Melin Homes Business Plan 2011

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.

1 Executive Summary2 Vision and Values3 Areas of Operation4 Key Areas of Progress5 The Board6 The Leadership Group7 The Staff Structure8 Delivering the Vision9 Action Plans10 Financial Information

Section Title

Contents

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, Mon-mouthshire, Newport, Powys and Torfaen.

This is the fifth business plan pre-pared 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

Section 1Executive Summary

Mark Gardner, Chief Executive

Section 1

Section 2

Section 2 Vision and Values

Vision:

• To be an excellent landlord• To be a major provider of new homes• To be a partner of choice• To create opportunities for residents and communities• To be a vibrant place to workValues:

Our work will be underpinned by:• Equality and Diversity• Accessibility• Innovation• Partnership• Communities and people, not just bricks and mortar

• Being responsive to change and flexible in approach• Being an excellent employer

Section 2

Section 3

Section 3Areas of Operation

1

5

2

3

4

6

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

Local Authority

Rented Homes Low Cost Home Ownership

MortgageRescue

Other** Total

Blaenau Gwent 230 1 2 4 237

Monmouthshire 765 97 13 9 884

Newport 645 8 0 34 687

Powys 39 24 0 0 63

Torfaen 1062 122 30 79 1293

Other LA* 0 20 0 62 82

Total 2741 272 45 188 3246

Blaenau Gwent1.

Monmouthshire2.

Newport3.

Powys4.

Torfaen5.

Other LA*6.

* shared ownership homes in Cardiff, Caerphilly and Vale of Glamorgan.** includes leasehold, homeless leasing and commercial unitsStock as at 31st March 2007 – 2,720Stock as at 31st March 2008 – 2,804Stock as at 31st March 2009 – 2,965Stock as at 31st March 2010 – 3,020Stock as at 31st March 2011 – 3,179

Section 4 Key Areas of Progress

Section 4

New Homes

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.

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.

More than just bricks and mortar

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.

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.

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

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

Tony Crowhurst

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

Richard Essery

HR and training professional. Board member for 7 years.

John Flagg

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

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

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

Matt Miller

Housing Management Professional. Board member for 13 years.

Lorraine Morgan

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.

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 5

Section 5The Board

Section 6 The Leadership Group

Section 6

Mark Gardner FCIH Chief Executive

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 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.

Peter Davies MCIOB, BSc Director of Development

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.

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

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

• Financial Support

• Technology

• People and Learning

• Corporate Services

• Communications

• Quality Management

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

The remit of the Communities and Enterprise Department is:

• Getting people into work or training

• New community business research and development

• Community engagement and community development

• Financial inclusion

• Care and Repair

• 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

Chief Executive

Deputy ChiefExecutive

Director of Development

Director of Customer Services

Director of Communities &

Enterprise

Section 7Staff Structure

Section 7

Chief Executive

Deputy ChiefExecutive

Financial Support Team

Development Team

Communications Team

Housing Team

QualityManagement

Team

Technology Team

People &Learning

Team

Asset Management & Direct Workforce Teams

Enterprise & Community Engagement Teams

CorporateServices Team

Care & Repair Teams

Director of Development

Director of Customer Services

Director of Communities & Enterprise

Section 8

Section 8Delivering the Vision

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.

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.

Vision: to be a major provider of new homes

Objectives to be achieved over the plan period

• 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.

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 a partner of choice


• 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.

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.

Vision: to create opportunities for residents and communities


• 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

Annual Action Plan

• 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 8Delivering the Vision

Section 8

Vision: to be a vibrant place to work


• 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 8

Section 9Action 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 June 2011 • Quarter 2 – a task to be completed by the end of September 2011 • Quarter 3 – a task to be completed by the end of December 2011 • Quarter 4 – a task to be completed by the end of 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

Section 9

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 budgetc £30k

DC+E

Community Engagement Team

Quarter 4

Priority 1

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

Customer Services

Quarter 4

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

Priority 1

Implement the Board approved self assessment improvement plan.

Improvement plan implemented and monitored via Audit and Risk Committee.

Staff time. Costs provided for within budget.

DCE Quarter 4

Priority 1

Expand accommodation available to the homeless in partnership with Local Authorities

More units of accommodation available.

Staff Time. Costs provided for within budget.

DCS Quarter 2

Priority 1

Section 9




Update Melin Development Strategy incorporating spend of SHG resources allocated

Strategy agreed by Board

c£4m SHGc£2m non SHG

DD

Development

Quarter 1-4

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

Development

Quarter 4

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




Update Melin Development Strategy incorporating spend of SHG resources allocated

Strategy agreed by Board

c£4m SHGc£2m non SHG

DD

Development

Quarter 1-4

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

Development

Quarter 4

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



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

Communications

Quarter 1

Priority 1

Maintain regular meeting cycle with key contacts

Hold at least 3 meetings per year with key LA contacts

Staff time CE Quarter 1

Priority 1

Embed a more structured approach to wider community engagement.

New strategy developed, approved and implemented

Staff time DC+E Quarter 2

Priority 1

Work with GENuS and Local Authority partners to ensure an ongoing commitment to added value for communities and public services.

Evidence value added benefits

Staff time CE/ DCE/ DD/ DCS/ DC+E

Quarter 4

Priority 1

Review financial strategies to ensure the ongoing availability of resources for existing and new projects.

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

Staff time DCE Quarter 3

Priority 1

Section 9

Vision: to create opportunities for residents and communitiesAction Outcome Resources Lead Officer/

DepartmentTimscale & 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

Priority 1

Continue to support Rural Housing Enabler Project

Secure Partner Finding.

Produce financial information to demonstrate viability

£56k total budget

Melin contribution c£11.5k

DC+E Quarter 2

Priority 1

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

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

Staff time plus external funding

DC+E/ DCE Quarter 2

Priority 1

Successfully deliver the Monmouthshire Intermediate Labour Market contract.

88 Monmouthshire residents in work placements

£300K DC+E Quarter 3

Priority1

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.

Staff time. DCE Quarter 4

Priority 1

Section 9

Vision: to be a vibrant place to work



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

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

Part of staff training budget

DCE

People and Learning team

Quarter 3

Priority 1

Continue to participate in the Future Jobs Fund project

36 trainees to participate in programme over 3 year period

Externally funded programme (ends October 2011)

DCE/ DC+E

People and Learning Team

Quarter 3

Priority 1

Implement the new Performance Management Strategy.

Strategy implemented, and monitored by HR Committee

Within operational budgets

DCE

People and Learning Team

Quarter 1

Priority 1

Section 10 Section 10 Financial InformationIncome & Expenditure Account

4,185

403

291

5,021

2,353

Turnover

Net Rents & Service Charges

Property sales

Income from other activities

Operating Expenses

Repairs & Maintenance

Service Costs

Other Direct Costs

Wages & Salaries

Office Overheads

Cost of Properties Sold

Operating Surplus

Interest Payable

Interest Receivable

Surplus for the year before depreciation

Property Depreciation

Surplus for the year after depreciation

Transfers (to) / from Designated Reserves

Surplus After Transfers to Reserves

Interest Cover Covenant

2011/2012Budget

11,506

838

2,306

14,650

3,572

366

249

4,462

2,142

10,791

779

3,080

2,821

(50)

2,771

309

350

(41)

76

35

1.12

12,801

863

2,555

16,219

3,643

374

269

4,595

2,185

2012/2013Forecast

11,066

821

4,332

3,808

(20)

3,788

544

359

185

(28)

157

1.14

13,930

734

2,638

17,302

3,793

383

277

4,733

2,251

2013/2014Forecast

11,437

722

5,143

4,475

(17)

4,458

685

367

318

(30)

288

1.15

15,154

741

2,706

18,601

4,037

395

286

4,875

2,306

2014/2015 Forecast

11,899

719

5,983

5,146

(20)

5,126

857

377

480

(32)

448

1.17

16,421

704

2,796

19,921

2015/2016 Forecast

12,253

697

6,971

6,047

(19)

6,028

943

384

559

(35)

524

1.16

£’000 £’000 £’000 £’000 £’000

Section 10

Financial InformationBalance Sheet

Tangible Fixed Assets

Housing properties less depreciation

£’000 £’000 £’000 £’000 £’000

Less

Social Housing & Other grants

Long term investments

Other fixed assets

Net current assets

Creditors: amount falling due after one year

Capital & Reserves

Revenue reserves

Designated & Restricted reserves

Gearing Ratio

184,493 191,093 197,693 204,293

(127,427)

76,866

5,406

2015/2016 Forecast

3,204

85,476

2,465

87,941

73,283

14,658

1,523 2,032

3,555

1,090

8,670

5,988

14,658

51%

(123,599)

74,094

4,681

2014/2015 Forecast

2,912

81,687

1,516

83,203

69,104

14,099

1,510 1,092

2,602

1,086

8,146

5,953

14,099

49%

(119,771)

71,322

3,956

2013/2014 Forecast

2,648

77,926

2,117

80,043

66,425

13,618

1,498 1,702

3,200

1,083

7,698

5,920

13,618

49%

(115,943)

68,550

3,231

2012/2013Forecast

2,302

74,083

1,464

75,547

62,246

13,301

1,483 1,061

2,544

1,080

7,410

5,891

13,301

47%

Current assetsDebtorsCash & investments

Creditors: amount falling due within one year

175,493

(110,723)

64,770

2,506

2011/2012 Budget

2,093

69,369

806

70,175

57,059

13,116

1,473 0

1,473

667

7,253

5,863

13,116

45%

Section 10

Financial InformationAssumptions

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%

Section 10

Documents

Melin Homes Business Plan 2011