Empty properties and all that . By Darryl Lawrence Director
Jul 03, 2015
Empty properties and all that .
By Darryl Lawrence
Director
Overview of presentation
Historical delivery issues
The “ Rochdale “ approach
Issues with lenders
Case study
Who are RHI ?
The Boroughs housing partnership Company part funded by RP’s and RMBC
Develop a wide range of projects Employment training schemes
Facilitating new developments
Develop new ways of working
Securing funding
But lately we have been specialising in EP work
National Strategy
To increase the number of empty homes brought back into use
Concentrating on properties that without LA intervention would remain empty
No fixed delivery model Improve and Lease, P & R
Finance available
Historical Issues
Historical issues
Housing Associations
Asked to tackled worst first
But tools not fit for purpose or fitted with market dynamics
Nominations
Lease agreements not FFP
Lack of practical help and sharing of information by LA
Labour intensive compared to new build
Historical issues
Local authority
Use of enforcement tools – rarely used strategically
Recovery of debt ineffective
Mostly reactive
Lack of pro active tools (i.e. offers to owners)
The Rochdale approach
The Hub
Only so many way to bring a property back into use
Development of a hub
All action revolves around it
Co-ordinates all reactive action
Co-ordinates all positive action
What does it do ?
Take the lead on co-ordinating all EP work
Develop partnership working Co-ordinate action between Council sections
Proactive and reactive work
Develop and market test proactive tools
Develop processes for enforcement measures
Guides enforcement through legal
Main point of contact for both residents, officers and owners
The remit
Target all properties
Reinforce owners Responsibility and accountability
Zero tolerance approach
Creative use of existing tools
Fast and swift response
Direct contract with residents
Broker deals with owners
Oven ready referrals to partners
Tools - proactive
Management only offer
Repair and Lease
between 2 – 10 years
Guaranteed rent – level depends on the capital input
Purchase
At market value ( whatever that is !! )
Tools - Enforcement
Maximising the existing legislation
Liberal interpretation of legislation
Pincer movement to solve the problems
Identification and collection of debt
Secure Charging Orders
Enforced Sales or Order of Sale
EDMO’s
Lenders – an emerging issue
Refusing permission to borrowers to enter schemes
Stymieing delivery
Audit showed a min of 30% have mortgages
HBOS possibly the biggest market share
Case Study
The problem
BTL gone bad
Owners no money to repair property
Wanted to enter into a Improve and Lease Scheme
HBOS refused permission
The solution
Empty Dwelling Management Order served with owners consent
Lenders cant stop it
Spliced together with the HCE / DCLG EP funding
Added value No public funding needed
All money recycled
Success !
Any questions ?