A New Deal for Leaseholders

This document is a draft, and outlines proposals in relation to service charges, major works, recharges etc with an emphasis on transparency.

This option would only work if we have an acceptable starting point for providing the service and it is not currently under resourced, i.e. following successful completion of Major Works. The Guarantee to be given on overall cost levels and not to individual blocks. The guarantee to be in place for 3 years and then subject to review. The level of costs to be tied into a service level agreement.

To give a guarantee for repair related costs could be problematic because of their responsive nature.

We will Continue to apportion costs at block level as already advised.

We will detail the charges for which we will charge leaseholders.

We will agree not to vary the level of maintenance administration charge to leaseholders from its current percentage level.

We will agree not to increase the management administration charge by more than the agreed cost of living increase plus 2.5%. This will be achieved in April 2004 for current stock and April 2006 for any new stock transferred.

• Community Regeneration (currently £ 1 million)
• Rangers, Budget 2002/03 £140K
• Police Community Support Officers 2003/04 £300K
• Resident empowerment and support team.
• Access to mediation service
• A range of associated costs incurred whilst tackling ASB

• Cleaning
• Horticulture
• Responsive Repairs
• Right to Buy Processing
• Resale Information
  • Cleaning
    The attached Estate Service Team service level agreement to be used as a base for cleaning services carried out by Poplar HARCA.
    The document to be expanded to incorporate minimum standards of cleanliness and our response including time scales to bring standards back to an acceptable level should they fall below the minimum standard.

    Specific SLA to be developed for each estate area in conjunction with local estate boards, with consultation with Leaseholders Steering Group (LSG).

    Any enhancement of service standards above basic SLA (and therefore increase in costs) only to be implemented following appropriate resident consultation exercise. (Tenants will be charged service charges separately with effect from 01/04/03 or 01/04/04).

    Robust monitoring methods already in place by way of weekly inspections by Estate Coordinators. Estate inspections also carried out in conjunction with residents. Currently some Estate Boards also have specific service delivery groups that deal with ongoing service related issues.

  • Horticulture
    As above with Estate Cleaning
  • Responsive Repairs
    Poplar HARCA already has a repair policy and procedure, which details what repairs we, as a landlord will carry out. All repairs have target dates dependant on the assigned priority.
    A summary booklet to be produced for leaseholders detailing the type of repair that Poplar HARCA will carry out (in essence to communal parts of the block).

  • A Right to Buy/Right to Acguire
    A SLA is produced detailing Poplar HARCA's response to the processing of RTB/RTA applications. The SLA to incorporate time scales (statutory. deadlines already apply, which we stride to exceed). The document to become part of a buyers pack that is given to all prospective homeowners. The pack also to include in plain terms the physical process of buying your property, a summary of the main obligations of both Landlord and lessee if the sale proceeds. Details of advisory bodies for leaseholders.

    Investigate the setting up of an approved list of solicitors to deal with conveyancing of RTB/RTA sales at a fee below standard rates.

    Investigate the setting up of a "lettings and management" service for leaseholders that wish to rent out their homes. (The management infrastructure for a service of this type is already in place)

  • Resales
    Poplar HARCA charge a flat fee for providing information to solicitors prior to possible lease assignment. The fee currently is £125 plus VAT. We currently aim to reply to all information requests within 21 days following payment of the appropriate fee. This target to be incorporated within a home ownership charter.

A two-year interest free period is given from time of billing. Poplar HARCA invoice following completion of the works when final costs are known. LBTH offer a 2-year interest free period, but inwoicing takes place when works commence.

OR

Interest free payment over up to a ten-year period should SO% of the invoice be paid within 90 days of invoicing.

OR

As above with 25% at time of invoicing but payment terms restricted to 5 years.

Voluntary charge on property payable on lease assignment. Charge can either attract compound interest or interest can be paid monthly leaving initial capital due on assignment.

All the above agreement to be secured by way of charge on property.

We have investigated other schemes where charges have been reduced as part of a major repair/improvement scheme. It would appear, that none of these schemes would be available to Poplar HARCA as either one off special funding arrangements were arranged with government or we may be in breach of our charitable status and could be breaching charity law.

For example Optima HA in Birmingham obtained an extra £7000 per leaseholder in ERCF funding in addition to the works costs to reduce charges to £3000 per property. This was a special arrangement in obtaining extra funds and to our knowledge a one off agreement. They are however, now having issues with the charity commission on an associated matter, as they are not collecting all revenue available to them.

A model has already been prepared to ensure that residents are consulted in relation to any proposed works on each estate. Each estate will ha've a steering group during the consultation process plus five separate sub groups, one looking at new build, one refurb, a leaseholder sub group, policy and service delivery group plus a community development group.