraud policy and where appropriate in the financial statements. Legal 6.1 The Partnership has Financial Regulations in place. All members of staff are issued with a copy which they sign for to indicate they understand their role in complying with the Regulations. Breaches of the Financial Regulations are taken seriously and are reported to the Audit & Risk Committee. 6.2 The Board has ultimate responsibility for the Partnership’s finances and has delegated the responsibility of reporting any actual or potential breaches of the law or maladministration to the Director of Finance & Corporate Services. 6.3 As a registered charity the Board has a legal duty to protect the funds and other property of the Partnership ensuring the funds are applied for its intended beneficiaries. 6.4 In December 2019 the Scottish Housing Regulator issued an Advice Note on Incidents of Fraud in RSL’s. The Partnership’s Fraud Policy will ensure compliance with the Advice Note and we will ensure the regulator is notified accordingly. 6.5 The Partnership is required to comply with the general law in relation to the prevention of fraud, money laundering and terrorist financing. Regulatory Guidance 7.1 The Regulatory Standards checklist has been completed and there is nothing in the report which would result in a breach of the standards.

Risk 8.1 Fraud flourishes where the observance of an internal control environment is weak and not managed. The observance of the Financial Regulations, the Fraud Policy at Appendix 1, the Fraud Checklist at Appendix 2 and the Partnership’s policies and procedures at all levels within the organisation should mitigate the risk of fraud.

Donald Macleod 08-Jan-20 Report Details

9.1 The Partnership must ensure there are policies and procedures in place to prevent, detect and response to fraud. A summary of the approach is shown below:

Prevention

Good Governance Detection

Financial Internal Audit Regulations Reporting

Breaches of Interal Controls Fraud Policy Internal Control reported to Audit Systems & Risk

Donald Macleod 08-Jan-20 APPENDIX 1

Fraud Policy

Effective Date:  February 2020 Review Date:  February 2024 Approved by HHP Board: 12 February 2020 TABLE OF CONTENTS INTERPRETATIONS & ABBREVIATIONS

INTRODUCTION ...... 2 RESPONSIBILITIES OF ALL EMPLOYEES ...... 2 ACTIONS TO BE TAKEN ...... 2 MONITORING AND REVIEW OF POLICY ...... 3 POLICY CHANGE HISTORY ...... 4 INTERPRETATIONS & ABBREVIATIONS ...... 5

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FRAUD POLICY

INTRODUCTION

1.1 The purpose of this policy is to ensure that staff and Board members are aware of the actions that need to be taken in the event of detected or attempted frauds. It should be noted that the policy cover Hebridean Housing Partnership Limited and its subsidiaries. 1.2 By setting out these steps in writing, regulatory authorities will have the comfort of knowing that the Partnership has a clear set of guidelines, which employees must follow. 1.3 All employees are expected to follow the laid down procedures for internal control which will help to minimise the opportunities for fraud. 1.4 Throughout this paper the word “fraud” is used to include theft and corrupt acts. 1.5 Fraud can occur within the Partnership (internal) and out with the Partnership (external). It is therefore essential that controls and procedures are in place to minimise such risks.

RESPONSIBILITIES OF ALL EMPLOYEES

2.1 It is the responsibility of all employees to report immediately any act of attempted or detected fraud. 2.2 The employee must report the matter to their departmental Director, or if inappropriate, to the Director of Finance and Corporate Services. (If the latter is inappropriate, the matter should be referred to the Chief Executive, and if this is inappropriate, the Chair of the Audit & Risk Committee, or, failing that, the Chair of the Board). All notification must initially be either in person or in writing. The Director of Finance and Corporate Services will then determine whether written notification is required. 2.3 The Director of Finance and Corporate Services will inform the Scottish Housing Regulator under the Notifiable events of any reported frauds.

ACTIONS TO BE TAKEN

3.1 The departmental Director must always report the matter to the Director of Finance and Corporate Services. 3.2 The Director of Finance and Corporate Services in consultation with the relevant departmental Director and other officers and professional advisers as appropriate, will determine how the matter is to be investigated. 3.3 The incident will be recorded by the Director of Finance and Corporate Services in the Fraud Register. This register shall be open to inspection by the Scottish Housing Regulator at any time and shall be reviewed at each meeting of the Partnership’s Audit & Risk Committee. The register will contain records of both attempted and detected frauds and the actions take. The records will also indicate the systems involved, in order to assist in the prevention of any recurrences.

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3.4 The Director of Finance and Corporate Services will advise the Chair of the Audit & Risk Committee and the Chief Executive of all frauds, which result in a loss to the organisation in excess of £1,000 or equivalent in value, immediately upon discovery. Any fraud or corrupt act perpetrated or attempted by a senior official of the Partnership, no matter how low its value, must be reported by the Director of Finance and Corporate Services, to the Chair of the Audit & Risk Committee immediately. 3.5 The Director of Finance and Corporate Services is responsible for informing the Partnership’s internal and external auditors, insurers and the Police as appropriate. The police and external auditors will be informed once there is clear evidence of fraud. 3.6 The Chief Executive will be responsible for co-ordinating press releases in relation to fraud and for informing staff. 3.7 The Partnership will take appropriate action against staff or Board Members who perpetrate fraud and any person whose conduct allows fraud to be committed. The Partnership will also take action to recover any money that has been lost. The actions taken will be reported to and reviewed by the Audit & Risk Committee.

WHISTLEBLOWING POLICY

4.1 The Partnership wishes to maintain the highest standards of service to its tenants, staff and the community and recognises the need to have in place a policy enabling public interest disclosures also known as 'Whistle blowing' to be made. This procedure will enable concerns to be raised confidentially inside, and if necessary, outside the Partnership. It is intended to encourage staff to inform management if they are concerned about serious malpractice, fraud or corruption so that management can investigate this. 4.2 Concerns must be made in the public interest as per the Enterprise and Regulatory Act 2013.

MONITORING AND REVIEW OF POLICY

5.1 The Fraud Policy will be reviewed no less than every four years.

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HANGE HISTOR

POLICY CHANGE HISTORY

Version Change Applied Date By 1.0 First draft of policy 9 Nov 2012 Dena Macleod

2.0 Review of Policy 16 March Dena Macleod 2016

3.0 Review of Policy to update job titles 08 January Donald Macleod and incorporate recommendations 2020 from August 2019 internal audit.

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INTERPRETATIONS & ABBREVIATIONS

The following interpretation and abbreviations are used in this policy:

Word Interpretation HHP or Partnership Hebridean Housing Partnership Board Means the Board of the Hebridean Housing Partnership Board Members All Members of the Board including co-opted Members Fraud Theft and Corrupt Acts Department Director Director of Operations and Head of Executive Office Senior Official Chief Executive

All references to the masculine gender in this policy shall read as equally applicable to the feminine gender

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APPENDIX 2

Fraud Checklist

Effective Date: 12 February 2020 Review Date: February 2021 Approved by HHP Board: 12 February 2020 FRAUD CHECKLIST

Ref Check Intial

Personnel Procedures Stated qualifications and experience of new 1  employees are verified Any apparent gaps in the employment record of new 2  employees are investigated References are taken up for all employees 3  Any points raised in employee references are followed 4  up All employment contracts and other service contracts 5 provide for immediate suspension on the suspicion of  fraud All employees are required to take at least two 6 consecutive weeks holiday each year with no access  during that period to any of the company systems Regular late working by employees is monitored and 7  investigated Fraud awareness is included in the staff induction 8  programme Ongoing fraud awareness training is incorporated into 9  staff development programmes Awareness All Board Members are aware of their collective 10  responsibility for the prevention and detection of fraud The Board and Executive Team encourage a business 11  culture that is open and honest and lead by example Partnership has a clear policy on fraud which is widely 12 publicized amongst employees and drawn to the  attention of suppliers and customers Partnership has a whistle-blowing policy which is 13  reviewed regularly

Risk Assessment & Control The Board assesses the likelihood of fraud arising in 14 each area principal are of the business and puts controls in place where gaps are identified  Cash handling  Payments   Tendering  Contractors and suppliers  Reporting information

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Ref Check Intial The Board demonstrates the importance they place 15 on observing internal controls by dealing swiftly and  appropriately with breaches of those controls and communicating this to employees Procedures will ensure that as far as practicable, the 16 following aspects of each business transaction are segregated:  Initiation;  Authorization;   Execution;  Custody of related assets; and  Recording in the accounting records Procedures are reviewed and updated to take 17 account of technological developments and the  potential impact on the business of cybercrime and related fraud issues Employees are aware that amendments to 18 procedures must be approved before they are  implemented Staff and managers are aware of the issues relating to 19 Money Laundering and the risk of the Partnership  becoming inadvertently involved

Monitoring Appropriate performance indicators have been 20 identified for each aspect of the business and are  reported regularly to the Board All material variations and unusual trends are 21 thoroughly investigated and explanations  corroborated Regular control visits are made to all business locations 22 Balivanich office, Handyman’s stores in Tarbert,  Balivanich and Castlebay All unusual transactions are investigated 23 

Action & Reporting Executive Team collate information on actual and 24 suspected fraud and report to the Audit & Risk  Committee A policy on seeking recovery of funds from fraud will 25  be developed Procedures will be put in place to deal with any 26  related publicity issues

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HANGE HISTOR

CHECKLIST CHANGE HISTORY

Version Change Applied Date By Prepared to accompany Fraud 16 March 2.0 Dena Macleod Policy v2.0 2016 01 March 3.0 Updated to Corporate Standard Donald Macleod 2018

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INTERPRETATIONS & ABBREVIATIONS

The following interpretation and abbreviations are used in this policy:

Word Interpretation HHP or Partnership Hebridean Housing Partnership Board Means the Board of the Hebridean Housing Partnership Board Members All Members of the Board including co-opted Members

All references to the masculine gender in this policy shall read as equally applicable to the feminine gender

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ITEM NO 7.3

Making our house your home

INVESTMENT PROGRAMME MONITORING REPORT Board 12 February 2020

Report by Director of Operations

Purpose of Report

1.1 To provide and update on procurement of the 2020-2022 Investment Programme procurement plan and provide an progress report on the 2019/20 Investment Programme. Summary

2020-2022 Investment Programme 2.1 The two-year investment programme was presented to Board on 19 November 2019. 2.2 Elements of the Investment Programme are being procured for 2 years in a bid to improve discount on tenders and strengthen competition. This will also help to ensure that there is limited delay over financial year-end. 2.3 A Framework Contract is in place for the delivery of the programme. 2019/20 Investment Programme 2.4 This programme is on target for all works to be completed by year-end with the exception of external insulation works to the Swedish Timber properties. Negotiations on this are continuing with Scottish and Southern Electricity (SSE). Occupational Therapy 2.5 An application for a further £35k funding has been made to Scottish Government. The outcome is currently awaited. 2.6 In the intervening period, the budget was revised following approval of additional top- up funding by the Board to alleviate the waiting list of referrals. 2.7 Referrals continue to be received fully committing the revised budget. A number of referrals are now on a waiting list until such time as additional funding is available. Competence

3.1 The legal, financial or other constraints to the recommendations in this report are contained in paragraph 5.1 – 8.4. Recommendations

4.1 It is recommended that the Board: a) approve replacement of windows and doors at 5 houses in Caladh Siar, Tarbert; b) note the current position of the Occupational Therapy budget; c) note the 2019/20 Investment Programme progress; and d) note the financial update at Appendix 1.

Jackie Macleod 27-Jan-20 Competence Financial Two-year programme – 2020-2021 5.1 The programme for the two year period is within current approved business plan cash planning limits. 5.2 The investment profile will be reviewed as part of the budget setting exercise to ensure cash planning limits are not exceeded work within current covenants. 2019/20 Investment Programme 5.3 The investment budget for the 2019/20 Investment Programme is approved at £5.09m. Appendix 1 provides information on the financial position to 31 December 2019. The current anticipated out turn is £4.81m Occupational Therapy referrals 5.4 The revised budget of £235k has been fully committed. 19 referrals with an estimated value of £21k in value have been placed on a waiting list until additional funding is available. Legal 6.1 The decision to approve or amend Strategy, Business Plan and budgets including virements to or from a budget head in excess of £100,000 is reserved to the Board. 6.2 Financial Regulations require that actual forecast and progress on the Investment Programme be reported to each routine meeting of the Board. 6.3 Scottish Government has set a legal requirement for Social Housing landlords to bring their stock up to the EESSH by April 2020. Regulatory Guidance 7.1 The regulatory standards checklist has been completed and there is nothing in the report which would be in breach of the standards.

Risk 8.1 There are risks highlighted in the Risk Register that are relevant to Investment including the failure of a major contractor. 8.2 There are further risks highlighted in the Risk Register in regard to the health of the local economy particularly the capacity of contractor to deliver programmes. 8.3 The Scottish Government expects landlords to comply with EESSH. Failure to meet the standard would be a significant issue. 8.4 There is a risk of installing infrared heating prior to it being fully assessed through the EESSH and SAP frameworks. It may be that these systems will not ultimately be assessed positively. They are currently classed as abeyances under the guidance. However, these are viewed positively by the majority of tenants where they have been installed.

Jackie Macleod 27-Jan-2020 Report Details

2020-2022 Programme 9.1 The Board approved the Investment Programme for 2020-22 on 19 November 2019. The programme focuses on maintaining the Scottish Housing Quality Standard (SHQS) and Energy Efficiency Standard in Social Housing (EESSH). 9.2 2020 is the target date for compliance with the EESSH. Works to these properties are included in the 2020-22 Programme. 9.3 Works that are in abeyance will be carried out once the reason for the abeyance has been removed. These works will be added to the 2020-24 Programme as the opportunity arises and subject to budget availability. 9.4 Procurement commenced in January 2020 and is expected to be completed by March 2020. 9.5 The following works can be packaged into a two- year contract  Heating (non-gas) – Lewis and Harris – 84 units - £1.064m  Heating (non-gas) – Uists and Barra – 114 units - £1.531m  Heating 2nd time – Lewis and Harris – 73 units - £1.072m  Bathrooms/ Showers – Lewis and Harris – 50 units - £289k 9.6 All other remaining works in the programme will be tendered on an annual basis. 2019-20 Investment Programme 10.1 Progress on the 2019/20 Investment Programme is shown below: Lot Ref Works Area Progress Contractor Alex Murray Lot 1b Doors – Fire Doors Lewis/ Harris 37% (Construction) Ltd Lot 2a Heating - Gas Lewis/ Harris 95% FES FM Ltd Alex Murray Lot 2b Heating - Electric Lewis/ Harris 82% (Construction) Ltd Alex Murray Lot 3 Bathrooms Lewis/ Harris 87% (Construction) Ltd O’Mac Lot 4 Kitchens Lewis/ Harris 76% Construction Ltd Lot 6 Electrical – Rewiring Lewis/ Harris 25% FES FM Ltd Electrical – Fire Lot 6a Lewis/ Harris 72% FES FM Ltd Detection Alex Murray Lot 7 Environmentals Lewis/ Harris 70% (Construction) Ltd Alex Murray Lot 8 Occupational Therapy Lewis/ Harris Works ongoing (Construction) Ltd Lot 9 Windows Uists/ Barra 100% FES FM Ltd Alex Murray Lot 9a Doors – Fire Doors Uists / Barra 0% (Construction) Ltd Lot 10 Heating Uists / Barra 80% FES FM Ltd Lot 11 Bathrooms Uists / Barra 90% FES FM Ltd Alex Murray Lot 13 Roofing Uists / Barra 100% (Construction) Ltd Roughcasting Lot 13 Roughcast Uists/ Barra FES FM Ltd awaiting site start Alex Murray Lot 16 Occupational Therapy Uists / Barra Works ongoing (Construction) Ltd

Jackie Macleod 27-Jan-2020 10.2 The programme generally is on target for completion March 2020. 10.3 There are no major concerns on delivery and completion of programmes. However, we are continuing to pursue discussions with SSE regarding insulation works to further Swedish Timber houses following the successful works at Dunmore Crescent. A positive response was received in regard to possible funding and programming but a formal confirmation is still awaited. 10.4 Roughcasting at Leonard Place (4 units) has been delayed due to costs and a lack of contractor capacity to carry out the works. Discussions are continuing to try and achieve a completion within the current year. 10.5 Caladh Siar, Tarbert - a recent survey of timber windows and doors has shown deterioration since being surveyed on the Stock Condition Survey. These are not currently programmed until 2024. The condition has deteriorated faster than anticipated and replacement is recommended within this current year’s programme. Occupational Therapy position 11.1 The Occupational Therapy budget allocation from the Scottish Government and additional funding approved by Board in November 2019 is fully committed.

11.2 The financial position is as follows:

2019/20 Initial Budget (Grant award) £205k

2019/20 Revised budget (virement approved by Board 20 £235k Nov 2019)

Value of referrals committed to date (inclusive of fees) £232k

Additional value of referrals awaiting quotation and action £21k

Additional number of referrals awaiting action 19

11.3 The outstanding referrals consist of  Level access showers – 2  Wet room – 1  Sundries, handrails, grabrails etc – 16 11.4 A request for £35k additional funding was submitted to Scottish Government in January 2020. The outcome is awaited but is unlikely to be successful based on previous years experience.

APPENDIX 1: Financial Update 2019/20 Programme Background Papers: Risk Register Writer of Report: Angus MacNeil Tel: 0300 123 0773

Jackie Macleod 27-Jan-2020 APPENDIX 1

FINANCIAL UPDATE 31 December 2019

Line Heading CURRENT YEAR BUDGET BUDGET ACTUAL BUDGET VARIANCE BUDGET REMAINING FORECAST OUT-TURN Initial Revised to Spend to Budget to Budget to Revised Revised Over/ at Budget Budget 31-Dec-19 31-Dec-19 date date Budget Budget (under) 31-Mar-20 £ £ £ £ £ % £ % £ £ 1 Roofs - 185,913 184,087 184,087 0 0% 1,826 1% 185,913 2 Insulation 181,460 181,460 90,732 3,701 87,031 96% 177,759 98% 181,460 3 Total Roofs 181,460 367,373 274,819 187,788 87,031 32% 179,585 49% - 367,373 4 Kitchen 318,850 308,207 164,376 176,916 (12,540) -8% 131,291 43% 15,070 323,277 5 Bathrooms 307,868 251,562 185,993 176,095 9,897 5% 75,467 30% 21,670 273,232 6 OT Aids & Adaptations 120,000 235,000 216,000 191,791 24,209 11% 43,209 18% - 235,000 7 Showers 220,963 128,186 93,062 76,958 16,104 17% 51,228 40% 3,410 131,596 8 Heating 2,681,220 2,477,758 1,827,865 1,594,239 233,625 13% 883,519 36% 159,632 2,637,390 9 Rewiring 551,020 473,090 362,001 190,245 171,756 47% 282,845 60% (100,587) 372,503 10 Total Internals 4,199,921 3,873,803 2,849,296 2,406,244 443,051 16% 1,467,559 38% 99,195 3,972,998 11 Windows 361,960 269,635 110,892 24,637 86,255 78% 244,998 91% 33,660 303,295 12 Roughcast house & wall - 31,793 24,200 2,315 21,885 90% 29,478 93% 31,793 13 Other 50,390 136,276 94,146 71,231 22,915 24% 65,045 48% 136,276 14 Externals 50,390 168,069 118,346 73,546 44,800 38% 94,523 56% - 168,069

Making our house your home

WHISTLEBLOWING POLICY Board 12 February 2020

Report by Head of Executive Office

Purpose of Report

1.1 The purpose of this report is to seek approval from the Board in respect of the revised Whistleblowing Policy. Summary

2.1 The Whistleblowing Policy is due for review in accordance with our Policy Review Schedule. 2.2 Following the review of the policy there have been changes made to clarify terms, update the contacts and minor formatting changes. 2.3 The Policy should be read in conjunction with our Fraud Policy. Competence

3.1 The financial, legal or other constraints to the recommendations in this report are contained in paragraph 5.1 - 8.3. Recommendations

4.1 It is recommended that the Board approve the Whistleblowing Policy at Appendix 1.

APPENDIX 1: Whistleblowing Policy Background Papers: Fraud Policy Writer of Report: Jonathan Fairgrieve Tel: 0300 123 0773

Jonathan Fairgrieve 12-Feb-2020

Competence

Financial 5.1 There is no financial implications arising from the recommendation in this report being implemented. Legal 6.1 There is no legal implications arising from the recommendation in this report being implemented. Regulatory Guidance 7.1 The Regulatory Standards checklist has been completed and there is nothing in the report which would result in a breach of the standards. Risk 8.1 The major risk we face in not having a Whistleblowing Policy in place is that we would be in breach of:  The Scottish Housing Regulator’s ‘Regulation of Social Housing in Scotland: Our Framework (February 2019); and  our own Rules and Standing Orders and various policies and governance and financial management. 8.2 The result of this is likely to be a higher level of engagement with the Regulator and financial penalties from regulatory bodies. 8.3 Fraud is highlighted at No. 12 on our Risk Register. In having a Whistleblowing Policy we are able to mitigate this risk highlighted in our Risk Register.

Jonathan Fairgrieve 12-Feb-2020 APPENDIX 1

Whistleblowing Policy

Effective Date:  12 February 2020 Review Date:  February 2024 Approved by HHP Board: 12 February 2020 TABLE OF CONTENTS INTERPRETATIONS & ABBREVIATIONS

INTRODUCTION ...... 2 RASING CONCERNS ...... 3 INVESTIGATING THE ALLEGATION ...... 3 PROTECTING WHISTLE BLOWERS WHO FEAR REPRISAL OR VICTIMISATION ...... 4 PROTECTION FOR THE INSTITUTION ...... 5 APPEAL PROCESS ...... 5 MONITORING AND REVIEW OF POLICY ...... 5 APPENDIX A ...... 6 APPENDIX B ...... 7 POLICY CHANGE HISTORY ...... 8 INTERPRETATIONS & ABBREVIATIONS ...... 9

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WHISTLEBLOWING POLICY

INTRODUCTION

1.1 The Partnership wishes to maintain the highest standards of service to its tenants, staff and the community and recognises the need to have in place a policy enabling public interest disclosures also known as 'Whistle blowing' to be made. This policy will enable concerns to be raised confidentially inside, and if necessary, outside the Partnership. It is intended to encourage staff to inform management if they are concerned about serious malpractice, fraud or corruption so that management can investigate this. 1.2 Concerns must be made in the public interest as per the Enterprise and Regulatory Act 2013. 1.3 A “qualifying disclosure” means any disclosure of information which, in the reasonable belief of the individual making the disclosure, tends to show one or more of the following aspects covered by the Public Interest Disclosure Act 1998 (PIDA). a) Criminal Activity; b) Miscarriages of justice; c) Danger to health and safety; d) Damage to the environment; e) Failure to comply with any legal [or professional] obligation or regulatory requirements; f) Bribery; g) Financial fraud or mismanagement; h) Negligence; i) Abuse of power; j) Professional malpractice; k) Breach of the Partnership’s internal policies and procedures [including the Code of Conduct]; l) Conduct likely to damage the reputation of the Partnership; m) Unauthorised disclosure of confidential information; n) The deliberate concealment of any of the above matters. 1.4 Governing Body members are not covered by PIDA but the Scottish Housing Regulator advise in their factsheet Whistleblowing about a regulated body that concerns reported by Governing Body members made to them will be treated in the same way as qualifying disclosures by staff. 1.5 The policy is intended to provide a confidential channel and process for individual employees to raise genuine and legitimate concerns in confidence without affecting job or promotion prospects and without fear of victimisation; to deter serious malpractice; avoid crisis management and public criticism; and promote accountability throughout the Partnership. It gives everyone the opportunity to act professionally and with propriety.

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1.6 The policy is separate from the Partnership’s grievance procedure and should not be used by employees to raise grievances about their personal employment situation. 1.7 Similarly, the policy is separate from the Partnership’s complaints procedure and should not be used to make complaints about particular problems.

RASING CONCERNS

2.1 In most cases, an individual should make the disclosure to a relevant manager, his line manager, or to a Head of Service. Alternatively concerns can be raised with the Chief Executive, Chair of Audit & Risk Committee or the Chair of the Board. 2.2 Where a disclosure relates to the Chief Executive the matter should be disclosed to the Chair of the Audit & Risk Committee or the Chair of the Board. 2.3 Any member of the Board who has a concern should disclose to the Chair of the Audit & Risk Committee or the Chair of the Board as appropriate. 2.4 The matter will be treated confidentially and the employee's name will not be disclosed to the alleged perpetrator of malpractice without their prior approval. In order to allow a legitimate concern to be raised without trace, employees may choose to report the matter orally rather than in writing. A full note (which should not identify the complainant) will be made by the person hearing the concern. 2.5 Unless the suspected misconduct involves the Chief Executive, the concern should be referred to them, if not directly, then by the Individual to which the disclosure was first made. 2.6 Concerns must be made in the public interest as per the Enterprise and Regulatory Act 2013. 2.7 All issues raised under this policy will be treated seriously, in confidence and with total discretion.

INVESTIGATING THE ALLEGATION

3.1 The Partnership will respond to an individual’s concerns. The matters raised may: a) be investigated by management, or through the disciplinary process; b) be referred to the police; c) be referred to the Partnership’s auditors; or d) form the subject of an independent inquiry. 3.2 In order to protect individuals and those accused of misdeeds or possible malpractice, initial enquiries will be made to decide whether an investigation is appropriate and, if so, what form it should take. The overriding principle will be to consider what is in the public interest. 3.3 Some concerns may be resolved by agreed action without the need for an investigation. If the concern is of an urgent nature then this will be taken into account before any investigation is conducted.

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3.4 Within 5 working days of a concern being raised, the responsible manager will write, in confidence to the individual making the disclosure acknowledging that the concern has been received. Thereafter within 10 working days an outline action plan with timescales to address the concern will be provided in confidence. The amount of contact between the staff considering the issues and the individual making the disclosure will depend on the nature of the matters raised, the potential difficulties involved and the clarity of the information provided. 3.5 Where any meeting is arranged, off-site if required, the individual making the disclosure can be accompanied by a union representative or work place colleague. 3.6 The Partnership will take steps to minimise any difficulties which an employee may experience as a result of raising a concern. For instance, if the individual making the disclosure is required to give evidence in criminal or disciplinary proceedings the Partnership will arrange for the individual to receive advice about the procedure. 3.7 All responses to the employee will be in writing sent to his home address. Regular confidential progress reports (at least monthly, especially if the investigation is prolonged) will be provided to the individual making the disclosure prior to the production of a final response to the original concern. 3.8 If an employee is not satisfied that their concern is being properly dealt with they will have the right to raise it in confidence with the Audit & Risk Committee through the Chair of that Committee and they may wish to seek advice from the charity Public Concern at Work. (Appendix A contains contact details for nominated persons) 3.9 Following any interviews and / or investigation, recommendations will be made to the Chief Executive in confidence (the Chair of the Audit & Risk Committee or Chair of the Board as appropriate). The Chief Executive (Chair of the Audit & Risk Committee or Chair of the Board) will decide what further action should be taken, if any, and the appropriate mechanism to achieve resolution (including an action plan) and means of informing the complainant.

PROTECTING WHISTLE BLOWERS WHO FEAR REPRISAL OR VICTIMISATION

4.1 There is no specific common law duty on employees to report fraud to a nominated person within the Partnership or an external source (see Fraud Policy). The only exception is that line managers will generally have a duty to report the fraud of their subordinate employees. It is usually appropriate that the matter is raised internally where possible, but disclosure outside the employment relationship will, in some cases be justified and necessary. Disclosure Outside the Employer Body 4.2 Employees are subject to an implied contractual term of confidence and trust, which seeks to prevent them from disclosing their employer's confidential information. There is a clause within the contract of employment a specific confidentiality clause. The breach of this condition is often classed as gross misconduct which justifies summary dismissal. 4.3 If an employee makes an unauthorised disclosure of fraud or serious malpractice to a regulatory authority and its disclosure is in the public interest,

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case law shows that this is, in many circumstances, a lawful action, notwithstanding that it may contravene an implied contractual duty or a specific confidentiality clause. What is Considered to be 'In the Public Interest'? 4.4 The difficulty lies in determining what constitutes 'in the public interest'. Such matters are generally confined to fraud, criminal activities and threats to national security. They are matters which warrant disclosure in the interests of protecting the public (or the Partnership, staff or tenants) and in these cases the courts will generally uphold the public interest defence. Health and Safety Concerns 4.5 With regard to the voicing of concerns over health and safety in the workplace, employees are now statutorily protected against victimisation or dismissal for taking certain specified types of action on health and safety grounds. These protected actions include the bringing to the Partnership's attention, by reasonable means to the Chair of the Health and Safety Committee, the Director of Finance & Corporate Services or the Chief Executive to enable an Executive Team meeting to be held to discuss any concerns about circumstances at the Partnership which the employee reasonably believes to be harmful to health and safety. Protection for the Employee 4.6 The employee will be protected against victimisation or dismissal for raising legitimate concerns through the proper channels.

PROTECTION FOR THE INSTITUTION

5.1 If an employee uses this policy to raise concerns maliciously or with dubious motives there may be cause for disciplinary action. 5.2 Employees are encouraged to raise concerns internally even if sometimes they may prove to be unfounded as management would appreciate the opportunity of investigating and taking appropriate action before the concern is raised externally.

APPEAL PROCESS

6.1 An appeal may be made by the individual making the public interest disclosure against the outcome if it is considered that the report fails to answer the concerns raised. The appeal process is shown in Appendix B.

MONITORING AND REVIEW OF POLICY

7.1 The Whistleblowing Policy will be reviewed no less than every three years.

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APPENDIX A

CONTACT POINTS FOR NOMINATED PERSONS

POSTION CURRENT POST-HOLDER CONTACT POINT

Chair of Audit Committee Roddy Nicolson 0300 123 0773

Chair of the Board Norman Macleod 0300 123 0773

Company Secretary Anna Coyle 0300 123 0733

Chief Executive Dena Macleod 0300 123 0733

Director of Finance & Donald Macleod 0300 123 0733 Corporate Services

Director of Operations John Maciver 0300 123 0733

Chair of Health and Safety John Maciver 0300 123 0773 Committee

External Auditors CIB Services 01851 702030

Internal Auditors Wylie + Bisset 0141 566 7000

Public Concern at Work 020 7404 6609

Environmental Health 0845 600 2772 Department, CNES

Health & Safety Executive 0345 300 9923

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APPENDIX B

APPEALS PROCESS

1. Where the individual making the public interest disclosure feels that the report fails to answer the concerns raised there shall be the right of appeal to an appeal committee of the Board Members. Notice of appeal, stating the grounds for the appeal, shall be submitted to the Company Secretary, in writing within 14 days of receipt of the report.

2. Arrangements will be made by the Company Secretary in consultation with the chair or vice chair of the board to appoint from the membership of the board, a panel of at least 3 board members, who have not previously been involved in the investigation, who shall be known as the appeal committee. The Company Secretary will give due consideration to providing a balance of appeal committee members in terms of gender, race, age and disability.

3. The appeal committee shall democratically elect a chair from their members.

4. The appeal hearing shall take place as early as practicable, but normally within 28 days after receipt of the notice of appeal. The appeal committee shall consider the case and shall be furnished with the final report and its findings from the investigation normally 7 days prior to the hearing. The decision of the appeal committee will be final.

5. At least 7 days before the hearing both parties shall (through the chair of the appeal committee) be advised in writing of the date, time and place of the appeal hearing.

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POLICY CHANGE HISTORY

Version Change Applied Date By 1.0 First draft of policy 09/11/12 Dena Macleod

Policy updated to include:

- reference to the Enterprise and Regulatory Act 2013; - clarification of terms; - qualifying disclosure list 2.0 expanded to include abuse 16/03/16 Angela Smith of power and professional malpractice; - regulatory recommendations in respect of Governing Body members and PIDA; - and updating of contacts at Appendix A.

Policy updated to include: - clarification of terms; 3.0 - updated contacts at 22/01/2020 Anna Coyle Appendix A; and - formatting changes

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INTERPRETATIONS & ABBREVIATIONS

The following interpretation and abbreviations are used in this policy:

Chief Executive, Director of Finance & Corporate Heads of Service Services, Director of Operations and Head of Executive Office

PIDA Public Interest Disclosure Act 1998

PCAW Public Concern at Work

All references to the masculine gender in this policy shall read as equally applicable to the feminine gender

ITEM NO 7.5

Making our house your home

PROCUREMENT POLICY & PROCUREMENT STRATEGY 2020/21 Audit & Risk 12 February 2020 Board 12 February 2020

Report by Director of Finance and Corporate Services

Purpose of Report

1.1 To present an updated Procurement Policy and Strategy 2020/21 to the Board. Summary

2.1 The Procurement Policy was approved in February 2019, with the expectation of further possible legislative changes arising from the UK’s withdrawal from the European Union (EU). 2.2 No changes to UK or Scottish legislation has taken place in the last 12 months. 2.3 The current guidance is that ‘The existing scheme of UK procurement rules, which implement the EU public procurement directives, will be preserved under the European Union (Withdrawal) Act 2018 when the UK leaves the European Union.’ 2.3 This policy has therefore only had some minor updates, primarily in relation to the EU thresholds. In future the policy will be updated each year to automatically reflect threshold changes. 2.4 Our procurement strategy focuses on the implementation of the above legislation as well as developing processes and performance information relating to three main priority areas - a strong procurement function, local supplier base and supplier relationships. 2.5 There are no changes to the strategy this year. 2.6 Our current contracts and community benefits registers are attached for noting at Appendices 5 & 6 respectively. Competence

3.1 The financial, legal and other constraints are detailed at paragraph 5.1 – 8.2. Recommendations

4.1 It is recommended that the Board: a) approve the revised Procurement Policy at Appendix 1; b) note the Procurement Plan for 2020 at Appendix 2; c) approve our updated Procurement Strategy 2020/21 and performance measurement framework at Appendix 3; d) note the procurement performance for 2019 set out in Appendix 4; and e) note the Contracts & Community Benefit Registers at Appendices 5 & 6.

Angus M Smith 07-Jan-20 Competence

Financial 5.1 There are no financial costs arising directly from consideration of this report however failure to follow policy and procurement legislation could leave us open to reputational, legal and financial penalties. Legal 6.1 The Procurement Reform (Scotland) Act 2014 made it a requirement for an organisation with a regulated procurement spend of greater than £5 million to prepare a procurement strategy. 6.2 The strategy must include details on a number of mandatory topics; these include how procurement will contribute to achieving the organisation’s purposes; how we will treat economic operators equally and without discrimination; how we will act in a transparent and proportionate manner in relation to procurement; and how this procurement will be undertaken sustainably. 6.3 It also requires statements on the use of community benefit, consultation, the payment of a living wage, compliance with health and safety and prompt payment provisions. Regulatory Guidance 7.1 The Regulatory Standards checklist has been completed and there is nothing in the report that would breach the standards. Risk 8.1 There are no risks arising directly from the consideration of this report. It should be noted however that, in the event of a no-deal Brexit, we face possible cost increases and tariffs in relation to the procurement of materials and equipment sourced from the EU and beyond. 8.2 The procurement strategy aims to reduce a number of risks highlighted in our Risk Register. Through better contract management and evaluation of supplier and customer satisfaction we will look to minimise the impact of the failure of a major contractor.

APPENDIX 1: Procurement Policy APPENDIX 2: Procurement Plan for 2020 APPENDIX 3: Procurement Strategy 2020/21 APPENDIX 4: HHP Procurement Performance Report 2019 APPENDIX 5: Contracts Register 2020 APPENDIX 6: Community Benefits Register 2020 Background Papers: None Writer of Report: Angus Smith Tel: 0300 123 0773

Angus M Smith 07-Jan-20 APPENDIX 1

Procurement Policy

Effective Date: February 2020 Review Date: February 2021 Approved by HHP Board: 12 February 2020 TABLE OF CONTENTS INTERPRETATIONS & ABBREVIATIONS

INTRODUCTION ...... 2 AIMS & OBJECTIVES ...... 2 LEGAL FRAMEWORK ...... 2 GIFTS AND HOSPITALITY ...... 3 HHP’S PROCUREMENT FUNCTION ...... 3 DEFINING HHP’S PROCUREMENT NEEDS ...... 3 CONTRACT AWARDS ...... 4 GOVERNANCE AND MONITORING ...... 5 REVIEW OF POLICY ...... 5 APPENDIX 1 – PROCUREMENT THRESHOLDS ...... 6 POLICY CHANGE HISTORY ...... 7 INTERPRETATIONS & ABBREVIATIONS ...... 8

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PROCUREMENT POLICY

INTRODUCTION

1.1 This policy governs all Hebridean Housing Partnership (HHP) procurement. 1.2 Procurement is defined as the acquisition of goods, services and works from third parties, whether under formal contract or otherwise. 1.3 This can relate to the purchase of routine supplies and services as well as formal tendering processes for larger projects and undertakings.

AIMS & OBJECTIVES

2.1 Our primary aims are to comply with all relevant legislation. 2.2 As part of our Business Plan, we are required to demonstrate value for money and to promote efficiency and effectiveness. 2.3 In addition, our procurement process is based on the following principles: • To treat relevant economic operators equally and without discrimination; • To act in a transparent and proportionate manner; • To comply with the sustainable procurement duty; • To improve the economic, social (reducing inequality) and environmental wellbeing of the islands; • To facilitate the involvement of small and medium enterprises, third sector bodies and supported business in the process; and • To promote innovation.

LEGAL FRAMEWORK

3.1 We are, in relation to procurement, defined as a ‘Public Contracting Authority’. In this regard, therefore, it is bound by specific legislation. 3.2 The primary legal framework for public procurement includes: • EU Treaty obligations; • EU Procurement Directives, as implemented in national legislation (currently the Public Contracts (Scotland) Regulations 2015 and 2016); • European Court of Justice and National Case Law; and • Procurement Reform (Scotland) Act 2014. 3.3 Other Related legislation: • Late Payment of Commercial Debts (interest) Act 1988; • Health & Safety at Work Act 1974; • Prevention of Corruption Act 1906; and  Data Protection Act 2018

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3.4 In general, the EU Treaty Obligations cover all levels and values of procurement, while the specific Scottish Government and EU Procurement Directives apply over specific defined contract thresholds which are updated periodically. 3.5 For 2020 these thresholds are: Scottish EU Goods and Services £50,000 £189,330 Works £2,000,000 £4,733,252 3.6 For the purposes of the legislation, when considering threshold applicability the estimated value of a contract is the total value (not including Value added Tax) which the contracting authority expects to be payable under or by virtue of the contract over its lifetime. 3.7 Developer led proposals, due to the fact that the proposal is owned by the developer, will not be subject to a competitive procurement process. Such proposals will be subject to a financial appraisal by the Director of Finance & Corporate Services and will be presented to the Board for approval together with the updated Development Plan. 3.8 In addition to procuring goods and services through a competitive procurement process, we will look to maximise value for money by utilising any existing procurement frameworks which we have access to. e.g., Scottish Government Procurement Frameworks. Access to such frameworks may be gained directly by us or indirectly through an approved sub-contractor.

GIFTS AND HOSPITALITY

4.1 All gifts and hospitality in relation to procurement will comply with our Entitlements, Payments & Benefits policy.

HHP’S PROCUREMENT FUNCTION

5.1 We will operate an internal procurement function in order to provide a single point of enquiry for suppliers and to facilitate adequate separation of duties between budget managers and suppliers. 5.2 Responsibility for administration of Procurement lies with the Director of Finance and Corporate Services, with oversight by the Audit & Risk Committee. 5.3 We will also task its internal auditors to review the procurement process and to test that our internal control systems are adequate and effective. 5.4 The day to day procurement function is carried out by the Corporate Resources Team.

DEFINING HHP’S PROCUREMENT NEEDS

6.1 At the beginning of each calendar year we will publish a procurement plan for the year ahead, and with reference to our Procurement Strategy, how it intends to carry out this procurement. 6.2 In order to ensure that we gain the best and most cost effective solution for our procurement needs, we will seek to engage with all interested parties using a competitive process in which the parties are judged on cost and other criteria.

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6.3 Subject to any relevant legal obligations, the form of competition selected will be appropriate to the value and complexity of the goods, services and works required. 6.4 This will include the use of written quotations, Co-operative and Collaborative Procurement and Tendering (including EU Tendering) processes. 6.5 The expenditure thresholds at which the different forms of competition apply and how suppliers will be made aware of them are shown at Appendix 1. 6.6 Framework agreements may also be used to procure contractors and suppliers without committing or binding us to any specific expenditure. 6.7 All the required outcomes and evaluation criteria will be provided in the Request for Quotation (RFQ) or Invitation to Tender (ITT). 6.8 While Value for Money will be an overarching consideration, we will base our evaluation of suppliers on different and weighted criteria, depending on what is being procured. 6.9 In order to promote innovation, we will also, where relevant and appropriate, state the required outcomes rather than how goods or services should be delivered. 6.10 Value for Money in this context relates to whole life costs/quality and may also include implementation costs, ongoing and end of life disposal costs. 6.11 Where competitive dialogue or negotiation is required, we will strictly follow the legislative regulations. 6.12 Where appropriate, we will advertise its procurement on a number of websites but will primarily use the Public Contracts Scotland Portal. 6.13 The Public Contracts Scotland Portal is the official site used for compliance with European legislation, and provides auditable functionality for all levels of procurement. 6.14 Our procurement is carried out in a dynamic environment, subject to real world events, to case law and legal interpretation. If any required procurement or process falls outwith the guidance and scope of this policy it requires the express permission of the Chief Executive before it is undertaken. 6.15 For example, insurance works would normally require competitive quotations/tenders but in emergency situations it may be procured by single quotation/tender based on discussions with Loss Adjusters. 6.16 Alternatively, given our location and purchasing requirements, there may be, on occasion, limited available parties to provide the necessary number of quotations.

CONTRACT AWARDS

7.1 After due evaluation and consideration, contracts may be awarded and the relevant parties notified. 7.2 If we do not find a supplier who meets all the required criteria, we reserve the right to cancel and re-run the process, again after duly notifying parties with the reasons for doing so.

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7.3 All awarded contracts and procurement, showing the successful supplier as well as, where appropriate, the length of contract, will be shown on our website. This is in addition to any Scottish or EU legislative requirements (such as recording this information on the Public Contracts Scotland Portal). 7.4 A Community Benefit register, as part of our regulated procurement, will also be shown on our website. 7.5 Our Financial Regulations and Authorities state which members of staff are authorised to procure or sign a contract of behalf of the Partnership. 7.6 Contracts will be in writing (unless in exception circumstances approved by the Director of Finance and Corporate Services) and suppliers will be notified that goods, services and works should only be provided on receipt of an appropriate contract or purchase order. 7.7 Payments for contracts will be made within the agreed terms, or where no prior payment terms are agreed, within 30 days of receipt of a valid invoice.

GOVERNANCE AND MONITORING

8.1 All regulated procurement, over £50,000 will be registered in our Contract Register. The Contract Register will be available on our website. 8.2 We will also report to the Board annually after year end in terms of: • A review of whether our procurement complied with this policy; • Spend by Type of Organisation; • Procurement Type; • Type of Goods/Service/Works; and • Geographical location of suppliers. 8.3 As laid out in the relevant legislation, suppliers have the right to make formal challenges or complaints regarding our procurement process.

REVIEW OF POLICY

9.1 The Procurement Policy will be reviewed every 3 years with thresholds to be updated in line with any legislative changes.

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APPENDIX 1 – PROCUREMENT THRESHOLDS

Value of Purchase Minimum Requirement (excluding VAT)

Up to £99.99 No minimum requirement

£100.00 - £499.99 1 oral quotation

£500.00 – £1999.99 1 written quotation

£2000 - £9999.99 Either 2 independent written quotations or quotation(s) obtained through using the PCS Quick Quote facility

£10,000 – Scottish Procurement Formal Tender process or quotation(s) obtained Threshold through using the PCS Quick Quote facility

EU Supplies threshold and above Full OJEU tendering procedures

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HANGE HISTOR

POLICY CHANGE HISTORY

Version Change Applied Date By All previous non development procurement policies consolidated September 1.1 into one document and updated to Angus Smith 2014 reflect current Scottish and European legislation.

Updating thresholds and primary 1.2 January 2017 Angus Smith legal framework

Updating thresholds and 1.3 implementing internal audit January 2018 Angus Smith improvements.

Updated thresholds and 1.4 January 2019 Angus Smith underpinning legislation 1.5 Updated EU threshold January 2020 Seonaid Matheson

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INTERPRETATIONS & ABBREVIATIONS

The following interpretation and abbreviations are used in this policy:

Word Interpretation We/Our Hebridean Housing Partnership Board Means the Board of the Hebridean Housing Partnership Board Members All Members of the Board including co-opted Members RFQ Request for Quotation

ITT Invitation to Tender

All references to the masculine gender in this policy shall read as equally applicable to the feminine gender

APPENDIX 2

HHP PROCUREMENT PLAN 2020

Contract Quantities/Length of Contract Procurement Method Planned Procurement Planned Contract Date Start Date

Investment Framework 4 year Public Tender February 2020 April 2020 2019-2024 Lots

Notes:

1. Our current Contract Register is available at www.hebrideanhousing.co.uk 2. New build plans are currently being developed and details will be made available throughout the year, and added to this plan once formalised. 3. Any new procurement requirements will be added to this plan as they become known.

As at 08 January 2020 APPENDIX 3

 Procurement Strategy 2020/21

Effective Date:  February 2020 Review Date:  February 2021 Approved by HHP Board: 12 February 2020 TABLE OF CONTENTS INTERPRETATIONS & ABBREVIATIONS

INTRODUCTION ...... 2 PROCUREMENT VISION/MISSION STATEMENT ...... 2 STRATEGY RATIONALE/CONTEXT ...... 3 STRATEGIC AIMS, OBJECTIVES AND KEY PRIORITIES ...... 3 MONITORING/REVIEWING AND REPORTING ON STRATEGIES ...... 4 STRATEGY OWNERSHIP AND CONTACT DETAILS ...... 5 POLICIES, TOOLS AND PROCEDURES ...... 5 APPENDIX 1 – KEY PERFORMANCE INDICATORS ...... 6 POLICY CHANGE HISTORY ...... 7 INTERPRETATIONS & ABBREVIATIONS ...... 8

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PROCUREMENT STRATEGY 2020-2022

INTRODUCTION

1.1 The purpose of this strategy is to support the delivery of high quality homes and services, with an effective procurement process that supports our strategic objectives, offers value for money, takes account of best practice and meets Scottish and EU procurement legislation. 1.2 This strategy therefore sets out our approach to regulated procurement, places it in context, lists strategic goals and objectives and highlights challenges for the period 2020 to 2022. It also includes an action plan as to how these objectives will be met. 1.3 Our aim in this document is to:  set out clear strategic objectives;  to ensure our compliance with statutory requirements;  to improve access and opportunities, particularly for Small and Medium sized Enterprises (SMEs); and  to continually strive to improve our procurement service. 1.4 We require to be flexible to be able to respond to the rapidly changing procurement environment, and to learn from our experiences and the experiences of others.

PROCUREMENT VISION/MISSION STATEMENT

2.1 We have four strategic goals. These are: 1. Placing tenants at the centre of everything we do; 2. Investing in an environmentally sustainable way in tenants’ homes; 3. Being a good employer that attracts and retains high quality staff; and 4. Working with partners to contribute to the wellbeing of communities throughout the Outer Hebrides. 2.2 From the above, our Procurement Vision is to: “Procure goods, services and works, in an open, effective, sustainable, economic and efficient manner, and in so doing, meeting the needs of the business, our tenants, and our community.” 2.3 Our Procurement Mission Statement is to: “Provide clear and focused leadership and administration of the procurement process, with the aim of fostering innovation, improving efficiencies and delivering cost savings, with transparency and fairness for the supplier community.”

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STRATEGY RATIONALE/CONTEXT

3.1 Hebridean Housing Partnership is a charitable not-for-profit housing association governed by a Board of 15 members. 3.2 We became a Registered Social Landlord on 12 September 2006 following the transfer of the Local Authorities housing stock, and subsequently merged with 5 smaller Housing Associations to form a single social housing provider covering the whole of the Outer Hebrides. 3.3 Over the last 10 years, we have planned and implemented a significant improvement program for the fabric of our homes, and developed a new build program to meet housing demand, whilst at the same time balancing issues of affordability and access. 3.4 We now manage over 2200 properties and factor 140 more across 12 islands in this 120 mile long archipelago, with an aim of providing a high standard of home and service to all, irrespective of location or distance. 3.5 Procurement in this environment often raises difficulties in terms of a limited supplier base, high costs and transportation difficulties. In addition, we face significant challenges in the years ahead as a result of an aging population, economic decline, significant outward migration and depopulation, lack of existing infrastructure and fuel poverty. 3.6 We will therefore strive to work with tenants, communities, and stakeholders to address these issues, and attempt to use innovation to meet needs and create opportunity. 3.7 Our procurement of food and drink is minimal, however we will work to put in place affordable contracts, if appropriate, that meet nutrional requirements of all users who would benefit from the provision of food and drink.

STRATEGIC AIMS, OBJECTIVES AND KEY PRIORITIES

4.1 There are three priority themes for action for the period 2020/21. These are: a) Developing our Procurement function and team i) Our Procurement function sits with the Corporate Resources Team. This allows for a separation of duties within the organisation between procurement administration and the main procurement requesters. This reinforces and promotes equality and non-discriminatory treatment of contract processes, and allows for greater transparency at all stages. ii) The tendering process has been developed to better consider procurement options from the outset. This will allow us to consider partnership procurement in the first instance, to expand the amount of procurement being tendered, and to consider sustainability issues, particularly where it might improve the economic, social and environmental wellbeing of the islands. b) Developing a strong supplier base (supporting local enterprise) i) Given our remote location, and the fragile nature of the economy here, it is important for us to procure in a sustainable way, especially in relation to contracts that require a physical presence in the islands. We will look at how we can facilitate the 3 | P a g e

involvement of small and medium enterprises, third sector bodies and supported businesses. ii) We will also consider how we can promote innovation to improve service and promote value for money. iii) We will develop and monitor local guidance on Community Benefit requirements to assist suppliers, and will consult with users and suppliers on other matters to improve the procurement and contract management process. iv) We, as a Living Wage Employer in relation to our directly employed staff, will encourage its contractors and sub- contractors to also pay the Living Wage. v) We, through our tendering process will require the compliance of contractors/sub-contractors in Health & Safety matters, and will promote ethical sourcing and fair trading. c) Developing strong supplier relationships i) We view suppliers as partners working together to improve performance, reduce costs and foster innovation. ii) We will look to improve contract management, and to consult and seek feedback on customer and supplier satisfaction throughout the duration of the contract. We will, in discussion with the contractor, also regularly review and assess the contract process to see whether administrative improvements on either side can increase efficiency or service delivery. 4.2 To help assess performance, a number of indicators will be developed and reported on. These are listed at Appendix 1.

MONITORING/REVIEWING AND REPORTING ON STRATEGIES

5.1 Any issues that arise with respect to procurement will be reported back to our Board or Executive Team for appropriate action, helping to ensure ongoing alignment with legislation and our goals and priorities. 5.2 Our procurement process, in relation to tendered contracts, and progress on implementing the procurement action plan, will be reported to and monitored by the Audit & Risk Committee. 5.3 An Annual Procurement Report will be produced each year, listing all tendered procurements, their outcomes, and whether the procurements complied with the Procurement Strategy. 5.4 A Contract Register of all regulated procurement is published on our website, together with a Community Benefit Register. 5.5 The purchasing levels of each member of staff is reviewed regularly and listed in our Financial Authorities.

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STRATEGY OWNERSHIP AND CONTACT DETAILS

6.1 Procurement administration will be undertaken by our Corporate Resources Team, overseen by: Director of Finance & Corporate Services Hebridean Housing Partnership Creed Court Willowglen Road Stornoway Isle of Lewis HS1 2QP

POLICIES, TOOLS AND PROCEDURES

7.1 Our Procurement Policy, and its related procedures, governs the administration of all procurement in relation to works, the supply of goods and the provision of services. 7.2 The policy is subject to the provisions of European (EU), United Kingdoms and Scottish legislation, and is maintained and updated subject to guidance periodically issued by the EU or UK or Scottish Governments. 7.3 Procurement will also comply with our ‘Entitlements, Payments and Benefits’ policy and refer to our Risk Register. 7.4 The Scottish Government Procurement Journey framework will be the key tool to ensuring best practice in procurement processes, and all procurement over £10,000 will be managed through the Public Contracts Scotland Website. Where possible, purchasing below this level will use the Public Contracts Scotland ‘Quick Quotes’ facility. 7.5 Key performance indicators (KPI’s) will be used when measuring the success of the implementation of the Procurement Strategy and compliance with procurement best practice in the Partnership. The list of KPI’s is provided in Appendix 1.

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APPENDIX 1 – KEY PERFORMANCE INDICATORS

The following indicators will be implemented as part of the Strategy and will be used to manage progress in its implementation:

No Key Performance Area/Measure Target

Developing the Procurement function and team within HHP 1 Compliance with procurement legislation (best 100% No legal or official practice) challenges regarding procurement process

2 Percentage of Suppliers paid within 30 days 100% 3 The number of renewal contracts which have 50% seen savings negotiated, or improvements have been agreed and implemented 4 Tenders Notified within the target timescales 100%

Developing a strong supplier base (with local supplier) 5 Percentage of HHP spend being tendered 90% 6 Percentage of contracts where a local supplier 95% submits a tender 7 Percentage of spend with local suppliers 90%

8 Number of invoices received electronically as a 75% percentage of total invoices processed Developing strong supplier relationships

9 Customer Satisfaction with contractor 90% performance (Repairs Surveys) 10 Number of invoices received electronically as a 75% percentage of total invoices processed 11 Contract compliance 100% of suppliers successful completing contract. No contracts terminated due to poor performance.

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ANGE HISTOR

POLICY CHANGE HISTORY

Version Change Applied Date By 1.1 New strategy created 07.11.16 Angus Smith

Updated following recommendations of internal audit 1.2 19.01.18 Angus Smith and in light of supplier feedback and KPI performance. Minor amendments and update of 1.3 29.01.19 Angus Smith KPI measurements 1.4 Review of Strategy 08.01.2020 Seonaid Matheson

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INTERPRETATIONS & ABBREVIATIONS

The following interpretation and abbreviations are used in this policy:

Word Interpretation HHP or Partnership Hebridean Housing Partnership Board Means the Board of the Hebridean Housing Partnership Board Members All Members of the Board including co-opted Members

All references to the masculine gender in this policy shall read as equally applicable to the feminine gender

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APPENDIX 4

HHP Procurement Performance Report 2019

1.1 Performance data for the procurement function have now been collected for the years 2017/18, 2018/19 and 2019/20 up until 31 December 2019:

No. 2017 2018 2019 Target Developing the Procurement Function & Team within HHP 1 Compliance with 100% (34) 100%(42) 100% (20) 100% Procurement Legislation (tenders) 2 % of Suppliers paid within 30 92% (1719) 95% 95% 100% days (invoices) (1369) (2019) 3 Number of renewal Data not 50% 66% 50% contracts with savings etc collected. (2 of 4) (2 of 3) 4 Tenders notified within the Data not 100% 100% 100% target timescales collected. Developing a Strong Supplier Base (with local Suppliers) 5 % of HHP spend being 89% (16) 87% (18) 93% (24) 90% tendered* 6 % of Tenders with local 87% (9) 84% (9) 95% (19) 95% supplier involvement (tenders)* 7 % of spend with local 72% (1480) 75% 66% 90% suppliers* (1223) (1550) 8 % of invoices received 47% (972) 58% 65% 75% electronically (invoices) (705) (787) Developing Strong Supplier Relationships 9 Customer Satisfaction with 98% (203) 98% 100% 90% Contractor Performance (313) (107) (Repairs Surveys) 10 % of invoices received 47% (972) 51% 86% 75% electronically (invoices) (823) (1742) 11 Contract Compliance 100% 90%* 100% 100%

Notes 2.1 Not all of our spend meets the £10k threshold. 2.2 Not all of our procurement requirements have available local providers in specialist areas. 2.3 No. 4 is defined as being the contracts in place prior to target timescales. 2.4 *Two contracts were terminated which had been tendered in 2018. APPENDIX 5

HHP's Contract Register

Extension Description of Works/Services Supplied under Contract (Total Extended End Date of Award Contractor Estimated Value ( £k) Start Date End date Available Contract Works Exceeding £50k) Date (Months)

02.12.2009 Legal Services Harper Macleod £73k 01.01.2010 01.09.2012 Housing Software Support MIS £54k per annum 11.09.2012 No end date 01.09.2018 ICT 2018 - 2022 Hosting & Support Castle Computers £106k 01.10.2018 31.09.2022 12 Alex Murray Construction FES FM 11.12.2018 Investment Framework 2019-2023 Neil Mackay & Co £16,000k 01.04.2019 31.03.2023 O'Mac Construction D MacDonald & Co 08.03.2017 Design and Build of 50 Houses at Mackenzie Avenue, Isle of Lewis Calmax Construction £6,397k 15.03.2018 30.09.2019 17.04.2020 21.04.2017 Tenant Participation Support & Development Services TPAS Scotland £60k 01.05.2017 30.04.2019 30.04.2021 23.08.2017 Consultancy Services for Feasibility Services for New Developments TIG £55k 01.09.2017 30.08.2020 12 11.10.2017 Consultancy Services for Project Management for New Developments TIG £81k 11.10.2017 10.10.2021 12 15.02.2018 Funders Valuation Jones Lang Lasalle £49k 31.03.2018 31.03.2022 08.06.2018 Breasclete Calmax Construction £1,445k 15.04.2019 17.03.2020 10.09.2018 Goathil - CNES Enabling Works McLaughin + Harvey £3,070k 01.07.2019 31.03.2020 10.09.2018 Goathill HWEC - CNES (50 houses) McLaughin + Harvey £11,300k NOT IN CONTRACT 20.12.2018 HHP Uist Smaller Sites 2018/19 Calmax Construction £1,362k 12.08.2019 30.06.2020 HHP Lewis Rural Sites 2019/20 Alex Murray Construction £1,290k 06.08.2019 31.05.2020 10.07.2019 Perceval Road Development O'Mac Construction 10040k 06.01.2020 06.03.2022 31.08.2019 Social Housing Insurance NIG £225k 01.10.2019 30.09.2020 11.11.2019 Scotland Street Development Lewis Builders Ltd £1,034k 01.09.2019 30.09.2020 04.12.2019 Planned, Cyclical & Responsive Maintenance Services & Void Works FES FM £14,000k 01.04.2020 31.03.2025 48 APPENDIX 6

HHP COMMUNITY BENEFIT REGISTER

Project Start Date End Date Community Benefit

The hire of more local workers and apprentices. Calmax have offered to tar the paths in Mackenzie Avenue 15.03.2017 30.09.2019 the area as residents and councillors have highlighted that the chip paths are no use for prams and bikes. Breasclete 13.08.2018 12.07.2019 Football kickabout area at Sgeir Ghlas. The contractor has proposed the following community benefits for each site: Cnoc na Runaire Site AMC propose to offer £500 to Back School library and £500 to the Tolsta Community Group for a playarea An Glib Site HHP Lewis Rural Sites 2019/20 06.08.2019 31.05.2020 AMC propose to offer £500 to Sgoil an Rubha and £500 to groups for the elderly in the Point area. Edgemoor Square Site AMC propose to offer £500 for Lionel School library and £500 for Ness Day Club.

The contractor is currently negotiating community benefit but has stated in their tender that they propose the following benefits: Employ local tradesmen and staff, buy materials locally and when staying in remote areas use local accommodation and shops. Contact with the local councillors to provide suggestions for community benefit and provide HHP Uist Smaller Sites 2018-19 12.08.2019 30.06.2020 community benefit to a value of up to £2000.00. Provide works up to this value or provide a donation towards some of the community groups or to the local schools for them to invest as they choose. HHP COMMUNITY BENEFIT REGISTER

Project Start Date End Date Community Benefit

The contractor is currently negotiating community benefit but has stated in their tender that they propose the following benefits: Modern Apprenticeships New apprenticeship position with CITB Trainee Positions New Quantity Surveyor/Construction Manager/Estimator Work Placement Provide a structured period of work experience for a Nicolson Institute pupil SVQ Training Providing SVQ Training for existing employees Perceval Road Development 06.01.2020 06.03.2022 Community Enhancement Deliver community projects in association with HHP Contribute to local charities and organisations Free Materials Offer free plasterboard off-cuts to the public Local Chain Supply Utilising local suppliers HHP COMMUNITY BENEFIT REGISTER

Project Start Date End Date Community Benefit

Scotland Street Development 01.09.2019 30.09.2020 The contractor is currently negotiating community benefit. The contractor is currently negotiating community benefit but has stated in their tender document that they propose the following benefit FES Apprenticeship Scheme New apprenticeship position Work Placement Provide a structured period of work experience for a Nicolson Institute pupil SME Engagement Work with Scottish Enterprise and other stakeholders such as the local Chamber of Commerce on opportunities for economic development, training and other funded Planned, Cyclical & Responsive assistance to help support the and maximise the potential positive influences on the local Maintenance Services & Void 01.04.2020 31.03.2025 communities, economies and supply chain. Works Social Enterprises: Our Endeavours Continually striving to work with Social Enterprises on our projects and believe strongly in the social, economic and environmental contributions which can be made to the local and wider community by doing so. Community Enhancement Deliver community projects in association with HHP Contribute to local charities and organisations ITEM NO 7.6

Making our house your home

TIME OFF IN LIEU POLICY Board 12 February 2020

Report by Chief Executive Purpose of Report

1.1 To provide details on a draft policy for Time Off in Lieu (TOIL) or an alternative option to extend the carry forward allowance to 14 hours and 10 minutes, for consideration and consultation with staff and the Union. Summary

2.1 One of the agreements reached as part of the Pay & Grading review was to explore the options for introducing a Policy for Time off in Lieu. This was in recognition of the reduction of flexi days from 2 days to 1 day every four weeks. 2.2 There are occasions where staff work additional hours to meet deadlines or deliver on a specific project and with the change in flexi time allowances this could result in some members of staff losing a significant amount of hours. There is the option to make an overtime payment for staff on grades E and below, but some staff prefer to have the time off. This Policy will provide Managers with the flexibility to either grant TOIL or pay overtime for additional hours. 2.3 A draft Policy is at Appendix 1. The Policy is intended for those occasions when staff are asked to work longer hours than normal. It will not be used as a means of supplementing the current flexi days on a regular basis. 2.4 A simple and straightforward alternative would be to extend the carry forward allowance to 14 hours 10 minutes. Competence

3.1 The legal, financial or other constraints to any recommendations in this report being implemented are detailed in paragraph 5.1 - 8.1. Recommendations

4.1 It is recommended that the Board consider and approve consulting with the staff and the Union on the following: a) the draft Policy for Time off in Lieu; or b) amending the current Flexi system to allow 14 hours 10 minutes to be carried forward.

APPENDIX 1: Time off in Lieu Policy Background Papers: Pay & Grading review 2018 Writer of Report: Dena Macleod Tel: 0300 123 0773

Dena Macleod 23-Jan-2020 Competence

Financial 5.1 There is no additional cost involved in implementing the Policy. Legal 6.1 The approval and amendment of policies is a matter reserved to the Board. 6.2 The Board has referred the following function to the Audit & Risk Committee: “Monitoring and reviewing policies and procedures relating to the Board’s system of internal control, risk evaluation and corporate governance” 6.3 There is no legal requirement for an employer to provide TOIL to employees. Regulatory Guidance 7.1 The regulatory standards checklist has been completed and there is nothing in this report which would breach the standards. Risk 8.1 The loss of key staff is highlighted in the Risk Register and this Policy will go some of the way to mitigating this risk.

Dena Macleod 23-Jan-2020 APPENDIX 1

Time Off In Lieu Policy

Effective Date:  February 2020 Review Date:  February 2021 Approved by HHP Board: February 2020

TABLE OF CONTENTS INTERPRETATIONS & ABBREVIATIONS

PURPOSE ...... 2 SCOPE ...... 2 TIME OFF IN LIEU (TOIL) ...... 2 TAKING TOIL ...... 3 MONITORING AND REVIEW OF POLICY ...... 3 POLICY CHANGE HISTORY ...... 4 INTERPRETATIONS & ABBREVIATIONS ...... 5

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TIME OFF IN LIEU POLICY

PURPOSE

1.1 We recognise that there are occasions where staff may need to work outside official working hours. However, we also recognise the need to provide healthy and safe conditions for our staff by ensuring they do not work excessive hours, and that any additional hours are agreed in advance and monitored appropriately. 1.2 This Policy is a guideline for Managers to assist them in planning and managing the working hours of staff who ask/are asked to work additional hours when there is a busy period, project or specific event. 1.3 The principles outlined in sections 3 & 4 of this Policy are intended to create a simple and streamlined Time of in Lieu (TOIL) system that will sit alongside the existing Flexi time and overtime system for the mutual benefit of employees and HHP. 1.4 TOIL is being provided to enable us to respond to any extraordinary events (e.g. unplanned staff unavailability) and to adequately resource teams when performing business critical, project critical, statutory or regulatory functions or activities or otherwise where short term resourcing need has been identified.

SCOPE

2.1 This Policy applies to all permanent staff and staff on fixed term contracts. (Senior staff on grade F to H are not entitled to overtime but may accrue TOIL). 2.2 This Policy does not form part of an employees Contract of Employment and may be changed from time to time with current best practices and statutory requirements to ensure the business needs are met. 2.3 Notwithstanding this Policy, overtime for Employees may still be authorised and paid in accordance with terms and conditions, but Employees will not receive paid overtime and TOIL for the same hours or day(s) worked

TIME OFF IN LIEU (TOIL)

3.1 There may be occasions where a member of staff would prefer to have TOIL rather than be paid overtime. In those circumstances TOIL will be accrued at a standard rate e.g one hour accrued for one additional hour worked. 3.2 TOIL is only to apply in the exception and requires Manager level approval in advance before it can be accrued. 3.3 TOIL that has not been recorded in line with procedure will not be granted. 3.4 The maximum TOIL that can be accrued is 14 hours (pro-rata for part time staff) over a quarter (detailed in the procedure). 3.5 TOIL must not be used as a routine way of accruing hours. 3.6 TOIL should only ever be in response to service needs. 3.7 Not all time owing will be considered as TOIL, the following examples are provided as guidelines and are not exhaustive or prescriptive:

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 Working late to suit personal circumstances  Due to poor time management  As a means of accruing extra leave 3.8 TOIL should not be accrued for travel time to and from work. 3.9 TOIL will be included for work/training and travel which is above the normal hours e.g travelling to Glasgow on the 19.30 flight – you would be able to claim TOIL for the time spent travelling until you are checked into your accommodation.

TAKING TOIL

4.1 Any TOIL accrued will be separate to any Flexi time and is to be used within the calendar year in the same manner as annual leave. 4.2 TOIL can be used in ½ day and full day increments (and multiples thereof) and must be requested through the HR system in the same manner as annual leave.

MONITORING AND REVIEW OF POLICY

4.1 This Policy will be reviewed in a year and then every three years in line with the Policy Review Schedule.

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HISTOR

POLICY CHANGE HISTORY

Version Change Applied Date By 1.0 Initial Policy 20 Jan 2020 Anna Coyle

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INTERPRETATIONS & ABBREVIATIONS

The following interpretation and abbreviations are used in this Policy:

Word Interpretation HHP or Partnership Hebridean Housing Partnership Board Means the Board of the Hebridean Housing Partnership Board Members All Members of the Board including co-opted Members TOIL Time off in lieu All references to the masculine gender in this policy shall read as equally applicable to the feminine gender

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ITEM NO 7.7

Making our house your home

PARENTAL LEAVE POLICY Board 12 February 2020

Report by Head of Executive Office

Purpose of Report

1.1 To provide the Board with a revised Parental Leave Policy to approve for consultation with the Joint Consultative Committee. Summary

2.1 The Parental Leave Policy has been reviewed and amended to take account of the latest statutory updates, good practice and to provide clarity on when an Employee is entitled to take unpaid Parental Leave. The Policy is at Appendix 1. 2.2 Parental Leave gives parents or adopted parents of children under the age of 18 years the right to take one or more periods of unpaid leave to look after a child or make arrangements for a child’s welfare in accordance with the Policy. 2.3 This Policy is based on the statutory position, consultation will take place with the Joint Consultative Committee. A final Policy will be presented to the Board in May 2020. Competence

3.1 The financial, legal and other constraints to the recommendations of this report are at paragraph 5.1 - 8.1. Recommendations

4.1 It is recommended that the Board approve the draft Parental Leave Policy at Appendix 1 for consultation with Joint Consultative Committee.

APPENDIX 1: Parental Leave Policy Background Papers: https://www.gov.uk/parental-leave Writer of Report: Anna Coyle Tel: 0300 123 0773

Anna Coyle 28-Jan-20 Competence

Financial 5.1 There are no financial implications for the implementation of the recommendation. There may be resourcing implications if Parental Leave is taken by an Employee, but where additional resource is required, it will be accommodated within existing budgets as the leave to be taken is unpaid. Legal 6.1 The updating of the Policy ensures we are compliant with the current legal requirements for Parental Leave. An Equalities Impact Assessment has been carried out. 6.2 The approval of Policies is a matter reserved to the Board. Regulatory Guidance 7.1 The Regulatory Standards checklist has been completed and there is nothing in the report which would result in a breach of the standards. Risk 8.1 There are no specific risks relating to the Policy and the updating ensuring compliance with good practice and legal requirements. Report Details

9.1 The Parental Leave Policy has been updated to take account of good practice and legal requirements as outlined in the following paragraphs: 9.2 In the revised Policy, Employees are entitled to unpaid Parental Leave of up to 18 weeks for each child up to the age of 18. An Employee can take up to a maximum of four weeks Parental Leave in a year for each eligible child. 9.3 The age of a child or children has been amended from the previous Policy from children up to the age of 5 (up to the age of 18 in cases where the child was disabled). 9.4 To be entitled to take unpaid Parental Leave the Employee must be named on the child’s birth certificate or adoption certificate or have (or expect to have) parental responsibility, as defined by law, for the child. He or she must also have completed one year’s qualifying service with us at the time they want to take Parental Leave. 9.5 Employees must take Parental Leave as whole weeks (e.g. 1 week or 2 weeks) rather than individual days; a ‘week’ equals the length of time an Employee normally works over 7 days. The exception to this is for parents of disabled children who may take the leave in odd days rather than weeks. 9.6 The revised Policy also sets out that Parental Leave is carried over from a previous job, for example, if an Employee is entitled to 18 weeks and they have used 10 weeks with a previous Employer, they can use up to 8 weeks with us if they are otherwise eligible. 9.7 Staff and the Union will be consulted during the period of 13 February 2020 - 13 March 2020 and a final Policy will be presented to the Board in May 2020.

Anna Coyle 28-Jan-20 APPENDIX 1

Parental Leave Policy

Effective Date:  20 May 2020 Review Date:  October 2021 Approved by HHP Board: 20 May 2020 TABLE OF CONTENTS INTERPRETATIONS & ABBREVIATIONS

INTRODUCTION ...... 2 ELIGIBILITY ...... 2 PAY AND BENEFITS DURING PARENTAL LEAVE ...... 2 HOW MUCH LEAVE MAY BE TAKEN ...... 2 WHEN MUST THE LEAVE BE TAKEN ...... 2 CARRYING LEAVE OVER FROM A PREVIOUS JOB ...... 2 GIVING NOTICE ...... 3 MONITORING AND REVIEW OF POLICY ...... 3 POLICY CHANGE HISTORY ...... 4 INTERPRETATIONS & ABBREVIATIONS ...... 5

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PARENTAL LEAVE POLICY

INTRODUCTION

1.1 Parental Leave gives parents or adopted parents of children under the age of 18 years the right to take one or more period of unpaid leave to look after a child or make arrangements for a child’s welfare. 1.2 Parental Leave is intended to support parents in spending more time with their children and help them to strike a work-life balance that works for them. It is not intended, for example, to allow you time off to pursue a hobby. 1.3 Both parents may take Parental Leave.

ELIGIBILITY

2.1 To be entitled to take unpaid Parental Leave you must be named on the child’s birth certificate or adoption certificate or have (or expect to have) parental responsibility as defined by law, for the child. 2.2 You must also have completed one year’s qualifying service with us at the time you want to take the Parental Leave.

PAY AND BENEFITS DURING PARENTAL LEAVE

3.1 You are not entitled to receive remuneration during Parental Leave. A period of Parental Leave does not affect your entitlement to paid annual leave. However, any additional contractual holiday entitlement will not accrue during that period.

HOW MUCH LEAVE MAY BE TAKEN

4.1 You are entitled to take unpaid Parental Leave for up to 18 weeks for each child. You can take leave in blocks of one week or more, up to a maximum of four weeks in a year for each eligible child. 4.2 You must take Parental Leave as whole weeks (e.g. 1 week or 2 weeks) rather than individual days. A ‘week’ equals the length of time you normally work over 7 days. The exception to this is if your child is disabled. Parents of disabled children may take the leave in odd days rather than weeks. 4.3 You don’t have to take all the leave at once.

WHEN MUST THE LEAVE BE TAKEN

5.1 You must use Parental Leave before the child’s eighteenth birthday.

CARRYING LEAVE OVER FROM A PREVIOUS JOB

6.1 Parental Leave applies to each child not to an individual’s job, for example, an Employee is entitled to 18 weeks. If they’ve used 10 with a previous Employer. They can use up to 8 weeks with us if they’re eligible.

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GIVING NOTICE

7.1 You must submit a request in writing using the appropriate form to the Personnel Section, giving at least 21 days’ notice of your intention to take Parental Leave and stating when the leave will start and end.

MONITORING AND REVIEW OF POLICY

8.1 The Policy will be reviewed every three years in line with the policy review schedule. N

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GE HISTOR

POLICY CHANGE HISTORY

Version Change Applied Date By 1.0 Initial Policy 18 Nov 2015 Dena Macleod Formatting amendments and 2.0 amendments to eligibility in line with 28 Jan 2020 Anna Coyle statutory updates.

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INTERPRETATIONS & ABBREVIATIONS

The following interpretation and abbreviations are used in this policy:

Word Interpretation HHP or Partnership Hebridean Housing Partnership Board Means the Board of the Hebridean Housing Partnership Board Members All Members of the Board including co-opted Members Leave Leave is taken to mean both annual and public holiday entitlement subject to the statutory minimum Personnel Section Chief Executive’s Personal Assistance and the Head of Executive Office

All references to the masculine gender in this policy shall read as equally applicable to the feminine gender

ITEM NO 7.8

Making our house your home

ASBESTOS POLICY Board 12 February 2020

Report by Director of Operations

Purpose of Report

1.1 The purpose of this report is to seek approval from the Board following a review of the Asbestos Policy. Summary

2.1 The Asbestos policy requires to be reviewed every 3 years. 2.2 The current Asbestos policy was reviewed as part of the health and safety audit carried out in 2018. All actions emanating from the review were procedural and have been carried out. 2.3 There have been no material changes to the policy. Competence

3.1 The legal, financial or other constraints to the recommendations in this report are contained in paragraph 5.1 – 8.1. Recommendations

4.1 It is recommended that the Board approve the Asbestos Policy at Appendix 1

APPENDIX 1: Asbestos Policy Background Papers: None Writer of Report: Peter O’Donnell Tel: 0300 123 0773

Peter O’Donnell 27-Jan-20 Competence

Financial 5.1 There are no financial implications relating to the implementation of the updated asbestos policy. Legal 6.1 Under the Health and Safety at Work Act 1974, we have a duty to ensure, as far as is reasonably practicable, the health, safety and welfare of employees and the health and safety of others that maybe affected by the employers undertaking. 6.2 Under the Control of Asbestos at Work Regulations 2014, there is a duty ‘to manage asbestos’ in non-domestic premises which also include communal areas within flats. Regulatory Guidance 7.1 The regulatory standards checklist has been completed and there is nothing in the report which would be in breach of the standards. Risk 8.1 The satisfactory management of asbestos is a significant area of risk and it is critical that robust systems and processes are in place.

Report Details

Asbestos Policy 9.1 The Asbestos policy has been reviewed to ensure it is fit for purpose and complies with all current legislation and best practise. Only minor grammatical alterations were required. Health and Safety Audit 2018 10.1 The asbestos policy was reviewed part of the landlord health and safety audit carried out by ACS Physical Risk Control Ltd in 2018. 10.2 The outcome of the audit required actions to address procedural shortcomings. These were as follows:  written plans prepared for any asbestos found in our properties;  ensure that UKAS accredited organisations are used to carry out asbestos surveys;  put in place an asbestos management plan; and  asbestos register to include the condition of the asbestos containing materials, the material quantity found, the risk and reference to the sample number or survey report. 10.3 All actions required from the audit have been completed.

Peter O’Donnell 27-Jan-20 APPENDIX 1

Asbestos Policy

Effective Date:  12 February 2020 Review Date:  February 2023 Approved by HHP Board: 12 February 2020 TABLE OF CONTENTS INTERPRETATIONS & ABBREVIATIONS

INTRODUCTION ...... 2 AIMS ...... 2 LEGISLATION...... 2 THE CONTROL OF ASBESTOS REGULATIONS 2012 ...... 4 THE DUTY TO MANAGE ASBESTOS ...... 4 ASBESTOS POLICY STATEMENT ...... 5 ROLES & RESPONSIBILITIES ...... 6 DUTIES ...... 6 MONITORING OF ASBESTOS POLICY ...... 7 POLICY CHANGE HISTORY ...... 8 INTERPRETATIONS & ABBREVIATIONS ...... 9

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ASBESTOS POLICY

INTRODUCTION

1.1 Products containing asbestos have been used for many years in a whole range of applications and locations including industrial, commercial and domestic premises. It has typically been used for lagging pipe work, tanks and boilers, or as a component of structural finishes, such as in walls and ceilings. In many cases, the presence of asbestos is not known until it is exposed through wear, through structural damage or during development work. Whilst the use of all forms of asbestos has now been banned in the UK (with some minor exceptions), a great deal of asbestos is still in situ from previous installations. 1.2 Persons now considered to be most at risk from asbestos are trades persons involved in building renovation and maintenance work, particularly amongst plumbers, gas fitters, carpenters and electricians. 1.3 There are three main types of asbestos that may be encountered namely, Crocidolite (blue), Amosite (brown) and Chrysotile (white). Asbestos fibres enter the body by inhalation, which can give rise to asbestosis (a scarring of the lung tissue caused by asbestos), two kinds of cancer (mesothelioma and asbestos related lung cancer), and diffuse pleural thickening (a non-malignant disease affecting the lung lining). Currently, approximately 4,000 people are dying from mesothelioma, asbestosis and asbestos-related cancers per year. This is mainly attributed to exposure some time ago, as asbestos related diseases manifest themselves over an incubation period of anything from 20 to 30 years. 1.4 In many cases, asbestos in situ is of little risk and should only be treated or removed if its condition deteriorates or remedial / renovation works are required. The key to successful management of asbestos is to identify locations and forms of asbestos, monitor its condition and take the appropriate remedial action as and when required.

.AIMS 2.1 The aim of this policy is to demonstrate our commitment to ensuring our employees including contractors, tenants and the public, are not knowingly exposed to any risks that would affect their safety. The documents covered by this Policy will provide guidance and specific instructions for all our employees and external contractors, whilst undertaking asbestos work. This is with the aim of satisfying the legal duties of the Control of Asbestos Regulations 2012 and the Health and Safety at Work Act 1974.

LEGISLATION

3.1 Under the Health and Safety at Work Act 1974, employers have duties to ensure, as far as is reasonably practicable, the health, safety and welfare of employees and the health and safety of others that maybe affected by the employers undertaking. 3.2 The Control of Asbestos Regulations (CAR) 2006 came into force on 13 November 2006. These Regulations bring together the three previous sets of three Regulations covering the prohibition of asbestos, the control of asbestos at work and asbestos licensing. The Regulations prohibit the importation, supply

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and use of all forms of asbestos. They continue the ban introduced for blue and brown asbestos in 1985 and for white asbestos in 1999. They also continue to ban the second-hand use of asbestos products such as asbestos cement sheets and asbestos boards and tiles; including panels, which have been covered with paint or textured plaster-containing asbestos. The ban applies to new use of asbestos. If existing asbestos containing materials are in good condition, they may be left in place; their condition monitored and managed to ensure they are not disturbed. 3.3 CAR requires employers to prevent exposure of their employees to asbestos or where this is not practicable to reduce the exposure to the lowest possible level. CAR also includes a regulation placing a duty on those who have repair and maintenance responsibilities for premises because of a contract or tenancy, to manage risks from asbestos in those premises. There is also a duty of co- operation between all parties. 3.4 It should be noted that CAR arises from the parent-enabling act, The Health and Safety at Work Act 1974 and is thus confined to non-domestic premises, i.e. workplaces. Therefore, CAR does not directly apply to a domestic premise, but does apply to any work activity that takes place there, e.g. plumbing, electrics etc. However, it has been legally established that common parts of a block of flats are not part of a private dwelling and are considered as non- domestic. Thus, Regulation 4 of CAR does apply to the common and external parts of flats. 3.5 Under CAR, we do not have a duty to manage the asbestos within the private part of a dwelling. However, whilst they are excluded from CAR, domestic premises (and in fact all premises) are subject to The Occupiers Liability Act 1984. These require property owners and occupiers to be aware of potential significant hazards to health and safety. All persons including visitors, contractors (and trespassers) must be provided with reasonable care not to suffer injury or harm on these premises. Therefore, whilst under Regulation 4, a written plan is not required for the private dwelling, the location and condition of any asbestos does need to be known and expressed to all people to ensure due consideration is given to deciding what, if any, protective measures are required. 3.6 Therefore, CAR does not specifically cover domestic premises, but there is a legal requirement to manage the health and safety risks associated with asbestos. 3.7 The Asbestos Regulations also include the ‘duty to manage asbestos’ in non- domestic premises. Guidance on the duty to manage asbestos can be found in the 'Approved Code of Practice The Management of Asbestos in Non- Domestic Premises', L127, ISBN 0 7176 6209 8. 3.8 These duties are extended more specifically with regards to asbestos by the following legislation:  The Construction (Design and Management) Regulations 2015- CDM regulations have been updated but do not affect the way any asbestos works is carried out. The regulations place more explicit requirements on Principle Designer and Client to ensure that exposure to asbestos is managed throughout a construction project. Where construction work is likely to disturb this asbestos, the Principal Designer— in projects

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involving more than one contractor — must be given any asbestos survey and other relevant information from the Client. This will form part of the pre-construction information. The client is required to ensure that before the construction phase begins, a construction phase plan is in place, and where licensed asbestos work is required, the licensed asbestos contractor is required to complete a written plan of work. Where asbestos is to remain in the building after the completion of the construction or refurbishment work, this information must be kept in the health and safety file.  The Special Waste Amendment (Scotland) Regulations 2004. Domestic asbestos waste is ‘special waste’. The requirements of the Special Waste Regulations 1996, as amended, apply to this ‘special waste’, except where the original producer is also the person who resides at the domestic premises where the waste arises or where the waste producer is acting on behalf of the resident without reward. This means that a contractor who undertakes work for a householder that generates asbestos waste, must comply with the requirements of these Regulations.  Any asbestos product or material that is ready for disposal is defined as asbestos waste. Asbestos waste also includes contaminated building materials, tools that cannot be decontaminated, personal protective equipment and damp rags used for cleaning. If in doubt, always treat waste as ‘Hazardous’ or ‘Special’. Asbestos waste is considered hazardous when it contains more than 0.1% asbestos.  Management of Health and Safety at Work Regulations 1999. Risk assessments are a legal requirement under section 3 of the Management of Health & Safety at Work Regulations 1999.  There is also a need for a special risk assessment for young persons (employees or work-experience students under 18) and new and expectant mothers, taking account of their individual needs.

THE CONTROL OF ASBESTOS REGULATIONS 2012

4.1 The Control of Asbestos Regulations 2012 came into force on 6 April 2012, updating previous asbestos regulations to take account of the European Commission's view that the UK had not fully implemented the EU Directive on exposure to asbestos (Directive 2009/148/EC). 4.2 The policy is consistent with these regulations and takes account of the various provisions.

THE DUTY TO MANAGE ASBESTOS

5.1 Duty holders include those responsible for the maintenance and/or repair of non-domestic premises. This includes premises, whether they are occupied or vacant. The aim is to protect workers who may come across asbestos in the course of their day-to-day activities, since the major problem facing these workers is that they often do not know where and when the material may be encountered.

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5.2 The duty holder must:  conduct a survey of the premises;  take reasonable steps to locate materials containing or presumed to contain asbestos. complete a risk assessment to discover the likelihood of the release of dangerous fibres;  make a plan to manage the above risk, including if necessary sealing or encapsulating the asbestos-containing material or, as a last resort, removing the asbestos;  keep in a well-maintained asbestos register a written record of the location and condition of the asbestos in the building; and  put procedures in place to ensure that our own employees or third party contractors have full knowledge of where asbestos may be present to prevent accidental exposure. 5.3 The Health and Safety Executive (HSE) Approved Code of Practice (ACOP) L143: Managing and Working with Asbestos explains the duties of building owners, tenants and any other parties who have any legal responsibility for the work premises. It also sets out what is required of people who have a duty to co-operate with the main duty holder. 5.4 The Practical Stages of the Duty to Manage. In order to assess and manage the risk of asbestos, the duty holder must:  survey the work environment  assess the risk  manage the risk 5.5 There is detailed guidance from the HSE on surveying, sampling and assessment of asbestos. It is important to select a competent surveyor. A full list of companies accredited by the United Kingdom Accreditation Service (UKAS) can be obtained via their website. 5.6 Once the asbestos-containing materials (or materials presumed to contain asbestos) have been located, the ability of these materials to release asbestos fibres must be assessed, and a written plan prepared to manage the risk. This should ensure that details of the location and condition of any asbestos are provided to every person likely to disturb it. It should be made available, if required, to the emergency services. The plan should include a procedure for monitoring and recording any condition changes. The frequency of the checks to determine condition changes will depend on the type of material present.

.ASBESTOS POLICY STATEMENT

6.1 We acknowledge and accept our responsibilities under the Health and Safety at Work etc. Act 1974 and the Control of Asbestos Regulations 2006 and 2012 and other related legislation appertaining to asbestos. The organisation acknowledges the health hazards arising from exposure to asbestos and will protect employees and other persons potentially exposed as far as is reasonably practicable. This will be achieved by minimising exposure through the management of asbestos-containing materials in the workplace premises.

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6.2 We are committed to ensuring that all asbestos and asbestos products present within all buildings and dwellings managed by us are properly controlled so that they will not present a risk to staff, tenants, contractors or any other persons. Everyone who needs to know about the presence of asbestos will be alerted. No one will be allowed to start work that could disturb asbestos unless the correct procedures are to be employed. In pursuing this objective all relevant Health & Safety Guidance as set out in document HSG227 “A comprehensive guide to managing asbestos in premises" shall be followed. This policy requires the full co-operation of management and staff at all levels. Specific arrangements for compliance with this procedure are detailed in this Policy. The person responsible for the implementation of this policy is the Chief Executive.

ROLES & RESPONSIBILITIES

7.1 Properties managed by us fall into two categories, Housing (our housing stock), and non-Housing (offices, caravans, chalets, garages, laundry blocks, Cearns Shop, and other ad-hoc premises). 7.2 The Director of Operations is responsible overall for managing all properties except our offices. There is no asbestos within these offices. 7.3 We recognise that in order to discharge our duties effectively under this policy an individual officer must be charged with the responsibility for asbestos. The Investment Manager is therefore designated as our Asbestos Manager.

DUTIES

8.1 As an employer, we are required to:  prevent the exposure of employees to asbestos;  find out whether their building contains asbestos, what condition it is in and assess the risk, e.g. if it is likely to release fibres, employers must make a plan to manage the risk and protect employees and other persons from exposure to asbestos — if the employer is not responsible for maintaining and repairing all or part of the property, or does not have control of the building, the person who has these responsibilities must carry out the above actions;  ensure, so far as is reasonably practicable, the health and safety at work of all employees;  be licensed by the Health and Safety Executive if involved in any work with asbestos, with the exception of work in which the exposure is sporadic or of low intensity;  ensure that asbestos waste is transported in sealed, labelled containers with consignment notes, and disposed of at licensed sites; and  make no use of any product that contains asbestos. 8.2 Specific responsibilities are as follows: Asbestos Manager:  Responsible for ensuring compliance with the Asbestos Policy and regulations relating to all aspects of the management of asbestos. This includes the drafting and revision of asbestos policies.

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All Operations staff  Ensure familiarity with location and nature of asbestos located in all premises in accordance with the asbestos register;  Be aware that the asbestos register lists known asbestos only (there may be more that has not yet been detected);  If it is believed that the condition of asbestos has deteriorated significantly between asbestos reviews or the presence of previously unidentified asbestos is suspected, arrange for a reassessment or survey to be undertaken by competent persons;  Ensure that no works (including plumbing and electrical) are undertaken that may disturb any asbestos present. If you are not sure if asbestos is present or not, specialist advice must be sought;  Not to interfere with control measures that have been implemented to safeguard employees and others from exposure to asbestos;  Co-operate with your employer’s asbestos safety arrangements;  Take reasonable care of yourself and others while working on asbestos related activities;  Follow all the procedures set out in your employer’s assessment and plan of work;  Comply with the use of control measures; and  Report any problems with safety arrangements in connection with asbestos to your employer.

MONITORING OF ASBESTOS POLICY

9.1 The Corporate Asbestos Policy to be reviewed every 3 years. 9.2 The policy will be amended following any change in legislation impacting upon it or following any significant change in arrangements. 9.3 Sample surveys will be reviewed and audited by the representative of the Director of Operations on a regular basis to ensure full compliance with the policy HANGE HISTOR

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POLICY CHANGE HISTORY

Version Change Applied Date By Policy updated to take into 1.3 qccount Control of Asbestos at January 2014 Peter O’Donnell Work Regulations 2012. General review of policy. 1.4 3.8 Updated to reflect CDM 2015 January 2017 Peter O’Donnell

1.5 January 2020 Peter O’Donnell General review of policy

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INTERPRETATIONS & ABBREVIATIONS

The following interpretation and abbreviations are used in this policy:

Word Interpretation HHP or Partnership Hebridean Housing Partnership Board Means the Board of the Hebridean Housing Partnership Board Members All Members of the Board including co-opted Members ACM’s Asbestos Containing Materials Hebridean Housing Partnership Director of Operations Duty Holders and technical staff within Operations team CAR The Control of Asbestos Regulations

All references to the masculine gender in this policy shall read as equally applicable to the feminine gender

ITEM NO 8.2

Making our house your home QUARTERLY TREASURY REPORT TO 31 DECEMBER 2019 Board 12 February 2020

Report by Director of Finance & Corporate Services

Purpose of Report

1.1 To inform the Board of the Treasury Management activities of the third quarter of 2019/20. Summary

2.1 The quarterly Analysis of Investment and Borrowing report required by the Treasury Management Policy is at Appendix 1. 2.2 The current forecast shows financial covenants will be met for 2019/20. 2.3 The Annual Financing Strategy (AFS) forecast that £5M would be drawn down from our approved borrowing facility in 2019/20. This will not be required until 2020/21 due to the slippage on development. Competence

3.1 Financial, legal and other constraints arising from the recommendation to this report being implemented are detailed at 5.1 – 8.1. Recommendations

4.1 It is recommended that the Board note: a) the quarterly report on the Analysis of Investment and Borrowing as shown at Appendix 1; b) the outstanding loans at 31 December 2019 of £4.91 million; and c) the cash balance at 31 December 2019 of £5.796 million.

APPENDIX 1 Analysis of Investment and Borrowings APPENDIX 2 Quarterly Income and Expenditure Profile Background Papers None Writer of Report Donald Macleod Tel: 0300 123 0773

Donald Macleod 16-Jan-20 Competence

Financial 5.1 This report deals entirely with the cash resources utilised over the third quarter of 2019/20. Legal 6.1 Rule 19.1 to 20.1 details the Partnership’s borrowing powers. 6.2 The effecting of borrowing and lending money is in accordance with the Partnership’s borrowing and lending policies and CIPFA’s “Treasury Management in Housing Partnerships: A Code of Practice” and has been delegated to the Director of Finance & Corporate Services. 6.3. The Treasury Management Policy requires that as a minimum a quarterly report is provided to the Board in the form “Analysis of Investment and Borrowing”. 6.4 The Treasury Management Policy requires that if the cash balances exceed £4 million the funds should be spread over no fewer than four interest bearing accounts. The cash balances are in a special interest account with Royal Bank of Scotland (RBOS). The remainder is held in the current accounts with the RBOS. Regulatory Guidance 7.1 The Regulatory Standards checklist has been completed and there is nothing in the report which would result in a breach of the standards.

Risk 8.1 There are a number of risks highlighted in the Risk Register in relation to Treasury Management. The risk scored as “high” is the impact of increases in the interest rate and inflation rate and this has been addressed in Appendix 1.

Report Details

9.1 There were no borrowings during the third quarter, which is in line with the Annual Financing Strategy for 2019/20. 9.2 The third quarter of the year saw £6.107 million expenditure of which £3.601 million related to new build. 9.3 The income for the third quarter was £5.858 million and comprised Rental Income (39%), Government Grants including new build (57%) and Other income (4%). 9.4 Appendix 2 summarises the income and expenditure profiles for the third quarter. 9.5 The cash balances at 31 December 2019 decreased quarter on quarter by £1.936M to £5.796M. This was driven by the timing of investment and development spend. 9.6 We currently hold RTB receipts of £0.385M which is due to be repaid to the Scottish Government in December 2020. £500K was paid to the Scottish Government in December 2019. 9.7 It is expected that all covenants will be complied with for 2019/20.

Donald Macleod 16-Jan-20 APPENDIX 1 31DEC19 ANALYSIS OF INVESTMENTS AND BORROWINGS

INVESTMENTS

Mar-19 Jun-19 Sep-19 Dec-19 Average DEPOSIT ACCOUNTS £000's £000's £000's £000's £000's Royal Bank 3,375 3,379 2,778 956 2,622 CWS 0 0 0 0 0 BOS 725 749 760 760 749 Santander 1,567 1,572 1,574 1,576 1,572 Total Deposit 5,667 5,701 5,112 3,292 4,943

CURRENT ACCOUNTS General Account 252 392 965 1,991 900 Standing Order 134 270 410 102 229 Direct Debit 126 371 638 277 353 Office/Cash 169 599 573 100 360 Property Factoring 31 31 33 34 32 Total current 712 1,663 2,620 2,504 1,875

Total 6,379 7,364 7,732 5,796 6,818

Balances shown are taken from the Bank Statements and not the ledger.

The cash held at the Royal Bank is split between 5 operational accounts totalling £2.504m and 5 special deposit accounts totalling £3.292m. The large balance on the general account is due to the return of deposit account funds which have been transferred to the other accounts in January.

BORROWINGS

Core Funding Facility £m

Estimated debt outstanding (per Business Plan) 9.95 Actual amount outstanding 4.91

Difference 5.04

Compliance with Cash Flow Forecasts The Annual Financing Strategy for 2019/20 forecast a requirement to borrow £5m during the latter half of the year as development works on site progress and grant drawdown from Scottish Government is utilised. Due to slippage in the programming of development works, it is anticipated this money will now be drawn down in early 2020/21.

1 31DEC19 ANALYSIS OF INVESTMENTS AND BORROWINGS

Interest Rates The Interest Rate that applies to the Partnership is LIBOR plus an agreed margin. LIBOR (London Inter Bank Offer Rate) is the interest rate banks borrow funds from each other in the London Interbank Market.

The Base Rate remained at 0.75% in the 3rd quarter. 3 month LIBOR increased to 0.79% as at 31 December 2019.

Borrowings Mar-19 Jun-19 Sep-19 Dec-19 Average £000's £000's £000's £000's £000's Facilities arranged 15,000 15,000 15,000 15,000 15,000

Loans outstanding 4,909 4,909 4,909 4,909 4,909

Variable/Fixed analysis-amounts Variable amount 1,409 1,409 1,409 1,409 1,409 Fixed amount 3,500 3,500 3,500 3,500 3,500 Other Hedging - - - - - 4,909 4,909 4,909 4,909 4,909 Variable/Fixed analysis-Percentages Variable 28.70% 28.70% 28.70% 28.70% 28.70% Fixed 71.30% 71.30% 71.30% 71.30% 71.30% Other Hedging Products 100% 100% 100% 100% 100% Lenders amounts Core Facility (RBS) 4,909 4,909 4,909 4,909 4,909 Other Borrowings - - - - - 4,909 4,909 4,909 4,909 4,909

Average cost of borrowing

Amount £000's Interest Type Annual Cost 3,500.00 5.55% Fixed 194,300 1,408.67 7.29% Variable 102,700 4,908.67 297,000

Average cost of funds 6.05%

Anticipated level of borrowing over next 5 years AFS Year 2019/20 Est Forecast Variance £m £m £m 2019/20 4.946 9.946 (5.000) 2020/21 14.842 14.842 - 2021/22 14.842 14.842 - 2022/23 14.842 14.842 - 2023/24 14.842 14.842 -

31DEC19 ANALYSIS OF INVESTMENTS AND BORROWINGS

Cash Balances 12,000,000.00

10,000,000.00

8,000,000.00

6,000,000.00 Total Funds Current Deposit 4,000,000.00 Non RBS

2,000,000.00

02 July 2019 02 July 2017 02 July 2018

02 2017 May 02 2018 May 02 2019 May

02 March 2018 02 March 2017 02 March 2019

02 January 2017 02 January 2019 02 January 2018

02 November 2017 02 November 2018 02 November 2019

02 September 2018 02 September 2019 02 September 2017

Interest Rates

7.00%

6.00%

5.00%

4.00%

3.00%

2.00%

1.00%

0.00%

3 month LIBOR Per Business Plan Base Rate

APPENDIX 2 31DEC19 ANALYSIS OF INCOME AND EXPENDITURE PROFILES

EXPENDITURE Expenditure 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 - Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4 2019/20 FORECAST 2019/20 ACTUAL

New Build Expenditure net of New build

Overall the expenditure for the third quarter of 2019/20 is down compared with the initial budget. This is mainly driven by a delay in getting onto site & slippage in development works programmes (£3M). Investment spend is also down compared to budget but it is anticipated this will catch up in Q4. Budgets have been re-phased to take into account slippage to date and this is reflected in the December management accounts.

Financial covenants are forecast to be met for the full year.

INCOME

7,000,000

6,000,000

5,000,000

4,000,000

3,000,000

2,000,000

1,000,000

- Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4 2019/20 FORECAST 2019/20 ACTUAL

Total Income HAG Income net of HAG

Total Income for the third quarter of 2019/20 is down slightly compared to the initial budget. This is mainly driven by a delay in the sale of the Shared Equity units at Mackenzie Avenue which are due to handover in January.

1 ITEM NO 8.3

Making our house your home

DEVELOPMENT PROGRAMME UPDATE Board 12 February 2020

Report by Chief Executive

Purpose of Report

1.1 To advise the Board of progress with the Development Programme 2018-2021. Summary

2.1 A summary of our current position with regards to our 5 year Development Plan and Scottish Government Grant is shown below.

Current / Planned 2018-21 (2018-date) (5 year development plan**) Units approved 299* 294 Units on Site 187 294 Units Complete (2018-21) 66 270 * Approved to go to tender by Board/SHIP/awaiting site start ** As approved by Board in March 2019.

Scottish Government Grant

2018/19 (£M) 2019/20 (£M) 2020/21 (£M) TOTAL (£M)

RPA £8.05 £9.15 £9.71 £26.91

Developments on Site £9.05 £9.05

Expected on Site £9.15 £9.15 2019/20

Actual Grant £4.70 £9.15 £13.85

Total Estimated Grant £4.70 £9.15 £13.50 £27.35

Grant to be utilised -£0.44

2.2 The Grant figures are subject to final agreement between HHP, the Comhairle and Scottish Government. 2.3 There are currently 9 developments on site due for completion during 2019/20. The housing contractor for Goathill went on site in January 2020. Appendix 1 provides an overall financial summary of development budgets to December 2019 and Appendix 2 provides a programme summary for 2019/20. 2.4 Appendix 3 provides an overview of the 2018-2021 programme.

Katrina Rowlands 7-Jan-2020 2.5 Agreement in principle has been reached with 2 developers to build 6 units at South Dell, 8 units in Barvas and 4 in Shawbost, Isle of Lewis. Planning applications for these sites were submitted in November and December 2019. 2.6 Garrabost Care Unit, An Glib is on the Strategic Housing Investment Plan (SHIP) for 2020/21. Cost savings are currently being sought from the contractor. 2.7 Balivanich Low Flyer site was retendered in December 2019 with a return date of Monday 10 February 2020. 2.8 The Former Police Station Tarbert has been retendered in January 2020 with a return date planned for 26 February 2020. 2.9 Demand for New Supply Shared Equity (NSSE) properties has been low. Pairc Niseaboist properties have not yet been sold. A summary report on NSSE is at Appendix 5. Competence

3.1 The financial, legal and other constraints are detailed at paragraph 5.1 - 8.3. Recommendations

4.1 It is recommended that the Board note the: a) developments detailed update at Appendix 1; b) development progress report at Appendix 2; c) overview of developments at Appendix 3; d) feasibilities update at Appendix 4; and e) New Supply Shared Equity update at Appendix 5.

APPENDIX 1: Developments Detailed Update APPENDIX 2: Summarised Development Progress Report APPENDIX 3: Development Overview APPENDIX 4: Feasibility Studies Update APPENDIX 5: New Supply Shared Equity Update APPENDIX 6: New build progress photographs Writer of Report: Katrina Rowlands Tel: 0300 123 0773

Katrina Rowlands 7-Jan-2020 Competence

Financial 5.1 The agreed budget for Scottish Government Grant in 2019/20 is £9.15M. There is £9.05M committed with developments already on site, including £5.5M for Goathill in 2019/20. 5.2 The over commitment compared with the RPA is fully supported by the Scottish Government and provides for any potential slippage that may occur in the development. Legal 6.1 The Asset Management Working Group has delegated authority until 31 March 2021, to approve private finance up to 40% of the cost, subject to approval from the Director of Finance & Corporate Services and funding being available through savings. Regulatory Guidance 7.1 The Regulatory Standards checklist has been completed and there is nothing in the report which would result in a breach of the standards. Risk 8.1 Development is inherently risky. Feasibility work to ascertain the suitability and capacity of potential sites for development helps to reduce risk. Feasibility studies are jointly funded by HHP and the Comhairle and are primarily undertaken by Tighean Innse Gall (TIG). TIG was appointed following a procurement exercise. Additional resource has been put in place through desktop feasibilities being carried out by the Comhairle Asset Management Team. 8.2 Risk related to particular development is assessed as part of the feasibility study. 8.3 One of the most significant risks at present is the short timescale to acquire sites and to achieve site starts to maximize use of the resources made available to the Comhairle and the Outer Hebrides. There continues to be a risk that the full £26.9M grant is not taken up.

Katrina Rowlands 7-Jan-2020 Report Details

Feasibility Studies 9.1 Work is ongoing with the Comhairle and suitable sites have been prioritised to carry out further feasibility studies on. The lead in communicating with landowners is with CnES. 9.2 A full feasibility study is currently being carried out by TIG on land in Claddach Illeray, North Uist. A number of desktop studies are also being carried out by CnES. 9.3 Details of recent feasibility studies are at Appendix 4. Scott Road, Tarbert 9.4 The feasibility study at Scott Road Grazings, Tarbert is now complete. The cost per unit is £190k. The recommendation of TIG is that the site can be developed at this high cost if it is of strategic importance. Site Acquisitions 10.1 The full planning application for Blackwater was submitted in December 2019. We will be unable to access the Scottish Government Grant for this site until it is purchased which requires the land resumption to be finalised. This is being progressed by the Stornoway Trust. 10.2 At the November 2019 meeting the Board approved the purchase of the land in Barra subject to the conclusion of the feasibility study. The feasibility has been concluded and it recommends that due to the scarcity of land in Barra that this site is progressed. Steps are now being taken to purchase the land. Developer Led Proposals 11.1 An agreement has been reached with a developer for 6 units at South Dell, Isle of Lewis. A planning application was submitted by the contractor in November 2019. 11.2 Two further developer led sites have been agreed with 4 units in Shawbost and 8 units in Barvas. Planning for Shawbost was submitted in November 2019 and Barvas, Isle of Lewis in December 2019. 11.3 A site in Lochmaddy, North Uist remains under discussion with the developer and revised costings have been prepared. Site Starts 2019/20 12.1 Lady Matheson Court, Stornoway is now officially on site following the signing of the contract and the transfer of the building to us in November 2019. Work is progressing well on site and handover is due in September 2020. 12.2 Winfield Close and Torlum both went on site in December 2019 with completion due in May and June 2020. 12.3 A detailed update on site progress during 2019/20 can be found at Appendix 2. Tarbert Police Station 12.4 The contract has now been terminated and has been retendered in January 2020 with return due of 26 February 2020. New Supply Shared Equity 13.1 Demand for the New Supply Shared Equity properties in rural areas is extremely low. Properties at Pairc Niseaboist, Horgabost, Isle of Harris are complete and to date only 2 buyers are identified. Breasclete is due for completion in April 2020 with one buyer identified so far. 13.2 A summary of the current position and interest in Shared Equity can be found at Appendix 5.

Katrina Rowlands 7-Jan-2020 Development Programme PROGRESS TO DECEMBER 2019 APPENDIX 1

OVERALL SUMMARY OF DEVELOPMENT COST GRANTS & SALES PROCEEDS PRIVATE FINANCE Revised 31st Dec Change to Forecast Revised 31st Dec Change to Forecast Revised 31st Dec Change to Forecast Amend to Budget 2019 Budget Out-turn Budget 2019 Budget Out-turn Budget 2019 Budget Out-turn Private Finance AREA £ £ £ £ £ £ £ £ £ £ £ £ £ New Build 11,689,990 5,115,106 (1,545,275) 10,144,715 (8,366,545) (4,184,948) 473,482 (7,893,063) 3,323,445 930,158 (1,071,793) 2,251,652 (1,071,793) Retentions 66,346 - - 66,346 - - - - 66,346 - - 66,346 - Shared Equity 2,673,862 1,790,016 (252,461) 2,421,401 (3,061,873) (1,076,872) 14,077 (3,047,796) (388,011) 713,145 (238,384) (626,395) (238,384) Land banking 100,000 25,505 - 100,000 (100,000) - - (100,000) - 25,505 - - - TOTAL 14,530,198 6,930,627 (1,797,736) 12,732,462 (11,528,418) (5,261,820) 487,559 (11,040,859) 3,001,780 1,668,807 (1,310,177) 1,691,603 (1,310,177)

PROGRESS PROGRAMMES WITH TIME DELAYS Projects on site progressing well. - Tarbert Police Station - following termination of previous contract, it has been retendered with return due 26 Feb 2020 - Horgabost Phase 2 completed. 2 properties under offer. 2 to be sold - Mackenzie Avenue: Work continues on site with the final 2 properties due in April 2020. - 3 Rural Lewis sites (An Glib, Cnoc A Runaire & Edgemore sq) are on site. - Balivanich - contract terminated. Re-tendered to be returned 10th February 2020. An Glib and Edgemore due for completion mid February 2020. Cnoc A Runaire due May 2020. - Torlum & Winfield close delayed handover till next financial year due to additional unit at Garrynamonie. The SG - 3 Rural Uist sites (Garrynamonie, Torlum & Winfield close) are on site. SG grant will be Grant will be fully drawn down this financial year. fully drawn down this financial year. - Goathill planning approved December 2018 and enabling works are now on site. Scheduling has been impacted - Additional unit at Garrynamonie is also on site. by adverse weather conditions. Housing contractor (74 houses)on site in January 2020. - Breasclete is on site. Completion delayed slightly to April 2020. Shared equity sites advertised.

PROGRAMMES WITH PROJECTED BUDGET OVERRUNS PROPOSALS FOR BRINGING PROGRAMME WITHIN BUDGET - Mackenzie Avenue: projected overspend of approximately £56K and additional - South Dell will not be progressing this year. Will progress in 2020/21. Due to additional funding made available legal costs anticipated with respect to titles corrections, an additional £100K has been from the Council, Scotland street will be progressing in its place. An additional 6B7P unit at Garryanamonie made available for this project. will also be progressing to bring programme in line with SHIP. - An additional developer led site at Shawbost will be starting this financial year following Asset Management Working Group approval in October 2019. Planning application in and land purchase has been initiated.

BRD-12FEB20-9.3 Development Update Appendix 1 27/01/2020 New Build Updates APPENDIX 2

Progress on Site - January 2020

Development Name Progress Expected Handover Mackenzie Avenue There are 11 rented and 12 NSSE properties due for handover. The majority of these April 2020 are expected in January 2020 with the remaining 2 rented due in April 2020. Breasclete, Isle of Lewis The properties were due for completion in March but are currently delayed until April April 2020 2020. This is partly due to the weather. An Glib, Point, Isle of Lewis Work on site is being hampered by the weather. There is also a sewer problem which February 2020 is preventing a water connection. Contractor hoping to resolve quickly and handover due in February 2020. Edgemoor Square, Ness, Isle of AMC started on site on 6 August 2019. Work is progressing a few weeks behind January 2020 Lewis programme. Cnoc a Runnaire, Tolsta, Isle of AMC started on site on 6 August 2019. Work is progressing a few weeks behind March 2020 Lewis programme. Goathill Housing contractor is now on site. March 2021 Garrynamonie Calmax on site 12 August 2019. Work progressing to programme. April 2020 Torlum Contractor on site 16 December 2019. June 2020 Winfield Close Contractor on site 2 December 2019. May 2020 Scotland Street Work going well on site. September 2020

New Build Updates Expected Site Starts 19/20 – Summary

Development(s) Number of Units Status Grant 19/20 Rural Uist 7 On site 12 August 2019 £735,000 Garrynamonie additional 1 On site £162,500 Rural Lewis 8 On Site 6 August 2019 £840,000 Breasclete 10 On site 15 April 2019 £878,000 Tarbert Police 8 On site 29 April 2019. Re-tender due to be issued. £109,000 Low Flyer 10 Re-tender issued Horgabost 4 Complete £261,000 Goathill Housing 74 On site £2,504,780 Housing with Extra Care 50 Enabling works on site £2,950,000 Scotland Street 6 On site. £617,350 Total Units 171 Total Grant in 2019/20 £9,057,630 Blackwater Full planning application submitted £360,000 Rural Site Purchases Sites being identified £100,000 Offer submitted and accepted in principle for Howmore Total Grant in 2019/20 £9,517,630

Developments Awaiting Site Start - Detailed

Development Number of Progress Contractor Name Units Low Flyer, 4 x 1 bed Will no longer be a 19/20 site start. Currently out to tender with a return due date of 10 Balivanich 2 x 2 bed February 2020. 4 x 3 bed Development Overview - January 2020 APPENDIX 3

2018 2019 2020 2021 Development Units* Split Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Code Mackenzie Avenue 50 Urban Feasibility Sealladh a' Chliseim - complete 10 Rural Tendering Back Care Unit - complete 3 Urban Tender Award Tom Na Ba - complete 4 Rural On site Langley Apartments - complete 12 Urban Completion Tarbert Police Station 8 Rural X Partial Completion Corran Cismaol - complete 6 Rural Planning Horgabost 4 Rural Masterplan Balivanich Low Flyer 10 Rural Stonefield, Breasclete 10 Rural Garrynamonie 5 Rural Torlum 2 Rural Winfield Close 1 Rural Blackwater 80 Urban An Glib 2 Urban Cnoc A'Runaire, Tolsta 4 Rural Edgemoor Square, Ness 2 Rural Howmore 12 Rural Scott Road, Tarbert 19 Rural Melbost West 60 Urban Goathill Farm 124 Urban Scotland Street 6 Urban South Dell 6 Rural Barvas 8 Rural Shawbost 4 Rural Feasibilities APPENDIX 4

Time Taken Current to Complete Demand Number of Area Site/Scheme Feasibility Feasibility Status Feasibility Recommendations Site Ownership Comments Communication with Proposer Committed/ Current Status Feasibility 1 / 2 / 3 / 4 bed Potential Units Preferred Number (Days)

LEWIS 2/5/19 - figures being reviewed. Potential Additional Funding 1 Lewis Scotland Street N/A TBC Complete availablility of funding assistance from 146 / 84 / 47 / 16 Required Comhairle.

Subject to HHP financial appraisal, the HHP / CnES Application for 2 Lewis An Glib TIG 34 Complete site is suitable for development and transferring small 2 2 Planning Submitted offers good value for money. strip for access Need access strip from CNES

Subject to HHP financial appraisal, the 2 x 3 bed units. Application for 3 Lewis Cnoc A'Runaire, Tolsta TIG 31 Complete site is suitable for development and HHP Possible issue with the shape of land. Would we 6 2 Planning Submitted offers good value for money. need to purchase small additional area? Space for additional 2 unit expansion. Small but well positioned site in relation Application for 4 Lewis Edgemoor Square, Ness UOG 103 Complete to services. No major barriers to HHP 2 2 Planning Submitted development HHP owned, room for additional units

Subject to HHP financial appraisal, the Crofting Tenure - Planning 5 Lewis Blackwater TIG 50 Complete site is suitable for development and Stornoway Trust/ J 146 / 84 / 47 / 16 84 40 Application Full planning application submitted. Land offers good value for money. Maclennan Submitted resumption in progress. Subject to financial appraisal - suitable 6 Lewis Melbost Farm West TIG 105 Complete for development. Additional Stornoway Trust 146 / 84 / 47 / 16 170 At Masterplan Stage recommendations Site acquired.

Comhairle Asset 7 Lewis Breaclete Glebe, Bernera Management Team Tech Services Desktop - Feasibility

Comhairle Asset 8 Lewis Caversta, South Lochs Management Team Tech Services Common Grazings Desktop - Feasibility

Comhairle Asset Field West of Holm Road 9 Lewis Management Junction Team Tech Services Common Grazings Field west of Holm Road junction Desktop - Feasibility

Comhairle Asset 10 Lewis Loch an Duin, Aird, Point Management Team Tech Services Upper Aird Grazings Possible 2 units Desktop - Feasibility

11 Lewis 23 South Galson Private Proposed

Comhairle Asset 12 Lewis Crowlista, Uig Management 8 / 3 / 2 / 0 Tech Services - Desktop - Feasibility Team Complete 1

Comhairle Asset Tech Services - 13 Lewis Keose Glebe Management Keose Glebe Estate 5 / 1 / 1 / 0 Complete Proposed by Keose Glebe Estate Desktop - Feasibility Team Next to original Keose Glebe HHP scheme 1

Comhairle Asset Tech Services - 14 Lewis 20 Outend, Lemreway Management Complete Team Kenneth Mackay Comhairle Ack February 2019 Desktop - feasibility 1

Based on the findings of this study and subject to HHP’s financial appraisal the site is suitable for development on the 15 Lewis 4 School Park, Knock TIG 96 Complete basis of developing four units on site. If Private Feasibility Complete this size of development cannot achieve planning permission the site 0.2 hectares. Site about to go on open market. would be considered less favourable. Contact from owners solicitors. Services are nearby Large & well positioned site. Development costs reflect challenges Proposed by Barvas Estate Trust. Developer 16 Lewis Arnol – edge of settlement UOG 105 Complete around ground conditions and Barvas Estate Trust 4 / 3 / 1 / 0 22 8 Feasibility Complete proposal awaited. connections to existing electrical services. Reasonable prospect for new housing 17 Lewis Graham Park, Dell UOG 104 Complete but moderate investment in utility HHP 7 2 Feasibility Complete infrastructure is needed HHP owned, room for additional units

18 Lewis Loch Street, Barvas TIG Complete Barvas Estate Trust Developer propsal awaited. 10 / 1 / 3 / 0 6 6 Feasibility Complete

Not HHP - developer 19 Lewis Geilear Road, Bayble Developer Led N/A N/A Common Grazings Common grazings, developer led proposal led Feasibilities

20 Lewis South Dell Developer Led N/A N/A Common Grazings 7 / 0 / 2 / 0 6 Approved Letter of intent to proceed issued to contractor. Not HHP - developer 21 Lewis Melbost Junction N/A 146 / 84 / 47 / 16 led 22 Lewis 57 Fivepenny, Borve Murray Graham 0.974ha access issue? Comhairle Ack February 2019 Proposed 23 Lewis 6 North Dell, Ness Investigate further Proposed 24 Lewis 60 Leurbost Derek Campbell historical site Comhairle Ack February 2019 Proposed NHT – large area of land on west side on main 25 Lewis Ardvourlie spinal route between Scaladale centre and North Harris Trust Bowglass Proposed Opposite shop/cafe – common grazings. Café is Berneray Community going to be a Bistro – can take 4 units – possible 26 Lewis council site Shared Equity. May be high service costs (water?). Proposed

Not been in Common Grazings for years. Mary 27 Lewis Breaclete Free Church of Ann has emailed Free Church. The village and Scotland Grazings are in favour of housing on this land. Proposed 28 Lewis Caros, Caversta Common Grazings Area of land at Caros Proposed 29 Lewis Cross Skigersta, Ness Proposed

30 Lewis Crowlista 1 HLA – plots remaining. Possible shared equity. Proposed Land owned by the church close to Crowlista 31 Lewis Crowlista 2 Church site. Need map of site. Proposed Opposite Play Park 32 Lewis Eoropie TIG Had been considered for Rural HWEC - see Dan's Complete Comhairle feasibility. Ruled Out 33 Lewis Gravir Common Grazings Plan requested Proposed HHP owned. Possible shared equity. 34 Lewis Kintulavaig HHP 3 Proposed Development previously aborted. 35 Lewis Ness Private Proposed 36 Lewis North Dell House Site Clear site, services nearby Proposed

37 Lewis North of Macsween Drive Large site north of Macsween Drive; 2 units at Common Grazings end of row of houses on the way to Flesherin Proposed 38 Lewis Old House, Stornoway 146 / 84 / 47 / 16 Proposed 39 Lewis Olivers Brae In LDP – 6 units max 146 / 84 / 47 / 16 Proposed 40 Lewis Point - next to FC Next to Football Pitch Proposed 41 Lewis Ranish Common Grazings KJ asked them to contact HHP Proposed

42 Lewis Rhenigedale NHT – land in the middle of the township – in North Harris Trust front of Gatliffe Trust Hostel (crofting tenure) Proposed 43 Lewis Shawbost site Alex Macdonald – possible 2 unit site Proposed

44 Lewis Site past church, Barvas 10 / 1 / 3 / 0 Proposed by Barvas Estate Proposed Land on Tong Road, heading to Tolsta, after 45 Lewis Tong Road private housing in Newmarket (serviced plots Common Grazings preferred) Proposed Site advertised incorrectly. Too small but may 46 Lewis 2 Cross UOG N/A Cancelled Private 0 0 Ruled Out have additional land around it. Next to existing HHP development. Proposed by 47 Lewis Cairn Aonghais, Gravir TIG N/A Cancelled 2 0 Ruled Out Pairc Trust.

48 Lewis Callanish TIG N/A Cancelled Proposed by Carloway Estate Trust Ruled Out

No longer available. UOG made contact with 49 Lewis Cross UOG N/A Cancelled Private 0 0 Ruled Out owner

50 Lewis Kirivick TIG N/A Cancelled Proposed by Carloway Estate Trust. Old Quarry Ruled Out

Construction costs deem this site to be 51 Lewis Balallan, Pairc Junction TIG 72 Complete Soval Estate HLA 4 Ruled Out unsuitable for development. Next to existing HHP development. Proposed by 52 Lewis Cnoc a Bhlair, Gravir TIG 116 Complete Unsuitable for development 2 2 Ruled Out Pairc Trust.

53 Lewis Gress site TIG N/A Complete Stornoway Trust No longer available. Ruled Out

High cost so recommended NOT to 54 Lewis Heathpark, Bernera TIG 72 Complete HHP HHP owned, room for additional units 1 / 1 / 0 / 0 1 Ruled Out develop

Based on the information available at Next to existing HHP development. Proposed by the time of writing, it is felt that the 55 Lewis Lon Ban, Lemreway TIG 126 Complete Pairc Trust. 2 2 Ruled Out high construction costs deem this site In Pairc Primary catchment to be unsuitable for development.

Cost due to wastwater connections. Shawbost – site behind Has previously been in HLA, road costs were 56 Lewis UOG 111 Complete Explore smaller site based on existing Common Grazings 20 Ruled Out Church going to be high, re-visit. Common grazings. infrastructure? Feasibilities

Not a priority due to other site in area being 57 Lewis 10 Lionel, Ness Ruled Out progressed. 107 Cross Skigersta Road, 58 Lewis Ness Not in crofting Comhairle Ack February 2019 Ruled Out 59 Lewis 21 Torquil Terrace Mike Mclennan Comhairle Ack February 2019 Ruled Out

60 Lewis 46 Habost Ian Graham 1.26ha Comhairle Ack March 2019 Ruled Out

61 Lewis 58 North Shawbost TIG Private No longer available. Ruled Out

62 Lewis 97 West End Balallan 29.5k Close to Balallan Pairc Junction site (Ken Macdonald) N/a Private Ruled Out 0.1ha small site close to other property. Possibly 63 Lewis Achmore Bethesda 2 units. Comhairle Ack February 2019 2 0 Ruled Out

64 Lewis Balallan Bethesda 0.153ha Too expensive to develop Comhairle Ack February 2019 Ruled Out House site and garden area are in process of 65 Lewis Breaclete 2 Ian Macdonald being decrofted Comhairle Ack February 2019 Ruled Out

66 Lewis Marybank 0.56ha land to rear of depository 146 / 84 / 47 / 16 Patricia Campbell Depository in council ownership? Comhairle Ack February 2019 Ruled Out

67 Lewis Millhouse. Breasclete Iain Macneil Sufficient for 10-12 houses Comhairle Ack February 2019 Ruled Out

68 Lewis South Bragar Bethesda 0.348ha next to Dounes Comhairle Ack February 2019 Ruled Out

Based on the information available at the time of writing, it is felt that the construction cost £191,350 per unit 4 Eagleton, Point – deem this site to be unsuitable for 69 Lewis TIG 96 Not progressed fishermans holdings development and it is likely that servicing the site will be a problem. It is therefore recommended that this site should not be developed. Complete Private HARRIS High Cost. Site suitable to progress if of 71 Harris Scott Road, Tarbert - 2 TIG Complete 24 / 14 / 4 / 0 Feasibility Complete strategic importance. Coastguard/Scott Road, Atlantic Land & High costs, mast needs to stay. Discussions 72 Harris TIG TBC Complete 24 / 14 / 4 / 0 19 Feasibility Complete Tarbert Property Ltd ongoing with CnES/HIE/SG

Comhairle Asset Tech Services - 73 Harris Seilebost Management West Harris Trust 2 2 Feasibility desktop 1 Complete Team LDP site. It is therefore recommended that this 74 Harris 1 Kendibeg, Harris TIG site should not be considered for Complete developed. 0.226ha Site near Diracleit, possibly 4 houses Comhairle Ack February 2019 Feasibility Complete

75 Harris Bunavoneadar NHT – land to the west of the hydro-electric North Harris Trust scheme, either side of the road (crofting tenure) Proposed Large agricultural park between road and shore 76 Harris Meavaig North North Harris Trust (NHT own) Proposed 77 Harris Miavaig, Harris Proposed 78 Harris Tarbert SSE SSE 24 / 14 / 4 / 0 Proposed Site is viable. Costs high but consider 4 units Near Harris House 79 Harris TIG N/A Complete due to lack of available development Crofting Tenure - NHT Unlikely to be able to purchase the site 4 0 Ruled Out (Croft 4) sites. Feasibility study underway for the re- 80 Harris Scalpay school TIG 99 Complete Not recommended to proceed NHT 2 2 Ruled Out development 81 Harris 10 Scalpay Large site, access issues? Comhairle Ack February 2019 Ruled Out consideration of watercourse required, high 82 Harris 11 Kyles Scalpay design expectation within National Scenic Area, Ruled Out Gradient of note. UIST Balivanich Commercial 83 Uist TIG 55 Complete Suitable for development CnES 10 10 Out to tender Dev. Area (Low Flyer)

Comhairle Asset 84 Uist 11b Uachdar, Benbecula Management Team Tech Services Private Desktop - Feasibility

Comhairle Asset 85 Uist 26 Liniclate Management Team Tech Services Desktop - Feasibility Feasibilities

Comhairle Asset 86 Uist Iochdar Road End Management Team Tech Services Desktop - Feasibility

Comhairle Asset Rarainish/Roisinis, East 87 Uist Management Benbecula Site Team Tech Services Desktop - Feasibility

As a result of the high cost per unit associated with a smaller 6 unit 88 Uist West Gerinish, S Uist TIG scheme, it is not recommended that this site be considered unless the full Land opposite Kildonan Road End, just north of Complete area is developed Common Grazings museum 16 6 Feasibility Complete HIE, opposite Beinn Mhor Cottages Consider for development although 89 Uist Howmore TIG 58 Complete HIE New septic tank required. 2 / 0 / 0 / 0 12 Feasibility Complete there are additional recommendations Title plan to be amended

Comhairle Asset Email from Niall McPherson, Senior Agricultural 2/4/19 email from Katrina to say that we are 90 Uist Dunganichy, Benbecula Management Suitable for full feasibility Scottish Ministers 23 / 3 / 5 / 0 Feasibility desktop 1 Tech Services - Officer - offering land for 2 affordable houses considering the site and will look at a feasibility. Team Complete before they put it on open market. Claddach Illeray, North Desktop recommended progress to full Just before Smokehouse. Closer to Clachan Feasibility 91 Uist TIG 9 / 2 / 1 / 0 Uist Commissioned feasibility. North Uist Estate than Claddach Illeray. Commissioned Would be developer led project 2/5/19 - No information provided by developer Comhairle Ack February 2019 92 Uist Daliburgh so proposal on hold until they make further 25/2/19 - site plan requested Unknown contact. 6/3/19 - more info requested Proposal on hold

93 Uist Lochmaddy Hospital Developer Led N/A 10 / 2 / 0 / 0 N/A Macinnes Brothers Discussions ongoing with developer. Proposed Aird Mhor, South Uist, 94 Uist 16 / 7 / 2 / 0 Cuidhe na Gamhna James Pedrana James Pedrana Proposed CnES Education owned – if janitors house and head teachers house cleared. Community 95 Uist Eochar 1 council suggestion. – existing dev. not great, at the back of Bualadubh. Would they demolish CNES and re-build. Proposed

Next to Cnoc an t-saoir common grazing (next to 96 Uist Eochar 2 old Church of Scotland ) Spaceport ongoing! Site looks good. Slight increase in waiting list numbers in Eochar/Carnan area. Proposed

97 Uist Hougharry, N Uist 16 / 3 / 1 / 0 Common Grazings Land at Hougharry, near garage/bus depot Proposed 3 potential sites – to be discussed at their 98 Uist Locheynort Common Grazings meeting Proposed 99 Uist Paiblesgarry, N Uist Common Grazings 2 sites. Grazings meeting still to be held 16 / 3 / 1 / 0 Proposed HIE keen to have development – high 100 Uist Rubha Bhuailt expenditure in area. Proposed Site near quarry, Loch 101 Uist Carnan Near access road to turbines – possible conflict Proposed

Ownership needs to be established – Peteranna? Slighe Ruairidh Alasdair 102 Uist Site may be popular as nearer new school in (Claddach Kirkibost) Bayhead. Services adjacent. Between Westford To be established and Slighe RA. Possible drainage issues. Proposed

Large area of land behind existing housing, 103 Uist Balivanich school N/A N/A Complete CnES? possible issue with current tenants not wanting Ruled Out additional housing. Is it CnES owned?

Ground remedial costs cause this site 104 Uist Eochar TIG 125 Complete Storas 4 Ruled Out to be unsuitable. Too close to existing turbine and possible flood 105 Uist Balivanich Hall Iain Macdonald risk? Comhairle Ack February 2019 Ruled Out

106 Uist Eochar 3? beside Eochar school check if there has been previous investigation Comhairle Ack February 2019 Ruled Out

107 Uist Sollas/Claddach Valley Land no longer available Ruled Out

BARRA

Comhairle Asset Comhairle Ack February 2019 108 Barra Skallary, Isle of Barra Management Tech Services - Land immediately behind Skallary HHP 2 April - CnES to contact landowner for more Team Complete Previously offered to HHP 2-3 years ago detail on site. Feasibility desktop 1 Feasibilities

109 Barra 9 Ardveenish TIG Comhairle Ack February 2019 4 4 Cancelled Angus Galbraith No longer available Ruled Out Need Deed of Servitude or land purchase from Costs high but in keeping with Barra. SG. 110 Barra Vatersay TIG 109 Complete Private 14 Feasibility Complete Consider for development. Road costs will be high. Previous nearby flooding issues. Single adapted house with tenant in mind. 111 Barra Brevig 1 1 On hold Need Social Work confirmation. High price of development but consistent with 112 Barra Cleit Road End TIG Complete Site suitable for development Church of Scotland 20 / 9 / 5 / 0 12 Feasibility Complete Barra. Scarcity of other suitable sites. APPENDIX 5

New Supply Shared Equity

Summary 1.1 There have been 59 New Supply Shared Equity properties built in Stornoway up to 2019. There has always been sufficient interest in the properties. The scheme was then expanded to rural areas and 4 Shared Equity properties were built in Horgabost and 4 units included in the housing mix at Breasclete. 1.2 We are currently developing New Supply Shared Equity properties at 3 sites with Pairc Niseaboist, Isle of Harris also recently completed. There is a downward trend in demand for our Shared Equity properties overall. Table 1. Summary of Shared Equity Developments Scheme Properties Demand Year Rural Ardamhor Court 6 Oversubscribed on completion 2011 Stornoway Manor Drive 12 Oversubscribed on completion 2011 Stornoway Mackenzie Park 6 Oversubscribed on completion 2013 Stornoway Allt Na Broige 7 Oversubscribed on completion 2016 Stornoway Mackenzie 16 Oversubscribed on completion 2016 Stornoway Crescent Mackenzie Lane 8 Oversubscribed on completion 2017 Stornoway Mackenzie 5 Sufficient interest after multiple 2019 Stornoway Avenue adverts. Properties all sold. Pairc Niseaboist 4 14 notes of interest prior to site 2019 Rural start. 23 notes of interest in total to date. Two identified buyers progressing. Mackenzie 13 All NSSE properties complete 2020 Stornoway Avenue January 2020. Six sales (due to) complete. Remaining properties continue to be marketed. Sgeir Ghlas, 4 No area specific demand 2020 Rural Breasclete available. 1 buyer identified. 7 new application enquiries in January 2020. Sinclair Avenue 16 2021 Stornoway Total Shared 97 Equity Properties Pairc Niseaboist, Isle of Harris 2.1 In January 2019, West Harris Trust provided details showing 14 households interested in Shared Equity properties at Pairc Niseaboist. Information packs and application forms were issued to this list prior to the completion of the properties. In addition, we have regularly advertised through our website, Instagram, TPAS Facebook, an advert in local publications, emails to local employers and posters in a variety of local shops, offices and public spaces. To date, including the initial 14 there have been 23 expressions of interest. 2.2 To date there have been 4 applications for the properties at Pairc Niseaboist and a couple of enquiries. Only 2 applications have progressed further.

2.3 West Harris Trust who provided the original information regarding demand for NSSE properties at Horgabost are unaware of any reason why there is not a higher demand. We understand that there may be a couple of interested parties who may have been unable to secure a mortgage for the required amount and equally there has been interest from those that are not eligible due to having too much equity in their current home. 2.4 We continue to advertise the properties for sale through social media, local publications and posters in local shops etc. Mackenzie Avenue, Isle of Lewis 3.1 Demand for Mackenzie Avenue has been lower than previous phases of the development. Of the 12 NSSE properties still to be handed over only five have buyers identified. TIG have identified that mortgages are more difficult to obtain than during previous phases and some mortgage providers such as Skipton no longer offer mortgages for NSSE buyers. Many have made initial enquiries have also commented that they are nervous about the uncertainty of BREXIT. Sgeir Ghlas, Breasclete 4.1 Breasclete development is due for completion in April 2020 and there is currently only one application submitted for the 4 properties. TIG have spent a day in BASF to promote the development and the NSSE scheme. They continue to advertise the properties and there have been 7 new application enquiries from prospective applicants in January 2020. Sinclair Avenue, Stornoway 5.1 There are 16 New Supply Shared Equity properties due to be built at the Goathill development. Marketing for these properties is not yet underway but there have already been a number of enquiries regarding Shared Equity and Elderly Shared Equity. TIG are keeping a note of interested parties and it is expected that this development will be more popular due to the location. Some of those who have expressed an interest in Mackenzie Avenue but not progressed further are thought to be holding off for Sinclair Avenue. Overall Interest 6.1 TIG hold a list of approximately 200 people that have expressed an interest in NSSE. They carry out 6 monthly reviews of the list to ensure the interest is accurate. The next review is about to be undertaken and will include additional questions. 6.2 The questions hope to establish a timescale of when people are looking to buy, areas they are interested in and why they have not applied so far. They will also try to gather information in relation to mortgage lenders and how far those interested in NSSE have progressed their mortgage. We will carry out a similar exercise for those that we can still contact on the list of interested parties for Horgabost. 6.3 The low number of expressions of interest in rural New Supply Shared Equity and the number of properties that remain unsold indicate that at this time NSSE is not a suitable model for rural areas. Consideration also needs to be given to the number of units within future developments that are not central Stornoway. It is doubtful that current levels can be maintained. APPENDIX 6

New Build Progress

Mackenzie Avenue

Breasclete, Isle of Lewis

An Glib, Point Edgemoor Square, Ness

Cnoc a Runnaire, Tolsta Lady Matheson Court

Winfield Close

Trosaraidh