Business Plan 2011 by Melin Homes

BUSINESS PLAN 2011- 2016

If you need the information in this business plan in large print, Braille, on CD, or explained in your own language, please contact us on 01495 745929. A Welsh version of this plan can be found at www.melinhomes.co.uk/businessplan2010/welsh Printed copies are available on request.

Contents Section

Title

1 2 3 4 5 6 7 8 9 10

Executive Summary Vision and Values Areas of Operation Key Areas of Progress The Board The Leadership Group The Staff Structure Delivering the Vision Action Plans Financial Information

Melin Homes: was created in April 2007 Melin Homes: has a fresh and dynamic outlook and intends to make a positive difference in the communities within which it operates. Melin Homes: is a quality homes and service provider in Blaenau Gwent, Monmouthshire, Newport, Powys and Torfaen. This is the fifth business plan prepared by Melin, and reflects upon progress made and sets out how it will continue to deliver its objectives.

During the year Melin has: •

Provided 159 new homes

•

Helped 150 people back into work and training

•

Provided over 200 residents with computers and broadband in partnership with the Heads of the Valleys programme

•

Been presented with the ‘Outstanding Achievement in Housing in Wales’ award at the UK Housing Awards for its Universal Home Access project in partnership with Torfaen County Borough Council, the Heads of the Valleys Programme, CISCO and Microsoft.

•

Been an active partner in the Future Jobs Fund programme which has created over 40 paid training opportunities for young people.

•

Made energy efficiency improvements at over 250 homes saving residents money and reducing CO2 emissions.

•

Achieved satisfaction ratings of 98% for its repairs service.

•

Launched a counselling service for residents who are victims or perpetrators of anti social behaviour.

•

Supported the Monmouthshire and Torfaen Care and Repair agencies to provide assistance to over 3,000 clients

The Board and staff team have given their maximum effort to make Melin a success, and have been fully supported by the many partner organisations with whom we work. There are difficult times ahead due to the impact of the Comprehensive Spending Review and Welfare Reform, but we are determined to continue to play our full part in delivering homes and services for existing and future residents, and the wider community at large.

Doiran Jones, Chair

Mark Gardner, Chief Executive

Section 1

Section 1 Executive Summary

Section 2

Section 2 Vision and

Values

Vision: • • • • •

To be an exc ellent landlo rd To be a majo r provider of new homes To be a part ner of choic e To create op portunities fo r residents a To be a vibra nd commun nt place to w ities ork

Values:

Our work w

ill be underp

• • • • • • •

inned by:

Equality and Diversity Accessibility Innovation Partnership Communitie s and people , not just bric Being respo ks and mort nsive to cha ar nge and flex Being an ex ib le in approa cellent emplo ch yer

Section 3

Section 3 Areas of Operation Melin owns or manages homes across 5 local authority areas, providing a wide range of housing solutions, and high quality services.

Gwent u a n e a 1. Bl mouthshire on 2. M port w 3. Ne wys 4. Po rfaen 5. To r LA* he 6. Ot

2 5 3

Local Authority Blaenau Gwent Monmouthshire Newport

Rented Homes Low Cost Home Ownership 230 1 765 97 645 8

Mortgage Rescue 2 13 0

Other**

Total

4 9 34

237 884 687

Powys

Torfaen

1062

122

1293

Other LA*

Total

2741

272

188

3246

* shared ownership homes in Cardiff, Caerphilly and Vale of Glamorgan. ** includes leasehold, homeless leasing and commercial units Stock as at 31st March 2007 – 2,720 Stock as at 31st March 2008 – 2,804 Stock as at 31st March 2009 – 2,965 Stock as at 31st March 2010 – 3,020 Stock as at 31st March 2011 – 3,246

Section 4

Section 4 Key Areas of Progress New Homes

More than just bricks and mortar

Melin was in contract with over £20m of new building works over the year including Social Housing Grant, Mortgage Rescue, Strategic Capital Investment Fund and Melin’s own resources.

Melin created its new Communities and Enterprise Department which has seen the launch of a new Financial Inclusion Strategy and an exciting digital inclusion project.

All homes are provided on a tenure neutral basis allowing residents the opportunity to rent or purchase on shared equity terms. All new contracts include provisions for employment and training, and all new homes are designed to high levels of energy efficiency.

Employment and training opportunities have been provided to young people as a result of Melin’s participation in the Future Jobs Fund, and through its construction contracts. An example is the joint employment and training protocol developed with construction partner Leadbitter In 2010/11 Melin was appointed to deliver an Intermediate Labour Market contract to secure 88 supported employment places in Monmouthshire.

Energy Efficiency Melin has significantly increased its work in respect of energy efficiency with the support of the Heads of the Valleys Programme, Building Research Establishment and British Gas. Together with the Energy Savings Trust, a new energy efficiency strategy was developed which will result in significantly reducing Melin’s carbon footprint in future years. Melin has been an active partner in the Arbed programme which has facilitated energy efficiency improvement works to over 250 homes.

Section 5

Section 5 The Board Doiran Jones J.P. Chair Vice Chair of Community Housing Cymru. Vice Chair of Care and Repair Cymru. Retired Local Government Officer (Building Engineer). Board member for 29 years. Margaret Spencer Vice Chair Wide experience at a senior level in the Education and Social Services sectors. Board member for 7 years. Steve Cieslik BA(Hons), FCIH, FIRPM

John Flagg

Lorraine Morgan

Retired District Inspector of Taxes. Board member for 15 years.

Staff Tutor at the Open University in Wales, leading on the academic management of health and social care courses. She is an advisor to the Older Persons Commissioners Office in Wales and is a Board member of Care and Repair Cymru. Co-opted to the Board in December 2010.

Simon Harrison ACIB, CeFA, CeMAP 20 years as a corporate manager with Barclays leaving 7 years ago to advise on corporate pensions, latterly buying into a corporate finance business Flexible Commercial Funding Ltd. Board member for 2 years. Barry Holroyd

Self employed leasehold management specialist. Board member for 7 years.

Retired Welsh Office Civil Servant. Board member for 15 years.

Tony Crowhurst

Matt Miller

Employed by the Disability Advice Project and other Welsh access groups, specialising in disabilities and access issues. Board member for 11 years.

Housing Management Professional. Board member for 13 years.

Richard Essery HR and training professional. Board member for 7 years.

Dudley Gordon Tenant Board Member. Elected to the Board via tenants’ ballot in April 2011. Self Employed Computer Advisor

Toula Pearson Tenant Board member. Elected to the Board via tenants’ ballot April 2008. Ken Reynolds Retired Project Manager. Board member for 17 years. Ted Reynolds Tenant Board Member. Elected to the Board via tenants’ ballot in November 2009. Dennis Robinson Solicitor. Board member for 9 years.

Section 6

Section 6 The Leadership Group Mark Gardner FCIH Chief Executive

Peter Davies MCIOB, BSc Director of Development

Has worked in the housing sector for 27 years and has been a Housing Association Chief Executive since 1995. Formerly the Director of the Chartered Institute of Housing in Wales and the South West of England. He began his housing career in 1983 as a Trainee Housing Manager in local government.

Peter has considerable experience of property development in the public, private and housing association sectors. He has worked in a senior capacity for a number of leading housing associations in Wales.

Peter Crockett FMATT, FCCA Deputy Chief Executive Held senior posts in the housing association sector since 1995 where he has gained considerable experience in all aspects of strategic finance, including loan funding as well as all other support services. Prior to joining, Peter spent 6 years in a private accountancy and audit practice where he trained as a certified accountant. Dave Cook MBA, MCIH, ICIOB Director of Customer Services Dave has worked in the housing association sector since 1996. He plays a key role on procurement for the GENuS consortium, and has worked in the public and private sectors within the construction industry.

Adrian Huckin FCIH, B.A. (Hons) Director of Communities and Enterprise Adrian joined Melin Homes in September 2010 having previously worked in senior positions in both the public and housing association sectors for 14 years. His housing career spans a total of 28 years. Adrian is a member of the Chartered Institute of Housing [CIH] and an external examiner for UWIC.

Section 6

Leadership Group Structure Chief Executive

Deputy Chief Executive

Director of Development

Director of Customer Services

Director of Communities & Enterprise

The remit of the Deputy Chief Executive’s Department is:

The remit of the Communities and Enterprise Department is:

• Financial Support

• Getting people into work or training

• Technology

• New community business research and development

• People and Learning • Corporate Services • Communications

• Community engagement and community development

• Quality Management

• Financial inclusion • Care and Repair

The remit of the Customer Services Department is: • Front line housing management and maintenance services • Planned maintenance • Melin Direct Works Force (DWF) • Scheme Managers • Estate Cleaning/ Caretaking staff • Resident Involvement • Dispute Resolution

• Community impact policy development

The remit of the Development Department is: • New build • Land banking • Regeneration • Low cost home ownership • Mortgage rescue • Commercial Premises • Intermediate Market Renting

Section 7

Section 7 Staff Structure Chief Executive

Deputy Chief Executive

Financial Support Team

Communications Team

Director of Development

People & Learning Team

Technology Team

Director of Customer Services

Development Team

Quality Management Team

Director of Communities & Enterprise

Care & Repair Teams

Housing Team

Corporate Services Team

Enterprise & Community Engagement Teams

Asset Management & Direct Workforce Teams

This section of the plan outlines the key objectives to be delivered over the life of the plan, and the annual targets and tasks that need to be completed for this to be achieved. Vision: to be an excellent landlord Objectives to be achieved over the plan period: • • • • • • •

Melin is an upper quartile or ‘top 10’ performer in all key performance areas. Activities and systems are regularly reviewed and continually improved. Melin is recognised as an excellent service provider as validated by its customers and external standards. Customer feedback and satisfaction drives service improvements. All properties comply with the Welsh Housing Quality Standard (WHQS). Housing and Asset Management services are improved and shaped to meet customer requirements. Melin is a recognised leader in involving customers in service delivery standards and improvements.

Vision: to be a major provider of new homes Objectives to be achieved over the plan period • • • • • • •

Annual Action Plan • • • • •

Provide ongoing support and resources to the Melin Residents’ Panel Meet upper quartile or ‘top 10’ performance outcomes. Ensure that Melin and its residents are prepared for changes to housing and welfare benefits. Implement the Board approved self assessment improvement plan. Expand accommodation available to the homeless in partnership with Local Authorities, ensuring a focus upon tenancy sustainability and long term homelessness prevention.

To maximise Social Housing Grant (SHG) investment, directly linked to local Housing Strategies and identified housing needs. To ensure all SHG allocated is spent. Introduce an active and diverse SHG and non SHG programme to meet identified need Establish a strategic land bank to provide for future development activity. An established pipeline programme to be in place. Collaborative procurement for development activities to be in place and realising efficiencies. New homes built to lifetime homes standards with innovative specification improvements to promote sustainable development and reduce energy costs for tenants.

Annual Action Plan • • • •

Update the Melin development strategy for approval by the Board. Spend all allocated SHG. Acquire buildings/ land for strategic land bank purposes. Explore the potential to develop new forms of accommodation for older people in partnership with Health, Housing and Social Care partners, and ensure that current stock remains fit for purpose, to support safe and independent living.

Section 8

Section 8 Delivering the Vision

Section 8

Section 8 Delivering the Vision Vision: to be a partner of choice Objectives to be achieved over the plan period • • • • • •

Melin is a well known and respected organisation with an established reputation. External relationships across the region and across sectors are strong and beneficial to Melin. Melin communicates to a wide audience regarding its activities and achievements. Risk is effectively managed across the organisation with plans in place for business continuity. The resources available to Melin are optimised and used to further its objectives and growth aspirations. Financial models are in place to demonstrate viability over a rolling 30 year period.

Vision: to create opportunities for residents and communities Objectives to be achieved over the plan period • • • • •

Annual Action Plan

•

• • •

•

Circulate key publications to database of external contacts and shareholders. Continue with established cycle of meetings with key partners. Embed a more structured approach to wider community engagement. Work with GENuS and Local Authority partners to ensure an ongoing commitment to added value for communities and public services. Review financial strategies to ensure the ongoing availability of resources for existing and new projects.

Melin’s activities and programmes are delivered within budgets allocated. Melin utilises technology to the full to improve community communication, its efficiency and business effectiveness. Partners want to work with Melin to deliver successful and sustainable projects that regenerate communities. Melin innovates to create new initiatives that improve the quality of life for residents and communities. To develop and implement a Communities and Enterprise Strategy

• •

•

Continue to implement the environmental strategy. Continue to support the Rural Housing Enabler project and secure partner funding. Develop a technology strategy for implementation across the association’s activities. Successfully deliver the Monmouthshire Intermediate Labour Market contract, and increase access to work and training generally. Identify how the work and funding for Care and Repair agencies can be protected and expanded.

Section 8

Vision: to be a vibrant place to work Objectives to be achieved over the plan period • • • •

Melin has demonstrated its compliance and pro-activity in respect of equalities, disabilities and the Welsh Language. Melin is recognised as a leading employer within and outside of the housing association movement. Melin offers a competitive salary and benefits package which is valued by staff. Staff are recognised for their contribution and achievements.

Annual Action Plan • • •

Ensure a rolling programme of training is in place for equalities and diversity. Continue to participate in the Future Jobs Fund project. Implement the new Performance Management Strategy.

Section 9

Section 9 Action Plans Lead officers are referenced as follows: • • • • •

CE – Chief Executive DCE – Deputy Chief Executive DD – Director of Development DCS – Director of Customer Services DC+E – Director of Communities and Enterprise

Timescales and priorities are referenced as follows: • • • •

Quarter 1 – a task to be completed by the end of Quarter 2 – a task to be completed by the end of Quarter 3 – a task to be completed by the end of Quarter 4 – a task to be completed by the end of

June 2011 September 2011 December 2011 March 2012

Priority levels are defined as follows: • •

Priority 1 – an essential task that must be completed Priority 2 – an important task that may be dependent on others outside of the organisation, or not business critical if some slippage occurs.

Section 9

Vision: to be an excellent landlord Action

Outcome

Resources

Lead Officer/ Department

Timscale & Priority Level

Provide ongoing support and resources to the Melin Residents’ Panel

Support assists the Panel to deliver its annual plan

Resident Participation budget c £30k

DC+E

Quarter 4

Meet upper quartile or ‘Top 10’ performance outcomes

Front line landlord services to be customer focussed and to target by year end

Staff Structure designed to achieve high quality services and top level results

DCS

Quarter 4

Customer Services

Priority 1

Ensure that Melin and its residents are prepared for changes to housing and welfare benefits.

To reduce debt and increase resident income

Staff training; Benefit advice £20K.

DCS

Quarter 3

Implement the Board approved self assessment improvement plan.

Improvement plan implemented and monitored via Audit and Risk Committee.

Staff time. Costs DCE provided for within budget.

Quarter 4

Expand accommodation available to the homeless in partnership with Local Authorities

More units of accommodation available.

Staff Time. Costs DCS provided for within budget.

Quarter 2

Community Priority 1 Engagement Team

Priority 1

Section 9

Vision: to be a major provider of new homes Action

Outcome

Resources

Lead Officer/ Department

Timscale & Priority Level

Update Melin Development Strategy incorporating spend of SHG resources allocated

Strategy agreed by Board

c£4m SHG c£2m non SHG

Quarter 1-4

Development

Priority 1

Acquire buildings or land for strategic land bank

Bring sites into the land bank to ensure future development programmes available

Rolling facility of £2m for land bank purposes

DD/ DCE

Quarter 4

Development

Priority 2

Explore the potential to develop new forms of accommodation for older people in partnership with Health and Social Care, and ensure that current stock remains fit for purpose.

Proposals to be considered and approved by Board

Capital cost c£5m

DD/DCE

Quarter 2 Priority 1

Section 9

Vision: to be a partner of choice Action

Outcome

Resources

Lead Officer/ Department

Timscale & Priority Level

Circulate key publications to database of external contacts and shareholders

Ensure key contacts receive Annual Report, E - Bulletin and newsletters

Incorporated within marketing budget

DCE

Quarter 1

Communications

Priority 1

Maintain regular Hold at least 3 meeting cycle with meetings per key contacts year with key LA contacts

Staff time

Quarter 1

Embed a more structured approach to wider community engagement.

Staff time

New strategy developed, approved and implemented

Evidence value Work with added benefits GENuS and Local Authority partners to ensure an ongoing commitment to added value for communities and public services. Review financial strategies to ensure the ongoing availability of resources for existing and new projects.

Priority 1

DC+E

Quarter 2 Priority 1

Staff time

Ongoing review of Staff time financial strategies monitored by Board and Audit and Risk Committee

CE/ DCE/ DD/ DCS/ DC+E

Quarter 4 Priority 1

DCE

Quarter 3 Priority 1

Section 9

Vision: to create opportunities for residents and communities Action

Outcome

Resources

Lead Officer/ Department

Timscale & Priority Level

Continue to implement the environmental strategy.

Evidence of new initiatives and savings to Melin and residents

c£100K plus external funding

DCS

Quarter 4

Continue to support Rural Housing Enabler Project

Secure Partner Finding.

£56k total budget

Develop a technology strategy for implementation across the association’s activities.

Strategy developed, approved and implemented with relevance to all of Melin’s activities

Successfully deliver the Monmouthshire Intermediate Labour Market contract.

88 Monmouthshire £300K residents in work placements

DC+E

Identify how the work and funding for Care and Repair agencies can be protected and expanded.

Funding and operations of agencies reviewed, and forward strategy developed.

DCE

Produce financial information to demonstrate viability

Priority 1

DC+E

Melin contribution c£11.5k

Staff time plus external funding

Quarter 2 Priority 1

DC+E/ DCE

Quarter 2 Priority 1

Staff time.

Quarter 3 Priority1

Quarter 4 Priority 1

Section 9

Vision: to be a vibrant place to work Action

Outcome

Ensure a rolling programme of training is in place for equalities and diversity.

Resources

Lead Officer/ Department

Timscale & Priority Level

To evidence Part of staff structured training training budget for all staff; Board members; and contractor organisations

DCE

Quarter 3

People and Learning team

Priority 1

Continue to participate in the Future Jobs Fund project

36 trainees to participate in programme over 3 year period

DCE/ DC+E

Quarter 3

People and Learning Team

Priority 1

Implement the new Performance Management Strategy.

Within operational Strategy implemented, and budgets monitored by HR Committee

DCE

Quarter 1

People and Learning Team

Priority 1

Externally funded programme (ends October 2011)

Section 10

Section 10 Financial Information

Income & Expenditure Account 2011/2012 Budget

2012/2013 Forecast

2013/2014 Forecast

2014/2015 Forecast

2015/2016 Forecast

Turnover

£’000

Net Rents & Service Charges

11,506

12,801

13,930

15,154

16,421

838

863

734

741

704

Property sales Income from other activities

2,306

2,555

2,638

2,706

2,796

14,650

16,219

17,302

18,601

19,921

3,572

3,643

3,793

4,037

4,185

Service Costs

366

374

383

395

403

Other Direct Costs

249

269

277

286

291

Wages & Salaries

4,462

4,595

4,733

4,875

5,021

Office Overheads

2,142

2,185

2,251

2,306

2,353

10,791

11,066

11,437

11,899

12,253

779

821

722

719

697

Operating Surplus

3,080

4,332

5,143

5,983

6,971

Interest Payable

2,821

3,808

4,475

5,146

6,047

(50)

(20)

(17)

(20)

(19)

2,771

3,788

4,458

5,126

6,028

Surplus for the year before depreciation

309

544

685

857

943

Property Depreciation

350

359

367

377

384

Surplus for the year after depreciation

Operating Expenses Repairs & Maintenance

Cost of Properties Sold

Interest Receivable

(41)

185

318

480

559

Transfers (to) / from Designated Reserves

(28)

(30)

(32)

(35)

Surplus After Transfers to Reserves

157

288

448

524

Interest Cover Covenant

1.12

1.14

1.15

1.17

1.16

Section 10

Financial Information Balance Sheet

2011/2012 Budget

2012/2013 Forecast

2013/2014 Forecast

2014/2015 Forecast

2015/2016 Forecast

Tangible Fixed Assets

£’000

Housing properties less depreciation

175,493

184,493

191,093

197,693

204,293

(110,723)

(115,943)

(119,771)

(123,599)

(127,427)

64,770

68,550

71,322

74,094

76,866

Long term investments

2,506

3,231

3,956

4,681

5,406

Other fixed assets

2,093

2,302

2,648

2,912

3,204

69,369

74,083

77,926

81,687

85,476

1,473 0

1,483 1,061

1,498 1,702

1,510 1,092

1,523 2,032

1,473

2,544

3,200

2,602

3,555

667

1,080

1,083

1,086

1,090

806

1,464

2,117

1,516

2,465

70,175

75,547

80,043

83,203

87,941

57,059

62,246

66,425

69,104

73,283

13,116

13,301

13,618

14,099

14,658

Revenue reserves

7,253

7,410

7,698

8,146

8,670

Designated & Restricted reserves

5,863

5,891

5,920

5,953

5,988

13,116

13,301

13,618

14,099

14,658

45%

47%

49%

51%

Less Social Housing & Other grants

Current assets Debtors Cash & investments Creditors: amount falling due within one year

Net current assets Creditors: amount falling due after one year

Capital & Reserves

Gearing Ratio

Section 10

Financial Information Assumptions

1. Assured Rental Incomes are set in accordance with WAG Benchmark regime. 2. Secured Rental Income is assumed to increase in line with current policy until it reaches our Assured Policy Rents. 3. Voids and Bad debts have been assumed at current levels of Rental Income. 4. Salary Costs have been increased in line with terms and conditions and staffing plan proposals. 5. Departmental costs have been fully reviewed with each item being fully costed and accounted for by each team. 6. Our planned maintenance costs have increased in order to ensure compliance with Wales Housing Quality Standard (WHQS) by the end of 2012. 7. Interest rates on existing LIBOR facilities have been assumed at 5%, with existing fixed facilities being accounted for at the agreed fixed rate and new facilities assumed at a flat rate of 5%. 8. It has been assumed that the Association sales under RTB, RTA and shared ownership are consistent with previous years. 9. Our development growth is based upon our indicative programme indications through GENuS, although at the time of writing the report, we are still awaiting confirmation from WAG as to the 2011/12 programme and without a clearer indication of future allocations, we are not able to produce a precise forecast for future growth.

For information Covenant levels are as follows:-

Interest Cover - Must not be less that 1.1

Gearing - Must not be in excess of 60%