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As you will be aware, the SFHA has called an EGM on Thursday, 25th of February 2010 at 3.30pm (Registration is from 3.00pm to 3.30pm) at our offices in Glasgow.
As we explained in our covering letter accompanying the papers, this is primarily as a result of the SFHA inadvertently starting our December AGM at an earlier than advertised time.
For the purposes of clarification, the early start was due to an error on the SFHA's part, for which we wish to apologise to all members. We will reiterate this apology at the start of the EGM itself.
We would wish to assure our members that the SFHA is an open and transparent organisation. We will ensure that there is sufficient time for our members’ questions during the meeting.
We hope to see you on the 25th February and we apologise for any inconvenience caused by this train of events.
Lorna Paterson, Chair & Andrew Field, Deputy Chief Executive
The Scottish Federation of Housing Associations (SFHA) has expressed deep disappointment that MSPs have not invested any extra funds in affordable housing in 2010-11.
The SFHA has expressed disappointment that the Budget leaves a £120million gap in this year’s affordable housing budget.
There is £120 million less in the Budget than planned this year as money was brought forward into 2008-9 and 2009-10 to stimulate the economy during the recession. The Bill shows this year’s affordable housing budget will drop to £471m from £675m in 2009-10.
On Energy Efficiency, the SFHA welcomes both the announcement of £10 million to fund a universal Home Insulation Scheme and £2 million for a boiler scrappage scheme. While these are a step in the right direction to end fuel poverty and reduce carbon emissions, more needs to be done.
Speaking after the Scottish Parliament voted to pass a Budget which cuts spending on housing, SFHA Deputy Chief Executive Andrew Field said:
“The SFHA is deeply disappointed that MSP’s have not allocated extra funds for enough homes to meet demand, and boost communities and jobs across Scotland.
“Housing associations are now facing gaps opening up in their budgets for 2010-11 and beyond. There is a danger that affordable house building, which has been bridging some of the gap created by the slump in private developments, will fall significantly – at a time when demand for homes, especially affordable homes, is extremely high.
“While the SFHA commends the Scottish Government for reacting to the recession by bringing forward £120million to kick-start affordable house building last year, that money can’t be spent twice. Restoring it to this year’s Budget would have been a sensible and much-needed investment in communities across Scotland.”
As the Scottish Government published its Budget Bill 2010-11 on Friday (15th January) the Scottish Federation of Housing Associations (SFHA) expressed disappointment that the Bill leaves a gap in this year’s affordable housing budget.
There is £120 million less in the Budget than planned this year as money was brought forward into 2008-9 and 2009-10 to stimulate the economy during the recession. The Bill shows this year’s affordable housing budget will drop to £471m from £675m in 2009-10.
SFHA Deputy Chief Executive Andrew Field said:
“While the SFHA commends the Scottish Government for reacting to the recession by bringing forward £120million to kick-start affordable house building last year, that money can’t be spent twice.
“Housing associations are now facing gaps opening up in their budgets for 2010-11 and beyond. There is a danger that affordable house building, which has been bridging some of the gap created by the slump in private developments, will fall significantly – at a time when demand for homes, especially affordable homes, is extremely high.
“Scottish Ministers need to act now to protect a vital area of public investment, one which supports communities and the economy.
“We commend the Scottish Government for increasing investment in affordable housing in 2009-10, including £120 million accelerated from future budgets. But Scotland is not out of recession yet and demand for homes is still huge.
“Investing in desperately-needed affordable housing is one of the best ways of boosting the economy and jobs quickly and effectively, bringing social and economic benefits to communities across Scotland which are struggling in the recession. We call on the Scottish and UK Governments to work together to target funding at this socially and economically beneficial area.”
As the Housing (Scotland) Bill is published today (Thursday 14th January), the Scottish Federation of Housing Associations (SFHA) welcomed the end of Right to Buy for all new homes and tenancies as “a major step forward for housing policy.”
Andrew Field, Deputy Chief Executive of the SFHA said:
“The SFHA welcomes the Government’s plans, to end all Right to Buy for new build properties and also new tenants, which we argued strongly for. Right to Buy is an out-dated policy which has drained the affordable housing sector of vital stock, and now, more than ever, is the time to stop the flow.
“This will help protect and retain vital affordable housing stock at a time when housing is in crisis, with waiting lists spiralling out of control. It will also help retain badly-needed stock ahead of the introduction of ambitious homelessness targets in 2012."
“We are delighted that the Scottish Government has listened to the SFHA and dropped proposals to allow profit-making bodies to register as social landlords, allowing Scotland’s housing associations and co-operatives, to continue reinvesting in their communities.
“Additional measures to extend Pressured Area Status are welcome and we look forward to engaging with government on the powers and purpose of a new independent Scottish Housing Regulator.”
The Scottish Government today (Thursday 17th December) said that from now on, the benchmark level of Housing Association Grant (HAG) would be cut from £73,000 per house to £68,500, with immediate effect.
The changes to the way public grant is awarded to housing associations could put rural and specialist housing projects at risk, the Scottish Federation of Housing Associations (SFHA) has said.
Projects coming in above this level may still be approved, but it means extra scrutiny, bureaucracy and delays for many rural projects - which often cost more per unit - at a time when rural housing is in desperately short supply. The Government has also said that projects coming in cheaper per unit than the benchmark may be scrutinised to push costs down further.
HAG is the amount of public subsidy per unit given to housing associations to build new homes. The benchmark is the level of public subsidy which associations are expected by the government to need for new developments. Projects with a higher cost per unit than the benchmark undergo extra scrutiny and will face delays. Housing associations raise the remaining cost of building a house through private finance.
The Scottish Government has already lowered the HAG benchmark this year. In May, it announced that it would be cut by £1,000 per unit to £73,000.
SFHA Chief Executive Jacqui Watt said:
"We understand the need to reign in the public finances and we are as keen as the Scottish Government to get as many houses built for the money available as is practically possible. That is why we are working closely with government in helping to find efficiencies and more effective ways of working with the housing association sector.
"I am seeking assurances from the Scottish Government that high cost specialist schemes or those in remote rural areas will not be ruled out as a result of a cut in the benchmark."
"Investing in new-build housing, as is widely recognised, is one of the best ways to beat recession, as well as tackling the massive demand across Scotland for new affordable homes."
The SFHA has received a statement on the following issues with the Scottish Government:
• HAG Benchmarks
The Scottish Government has reiterated its position that the Benchmark figure is a target figure. Schemes coming in below this figure will be generally approved with a lower level of scrutiny than would otherwise be the case. This does not mean, however, that schemes above the benchmark figure will not be approved, it only means that they will be subject to more scrutiny than those below the benchmark figure.
• GPSE grants
This grant mechanism remains available as appropriate. One of the problems the Scottish Government encountered was the use of GPSEs (or SEGs) to cover extra over costs within the curtilage of a dwelling, including abnormal substructure costs. Much of the application of the grant was inappropriate and the Scottish Government has therefore confirmed to regional offices that such grants should only be used in strict accordance with the guidance. Consequently less grant funding is now required for GPSEs
• Vacant and Derelict Land Fund
Guidance is available on the Scottish Government website by via the following link: http://www.scotland.gov.uk/Topics/Built-Environment/regeneration/land-issues/vacant/vdlf
A new Chair was elected to the SFHA following the Federation's Annual General Meeting.
Lorna Paterson, previously Vice Chair and Chair of Fife Housing Association, takes over from Brian Gegan, who is standing down after three successful years as SFHA Chair.
Mr Gegan, also Chief Executive of Cairn Housing Association, has spent a total of five years on the SFHA Board.
The SFHA's new Vice Chair is Ewan Fraser, Chief Executive of Dunedin Canmore Housing Association, and the new Convener of the Audit Committee is Ahsan Khan, Chief Executive of Loreburn Housing Association.
Nanette Reid of Linstone HA, John Ferguson of Parkhead HA and Norman Beaton of Argyll Community HA were all re-elected to the board. A vacancy still exists for the other cities seat and anyone who would like to stand should contact SFHA Chief Executive, Jacqui Watt.
