Annual Report 2015-16

www.sfha.co.ukHOUSING SCOTLAND - SEPTEMBER 201528 29HOUSING SCOTLAND - SEPTEMBER 2015

round the

in Scotlandhouses

John Scott MSP marks start of building at £3 million affordable housing developmentJohn Scott MSP helped cut the first sod at a Hanover (Scotland) Housing Association’s new development at Doonholm Road, Ayr. The development, which will provide 28 high quality amenity and general needs homes for rent, is a partnership project with South Ayrshire Council. It is scheduled for completion by June 2016.www.hanover.scot

Thenue’s Urban Green features on STV GlasgowAn eco initiative which is led by Thenue Housing was featured recently on STV Glasgow. Urban Green aims to encourage residents in Cranhill to grow their own food and learn about saving energy. The project is delivered in partnership with Impact Arts and is being funded thanks to £150,000 from the Scottish Government. It will run until next spring. www.thenuehousing.co.uk

Pupils dig deep for school time capsule

Time capsules have been buried at two Aberdeenshire housing

projects. Sanctuary Scotland asked Strichen School and

Peterhead’s Buchanhaven Primary to pack capsules with items

relevant to pupils. Sanctuary is building 74 affordable homes

in Strichen and Peterhead, all of which will be completed this year.

Both time capsules are due to be dug up and opened in 2065.

www.sanctuary-scotland.co.uk

Community recognition for Maryhill Housing Association staff Staff at Maryhill Housing Association have been honoured by the community they serve. Staff were recognised in the People Make Maryhill Awards. Welfare Rights Officer David Atkinson and Customer Engagement Manager Jamie Ballantine collected their Unsung Heroes Awards alongside the association’s Concierge Team, represented by Bobby Ross and Charlie Quigley. Local people made the nominations and voted on the winners. www.maryhill.org.uk

Pet therapy for Fullarton Service residentsStaff at Loretto Care’s Fullarton Service in Glasgow’s Tollcross have been providing the residents with animal-assisted therapy. The residents, who are recovering from alcohol-related brain damage, met Buddy the Royal Python, Freddy the pug, a pair of Hungarian Viszlas and a Labrador cross called Marley. Research has shown animal-assisted therapy can improve mood, lower blood pressure and increase physical activity.www.lorettoha.co.uk

Independent retirement living in the heart of PaisleyLink Group has begun its £4 million development of 38 independent retirement living flats at Cotton Street, Paisley, which will be available by August 2016. The one and two-bedroom flats, for social rent and shared equity sale, are aimed at people aged 60 and above seeking to downsize to a property which is more suited to their needs now and in the future. www.linkhousing.org.uk

Irvine’s in bloomTenants who brought some colour to Irvine Housing Association’s streets this summer were awarded for their efforts in the association’s annual In Bloom Garden Competition. The competition was judged in July by Technical Officer John Howie and Marketing and Communications Officer Gillian Craig. This year’s Harbourside In Bloom first prize went to Michael Fullerton and Anne-Marie Carson. www.riverside.org.uk/scotland/south_west.aspx

The national representative body for Scotland’s housing associations and co-operatives.

A year of change and promise Message from Steve Delaney, Chair of the SFHA Board

Our mission is to lead, represent and support housing associations and co-operatives. This report focuses on SFHA achievements between 1 April 2015 and 31 March 2016, though it’s always slightly artificial to draw a line around any period.

2015–16 was a year of very significant change, internally as well as externally, with consequences of Smith Commission on further devolution and the 2015 general election which returned a Conservative minority government, promising a referendum on our membership of Europe. Meantime we were effective in engaging with new MPs about Scottish HAs interests.

Last year we marked the SFHA’s 40th anniversary through our annual conference and a very affirming parliamentary reception. Not only did we publish a summary of the sector’s achievements over the years, also our CEO and many members contributed to a book on rural housing.

For the Board the year was relatively stable. Implementation of the new Articles adopted in March 2015, meant developing a new policy on election of Board Directors. The new approach attracted candidates who help to rebalance the Board in terms of senior staff of associations.

This report is organised under three headings reflecting the new staff teams of the organisation, restructured during 2015. Fortunately there is so much to report that we cannot cover it all here, so we focus on highlights to illustrate particular points about the value of your contribution as members in our achievements and effectiveness.

Working for our members over the past year >>>The following pages summarise what the SFHA has achieved for our members over the last year.

We want to see a thriving housing association and co-operative sector providing sustainable and affordable homes.

We achieve this by supporting our member housing associations and co-operatives across Scotland through our 3 teams:

• Public Affairs• Business Development• Corporate Services

Together We’re Housing Scotland

SFHA Annual Report 2015-16 2

Public AffairsOne of the newest teams at SFHA is Public Affairs bringing together work on policy, research / evidence and media to maximize our influence with key decision-makers in Edinburgh and London.

The SFHA’s work is organised under four strategic themes which serve to shape our public affairs priorities. Let’s examine our significant achievements on just two of these categories.

Strategic Themes SFHA Strategic Plan 2014–17* Meeting need* Safeguarding

Housing Quality* Sustainable Tenancies

and Communities* Safeguarding Rental Income

Meeting need

While new supply isn’t the only activity for housing associations, it matters hugely, given the state of waiting lists and the backlog of need.

SFHA was key to securing political commitments to doubling current output targets. Research commissioned jointly with Shelter and CIH brought to light the need for 12,000 additional affordable homes per year, over the next 5 years.

Demands to this effect in our 2016 manifesto were reflected in competing party commitments in the Scottish elections in the spring of 2016.

Robust SFHA input to the subsidy review working group led to recommendations in June 2015 for taking the unit HAG rate up to a minimum of £70,000, eventually approved in January 2016. This can only help incentivise our members to resume contributions to development for much needed housing, whether independently or through an aggregator vehicle such as HARIS.

We were able to achieve these crucial investment decisions, even at a time when budgets are tight, by virtue of gathering evidence from members, and distilling the key messages for use in lobbying on your behalf.

50,000affordable homes

committed by Scottish Government over the

next 5 years

Approved in January

2016, the HAG rate

minimum for social

rent went up to

£70,000

Scottish Election 2016Housing Matters!

Our key calls on Scottish political parties and what we’re offering the next Scottish Government in return.

3The national representative body for Scotland’s housing associations and co-operatives

Mary Taylor, CEO, SFHA; Graeme Brown, Director, Shelter Scotland and Annie Mauger, CEO, CIH

SFHA Parliamentary Reception featuring Tenant Guest Speakers from Housing Associations The SFHA Mainfesto for 2016

Public AffairsSafeguarding members’ rental income

Winning arguments relies utterly on SFHA members supplying the evidence, statistics and stories, which we can distill into key messages on behalf of the sector. With the key information you provide we were able to lobby shape the following housing policies

• By May 2015 we had a Scotland Bill devolving further powers to Scotland, this time affecting social security. We lobbied energetically to shape the opportunities presented by additional powers which enable the effective abolition of bedroom tax, the creation of new benefits and, crucially, permit the payment of rent support in Scotland direct to social landlords. We articulated and secured a position, shared with tenants, on the importance of default payment of rent support to landlords.

• We established a constructive relationship with the Scotland Office and sustained regular dialogue with the Scottish Government, and with DWP in London and Edinburgh about policy, mitigation, system and operations. We helped to shape the second DWP conference in Scotland. This allowed our members and local authorities to get to grips with the changes ahead and engage with DWP nationally and locally on matters of vital concern to most tenants and to all landlords in terms of income security.

• We moved swiftly into action on unexpected proposals to apply LHA to social tenancies in Scotland. We prepared a detailed briefing in January 2016 in the potential impact of the LHA ‘maxima’ and worked with the Housing Support Enabling Unit (HSEU) in engaging with the DWP regarding the funding of supported housing. This work is ongoing, with briefings submitted to Scottish MPs ahead of adjournment and opposition day debates in the House of Commons. We continue to work with other stakeholders such as Scottish Women’s Aid, the Scottish Campaign on Welfare Reform and ALACHO to raise awareness of the damage this policy could cause.

Department of Work and

Pensions

Scotland Bill

LHA maxima

ONS ClassificationClassification transcends all our strategic themes. Most of what SFHA does for members is planned in advance but some issues just bounce in, as was the case with the ONS review of the classification of associations – a strategic risk for all associations. Essentially the review started in England but when the decision to reclassify English PRPs was announced in October 2015, SFHA started preparing for a possible ONS move to assess associations in Scotland (alongside Wales and Northern Ireland).

So when, in late March 2016 ONS announced the timetable for assessment, SFHA was already on top of the criteria, evidence, contacts and process ahead, to be able to analyse and manage the risk to associations of reclassification.

The assessment process continues into 2016/17, but with support in the new parliament for remedial legislation which means that SFHA can be confident of being able to secure during 2016-17, the future status of associations as ‘private non-financial corporations’.

Sanctuary’s £4.3 million Ochilview Court development in Cumbernauld

SFHA Annual Report 2015-16 4

Business DevelopmentThe new Business Development team coordinates work to gather the income which supports the work of the federation.

About half of that income comes from affiliation fees from members; the other half is earned from sponsorship, advertising, events and the support of commercial associates, mostly suppliers to associations.

Advertising has made a major contribution to increased commercial income, particularly our Jobs Online service - it has been a popular service which all our members use on a weekly basis.

Commercial Income

Member

Affiliation Fees

Events and Conferences

The events and conferences we offer are an important part of our income and equally vital in providing a platform for keeping up-to-date and networking between staff of associations and governing body members.

Our 2015 annual conference in Dunblane included an anniversary video, insights about the challenges of leadership and, for the second year running, a successful Apprentice Challenge. Our approach to apprentices is increasingly gathering support from others in the sector and an emerging collaboration with Skills Development Scotland.

The winning team in 2015 told delegates how we need to go about involving young people in governing bodies. In response we have relaunched our ‘Onboard’ service - providing the platform for people to register to volunteer and also associations to post vacancies on boards.

Member Affiliation Review

With affiliation a key part of our income, the process of establishing the right level of fee is critical. With the new Articles in place, the Board turned attention to the affiliation fee arrangements, with a review group formed in the last quarter of the year.

Development and consultation will continue during 2016–17 to establish a new fee structure. In January 2016, the Board applied a minimal increase to affiliation fees, well within the range of increases on rents charged by members to tenants.

SFHA Board Directors, Teresa McNally, Linda Reid and Vikki McCall

The Apprentice Challenge contestants at our Annual Conference 2015

SFHA Annual Conference 2015 delegates

5The national representative body for Scotland’s housing associations and co-operatives

Member Engagement

A new post in the business development team focuses much more strongly on the member offer and on managing member data and engagement. That has helped some former members to understand what they were missing, and to re-affiliate. The engagement work helps build better communication with members.

Promoting our Members

We continue every effort to further enhance our promotional channels in our continuous improvement of members’ services. Our focus is to strengthen the SFHA brand and promote the work of the federation and members.

RSLs have engaged with the Advisory Procurement services

Scotland’s only monthly housing magazine supplement - www.sfha.co.uk

Issue No 103

Housing Scotland turns the spotlight on Bridgewater Housing Association Ltd.

Spotlight

Making you feel at home

HOUSING ASSOCIATION LIMITED

Pictured with residents of the Association’s newest homes is the Chair of the Association Hugh Cameron, the local MSP and Minister for Local Government, Derek McKay and Ian McLean Chief Executive.

Scotland’s only monthly housing magazine supplement - www.sfha.co.uk

Issue No 112

Housing Scotland turns the spotlight on Port of Leith Housing Association

Spotlight40 Years of Housing Scotland

POLHA Spotlight JUN2015-w-adds.indd 1

27/05/2015 10:06

Our members brochure

Business DevelopmentCommercial Activities

Among our commercial relationships is the support from LHC which last year established the Scottish Procurement Alliance (SPA).

During 2015 we collaborated on a proposal to support implementation of procurement requirements facing associations with effect from April 2016. That meant SPA funding a fixed term post hosted by SFHA from January 2016 and is already making good progress in providing a procurement advisory service to members.

The commercial associates forum has provided opportunities to benefit from topical updates as well as networking and business promotion.

Spotlight magazines produced

in 2015

Procurment Roadshow event

162

Member Networking event

5

Commercial Associates ‘Opportunities’ event

SFHA Annual Report 2015-16 6

Full detailed, audited accounts are available to our members To request a copy email: finance@sfha.co.uk

Our Finances

Arguably the most important function of Corporate Services is Finance, with financial strength key amongst SFHA strategic objectives.

As shown in the detailed audited accounts available to members, the 2015–16 accounts were prepared under FRS102 which many associations will themselves have been grappling with. FRS102 typically requires a restatement of the previous year’s finances. In the case of SFHA, this involves restating last year’s operating surplus as a deficit, primarily due to the new accounting treatment of the SFHA share of the SHAPS pension deficit. This in turn means that the planned operational deficit in 2015–16 appears as a surplus. This somewhat perverse presentation of accounts comes as a consequence of FRS102.

Our external auditors have issued a clean audit report on our annual accounts and they have been prepared on a ‘going concern’ basis despite a net liabilities position in the balance sheet following implementation of FRS102. The Board is satisfied that the accounts comply with the requirements and that SFHA is a going concern. The Board acknowledges that the apparent surplus in the current year is more technical than real.

Costs

The real operating deficit in 2015–16 turned out to be around half of the forecast figure. This reduced operational deficit can be attributed to savings during the year mostly down to interruptions to capacity. The 2014–15 annual report anticipated exceptional costs arising in 2015–16, rather than 2014–15, due to delays in restructuring. No further exceptional costs are anticipated in future years.

Our commercial activities generated a further net contribution in 2015–16, slightly lower than in 2014–15 (26% compared with 31%). Without this income, affiliation fees would be more than one third higher to cover the costs of our work in representing and supporting our members.

Having all associations contributing to the costs of the federation in representing all associations’ interests would add £0.3m to the income of SFHA or reduce member costs.

Corporate Services

25%

15% 21%

16%

13%9%

Governance: 1%

Public Affairs

Business Development

Corporate Services

Event costs

Premises and Facilities (incl IT)

Pensions Past Service Deficit

SFHA Routine Operational

Expenditure analysis (excluding FRS102

restatement)

7The national representative body for Scotland’s housing associations and co-operatives

For more informationcontact us:

by phone 0141 332 8113by email sfha@sfha.co.ukor visit www.sfha.co.uk follow us @sfha_hq (twitter)

3rd Floor, Sutherland House149 St Vincent StreetGlasgow, G2 5NW

Staff development

Since autumn 2015, we have involved staff in the development of planning for 2016–17, re-established appraisals and engaged in training and social activities to build the team.

We also started work towards Healthy Working Lives award having already secured renewal of accreditation under Investors In People (IIP), as the new structure was bedding in.

Finally we turn to the part of SFHA least visible to members, the Corporate Services team who take care of all the invaluable back office functions of IT, telephony, reception, HR, and premises.

We successfully negotiated a further 5 year term on our lease at Sutherland House which has proved to be an ideal central location, attracting lots of third party meetings as well as regular use for routine SFHA forum meetings.

Corporate Services

Commitment to change

A further function of Corporate Services is to support staff appointed to allow the Board to achieve its ambitions for SFHA. The Strategic Plan 2014–17 included restructuring staff into the three teams outlined in this report, given the strategic objective of securing a commitment to change, to refocus policy and to work smarter.

Some staff left, with the result that nine new people were appointed to new or changed posts – almost half of the total staff complement. Between February and October 2015, we had the benefit of various temporary staff supporting a smooth transition and continuity while we undertook longer term recruitment and induction to rebuild capacity.

Member forum event in SFHA office

SFHA Staff away day

SFHA Staff Business Planning day

SFHA office

8SFHA Annual Report 2015-2016