Building Community Housing Capacity: Insights into the role of Procurement and Partnerships Dr Tony...
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Transcript of Building Community Housing Capacity: Insights into the role of Procurement and Partnerships Dr Tony...
![Page 1: Building Community Housing Capacity: Insights into the role of Procurement and Partnerships Dr Tony Gilmour Kinetic Information Systems Launch, Sydney.](https://reader036.fdocuments.us/reader036/viewer/2022062801/56649e705503460f94b6d6ad/html5/thumbnails/1.jpg)
Building Community Housing Capacity:
Insights into the role of Procurement and Partnerships
Dr Tony GilmourKinetic Information Systems Launch, Sydney
13 December 2010
![Page 2: Building Community Housing Capacity: Insights into the role of Procurement and Partnerships Dr Tony Gilmour Kinetic Information Systems Launch, Sydney.](https://reader036.fdocuments.us/reader036/viewer/2022062801/56649e705503460f94b6d6ad/html5/thumbnails/2.jpg)
Strength does not come from physical capacity. It comes from an indomitable will
![Page 3: Building Community Housing Capacity: Insights into the role of Procurement and Partnerships Dr Tony Gilmour Kinetic Information Systems Launch, Sydney.](https://reader036.fdocuments.us/reader036/viewer/2022062801/56649e705503460f94b6d6ad/html5/thumbnails/3.jpg)
Presentation Overview
• Background – the White Papers
• International reflections on procurement and partnerships
• Conclusion – opportunities and challenges for housing providers
![Page 4: Building Community Housing Capacity: Insights into the role of Procurement and Partnerships Dr Tony Gilmour Kinetic Information Systems Launch, Sydney.](https://reader036.fdocuments.us/reader036/viewer/2022062801/56649e705503460f94b6d6ad/html5/thumbnails/4.jpg)
White Papers - Background
• Reports orientated toward a particular technical problem or issue, increasing knowledge and helping managers make better decisions
• Approach based on initiatives by Housing Quality Network, HQN (‘the largest stand-alone housing training and consultancy company in the UK’).
• Up to six ‘Network Briefings’ per month
• HQN a closed network, requiring annual membership payment of just over £1,000 ($1,600)
![Page 5: Building Community Housing Capacity: Insights into the role of Procurement and Partnerships Dr Tony Gilmour Kinetic Information Systems Launch, Sydney.](https://reader036.fdocuments.us/reader036/viewer/2022062801/56649e705503460f94b6d6ad/html5/thumbnails/5.jpg)
White Papers – Aussie Version
• Circulated for free by Kinetic Information Systems to build capacity within the housing sector
• Focus on practical topics and an ‘executive summary’ approach – not 200 page AHURI reports!
• Will seek a variety of authors although initial series prepared by Tony Gilmour on following topics:
Raising Bank Finance
Innovative uses of IT systems
Pointers on NSW Regulation
Building capacity through collaboration
Understanding tenant needs
Over-coming NIMBY opposition
![Page 6: Building Community Housing Capacity: Insights into the role of Procurement and Partnerships Dr Tony Gilmour Kinetic Information Systems Launch, Sydney.](https://reader036.fdocuments.us/reader036/viewer/2022062801/56649e705503460f94b6d6ad/html5/thumbnails/6.jpg)
International Perspectives: Procurement and
Partnerships
![Page 7: Building Community Housing Capacity: Insights into the role of Procurement and Partnerships Dr Tony Gilmour Kinetic Information Systems Launch, Sydney.](https://reader036.fdocuments.us/reader036/viewer/2022062801/56649e705503460f94b6d6ad/html5/thumbnails/7.jpg)
Reflections on Growing Sector Capacity• Community housing just like any other industry sector in
terms of relationships between players, concentration, competition, roles of industry associations (peak bodies) and support organisations
• Australian sector a relatively late starter:
UK – 1974 growth, 1988 private finance, 1990s stock transfers
US – 1960s CDC growth, 1986 tax credits, 1990s estate renewal
Australia – 1990s pilot projects, 2007 tax credits, 2008 transfers
• Chance to understand issues based on overseas experience
• Need to see ‘capacity’ not just in terms of housing providers (organisational capacity) but also in terms of other support and service organisations in the sector (network capacity)
![Page 8: Building Community Housing Capacity: Insights into the role of Procurement and Partnerships Dr Tony Gilmour Kinetic Information Systems Launch, Sydney.](https://reader036.fdocuments.us/reader036/viewer/2022062801/56649e705503460f94b6d6ad/html5/thumbnails/8.jpg)
Overseas Changes I: Trade Associations• Only Australia retains ‘peak bodies’: never existed in the
US, England’s NHF changed from this role in 1970s
• Common trend is fragmentation of trade associations:
Growths providers – London G15, Housing Partnership Network
Regional – NHC Northern England, NPHANC Bay Area
Service providers – HQN perform capacity building role
Traditional trade associations morph into more hybrid role as service providers, increasing commercial income – NHF and CIH
All the above happily co-exist
• Note the use of fees for service as a model to fund capacity building, enabling greater distance from Government
![Page 9: Building Community Housing Capacity: Insights into the role of Procurement and Partnerships Dr Tony Gilmour Kinetic Information Systems Launch, Sydney.](https://reader036.fdocuments.us/reader036/viewer/2022062801/56649e705503460f94b6d6ad/html5/thumbnails/9.jpg)
Overseas Changes II: Service Providers• Increased sector funding provides resources to employ
more specialist assistance, often needed as complexity increases (UK: 1988 private finance, US: 1986 tax credits)
Consultants – big growth. Firms in UK, individuals in US
Contractors – specialised temporary staff, project managers
IT – new entrants, provide bespoke and off-the-shelf solutions
Input suppliers – building materials, insurance, finance
Agents – finance packagers, insurance brokers
• Prices initially high, then fall as market becomes commodified
• Role of above as ‘change agents’, sharing best practice
• Importance of staff transfers between network players
![Page 10: Building Community Housing Capacity: Insights into the role of Procurement and Partnerships Dr Tony Gilmour Kinetic Information Systems Launch, Sydney.](https://reader036.fdocuments.us/reader036/viewer/2022062801/56649e705503460f94b6d6ad/html5/thumbnails/10.jpg)
Overseas Changes III: Competition• Introduction of private finance and government tenders
reduces cooperation, increases competition between providers
• Less information sharing, though local and personal networks still strong and trade associations help reduce tensions
• Growth of mergers, especially UK and Netherlands, leads to growth of larger providers. Often driven by complexities, scale economies
• Countries retain their share of smaller housing providers. In England 18 providers > 20,000 stock, but 1,307 small (<1,000 stock)
• Other options to mergers – group structures and partnerships popular in both UK and US
![Page 11: Building Community Housing Capacity: Insights into the role of Procurement and Partnerships Dr Tony Gilmour Kinetic Information Systems Launch, Sydney.](https://reader036.fdocuments.us/reader036/viewer/2022062801/56649e705503460f94b6d6ad/html5/thumbnails/11.jpg)
Overseas Changes IV: Partnerships• Despite competition, partnerships thrive:
Development – joint working on property development with public, private and non-profit organisations. Sometimes specialist consortia established (BlueCHP use this model)
Procurement – joining with other providers to achieve scale economies through better buying power. Popular in UK
Services – establishing joint business to carry out IT, HR or reporting tasks. Good for smaller providers
• Often development partnerships used for early projects, then the provider builds capacity and can go it alone later (US examples)
• Partnerships over specific projects or services allow providers to retain their independence, avoiding mergers
![Page 12: Building Community Housing Capacity: Insights into the role of Procurement and Partnerships Dr Tony Gilmour Kinetic Information Systems Launch, Sydney.](https://reader036.fdocuments.us/reader036/viewer/2022062801/56649e705503460f94b6d6ad/html5/thumbnails/12.jpg)
Opportunities and Challenges for Australian Housing
Providers
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Australia 2010: Our Scorecard
• Policy focus has been on building organisational capacity, with little support of networks. Peak bodies under-funded
• Welcome arrival of new organisations – consultancies, IT providers, finance packagers. However, service price points unclear
• Evidence of weakness in core organisations such as banks and peak bodies though both are catching-up fast
• Lack of contractors a major problem. Confusion between use of contractors and consultants
• Australian success stories:
Intermediaries – AHS, QAHC
Procurement – PowerHousing Australia
Consortia – BlueCHP, Bonnyrigg PPP
![Page 14: Building Community Housing Capacity: Insights into the role of Procurement and Partnerships Dr Tony Gilmour Kinetic Information Systems Launch, Sydney.](https://reader036.fdocuments.us/reader036/viewer/2022062801/56649e705503460f94b6d6ad/html5/thumbnails/14.jpg)
Opportunities and Risks
• Learning from overseas experience can help us avoid the same mistakes, though hard to ‘cut and paste’ between countries
• Next decade likely to see major shift in role of intermediaries and service providers, perhaps more than for housing providers
• Larger housing providers need clear guidelines for a Procurement Policy such as need to use tenders, evaluate risks
• Perhaps an underestimation of level of risk in procurement
Operational – especially IT systems, compliance/reporting
Financial – possibility of being ‘fleeced’
Complexity – are solutions over complicated?
• Prominence of new players – Kinetic, Elton, Impact Group etc. a sign of broader changes within the sector
![Page 15: Building Community Housing Capacity: Insights into the role of Procurement and Partnerships Dr Tony Gilmour Kinetic Information Systems Launch, Sydney.](https://reader036.fdocuments.us/reader036/viewer/2022062801/56649e705503460f94b6d6ad/html5/thumbnails/15.jpg)
Building Community Housing Capacity:
Insights into the role of Procurement and Partnerships
Dr Tony [email protected]
www.tonygilmour.com