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					                                          Appendix 1




               Birmingham City Council



              Housing Revenue Account
                   Business Plan




                             March 2004


HRA Business Plan – March 2004                  Page 1 of 76
Birmingham City Council
Contents

Foreword..................................................................................................................................... 3

Executive Summary ................................................................................................................... 4

Introduction and Strategic Context .......................................................................................... 7

‘One Size Doesn’t Fit All’ – Moving Forward ......................................................................... 12

Resources................................................................................................................................. 15

Stock Condition, Decent Homes & Investment Planning ..................................................... 24

Current Performance ............................................................................................................... 33

Effective Consultation ............................................................................................................. 41

Option Appraisal ...................................................................................................................... 45

Priorities ................................................................................................................................... 48

Action Plan and Progress to Date .......................................................................................... 51

Appendix A: How Does The Housing Stock Contribute To The Achievement Of Other
Corporate Strategies? ............................................................................................................. 53

Appendix B: Key Documents and How to Obtain Copies .................................................... 55

Appendix C: The Strategy in Context ..................................................................................... 56

Appendix D: HRA 30-Year Operating Account 2004/05 to 2033/34 ..................................... 56

Appendix E: Housing Subsidy Trends 2001/02 to 2009/10 ................................................... 58

Appendix F: Tenants Conference 2002 – Agreed Action Priorities ..................................... 60

Appendix G: 2004/05 Action Plan ........................................................................................... 62

Appendix H: Progress on the HRA Business Plan Action Plan 2002/03 ............................. 74

Appendix I: Glossary of Terms ............................................................................................... 76



This HRA Business Plan has been compiled by Praxis Development Consultants Limited on
behalf of Birmingham City Council.




HRA Business Plan – March 2004                                                                                               Page 2 of 76
Birmingham City Council
Foreword
To be inserted.




HRA Business Plan – March 2004   Page 3 of 76
Birmingham City Council
Executive Summary
Introduction and Context
The Housing Revenue Account Business Plan is a statutory plan that all councils owning homes
are required to produce and submit to the Government Office for assessment which counts
against their overall Comprehensive Performance Assessment.

A key element of Government Policy is that all social housing, including council housing, should
meet its Decent Homes Standard by 2010. Councils are required to assess the condition of their
stock against that standard and determine whether it meets the Decent Homes Standard.

Taking into account capital resources available, and an assessment of the number of homes
that will fail the Decent Homes Standard between now and 2010, the council must determine
whether it will be able to undertake the works required to achieve Decent Homes by 2010.

If the resources are not available to meet the Decent Homes Standard then the council is
required to look for other sources of funding, either Stock Transfer, Arms Length Management
Organisations (ALMO), Private Finance Initiative (PFI), or a mixture of these. The assessment
of these alternatives is undertaken as part of the formal Stock Option Appraisal process. All
stock holding authorities are required carry out an option appraisal in accordance with
Government guidance by 2005, even if they have previously undertaken one.

Key Achievements
This HRA Business Plan recognises the very significant progress that Birmingham has made
since publishing its last business plan. We have been successful in many aspects of our role as
landlord, not least of all in the work we have done to support reductions in anti-social behaviour.
Since our last HRA business plan we have achieved important goals:

    We now have a definitive position on stock condition and where we are in relation to the
     Government‟s Decent Homes Standard, and have a robust system in place to keep stock
     condition up to date

    Established cross tenure Birmingham Anti-Social Behaviour Unit (BASBU) with a
     resultant increase in legal actions. We estimate achieving 100 legal actions against a
     target of 85 for 2003/04

    Redirection of £12.2m of management costs to the repairs service over two years 2002-
     2004

    Cleared the backlog of housing repairs (approximately 48,971 repairs)

    Achieved a reduction in current rent arrears of £700,000 against a target of £330,000

    Reduced our void re-let times from 53.7 days in 2002/03 to an estimated 42 days for
     2003/04. Our target for this year was 46 days, but was revised to 38 days during
     2003/04. We are now achieving 38 days for the final months of this year

    Devolving our Landlord Service to the new pathfinder constituencies as the start of the
     devolution programme over the next three years

HRA Business Plan – March 2004                                                        Page 4 of 76
Birmingham City Council
    We have set up two pathfinder constituencies and within these three Community Based
     Housing Organisations are being set up in Hodge Hill, Shard End, and Northfield. The
     process is being driven at a local level by tenants and residents

    We have set up robust performance management systems to ensure that we are
     delivering our objectives within our performance improvement plan

Stock Condition Information
We have put significant effort into understanding our stock condition and now feel confident that
we can accurately predict the investment requirements for our stock and understand the
position in regard to the Decent Homes Standard. We have worked with HACAS Chapman
Hendy and Savills to create a database and can now report stock condition and investment
requirements down to individual address level. We are commissioning a rolling programme of
stock condition surveys over the next two years covering almost 30% of our stock.

Meeting Decent Homes
Based on the work we have carried out with Savills, at 1st April 2003 53,916 (or 70%) of our
homes did not meet the Decent Homes Standard, with a further 23% of our homes expected to
fail by 2010, if we did no works to them. The cost of Decent Homes works plus putting in double
glazing to all properties that currently do not have this is £349m (2004/05 prices) to 2010. The
Council also has to undertake other works in addition to Decent Homes, bringing the total
investment requirement to £595m.

Taking into account our expected resources we have calculated that we have a shortfall of
capital resources of £165m to carry out the required works for the same period. We have the
resources to deliver our capital programmes in 2004/05 and 2005/06, but in 2006/07 we no
longer have all the resources we need to achieve the Decent Homes Standard and also do
everything else required of us.

Assessment of the Options to Secure Additional Funding
In 2002 tenants voted in a ballot to retain the Council as their landlord. An Independent Housing
Commission was set up to consider the future of council housing in Birmingham. Now under the
theme of flourishing neighbourhoods and devolution we are setting up Community Based
Housing Organisations (CBHOs) within eleven constituencies. The number and type of CBHO
will be determined by tenants on a local basis.

Each of these constituencies will be expected to undertake a formal Stock Option Appraisal to
determine how investment gaps are to be bridged. The outcome of the option appraisal will be
driven by tenants and leaseholders in the constituencies and CBHOs. We have set up two
pathfinder constituencies and three CBHOs are being developed in these constituencies.

Overall Performance
After a re-inspection of the Council‟s repairs service, which resulted in the service being judged
by the Housing Inspectorate as a poor (zero stars) service with “promising prospects” for
improvement, the Council is now under Audit Commission supervision and support. Tenants
have also sent us clear signals that they feel the Council provides them with a poor service.
Comparison with other local authorities tells us that our services are also more expensive.


HRA Business Plan – March 2004                                                        Page 5 of 76
Birmingham City Council
As a result a Performance Improvement Plan covering all aspects of the service has been
developed setting targets for improvement, with actual progress against those targets monitored
by members and tenants. There is strong evidence that we are improving performance.


Priorities for the Future
The Council is looking to the future positively, listening to tenants and leaseholders, and
seriously addressing problems. Our priorities are:

Priority 1    To improve the quality of service and responsiveness to tenants

Priority 2    To develop the infrastructure to sustain improvements over the longer term

Priority 3    To strengthen the financial position

The priorities are reflected in our Performance Improvement Plan which contains clear
objectives and targets to deliver these priorities and has also been agreed with the Audit
Commission. There will be regular monitoring of progress by both members and tenants. The
performance improvement plan for 2004/05 will be made up of and determined by the objectives
in the Housing Strategy, HRA Business Plan and other Best Value reviews and audit
inspections.




HRA Business Plan – March 2004                                                        Page 6 of 76
Birmingham City Council
Introduction and Strategic Context
Introduction
The Council has a statutory requirement under the Local Government Act 2003 to produce an
HRA Business Plan for its own homes within the context of wider housing and other corporate
objectives and a sound financial analysis. It covers a period of 30 years allowing us, together
with tenants and other stakeholders, to determine priorities to ensure the long term viability of
the stock. The Business Plan is submitted to the Government Office of the West Midlands and
assessed against ten „Fit for Purpose‟ criteria. The outcome of the assessment counts towards
the Council‟s overall Comprehensive Performance Assessment.

Introducing Birmingham

Birmingham – Key Facts and Figures

The population is currently 977,087. Based on mid-term projections the population is expected to rise by the year
2021 to 1,024,700

The council owns 73,577 homes (last updated 21.1.04)

The average earnings in Birmingham are £21,015.84 per year

The average property price in Birmingham for July – September 2003 was £128,488

The average house price is 6.4 times the average salary in the City

Since 1999 house prices have increased by 52.21%

The 2004 Housing Needs Assessment identified the need for 3743 additional (over and above existing
programmes) new affordable homes per year over five years

55 housing associations in the area manage 35,858 properties

The average rent for a housing association house in the area is £55.05 per week compared to £50.78 for the West
Midlands and £56.52 for England. This is the net rent excluding any service charge

The average weekly rent for a council house for 2003/04 was £48.78 excluding service charges.




Government Policy
The key strand of Government policy since 2000 for council housing is the achievement of a
decency standard for all social housing by 2010. This was a Public Service Agreement (PSA)
target in the 2000 Spending Review. The 2002 Spending Review renewed the Government‟s
commitment to making all homes decent by 2010. The target was amended to: “by 2010, to
bring all social housing into decent condition, with most of the improvement taking place in
deprived areas, and increase the proportion of private housing in decent condition occupied by
vulnerable groups”.




HRA Business Plan – March 2004                                                                      Page 7 of 76
Birmingham City Council
In the Decent Homes Standard a home is classed as „decent‟ if it:

      Is above the statutory minimum for housing (the fitness standard);
      Is in a reasonable state of repair;
      Has reasonably modern facilities; and
      Provides a reasonable degree of thermal comfort

The achievement of Decent Homes is the key issue for Birmingham. The HRA Business Plan
requires all stock holding authorities to determine where they are in relation to Decent Homes
i.e. how many of their homes fail Decent Homes, and have they got the resources to invest in
homes to achieve Decent Homes by 2010? If not, what options are to be considered to bring in
additional resources to ensure that the standard can be met?

Flourishing Neighbourhoods and Sustainable Communities

After tenants voted to retain the Council as their landlord in 2002 an Independent Housing
Commission, chaired by Professor Anne Power, was set up in May 2002 to inquire into the
future of Birmingham‟s council housing.

The Commission published its findings in December 2002 and recommended that council
housing would be better run at neighbourhood level. It recommended that around 35
Community Based Housing Organisations (CBHOs) should be set up managed by nine area co-
ordinators who would be highly qualified with ring fenced budgets and dedicated local teams.
There should be maximum resident involvement and autonomy.

Running in parallel to this the Council decided to set up eleven Constituencies headed by
Constituency Directors to devolve local services. CBHOs will ultimately come within this
devolved structure. CBHO is a generic term for any number of different neighbourhood models
that could be developed. Two pathfinder areas, Hodge Hill and Northfield, have been chosen to
outline what will happen across the City. The timescales for fully implementing the CBHOs is
four years. A wide range of Council services will be delivered locally - not just housing services.
These issues are considered in more detail on Page 12 of this report.

The key theme running through the all the Council‟s corporate documents and the Housing
Strategy is flourishing neighbourhoods and sustainable communities. This approach recognises
Birmingham‟s size and diversity. Housing Market Areas have been developed to address
housing issues at a local level. We will now overlay onto these the constituencies and the
community based housing organisations as they are developed. The map shows the spread
and density of our homes throughout the City.



Key Corporate Objectives
The HRA Business Plan has not developed in isolation and is consistent with other Council
strategies. Appendix A shows how the Council as landlord contributes to the achievement of
key corporate objectives. Appendix B provides a comprehensive list of contact names for all the
documents referenced in this business plan.




HRA Business Plan – March 2004                                                        Page 8 of 76
Birmingham City Council
Birmingham City Council Planning Framework




The Housing Strategy
The Housing Strategy considers housing issues across all tenures for the City. It details how the
council is implementing national and regional priorities for housing across the City, makes an
assessment of housing need, and, working with partners and residents, determines a
programme to deliver priorities.

The Housing Strategy is central to the delivery of flourishing neighbourhoods. Birmingham‟s
housing markets play a vital role in meeting the needs of our residents. To deliver on our vision
we are continuing to develop the strategy around the nine Housing Market Areas (HMAs)
recognising all the important factors, including housing, that make people want to stay in or
move into a neighbourhood. We will also be taking into account the new Constituencies and
CBHOs as we implement our Housing Strategy over the coming years.

We have developed a Sustainability Index to help inform decision making at neighbourhood,
constituency, and HMA level which applies a series of tests to determine future investment or
intervention.

The agenda for housing set out within the Housing Strategy reflecting the City‟s corporate
objectives:

    To develop Birmingham as a City of flourishing neighbourhoods
    To improve our services and serve Birmingham well



HRA Business Plan – March 2004                                                       Page 9 of 76
Birmingham City Council
The new agenda for housing, reflecting the above, is:

    To plan the City‟s development and infrastructure as a driver for the economy and wider
     region
    To devolve and localise key services as a means to secure improvements and integrate
     delivery

As a result out principal strategic priorities are:

    Decent Homes
    Changing Demand
    Affordable Housing

The diagram at Appendix C shows the strategy context. The HRA Business Plan explains how
the Council as landlord can contribute to the delivery of these priorities. The Housing Strategy is
available from Lisa Trickett, Assistant Director (Strategy): telephone 0121 303 4241, or e mail:
lisa.trickett@birmingham.gov.uk. The Housing Strategy is also available in the Council‟s web
site at www.birmingham.gov.uk.

Analysis of Demand
The main analysis of demand is included in the Housing Strategy and summarised in this
section of the business plan. Overall there is a shortage of affordable housing. Demand varies
across the different Housing Market Areas (HMAs) due to a number of factors including
condition of council homes but also schools, environment, employment, anti-social behaviour,
and community are important factors. Using the sustainability index we will have a variety of
resident-led solutions including investment and clearance to enable us to deliver flourishing
neighbourhoods.

The housing needs model has identified a shortfall in social rented units of approximately
18,700 units. To clear this backlog would require an annual addition of 3,743 units per annum
over 5 year period 2004/05 to 2008/09. There are differing levels of demand by HMA and the
figures in the table below are an indication of the mismatch in supply and demand for social
rented housing across the HMAs. Housing need in each HMA needs to be understood in the
context of other evidence on need and aspirations presented in the Housing Strategy and HMA
profiles, and how supply should be delivered to match changing aspirations and needs in each
HMA.

 Housing Market Area                                       Net shortfall shown as positive numbers;
                                                            oversupply shown as negative numbers
 City Centre                                                                                     -2
 East Birmingham                                                                               3187
 Eastern Periphery                                                                             -936
 North West Birmingham                                                                          730
 Northern Periphery                                                                             -33
 Northern Suburbs                                                                                -5
 South West Birmingham                                                                        -1967
 Suburban North Ring                                                                           1212
 Suburban South Ring                                                                           1557
 Net Shortfall                                                                                 3743




HRA Business Plan – March 2004                                                        Page 10 of 76
Birmingham City Council
Stock Loss
We estimate that we will lose a significant number of homes between now and 2010 due to right
to buy and clearance programmes. By 2010 we estimate be will have in the region of 58,000
homes a loss of near 25% from 2003/04.

                               Budget       Draft     Estimate   Estimate   Estimate   Estimate   Estimate
                               2003/04     2004/05    2005/06    2006/07    2007/08    2008/09    2009/10
Houses
Opening Property Numbers         40,053      37,527    34,723     33,003     31,525     30,197     29,177
Sales                             2,295       2,550     1,530      1,360      1,190      1,020        850
Demolitions                         269         254       190        118        138          0          0
Closing Property Numbers         37,489      34,723    33,003     31,525     30,197     29,177     28,327

Average Property Numbers         38,771      36,125    33,863     32,264     30,861     29,687     28,752

Flats
Opening Property Numbers         36,594      35,293    33,760     32,343     30,884     29,475     29,295
Sales                               405         450       270        240        210        180        150
Demolitions                         931       1,083     1,147      1,219      1,199          0          0
Closing Property Numbers         35,258      33,760    32,343     30,884     29,475     29,295     29,145

Average Property Numbers         35,926      34,527    33,052     31,614     30,180     29,385     29,220

Total Properties
Opening Property Numbers         76,647      72,820    68,483     65,346     62,409     59,672     58,472
Sales                             2,700       3,000     1,800      1,600      1,400      1,200      1,000
Demolitions                       1,127       1,337     1,337      1,337      1,337          0          0
Closing Property Numbers         72,820      68,483    65,346     62,409     59,672     58,472     57,472

Average Property
                               74,733      70,652     66,915     63,878     61,041     59,072     57,972
Numbers

Note: RTB Sales are split assuming 85% Houses, 15% Flats – consistent with current experience. Demolitions
relate to properties taken out of debit.




HRA Business Plan – March 2004                                                                  Page 11 of 76
Birmingham City Council
‘One Size Doesn’t Fit All’ – Moving Forward
Introduction
In 2002 Birmingham undertook a ballot of all its tenants on a proposal to transfer its homes to
new landlords in a secret postal vote. 65% of tenants voted, and of those voting 33% were in
favour of transferring to a new landlord and 67% were against i.e. they were in favour of their
homes continuing to be managed by the Council.

As the issues that prompted the transfer proposals had not gone away we had to consider the
reasons why tenants voted „No‟ and determine a way forward which addresses the issues and
gives tenants the high quality homes and services they want. The Council established an
Independent Commission to look into the future of council housing in Birmingham.

One Size Doesn’t Fit All – The Findings
A full copy for this report is available on the Council‟s web site www.birmingham.gov.uk or from
Abigail Robson (e-mail Abigail.Robson@birmingham.gov.uk telephone 0121 303 3186.

The Commission visited many parts of the City talking to tenants, staff, and other housing
stakeholders in the process. Although there were some innovative solutions, examples of good
practice and tenant satisfaction, there are fundamental problems that need to be addressed.
The Commission found that “A combination of high cost, poor quality service, declining stock
condition, inadequate and costly repairs, the general unpopularity of the stock and high turnover
of occupants is creating growing levels of dissatisfaction among tenants, and leading to
escalating demolition of stock and a loss of a sense of direction and purpose”. The report
recognised that the funding gap to meet Decent Homes was a real problem for the City and that
“without transfer of this kind, there are no easy ways to close the funding gap”

The Commission had recognised the complexities of Birmingham and that different solutions will
be appropriate for different communities within the City. Residents should be included in
developing solutions that will increase local control and reinforce the local connection.

The key proposal in the report was the formation of “35 community based housing organisations
(CBHOs) to take on the landlord function within a city-wide framework established by the City
Council. Boards controlling the CBHOs would comprise half local residents – Council tenants,
owner occupiers, and local housing association tenants – half councillors and other
stakeholders. CBHOs would manage and maintain the housing to a higher standard and tackle
wider environmental, social, and economic conditions with local partners. Once set up, the
CBHOs may need to access further funding and may be able to widen their role to regenerate
the neighbourhood.”

Progress Since the Report
The devolution agenda is not just for housing: it applies to all Council services. Since the report
the Council has set in motion a devolution and localisation agenda. Many Council services,
activities, powers, and budgets will move away from the centre through to eleven
constituencies, each headed by a Constituency Director. The changes will take place over a
four year period as governance and managerial changes are made. Some services would be
provided centrally.
In the case of housing, the core activities of the strategic housing function, including research
and enabling, and resource management.
HRA Business Plan – March 2004                                                       Page 12 of 76
Birmingham City Council
Actions for change across the City in relation to housing are:

    Fundamental review of the Housing Department

    Creation of specialist teams in constituencies to address key areas of weakness
     identified in Best Value reviews

    Development of constituency investment plans based on accurate stock condition
     information and an understanding of housing need

    Increased delegation to 11 Constituencies of budgets and management responsibility to
     local offices

    Flexible solutions to local housing management issues

      Implementation of the recommendations from the Best Value review of estate services.


CBHO Pathfinders
CBHO pathfinders have been set up in two constituencies: Northfield and Hodge Hill. Involving
local residents‟ steering groups in the pathfinder areas have produced Statements of Intent.
Northfield had one steering group and produced one Statement of Intent, and Hodge Hill had
four steering groups. Three steering groups from Washwood Heath, Mirfield, and Bromford have
produced a combined Statement of Intent - „Our Hodge Hill‟ and The Shard End steering group
has produced a Statement of Intent for its neighbourhood area, „Our Shard End‟. Key objectives
from the statements are summarised in the table, but information on the Statements of Intent
can be obtained from Abigail Robson (e-mail Abigail.Robson@birmingham.gov.uk telephone
0121 303 3186.

Issue                 Northfield                      Hodge Hill                     Shard End
Setting up a mark I   One constituency-wide           An umbrella CBHO for           A CBHO for the Shard End
CBHO by 1 April       umbrella CBHO                   Bromford, Mirfield and         Area
2004                                                  Washwood areas
Number of
properties            8,300                           7,200                          2,500
Mark 1 CBHO Board     Tenants, Councillors, co-       Tenants, Councillors,          Tenants, Councillors,
composition           opted staff                     Independents                   Independents
Sheltered Housing                                                                    Proposed to develop a
                                                                                     strategy to look at the
                                                                                     sheltered housing stock
Service                      Improve the repairs            Improve the repairs         As Hodge Hill
Improvement                   service                         service
Priorities                   Pilot                          Pilot
                              neighbourhood                   neighbourhood
                              management                      management
                             Pilot zero tolerance           Improve tenants‟
                              in enforcing                    welcome pack
                              tenancy conditions             Improve the time it
                             Pilot                           takes to repair void
                              neighbourhood                   properties for
                              caretakers                      reletting
                             Set up local lettings          Improve the way in
                              office                          which void homes
                             Improve graffiti                are advertised for
                              removal                         reletting
HRA Business Plan – March 2004                                                                    Page 13 of 76
Birmingham City Council
                          Improve                   Improve
                           communications             communication
                           with young people          with the community

Investment                Board to develop          Achieve level of        Identify likely
                           the preferred future       investment known         investment needs,
                           CBHO options               at this time, and        known at this time,
                                                      meet aspirations         and meet
                                                      through Master           aspirations without
                                                      Planning and             Planning for Real
                                                      options study            or Master Planning
                                                                               at this stage



Timetable for Implementation
We have allowed four years to fully implement the CBHOs Citywide. The timetable allows for full
tenant, leaseholder, and resident involvement in the process. Getting this right with local people
will be a major contributor to future success. The key milestones are:


Developing CBHOs inside pathfinder constituencies


March 2004                   Recommendations on CBHO model and implementation plan to
                             Cabinet Committee, Devolution


April 2004 – March 2005      Implementing Year One models chosen by tenants


April 2004 – March 2005      CBHOs monitoring local standards (for example landlord and
                             environmental services) and feeding through their Management
                             Boards and Constituency Committees to assess performance
                             against targets


Rolling out CBHOs across the City


April 2005                   Four constituencies implementing models of CBHOs chosen by
                             tenants


March 2007                   CBHOs agreed and becoming operational over the whole council
                             stock




HRA Business Plan – March 2004                                                       Page 14 of 76
Birmingham City Council
Resources
Introduction
Local authority finance, including HRA finance, is regulated by statute. The HRA is „ring fenced‟;
only income and spending on the management and maintenance of our homes can be charged
here. These costs are met primarily by rents.

The Business Plan is over a 30 year period. The 30 year operating account allows for a
judgement to be made about the long term sustainability of the HRA. If income from rent, now
set on the basis of a national formula, does not cover the anticipated costs, then the Council
must take action to address this by reducing its costs.

Major maintenance and improvements to our homes are funded from capital resources that are
limited. In the Business Plan the key consideration is whether we have the resources to meet
the Government‟s Decent Homes Standard and any other liabilities, for example health and
safety works that we have.

Capital Strategy – Resources Prioritisation
The key document determining how capital resources are allocated across the Council is the
Capital Strategy. Resources are allocated in accordance with the strategic priorities of the
Council. This document is available from Martin Easton on 0121 303 2384 or e mail
martin.k.easton@birmingham.gov.uk

The Housing Strategy
The Housing Strategy contains details of how resources allocated to housing are split between
the HRA and strategic housing. The split is determined by the priorities set out in the Housing
Strategy.

Information from the Housing Strategy on the allocation of resources between the
strategic services and the HRA to be inserted here.

Sources of Capital Funding and Assumptions for the Future

Source of Funding                            Assumptions


Major Repairs Allowance – an allowance       The Government has indicated that the MRA will be increased in line
paid by the Government to maintain the       with inflation. It is an allowance per property based on archetypes.
stock in its current condition (represents   The MRA will reduce with disposals, demolitions, and right to buy
depreciation). This funding can only be      sales. For 2004/05 the MRA will be £39million, an average of £555.64
spent on HRA housing.                        per property. An inflation increase has been assumed.


Supported Borrowing – borrowing up to a      The supported borrowing allocation for Birmingham is £33.8m for
limit set by Government where the cost of    2004/05 and £35.1 for 2005/06. It is assumed that the HRA will be
borrowing is paid to the Council through     allocated £10.7m each year to 2009/10.
housing subsidy


Prudential Borrowing – where the HRA         Unsupported or „prudential‟ borrowing of £15m is planned for
can support the borrowing cost the Council   2004/05. The revenue cost to be met from the rent stream is £1.6m.
HRA Business Plan – March 2004                                                                   Page 15 of 76
Birmingham City Council
can borrow money to invest in our homes         Prudential borrowing is only planned for 2004/05 and is required due
                                                to the reduced rental income as a result of RTB and disposals. An
                                                annual revenue contribution of at least 4% of the borrowing will be
                                                made, and further consideration of a debt repayment policy will be
                                                required.


Right to Buy Capital Receipts – from the        It is Council policy that RTB receipts are reinvested in housing. A
sale of Council Houses. 25% of the receipt      reduction in the level of sales has been assumed in the projections
can be used for capital expenditure             together with the changes to the RTB scheme and house price
                                                increase.


Capital Receipts form the sale of HRA           The Council‟s capital strategy assumes that all non RTB sales of
Assets (other than RTB) – where an HRA          assets across all services are pooled. The proceeds from the sale of
asset is sold and the fund reinvested in the    assets goes into the „Flourishing Neighbourhoods‟ fund. Housing and
stock 100% effectively becomes useable.         any other service can bid for funding from this fund. Each scheme is
If this receipt is used to fund other non       considered on its merits. Earmarking capital receipts from the sale of
housing capital projects then 50% has to        HRA assets to the HRA could be a way of generating additional
be set aside to repay debt.                     resources. This would be subject to a revision of Council policy.


Revenue Contributions to Capital Outlay –       Revenue contributions to capital outlay is the funding available after
money from rents can be used to fund            all other revenue costs have been taken into account ensuring that
capital expenditure, but only if it can be      the HRA remains in credit. The amount varies each year based on
afforded.                                       the assessment of income and spending in the HRA




Capital Resource Projections to 2010
The projected HRA capital resources available for investment in the Housing Stock to 2010 are
£422.9 million.

                                 2004/05       2005/06   2006/07    2007/08     2008/09       2009/10    Total
                                 £000’s        £000’s    £000’s      £000’s      £000’s       £000’s    £000’s

Major Repairs Allowance            39,036       37,935    37,119      36,357      36,064       37,341   223,852

Supported Borrowing                10,703       10,703    10,703      10,703      10,703       10,703    64,218

Prudential Borrowing               15,000            0          0          0              0        0     15,000

RTB Receipts                       18,741       11,526    10,501       9,462       8,509        7,430    66,169

Earmarked Capital Receipts          2,200         100        100           0              0        0      2,397

Revenue Contributions               1,028        6,194     8,397      10,369      12,219       13,036    51,242

Total                              86,708       66,458    66,820      66,891      67,495       68,510   422,878




HRA Business Plan – March 2004                                                                          Page 16 of 76
Birmingham City Council
               Capital Resources 2004/05 - 2009/10

  100000.0
   90000.0                                      Other Receipts
   80000.0
   70000.0                                      Revenue Contributions
   60000.0                                      RTB Receipts
   50000.0
   40000.0                                      Prudential Borrowing
   30000.0                                      Supported Borrowing
   20000.0
   10000.0                                      Major Repairs Allowance
       0.0
              5

              6

              7

              8

              9

              0
            /0

            /0

            /0

            /0

            /0

            /1
          04

          05

          06

          07

          08

          09
       20

       20

       20

       20

       20

       20




HRA Revenue Income and Expenditure
The HRA has all the income and expenditure relating to the management and maintenance of
our homes.

Income to the HRA for 2004/05 is expected to be £192.4m. The largest source of income is
from rents generating £184.2m in 2004/05. Since 2002/03 rents have been based on a
Government formula that means that we have limited control over our rent. There is some
opportunity to vary individual rents by +/- 5%. This is explained in more detail on page 22 under
„Rent Restructuring‟. Other income of £8.2m includes interest, income from shops, leaseholder
income, garage and other rents.

In 2004/05 we expect to spend £191.4m managing and maintaining our homes. Our largest cost
is repairs to homes and we estimate we will spend £74.2m in 2004/05. The next largest cost is
management at an estimated £40.0m. Management costs include staff and associated costs,
offices, estate management, and support costs.


                       HRA Expenditure 2004/05
                                                Repairs
                   1%
                  1%                            Management

                5%
                                                Housing Subsidy (excl MRA)
       20%                           39%
                                                Capital charges (incl
                                                prudential debt)
                                                Voids & arrears
       13%
                        21%
                                                Performance Improvement
                                                Plan
                                                Contingency




HRA Business Plan – March 2004                                                     Page 17 of 76
Birmingham City Council
The detailed HRA from 2001/02 to 2009/10 is shown on page 21. The 30-year HRA Operating
Account including assumptions is shown at Appendix D that demonstrates that, based on the
assumptions, the HRA is sustainable in the long term. The City‟s HRA is sustainable over the
30-year period but only if we build up a surplus to address income loss through stock reduction
and increasing housing subsidy losses.

The Business Plan includes some key outcomes:

      £850.7m available for repairs and investment between 2004 and 2010
      £422.7m available for capital investment
      Annual Housing Subsidy deficit of over £20m
      Prudential Borrowing of £15m in 2004 costing £7.7m by 2010

It has also been constructed based on prudent assumptions, including the key assumptions
outlined below.

      Inflation at 2.5% per annum for the duration of the plan for general price increase.
       Inflation for capital investment has been calculated using BCIS inflation forecasts

      Interest rates remain constant (6.76% on borrowings, 3.69% on credit balances)

      Stock numbers reducing through RTB sales and demolitions, as follows:

                                    Opening               Sales          Demolitions        Closing Stock
                                     Stock
              2004/05               72,820                3,000              1,337              68,483
              2005/06               68,483                1,800              1,337              65,346
              2006/07               65,346                1,600              1,337              62,409
              2007/08               62,409                1,400              1,337              59,672
              2008/09               59,672                1,200                0                58,472
              2009/10               58,472                1,000                0                57,472
               [Note: the figures for demolitions have been evenly distributed across the years based on
              current capability of managing 1,200 demolitions in 2003/04. The figures will be revised as
              the programme rolls forward]

      Revenue Funded Repairs:

          o Includes Section 82 and Section 11 compensation and premises costs (£6.6m per
            annum – increasing by inflation each year)

          o Major element covers responsive and cyclical repairs - £952 per property in
            2004/05, increasing by inflation in subsequent years to £1,077 by 2010

      RCCOs are calculated as the balance of resources available.

      Capital expenditure is assumed to fully utilise all available resources in each year

      Housing management costs:

          o Include estate services expenditure, service charges and Supporting People Grant
            income


HRA Business Plan – March 2004                                                                   Page 18 of 76
Birmingham City Council
         o General management costs assumed to increase at RPI + 0.5% each year, with
           no savings to reflect stock loss through sales and demolitions

         o Estate services costs vary fully in proportion to stock loss

         o Service charges increase from current levels to fully recover costs of service
           provision by 2006

     Voids / Arrears:

         o Calculated as a fixed annual proportion of rent and service charge income each
           year

         o Voids cost assumed as 2.51% of rents etc. receivable – equivalent to 1,916 voids
           at any time during 2004/05

         o Arrears cost assumed as 1.78% of rents etc. receivable – equivalent to
           approximately £3.5m of lost rental income annually.

     Performance Improvement Plan is a one-off cost of £2.4m for 2004/05

     Subsidy:

         o Management and Maintenance Allowances assumed to increase by 6% per
           annum in real terms as notional rental levels increase to reflect rent restructuring
           impacts

         o Includes payment to offset increases in Capital Financing costs

         o Equates to contribution from rents of around £20m per annum

     Capital Financing Costs:

         o Annual increases due to changes in Capital Financing regulations (no repayment
           of debt, but some new borrowing - £10.7m per annum)

         o Assumed interest payable of 6.76%

     Prudential Debt Financing:

         o Includes provision for voluntary repayment of Prudential Debt of 4% per annum.

         o Assumed interest payable of 6.76%

     Contingency is assumed constant at £1.5m per annum

     Rent:

         o Rent restructuring implementation continues until 2011/12




HRA Business Plan – March 2004                                                    Page 19 of 76
Birmingham City Council
         o Average annual rent increase of RPI + 0.5% + £1.04 (approx. 5% per annum
           overall)

         o Average rent for 2004/05 is £50.04

         o Average rent for 2009/10 - £63.50

     Other Income:

         o Includes rent from shops, garages etc.

         o Also covers mortgage and notional interest

         o No major year on year variations

     Major Repairs Allowance:

         o Paid as cash grant through subsidy mechanism

         o £553 per dwelling 2004/05; increases with inflation in subsequent years

     Useable RTB Receipts:

         o 25% of RTB receipts assumed available for Housing purposes

         o Numbers of sales as outlined above

         o Average valuation £50,000 (2004/05) – future increases at RPI only

         o Average RTB discount approximately 50%

     Supported Borrowing is assumed at 2004/05 levels (£10.7m per annum) until 2009/10

     Prudential Borrowing is an assumed one-off borrowing of £15m in 2004/05

     Other Resources:

         o Includes Earmarking, SRB, NRF etc.

         o No significant resources identified for future years

     Minimum Working Balance required in any year of £3m




HRA Business Plan – March 2004                                                  Page 20 of 76
Birmingham City Council
Housing Revenue Account 2001-2010
The figures set out below are calculated on the basis of the Business Plan Assumptions that are set out on the last few pages.

                                  Actual      Actual      Budget      Draft      Estimate    Estimate    Estimate    Estimate    Estimate
                                  2001/02     2002/03     2003/04    2004/05     2005/06     2006/07     2007/08     2008/09     2009/10
                                    £m          £m          £m         £m          £m          £m          £m          £m          £m
Revenue Funded Repairs                64.2        67.4        65.4       74.2         72.4        71.2        70.1        69.8        70.3
RCCOs                                   0.9         2.8       11.7         1.0         6.2         8.4        10.4        12.2        13.0
Capital Expenditure                   76.9        55.6        67.7       85.6         60.2        58.4        56.6        55.3        55.4

Total Repairs/Investment             142.0       125.8       144.8      160.8       138.8       138.0       137.1       137.3       138.7

Housing Management                    48.0        46.5        41.3       40.0         39.9        39.5        39.9        41.1        42.3
Voids / Arrears                       10.6         9.0         9.3        9.6          9.7         9.8         9.8        10.0        10.3
Performance Improvement Plan           0.0         0.0         0.0        2.4          0.0         0.0         0.0         0.0         0.0
Subsidy (net of rent rebates)         10.5        15.0        16.5       24.0         22.2        21.8        20.8        20.2        22.3
Capital Financing incl. leasing       61.0        56.1        51.7       38.1         38.4        38.9        39.7        40.3        40.9
costs
Prudential Debt Financing               0.0         0.0        0.0         1.6         1.3         1.3         1.2         1.2         1.1
Contingency                             0.0         0.0        1.5         1.5         1.5         1.5         1.5         1.5         1.5
Rent                                (189.2)     (187.8)    (190.2)     (184.2)     (183.1)     (183.4)     (184.3)     (186.9)     (192.0)
Other Income                          (8.3)       (8.6)      (7.2)       (8.2)       (8.5)       (9.0)       (9.1)       (9.4)       (9.7)

Major Repairs Allowance              (42.6)      (41.6)     (39.9)      (39.0)      (37.9)      (37.1)      (36.4)      (36.1)      (37.3)
Useable RTB Receipts                    0.0       (2.8)     (13.9)      (18.7)      (11.5)      (10.5)       (9.5)       (8.5)       (7.4)
Supported Borrowing                  (24.9)       (5.4)      (9.7)      (10.7)      (10.7)      (10.7)      (10.7)      (10.7)      (10.7)
Prudential Borrowing                    0.0         0.0        0.0      (15.0)         0.0         0.0         0.0         0.0         0.0
Other Resources                       (9.4)       (5.8)      (4.2)       (2.2)       (0.1)       (0.1)         0.0         0.0         0.0

Total Capital Resources              (76.9)      (55.6)     (67.7)      (85.6)      (60.2)      (58.4)      (56.6)      (55.3)      (55.4)

Net (Surplus) / Deficit               (2.3)         0.4        0.0         0.0         0.0         0.0         0.0         0.0         0.0




HRA Business Plan – March 2004                                                           Page 21 of 76
Birmingham City Council
Rent Restructuring
Rent Restructuring was introduced by the Government from 2002/03 to converge local authority
and housing association rents. The process is timetabled to take 10 years to 2011/12. Broadly
speaking by then if two houses in the same street of similar size and condition, one belonging to
a housing association and one belonging to the council, then the rents would be the same.

Rent will be based on a „formula rent‟ which is calculated on local earnings, the value of the
house (January 1999 valuation), local authority rents, and the number of bedrooms. The
formula rent increases by inflation each year.

The guideline rent will increase each year until by 2011/12 when it will be the same as the
formula rent. Whilst the “Notional Rental Income” element of the housing subsidy calculation
has increased as a result of the introduction of rent restructuring, the overall housing subsidy
cost to central government is intended to remain broadly constant, through compensating
increases in allowances for management and maintenance expenditure.

For 2004/05, notional rent income is specified as £2,313.56 per property, estimated to increase
to £3,181.40 by 2009/10. Inflation only increases would have resulted in a 2009/10 notional rent
of £2,617.58. This has been offset in the business plan by an assumed real increase in
management and maintenance allowances of 6% per annum until the rent restructuring and
convergence programme concludes in 2011/12.

Whilst the rents of each property are required to meet the "formula rent" described above, the
council is still allowed to vary the rents of individual properties by up to 5% above or below this
level for any reason, for example to make properties in areas of low demand more appealing to
potential new tenants.

Limit rent is a differently calculated measure of average rents, which is used solely to calculate
any limitation to the level of rent rebate subsidy paid to the council. Even though rent rebates
are now outside the HRA, the HRA will still need to pay for the extent to which actual rents are
higher than the limit rent, by transferring funds to the General Fund. For 2004/05, this cost is
estimated to be £500,000. As a part of Rent Restructuring, limit rents are being increased to the
same level as formula rents by 2011/12.

             2002/03   2003/04   2004/05   2005/06    2006/07    2007/08    2008/09    2009/10    2010/11      2011/12
              Actual    Actual    Actual   Estimate   Estimate   Estimate   Estimate   Estimate   Estimate     Estimate
                £         £         £          £          £          £          £          £          £            £
Actual
Average       45.09     47.33     49.95     52.43      55.04      57.85      60.62      63.47      66.41        69.44
rent


Formula       47.77     49.33     51.28     53.33      55.72      58.23      60.85      63.59      66.45        69.44
rent


Guideline     39.72     42.23     44.49     47.27      50.45      53.82      57.40      61.18      65.19        69.44
rent


Limit Rent    45.95     47.95     49.69     51.91      54.49      57.20      60.05      63.02      66.15        69.44




HRA Business Plan – March 2004                                                                               Page 22 of 76
Birmingham City Council
Housing Subsidy
Housing subsidy is a negative subsidy determined on the basis of a „notional HRA‟. On the
basis of the subsidy determinations, issued annually by the Government, local authorities make
a contribution to the national pot. A detailed breakdown of housing subsidy is included at
Appendix E.

Budget Monitoring Arrangements
For each year, detailed budgets covering both revenue and capital income and expenditure are
prepared and formally approved by the City Council prior to the start of the year. These
approved budgets then form the basis for monitoring of actual performance month by month
throughout the year.

This monthly monitoring against approved budgets includes both financial and non-financial
information, and provides details of both performance to date and forecasts of the year-end
position. This information is distributed to senior Officers and Budget Holders, and discussed in
detail with appropriate SMT members to identify any controlling actions required.

The detailed operational monitoring is also used as the basis for regular reporting to tenants
(through City HLB meetings etc.), the Chief Executive (through Central Finance teams) and
Cabinet Member / Cabinet / Council as required.




HRA Business Plan – March 2004                                                      Page 23 of 76
Birmingham City Council
Stock Condition, Decent Homes & Investment Planning
Introduction
A key element of Government policy for Housing is that all social housing should meet the
„Decent Homes Standard‟ by 2010. This means that by 2010 Birmingham needs to achieve this
standard for all its 76,647 homes. (31st March 2003). Essentially the Decent Homes Standard
requires that all our homes must achieve four criteria:

        Be fit;
        Be in a reasonable state of repair;
        Have modern facilities and services; and
        Provide a reasonable degree of thermal comfort

More information on the Decent Homes Standard can be obtained from the Office of the Deputy
Prime Minister‟s web site www.odpm.gov.uk

The Council must be clear about the condition of its stock in relation to the Standard and
understand the investment requirement to achieve Decent Homes by 2010.

Significant Progress on Understanding Stock Condition Information
We have had robust stock condition information which allowed us to develop strategic plans at
total stock level. We can, therefore, accurately predict the investment requirements for the stock
for the achievement of the Decent Homes Standard. Significant progress has been made this
year in our ability to break that stock condition information down to individual property level. We
will be using this detailed data to inform investment programmes at a local level.

Our confidence is based upon two very important initiatives that we have been taking forward:

       We have worked with Savills and HACAS Chapman Hendy to create a stock condition
        database down to individual address level that provides us with exceptional analysis and
        reporting capabilities and stock investment requirements

       We have also recently entered into a major procurement process to commission a rolling
        programme of stock condition surveys that will further enhance the accuracy of our data

The following two sections give further detail about each of the above.

Stock Condition Information at Individual Property Level
       In 2000 – Savills carried out a stock condition survey on a 18 % sample (15,000
        properties) for stock transfer purposes. The survey was based on achieving the
        Birmingham‟s Full Improvement Standard funded by stock transfer. The Decent Homes
        Standard was in consultation at this stage

       July 2003 - HACAS Chapman Hendy carried out a third party review of the analysis of the
        2000 survey data against the Decent Homes Standard and reported a 74% failure rate as
        at 1 April 2003. HACAS Chapman Hendy estimated the cost to meet the Decent Homes
        Target (DHT) to be £344m (at today‟s prices). This was shared with GO and reviewed by
        with the Audit Commission

HRA Business Plan – March 2004                                                      Page 24 of 76
Birmingham City Council
    July 2003 to January 2004 – Savills carried out a cloning exercise on the 2000 survey data
     against the Decent Homes Standard and reported a 70% failure rate. Savills estimated the
     cost to meet the Decent Homes Target as £349m

    Savills have now combined their database from the 2000 stock condition survey with our
     own database of work carried out to homes since 2000. We now have an up to date
     database for all the stock as at December 2003

    The new database created by Savills is an SQL database that uses the 2000 stock
     condition information to clone stock condition and investment requirements to an individual
     property level. This database software is called PIMS and is compatible with our SX3
     software and the HITS system

    A team has been created to maintain the database, procedures put in place to capture
     data, and staff trained to create reports that will be used to inform investment programmes

    We are in the process of implementing a new housing management computer system. The
     planned live date is April 2005. The information in our new database will be used to
     populate the new system. We will then maintain this database and generate reports on
     stock condition to inform future investment programmes in line with tenant priorities.

Further Stock Condition Surveys
We are, at the time of writing, commissioning additional stock condition surveys. A rolling
programme of surveys will be undertaken over the next two years covering more than a quarter
of the stock. We will be prioritising estates in the pathfinder areas, but will also ensure that we
have a statistically robust sample covering all archetypes.

To ensure that tenants‟ views are reflected in our investment plans we will be asking tenants for
their views as part of the new stock condition survey. We will be surveying them specifically
about whether they are satisfied with their home and what priorities they have for improvements
both in their homes and on their estate.

In addition to this we are undertaking a programme of structural surveys on our non-traditional
homes (houses not constructed of brick) of which we have 38 different types. We will be
prioritising those types where there is evidence of deterioration. From this we will assess
structural problems, determine the long-term future of these homes, as well as the investment
needs. The non-traditional homes are also included in the general stock condition survey.

FPDSavills View on Stock Condition Information at Birmingham
James Sparrow, the Director from FPDSavills responsible for our Stock Condition Survey/Stock
investment assessment, said "We have undertaken a substantial piece of work to update the
original stock survey and to assess the investment requirements to make the properties decent.
This is on the back of the 2000 stock survey which was one of the most comprehensive surveys
we have ever undertaken."

In Summary – Our Confidence in Predicting Future Investment
Requirements
The new database that has been created for us allows us to formulate investment plans at any
composite level. This is extremely important, as the way in which constituencies will give
HRA Business Plan – March 2004                                                       Page 25 of 76
Birmingham City Council
consideration to stock options appraisal will require accurate stock condition information upon
which to base their analysis. The new stock condition surveys are being commissioned to run in
advance of those considerations at constituency level, ensuring that the process is sound and
data-driven.

Profile of the Stock
As at 1st April 2003 Birmingham had 76,647 homes. As we have such a wide range of types
across the City we used 27 archetypes to analyse condition plus further sub categories for the
non-traditional homes to analyse stock condition. These have been summarised to the seven
main archetypes to give an indication of the type of stock. We have very few large (4+
bedrooms) homes at just 2% of the stock. 43% of our homes are flats with 17% high rise flats.
We can carry out other analysis of our stock including Housing Management Area, Constituency
Area, and individual estates.

                          Stock profile by archetype


             17%                               21%              Small houses

                                                                Non-traditional
                                                                houses
                                                                Other houses

                                                                Bungalow s
                                                       9%       Maisonettes
 23%
                                                                Flats
                                               16%
                   9%         5%                                High Rise Flats




                    Stock Profile by bedroom size


                                                       1 bed flat
                        2%                             1-2 bed bungalow
                                      23%
       31%                                             2 bed flat
                                                       2 bed house

                                              5%       2-3 bed maisonette
       4%                                              3 bed flat
                                        16%
             5%         14%                            3 bed house
                                                       4+bed house




Meeting the Decent Homes Standard
As at April 2003 our stock condition information extracted from the Savills database shows that
53,916 of our homes fail the Decent Homes Standard. In addition to this 23% of our homes that
are currently Decent will fall below the Decent Homes Standard between now and 2010. 44% of
our failures are on thermal comfort, which equates to one third of the total stock. We have
calculated that we need £349m to bring homes up to the Decent Homes Standard by 2010.


HRA Business Plan – March 2004                                                    Page 26 of 76
Birmingham City Council
            Decent Homes Standard - proportion of all
                           failures



                              7%
                                                       Unfitness
      47%
                                                       Thermal Comfort
                                                       Modern Facilities
                                          44%          State of Repair
                      2%



It is important to us that tenants are living in Decent Homes. We are aware that achieving this
will be a significant challenge for the Council. We must also take into consideration
sustainability issues so our approach will be holistic, recognising that we cannot make
investment decisions on stock condition alone. We cannot afford to invest in homes that will be
included in future clearance programmes. We need to have investment priorities based on this
and what tenants are telling us about what they want to see done in their home, which are
improvements to heating and new windows. As a result our investment strategy will be:

      To maximise the number of properties made decent by 2010

In achieving this we will adopt the following principles for our future work programme for
2004/05 and future years:

    Continuing the 2004/05 programme approach of concentrating on the thermal comfort
     element of the Standard in as many properties as possible
    Works will directly contribute to meeting the Decent Homes Standard
    Use of stock condition information to identify properties failing the Thermal Comfort
     criteria
    Complete schemes started in 2003/04
    Call-off provision for properties that have outside toilets
    Invest in properties that we are confident will be retained in the long term
    Programmes that are estate, rather than property type, specific
    Complete window replacement and central heating as a package of work
    Balance investment across all eleven constituencies
    Roof, wiring and other key component failures to be completed as necessary for those
     properties
    Consult stakeholders on proposed new-start programmes

In 2004/05 we plan to carry out improvement works on over 10,000 homes.
The Council cannot invest all its money into Decent Homes but has to carry out some other
works, including health and safety works. We have minimised these other works to enable us to
target Decent Homes.

We have developed our investment programmes to 2010 to determine the resources we need
to achieve Decent Homes and to put double glazed units in all dwellings that have not already
had this improvement; this is shown in the following table as Decent Homes Plus.


HRA Business Plan – March 2004                                                      Page 27 of 76
Birmingham City Council
                                2004/05   2005/06   2006/07   2007/08     2008/09     2009/10     Investment to
                                £000’s    £000’s    £000’s    £000’s      £000’s      £000’s      2010 (£000’s)
Decent Homes Plus:
  Works:                         44,386    63,522    66,553      69,265      71,782      74,516         390,024
  Clearance                       9,283         0         0           0           0           0           9,283
  Long term void repairs         10,022     5,586     5,539       5,796       6,002       6,232          39,177
  Fees:                           5,563     4,515     4,803       5,050       5,260       5,625          30,816
Total DH Plus (A)                69,254    73,623    76,895      80,111      83,044      86,373         469,300

Environmental / clearance         1,081     2,424     1,995       1,507       1,800       1,246          10,053
Housing IT system                 4,970         0         0           0           0           0           4,970
(2004/05 only)
Warm air heating systems              0         0         0           0           0           0               0
Lift replacement prog.            1,414     2,635     3,102       3,246       3,841       3,739          17,977
Disability Discrimination Act       780       822       864         904         936           0           4,306
Concierge / door entry              600     1,475     1,107       1,159       1,200       1,276           6,787
Fire protection                   1,289     1,581     1,582       1,739       1,800       1,870           9,861
Asbestos removal                  1,150     1,317     1,582       1,739       1,800       1,870           9,458
Internal fees                       853     1,785     1,812       1,910       2,030       2,030          10,420
Structural repairs                  270     1,581     1,582       2,318       2,401       2,493          10,645
Environmental / security          1,041     2,108     2,216       2,318       2,401       2,493          12,577
works
T.V. Ariel replacement                0         0         0           0           0           0               0
Painting programme                1,802     3,162     3,323       3,478       3,601       3,739          19,105
Joint Ventures                    2,200         0         0           0           0           0           2,200
Total of Other Essential         17,450    18,890    19,165      20,318      21,810      20,726         118,359
Works Investment (B)

Total (Decent Homes Plus         86,704    92,513    96,060     100,429     104,854     107,099         587,659
& Other Essential Works)
(A + B)

Financed by:
Major Repairs Allowance          39,036    37,935    37,119      36,357      36,064      37,341         223,852
Supported Borrowing              10,703    10,703    10,703      10,703      10,703      10,703          64,218
Prudential Borrowing             15,000         0         0           0           0           0          15,000
RTB Receipts                     18,741    11,526    10,501       9,462       8,509       7,430          66,169
Earmarked Capital Receipts        2,197       100       100           0           0           0           2,397
Revenue Contributions             1,027     6,194     8,397      10,369      12,219      13,036          51,242
Total Resources                  86,704    66,458    66,820      66,891      67,495      68,510         422,878
Funding deficit for year              0    26,055    29,240      33,538      37,359      38,589         164,781
Cumulative deficit                    0    26,055    55,295      88,833     126,192     164,781         164,781
Note: Figures include inflation forecasts using BCIS data.

The above table is based on the following assumptions:

    1. The cost of clearance and demolition for schemes in 05/06 onwards are cost neutral

    2. An adjustment of £29.2m has been made for the assumed level of
       Right to Buy properties prior to work required to make them decent being completed

    3. Costs included for double glazed units in all dwellings that have not already had this
       improvement

The total investment requirement to 2010 for the Council is £587,659,000, including
essential works of £118,359,000 and Decent Homes works of £469,300,000. Therefore we
have a shortfall in resources between now and 2010 of £164,781,000.

The investment gap of £164,781,000 is based on achieving the Decent Homes Standard in
all dwellings by 2010 and providing double glazed windows in all properties that have not
already had this improvement. Window replacement is the top priority for our tenants.

HRA Business Plan – March 2004                                                                       Page 28 of 76
Birmingham City Council
The table below represents our prediction of the number of properties that would remain “non-
decent” at 2010 if we were to adopt an alternative strategy of using all available resources to
optimise the number of properties meeting the decent home standard at 2010. This would
mean directing available resources to the properties with the lowest unit cost and to do only
works essential to meet the standard. This strategy would not be acceptable to or tenants.

                               2003/04    2004/05    2005/06    2006/07    2007/08   2008/09    2009/10


No of homes non decent at        51,703     49,766     43,306     36,197    29,088     21,979     14,870
the beginning of the year


Number of non decent             49,766     43,306     36,197     29,088    21,979     14,870      8,063
homes at the end of year


Stock at the end of the year     72,310     68,483     65,346     62,409    59,672     57,962     56,962


% of stock non decent              69%        63%        55%        47%       37%        25%        14%



The 8,063 properties that would remain non-Decent by 2009/10 would not have received major
works such as central heating, kitchen or bathroom replacement, or rewiring. The total cost for
each property could be in the region of £20,000.

In summary:

        Our investment requirement for Decent Homes Plus and other Essential Works is
         £587,659,000 to 2010 (including inflation)

        We have resources of £422,882,000, so the shortfall is £164,781,000 (both including
         inflation) to 2010

        We will be short of the resources we require to complete our total planned programmes
         in 2005/06

        We are unable to fund only Decent Homes works as the Council has other essential work
         it must carry out; these other works cannot be ignored

        We are unable to achieve the Decent Homes Standard with available resources.
         This standard is not acceptable to tenants. As a minimum they also expect that
         double glazed windows are installed in all dwellings

        Through Stock Option Appraisal we shall explore opportunities to bridge the
         identified investment gap of £164,781,000




HRA Business Plan – March 2004                                                                  Page 29 of 76
Birmingham City Council
Clearance and Redevelopment
Both demand for, and the condition of the stock, are key aspects of the HRA Business Plan.
The Council is now pursuing a mixed solution to the investment needs of the stock with
investment priorities increasingly determined through business planning and an asset
management approach. In addition to investing in stock for which there will be continuing
demand the best course of action from a financial perspective also requires the
decommissioning of stock that is obsolete, in low demand or where repair and improvement is
not a financially viable option. The Council have therefore approved a forward clearance and
disposal programme (initially to 2007/08) covering some 6500 properties. This is subject both to
annual review, individual scheme appraisal and approval and public consultation. Nearly three
quarters of the properties within the provisional programme are statutorily defective or otherwise
structurally unsound with a significant proportion being un-modernised high rise blocks which
have shown to be financially unviable by a considerable margin.

Given the starting point of a poor and deteriorating housing stock, asset management seeks to
identify property that is beyond the financial resources available and for which alternative
solutions must be found. Clearance is not necessarily the preferred option in every case and
alternatives may involve changes of use and/or management. The Council‟s investment
methodology involves a series of checks and appraisals. Over and above the fundamental of
stock condition data this involves full financial appraisal and an assessment of neighbourhood
sustainability based on a process of continuing research targeted at the variety of sub markets
that together make up the Birmingham housing market. The sustainability “test” recognises that
the functions of neighbourhoods are not static, will change over time and a different balance of
housing tenure or house prices is likely to be required in different parts of the City. The
financial appraisal model calculates NPV over the 30 year term of the Business Plan using
standard factors and allows account to be taken of local variables in income and costs and
variations under different tenure models alongside the expenditure to meet Decent Homes.

A decline in the stock holding through both clearance and Right to Buy brings with it capacity
issues in terms of the Council‟s ability to rehouse tenants whose homes are affected by
demolition proposals. Clearance is, therefore, almost always accompanied by compensatory
redevelopment on a mixed tenure basis involving private sector and housing association
partners aimed at meeting local and wider needs and aspirations.

The partnership approach with housing associations has been successfully used in many
regeneration schemes across the City and the Council is developing these further through the
appointment of preferred housing association partners for each of the Housing Management
Areas. There has been a long history of working with the private sector within the City and this
will continue. Where appropriate land value may be used to procure new HRA housing assets
on certain schemes.

The provisional programme is a core component of the HRA Business Plan and provides:

      -      A key element in a long term strategy for the housing stock and a degree of
             certainty as to stock movement in the short- medium term

      -      Certainty to tenants over the medium to long-term future of their homes

      -      An appropriate response to the Best Value review of capital and procurement,
             which identified the need for a strategic context to shape future investment
             decisions

HRA Business Plan – March 2004                                                     Page 30 of 76
Birmingham City Council
       -     External resources for replacement housing. The Housing Corporation have
             moved towards a strategically driven Approved Development Programme which
             requires a long term planning view as to future investment targets and
             requirements.

       -     The engagement of local communities in the decision making process.

Underpinning the programme is the aim that it should complement the wider context of
regeneration and renewal as set out in the Housing Strategy.

Developing Partnerships and Managing the Investment Programme

We have recently established long-term strategic partnerships for delivery of the Decent Home
Investment Programme. Our three new construction industry partners, together with the two
managed repair service providers offer a range of resources and provide considerable flexibility
for the delivery of the programme.

The new strategic partnerships are based on an agreed level of profit and overhead. We are
working together with our partners to establish supply chains and value engineer processes to
achieve quality and price targets. The priorities for our partnerships are

      To achieve right first time
      To achieve greater tenants satisfaction
      To ensure works are carried out within budget and demonstrate Value for Money.
      To reduce design supply and completion time
      To improve quality.

Operations of the partnership are through a Strategic Partnership Board, a Project Performance
Board, and Project Teams.

                          Strategic Partnership Board


                             Project Performance Board


                                  Project Teams

Tenants are represented on Project Teams and have an input into the decision-making by
Project Performance Board on allocation of work between partners.

We are working together with our partners to plan delivery of the Investment Programme. We
will jointly monitor performance and all partners, including our managed repair service providers,
will work together to share learning.

For the 2004/5 Decent Home Investment Programme Key Performance Indicators (KPIs) are
being developed in consultation with tenants and our partners in respect of:

      Cost
      Time
      Tenant Satisfaction
      Health & Safety

HRA Business Plan – March 2004                                                     Page 31 of 76
Birmingham City Council
Performance against these KPIs will be reported quarterly to local Housing Liaison Boards and
Steering Groups.

At a Partnership level we are also reviewing progress of the partnerships in respect of

      Collaborative Working
      Continuous Improvement
      Dispute Resolution
      Policy Performance and Improvement
      Project Delivery

Performance on these KPIs will be monitored and reviewed by the Strategic Performance
Board.

Involving Tenants in the Investment Programme

Investment priorities have been developed in consultation with Forward Planning Group, a Sub-
Group of City Housing Liaison Board (CHLB) and endorsed by CHLB. The priority for tenants is
to have warm homes. Double-glazing and central heating are the top priorities.

Tenants‟ representatives on Forward Planning Group told us:

“Tenants want warm homes. Central heating and double-glazing are essential”.

Ivy Woodward, Tenant Representative – Forward Planning Group.


“My home has both central heating and double-glazing. It was when double-glazing was fitted
that I noticed the difference. Before that the heat disappeared through the drafty window
frames”.
Celia Evans, Tenant Representative – Forward Planning Group.


Local Housing Liaison Boards and Steering Groups in the pathfinder areas have had an
opportunity to influence the Investment Programme in their area. Local Boards have also
endorsed the priority of improving thermal comfort. The allocation of resources at a
constituency level has been welcomed and local HLBs and Steering Group have been involved
in determining the programme in their area. Forward Planning Group will continue to be
involved in the monitoring progress of the Investment Programme and report quarterly to CHLB.
At a local level, progress of the programme and achievement against KPIs will be reported
quarterly to local Housing Liaison Boards and Steering Groups. Representatives from partner
organisations and the Housing Department will attend these meetings to report progress to
tenants.




HRA Business Plan – March 2004                                                     Page 32 of 76
Birmingham City Council
Current Performance
Comprehensive Performance Assessment (CPA) and Best Value Reviews
Birmingham City Council was assessed as being a weak authority in the Comprehensive
Performance Assessment in 2003. Within the overall assessment housing received a score of 1
out of 4. The assessment for housing was based on Best Value reports, performance indicators,
and our strategies and plans.

In 2001, following a Best Value Inspection of repairs and maintenance, the service was judged
as poor (no stars) but as “likely to improve”. In 2003 the service was re-inspected and again was
judged as a „poor‟ (no stars) service, but with “promising prospects for improvement”. The Audit
Commission has placed the service under supervision and plans to re-inspect in March 2005.

There are other indicators which emphasise the importance of improving performance:

    The National Housing Federation Tenant Satisfaction Survey in 2001 and 2003 which
     showed that tenants‟ satisfaction is low and falling

    Six internal Best Value Service Reviews which identified substantial scope for
     improvement (the Reviews covered the Strategic Function, Capital and Procurement,
     income maximization, empty properties, anti-social behaviour and allocations)

    A City Council-wide employee survey, in summer 2002, which showed general
     dissatisfaction among its housing staff

    No significant improvement in the Council‟s Best Value Performance Indicators from
     2001/2 to 2002/3

We accept the need to demonstrate significant improvement in services. We have developed a
Performance Improvement Plan (PIP) and put in place a framework to monitor progress towards
key objectives. The following bodies are involved in monitoring progress against PIP:

    The Audit Commission through our Monthly Summary Reports

    Tenants – through a sub group of the City Housing Liaison Board (CHLB)

    Staff – regular core briefings on performance, team briefing discussion, and items on
     management conference

    Trades Unions – via the departmental consultative structure

    Cabinet Committee on Housing Performance – receiving monthly reports and reporting to
     Cabinet and Council

    Housing and Urban Renewal Overview and Scrutiny Committee – receiving monthly
     reports

    Strategic Housing Board – made up of senior off officers of the Council, Government
     Offices, External Inspection Services, and Support Officers. This is not a decision making
     body: its role is to provide overall direction and external challenge


HRA Business Plan – March 2004                                                    Page 33 of 76
Birmingham City Council
    Housing Senior Management Team – overall management control, receiving reports on a
     weekly basis

    Review Board – includes project sponsors meeting monthly, mainly to discuss projects
     and their impact on each other

We monitor our performance over a wide range of targets and indicators; not just the BVPIs, but
also a wide range of local indicators we have developed.

If performance is to improve then it needs to be measured and compared to other organisations
through benchmarking. Not only do we need to understand our comparative position, but we are
now more focussed on continuous improvement and are setting ourselves stretching targets. To
allow us greater access to benchmarking information we have joined HouseMark. In addition to
comparative data we will also be using the best practice information to help us improve our
services.

We have also started to benchmark ourselves against housing associations and have included
some information in this section of the business plan.

For further information on the Performance Improvement Plan contact Viv Nind telephone 0121
303 2477 or e-mail vivien_nind@birmingham.gov.uk

Managing the Service – Our Key Achievements
In 2003, we set up a specialist Birmingham Anti-Social Behaviour Unit (BASBU) to provide both
practical and policy support to local housing teams. Expert staff were recruited from a variety of
backgrounds including police, probation, social work, and military services. At the same time,
housing teams began restructuring into functional units so that skills could be focused on
addressing key problems.

BASBU now works across all tenures and has police officers attached on a full-time basis.

Improvements in performance have been dramatic, with a shift from use of possession action to
injunctions, which are both quick and effective in stopping anti-social behaviour. Use of ASBOs
is also growing, particularly in conjunction with other actions. The City's Legal Services
Department has responded by forming a dedicated ASB Legal Team, which will be enhanced
by a new partnership arrangement with West Midlands Police Legal Services.

Mediation is promoted as an early intervention tool where anti-social behaviour arises from a
dispute and its usage is increasing. Over 80% of disputes are resolved by mediation and the
service capacity is being expanded to keep pace with rising demand. Although we have run an
in-house service for eight years, we have now engaged the independent Sandwell Mediation
Service to act for us

Customer feedback on our new approach is encouraging and media coverage has been
extensive and positive. Changing public perceptions is a longer-term aim.




HRA Business Plan – March 2004                                                      Page 34 of 76
Birmingham City Council
Managing Our Cost Base – Responding to Changes in Our Operating
Environment
The Independent Housing Commission identified that the cost of our housing service is high and
the quality poor. If we are going to be successful in regenerating neighbourhoods then we must
transform the quality of services we provide to tenants and leaseholders, responding to local
needs. The devolution agenda and the development of CBHOs represent a positive change.

We know we have to reduce our costs in line with the significant stock losses we have
experienced in recent years. In 2003/04 we have achieved a £12m redirection of resources into
our repairs services: this was partly as a result of reduced staff numbers. We need to continue
this process to maintain a sustainable HRA, to provide value for money for our tenants and
leaseholders, and to redirect savings into investment in our homes.

The Audit Commission‟s Inspection in 2003 focused on the repairs and maintenance service. As
a result of their findings a detailed Performance Improvement Plan has been developed to
address the weaknesses in the service. A significant element of the Plan seeks to re-define and
renegotiate our relationships with our two main contractors, AWG and Accord. A General
Partnering Framework that outlines the key principles that will underpin the approach has been
considered by the Cabinet Committee on Housing Performance. We have consulted with our
Tenants‟ Repair and Maintenance Monitoring Group on the way forward, and they have
positively welcomed the approach.

The Framework has articulated a vision that envisages ONE partnership that draws together the
operations of the various key stakeholders to provide a single joined-up and seamless service
to the tenants and leaseholders of Birmingham. We aim to achieve recognition for providing a
timely and cost effective repairs and maintenance service that will achieve an improved
assessment by the Audit Commission when they re-inspect in March 2005. We will maximise
tenant and leaseholder satisfaction by endeavoring to deliver right the first time and at
appropriate standards.

These principles will apply to the approach taken with any of our contracting partners, now or in
the future, for the provision of this vital service.

Extensive and detailed work has now commenced with all stakeholders to turn the vision into
reality. This will require a completely new approach and culture to be adopted by both the
Council and our existing partners. Our tenants have stated the service they expect, and we will
now explore and implement routes to achieving these.

For further details on the General Partnership Framework, please contact Celia Huxtable on
0121 303 3561 or email: celia.huxtable@birmingham.gov.uk


Managing our Cost Base - Setting Targets for Management and Maintenance
Spend
As detailed above we are taking positive management action to ensure that our costs reduce in
line with our stock loss and associated loss of income. We are specifically monitoring our
management and maintenance costs against our total income. We are also undertaking an
exercise in partnership with HouseMark to compare our proportion of management costs with
those of others in the Core Cities group of local authorities.


HRA Business Plan – March 2004                                                     Page 35 of 76
Birmingham City Council
The graph below shows management and repairs costs as a percentage of total income
(includes rent, income from shops and garages, leaseholder income, and interest). These
targets are reflected in the HRA budget on page 17 and the operating account at Appendix D.
The percentages in the graph reflect the £12m switch of resources into the repairs service from
management costs between 2003/04 and 2004/05. The review of Housing Services Task and
Finish Overview and Scrutiny Committee recommended that "...further reductions in
management costs be identified so as to provide a further increase in the repairs budget, such
that the management costs are comparable with those of other Core Cities". Actions to reduce
management costs are included in the Performance Improvement Plan (Action Plan).


               Revenue Repairs and Managment Costs as a
                      Percentage of Rent Income

  70%
  60%
  50%
  40% 34% 36% 34% 40% 40% 39% 38% 37% 37%           Repairs Costs
  30%                                               Management costs
  20%
  10% 25% 25% 22% 22% 22% 22% 23% 23% 23%
   0%
   20 2

   20 3

   20 4

   20 5

   20 6

   20 7

   20 8

   20 9

          0
        /0

        /0

        /0

        /0

        /0

        /0

        /0

        /0

        /1
      01

      02

      03

      04

      05

      06

      07

      08

      09
   20




The objective of setting the targets above is to deliver revenue savings. Despite a real terms
reduction in rental income, we can use as Revenue Contributions to Capital Outlay to fund our
investment programme. The savings we are projecting allow us to generate a total of £51.2m of
Revenue Contributions to Capital between 2004/05 and 2009/10.

                 2004/05   2005/06   2006/07   2007/08     2008/09     2009/10    Total
                  £000‟s   £000‟s    £000‟s     £000‟s      £000‟s     £000‟s    £000’s

Revenue
Contribution      1,028     6,194     8,397     10,369      12,219     13,036    51,243
to Capital
Outlay


The Graph below shows how much of our total income (rents, interest, shop and garage rents
and leaseholder income) we are projecting that we are able to use as Revenue Contributions to
Capital Outlay, as a result of the savings we will be making in our management and
maintenance costs.




HRA Business Plan – March 2004                                                    Page 36 of 76
Birmingham City Council
             Reductions in operating costs as a proportion of total
             income showing increases in Revenue Contributions
                              to Capital Outlay

        250

        200

        150
   £m                                                                              Revenue
        100                                                                        Contribution to
                                                                                   Capital Outlay
         50                                                                        Operating Costs

          0
                 5


                             6


                                         7


                                                     8


                                                                 9


                                                                             0
              /0


                          /0


                                      /0


                                                  /0


                                                              /0


                                                                          /1
           04


                      05


                                  06


                                              07


                                                          08


                                                                      09
        20


                     20


                                 20


                                             20


                                                         20


                                                                     20



Increasing the Proportion of Revenue Spend on Planned Maintenance.
It is better value for money to undertake planned maintenance as works can be carried out in
larger contracts thus reducing costs. Responsive spending is comparatively uncontrolled. Audit
commission best practice is for 60% of revenue spending to be planned and 40% responsive.
We have set targets and are monitoring the split.


              Revenue Repairs - split between planned and
                             responsive

     100%
      80%
      60%                                                                        Responsive
      40%                                                                        Planned

      20%
        0%
               2


        20 3

               4

               5


        20 6

               7


        20 8

               9

               0
             /0

             /0

             /0

             /0

             /0

             /0

             /0

             /0

             /1
           01

           02

           03

           04

           05

           06

           07

           08

           09
        20

        20




        20

        20




        20




        20




 [Note 2001/02 and 2002/03 reflect actual spend. 2003/04 onwards figures are targets]




HRA Business Plan – March 2004                                                                       Page 37 of 76
Birmingham City Council
Average Relet Time
There has been a significant improvement in our relet times as a result of a concentrated effort
to reduce turnaround times. We have developed and published a lettable standard which is
given to all tenants so that they know the standard of property they should have when they
move in. We are also addressing our long term voids, bringing them down to a target of 200. At
December 2003 we had 439 long term void properties.


                                     Average relet time (days)

  80
  70
  60                                                                       Actual
  50
                                                                           Target
  40
                                                                           Core cities
  30
  20                                                                       Housing Associations
  10
   0
          1


                    2


                              3


                                        4


                                                   5


                                                             6


                                                                       7
       /0


                 /0


                           /0


                                     /0


                                                /0


                                                          /0


                                                                    /0
    00


                01


                          02


                                    03


                                               04


                                                         05


                                                                   06
  20


              20


                        20


                                  20


                                             20


                                                       20


                                                                 20




 [The 2003/04 figure is to December 2003]

We will continue to concentrate on reducing voids to ensure that we maximise our rent income.
Our target is to be in the top quartile of metropolitan authorities.

Percentage of Urgent Repairs Completed Within Government Time Limits
This is another area where we have shown significant improvement in our performance.


                  Percentage of urgent repairs completed within
                            Government time limits

  100
   95                                                                      Actual
   90                                                                      Target
   85                                                                      Core Cities

   80                                                                      Housing Associations

   75
           1


                     2


                               3


                                         4


                                                   5


                                                             6


                                                                       7
        /0


                  /0


                            /0


                                      /0


                                                /0


                                                          /0


                                                                    /0
     00


                 01


                           02


                                     03


                                               04


                                                         05


                                                                   06
   20


               20


                         20


                                   20


                                             20


                                                       20


                                                                 20




 [The 2003/04 figure is to December 2003]

We have had a six month programme to clear the backlog for repairs. Our contractors Accord
and AWG are redirecting their workforce, using sub-contractors, and increasing supervision to
improve productivity. Our objective is to have reduced the backlog of repairs to zero by April
2004.


HRA Business Plan – March 2004                                                                    Page 38 of 76
Birmingham City Council
Satisfaction of Tenants with the Overall Service Provided by their Landlord
Tenant satisfaction with our service is low, but we have identified the reasons for this and are
striving to change this. The implementation of the Performance Improvement Plan, the
devolution of housing services to constituencies, and the setting up of CBHOs will make the
service responsive to local needs and we expect to see improvement in this indicator. We have
set some ambitious targets to reflect this.


                           Tenants satisfaction with service (%)

  90
  80
  70
  60                                                                            Actual
  50                                                                            Target
  40                                                                            Core Cities
  30                                                                            Housing Associations
  20
  10
   0
        2000/01 2002/03 2003/04 2004/05 2005/06 2006/07


 [The 2003/04 figure is to December 2003]

Rent Arrears
The collection of income and debt has in the past been very much process driven. We have put
significant effort into reducing our outstanding debt which stood at £12.5m at December 2003: a
reduction of £700,000 since March 2003. Much of this debt is subject to arrangements.


                          Percentage of rent collected BVPI 66a

  100

   95                                                                            Actual
                                                                                 Target
   90
                                                                                 Core Cities
   85                                                                            Housing Association

   80
          1


                     2


                                3


                                           4


                                                      5


                                                                 6


                                                                            7
        /0


                   /0


                              /0


                                         /0


                                                    /0


                                                               /0


                                                                          /0
     00


                01


                           02


                                      03


                                                 04


                                                            05


                                                                       06
   20


              20


                         20


                                    20


                                               20


                                                          20


                                                                     20




 [The 2003/04 figure is to December 2003]

We have recognised that a proactive approach is more effective, addressing problems early and
preventing tenants from getting into arrears with debts building up to unmanageable levels
before anything is done.

We are setting up functional teams to be more proactive in the early stages including providing
a debt advice service and tenancy support. We have introduced a new performance indicator to
measure the number of tenancies that fail each year. Between January and December that has
been a 20% reduction in the tenancies ending within 12 months.

HRA Business Plan – March 2004                                                                         Page 39 of 76
Birmingham City Council
If tenants do build up arrears despite the help and support we are providing they will be passed
onto the enforcement team who will pursue other measures to recover debts.

Tenancy Support
The Supporting People initiative has given the Housing Department the opportunity to improve
the service that we give to our more vulnerable tenants, by having a dedicated team of officers
to provide a range of housing related support, to help them maintain their tenancies. Each
applicant is individually assessed by trained staff who will establish their eligibility for the service
and work out, in conjunction with the tenant, a customised package of support.

Since the introduction of the service in April 2003, Tenancy Support Officers (TSOs) have
worked with approximately 2,000, mainly new, tenants and helped them settle into their homes
and establish links with the local communities. We are now planning to market the service more
widely to assist any vulnerable tenant.

In evaluating the service the real success lies with the many individual examples where tenants‟
quality of life has been markedly improved. For example:

    The young mother who is now able to budget properly and make her money last the
     week, following assistance with a budgeting plan
    The young man with mental health problems who has had a huge boost in self
     confidence since enrolling on a computer course with the support of his TSO.
    A woman with a disabled son who have settled into their home following a continuous
     cycle of moves due to neighbour complaints, and lack of basic life skills.

More measurable achievements however relate to:

    The numbers of tenancies that ended within 12 months has seen a dramatic decrease of
     20% since the start of the service
    The percentage of tenants receiving tenancy support that are in arrears is 6.6%,
     compared to tenants generally where the figure stands at 32%
    The average arrears of tenants receiving tenancy support at £238 is a lot less than the
     average arrears per arrears case of £519.

The service is being formally reviewed in May 2004, and this will ensure it is recognised as a
relevant and valuable service. The year ahead will see an increase in service user input,
continued training for the TSOs, promotional campaigns, and improved performance monitoring.




HRA Business Plan – March 2004                                                           Page 40 of 76
Birmingham City Council
Effective Consultation
Introduction
As the HRA Business Plan is a key document considering all issues related to the Council in its
landlord role it is essential that key stakeholders such as tenants and leaseholders are involved
throughout the development process, including the setting of priorities and objectives and
monitoring progress against target.

Tenants have made a fundamental contribution to the development of this Business Plan. Since
the „No‟ vote to stock transfer the Council has had to undertake a thorough re-examination
about the way it provides services to tenants and leaseholders. The Independent Housing
Commission report „One Size Doesn‟t Fit All‟ sought the views of community groups, tenants,
residents, staff and councillors before recommending the setting up of community based
housing organisation (CBHOs) to serve neighbourhoods across the City. The principle objective
for the future is that the eleven constituencies will work in partnership with the Council to
produce flourishing neighbourhoods.

Tenant Participation
The Council has produced a Tenant Participation Compact which sets out the opportunities for
tenants and leaseholders to participate in the development of the services that the Housing
Department provides. The Compact is an „umbrella‟ document that addresses participation city
wide. In addition local compacts have been produced to deal with local issues. Tenants have
been involved in the development of these compacts. Copies of the Tenant Participation
Compact are available for Nick Parker, Resident Involvement Manager (telephone 0121 464
4905 or e-mail: nickn.parker@birmingham.gov.uk).




HRA Business Plan – March 2004                                                     Page 41 of 76
Birmingham City Council
                                    The Cabinet




           Cabinet Member
              Housing



  Tenant Management
     Organisations
                                   City Housing                               City HLB sub-groups
                                   Liaison Board
                                                                                Black and Asian
   Bloomsbury Local                                                             customer Group
     Management
  Organisation Limited                                  Tenants‟
                                   Local Housing       Associations
                                                                             Differing Abilities Group
                                   Liaison Boards
  Druids Heath Tenant
     Management
      Organisation                                                             Sheltered Housing
                                                        Residents‟               Liaison Board
                                      Support          Associations
                                                                             Leaseholders‟ Liaison
       Manor Close
                                   Decentralised                                   Board
                                     Customer
                                    Involvement                               Tenant Participation
                                      Officers                                  Compact Group
        Mount Glen

                                                                              Service Improvement
                                   Local Housing                                     Groups
                                      Teams
         Holly Rise
                                                                               Best Value Review
                                                                                    Groups

     Options Studies in 11         Policy Manager
 locations at various stages of   and other central
         development
                                       support



To support tenant participation the housing department has a team of 13 staff. There is a central
team, with nine Customer Involvement Officers based in area offices.

Along with other councils, Birmingham has to be innovative to ensure that all sections of the
community are represented. There is under representation of tenants and leaseholders from
BME Groups and younger people. To increase involvement from these groups we are planning
a series of initiatives including an away day with the Black and Asian customer group to
consider key themes of work such as the option appraisal. To ensure the success of the new
CBHOs, as well as ensuring that we maintain the commitment of existing residents that get
involved, we must also encourage new faces. We have a proactive set of initiatives including:




HRA Business Plan – March 2004                                                      Page 42 of 76
Birmingham City Council
   In pathfinder areas for CBHOs, Independent Advisors will be funded by the Council to work
    with tenant steering groups to both support steering groups and consult wider tenant
    population in each pathfinder area
   In the Washwood Heath Area of Birmingham with a high BME population, the Council is
    working with a BME Housing Association on a two-stage process to encourage participation.
    The initial stage of detailed community mapping will inform targeting consultation across the
    area to ensure and encourage the involvement of all members of the community.
   In response to the Audit Commission Inspection the Tenant Participation team will develop
    other ways to engage tenants, gathering feedback and involving tenants in decision making
   The Black and Asian Customer Group are organising an away day to both encourage new
    members to join and for the residents to consider how to increase involvement and
    accountability of the group
   Differing Ability Group are considering working with corporate differing abilities group with a
    rolling program of „focus‟ days looking at different issues (including housing). This approach
    is likely to engage more residents than formal meeting cycle
   With devolution, a pilot Constituency Tenants Conference will be run in one of the Pathfinder
    areas. This will be part of a process to develop a constituency Tenant Compact and develop
    a Tenant Participation Strategy for Option Appraisal

Over forty studies are taking place with tenants. The Council is a member of Protocol Group of
Section 16 Agents looking at developing quality assurance for Option Studies, developing a
comprehensive Citywide training program, linking option studies with development of CBHOs
and formal Option Appraisal. These will feed into the overall Option Appraisal process.

It is essential that the shape and form of tenant participation supports the new CBHOs and
reflects the decision making process of the Council. Alongside the development of CBHOs we
are working with residents to review tenant participation structures to ensure that:

     Tenants can influence and shape the housing services at constituency level

     At a City level, tenants engage with officers and members to establish the strategic
      direction of the housing service

     The process of participation focuses on sharing responsibility to improve services rather
      than reacting to poor performance

Reaching Tenants that are not Actively Involved
It is recognised that the majority of tenants choose not to, or are unable to, be involved in the
more formal tenant involvement process. It is therefore important for both the housing
department and tenant representatives that new ways are found of capturing the views of these
tenants, reporting them and ensuring they help shape the work of the housing department.

Currently these views are sought through the annual tenant survey, feed back to the tenants‟
newsletter Letter Box and open meetings on specific projects. The council is also reviewing the
complaints procedure to ensure that there is a greater breakdown of the issues raised in the
complaints and this can inform future customer services.



HRA Business Plan – March 2004                                                       Page 43 of 76
Birmingham City Council
The Tenant Compact Group are currently planning a number of focus groups of tenants who are
not involved to ask them what they believe is tenant involvement and ways they would like to be
involved. This will include specific focus groups for younger people, BME groups and new
tenants including refuges and asylum seekers recently housed by the council.

With the development of CBHOs across the City and the Stock Option Appraisal, there will be
an increase in consultation with residents with a debate focused the different ways a landlord
services can be delivered and the investment needs for tenants homes.

On a City level, the council produces Letter Box a quarterly magazine to keep tenants informed
on issues affecting them as council tenants or leaseholders, plus information about new
initiatives and developments including the devolution to eleven constituencies and setting up of
CBHOs.

The magazine also encourages tenants to be involved with news stories of tenant led projects
to improve their environment. The 'tenant' focus will be sharpened with the setting up of an
editorial board including tenants to oversee the production of the magazine.




HRA Business Plan – March 2004                                                     Page 44 of 76
Birmingham City Council
Option Appraisal
In its June 2003 Guidance on Stock Options Appraisal the ODPM introduced a requirement for
all stock-holding local authorities to submit options appraisals to Government Regional Offices
(GOs) for sign-off. This sign-off will involve checking that:

           Tenants are fully engaged in the process and support the conclusions
           That it is based on robust data
           That underlying assumptions are reasonable
           That the analysis is sound

Sign-off needs to be obtained by July 2005 at the latest. A Stock Options Appraisal Project Plan
is required by Government Office West Midlands (GOWM) and the Community Housing Task
Force (CHTF) to demonstrate that BCC is giving due attention to the need to carry out stock
options appraisal analysis. We are in the process of discussing this Project Plan with
Government Office West Midlands (GOWM).

Birmingham City Council is now in a very strong position in respect of carrying out formal stock
options appraisal through our 11 constituencies:

    We estimate that by 2010 a total of 8,063 (or 14%) of our homes will not have met the
     Decent Homes Standard

    We have now got to a position where we have a very clear understanding of stock
     condition, the investment requirements needed to bring our properties to the decent
     homes standard, and have robust mechanisms in place to update our stock condition
     information and keep it up to date. This information is available at constituency level

    We have very strong tenant involvement structures at constituency level that have grown
     out of our extensive work on devolving services to local areas

    We have very robust housing needs and demand information that can be assembled at
     constituency level

    Our Stock Options Project Plan models the process at two levels: the tasks that need to
     be undertaken at citywide level, as well as the detailed plans that sit at constituency level

The Business Plan argues that there is in reality no single stock options appraisal for the whole
City. The stock options appraisals will have to be undertaken at sub-city level (it is proposed
that the constituency is the appropriate level), and that these are held together at Citywide level
by an overarching HRA Business Plan. Each of the 11 constituencies in BCC will be going
through the Options Appraisal process to meet the requirements of GOWM and CHTF. The
process is defined to a great extent by ODPM Guidance (as set out in the June 2003 ODPM
Guidance on Stock Options Appraisals) and requires a number of formal sign-off actions by
Government Office West Midlands (GOWM) and Community Housing Task Force (CHTF).

The roll out of formal Options Appraisals is going to broadly follow our devolution agenda. This
is important as we want to ensure that the consideration of formal stock options is built upon
genuine and meaningful consultation and stakeholder involvement. The devolution of the
housing landlord service to constituencies will therefore form the foundation of the formal
consideration of Option Appraisal.


HRA Business Plan – March 2004                                                       Page 45 of 76
Birmingham City Council
We are now planning formal Options Appraisal processes in the two current Pathfinder
constituencies of Hodge Hill and Northfield, followed by a similar exercise in the Ladywood
constituency. The following table shows the percentages of Council stock and the levels of non-
Decency in each of the 3 constituencies:

                 Number of                      Number of Council      Proportion of the
                              Percentage of
                 Council                        Properties that are    Constituency Stock that is
                              BCC Total Stock
                 Properties                     Currently Non-Decent   Currently Non-Decent
Northfield
                   8,424           11.1%                 6,115                    72.6%
Constituency
Hodge Hill
                   9,499           12.5%                 7,382                    77.7%
Constituency
Ladywood
                   12,094          15.9%                 5,922                    49.0%
Constituency

Totals             30,017          39.5%                19,419


The above table shows that we are targeting the first phase of our formal Options Appraisal
activity on the constituencies where the levels of non-decency are high.

The timetable for carrying out our formal stock options appraisal exercises following the
constituency devolution model is as follows:

    The full options appraisal process will be undertaken in the Northfield, Hodge Hill and
     Ladywood constituencies by June 2005

    The plan for carrying out the remaining constituency stock options appraisals will be in
     place by July 2004, with completion of the process in all constituencies by 2006/07

Given that our projections, without drawing in additional resources, mean that only 14% of our
stock would be non-decent by 2010, combined with our targeting the early stock options
exercises in constituencies with current high levels of non-decency, will mean that we are
confident that we will be able to meet the Decent Homes Standard by 2010 by the process
outlined above.

Systems and Processes that Support Stock Options Appraisal
We are actively taking forward a range of activities that are feeding through to meaningful and
robust formal Options Appraisals in the constituencies within Birmingham:

        We are devolving many of the landlord services budgets to local constituency offices,
         along with the creation of localised management and service delivery mechanisms

        We are putting significant priority on the creation of detailed stock condition information
         at constituency level so that Constituency Stock Investment Plans can be developed that
         use Decent Homes as the benchmark

        Consultation has already been extensive within the pathfinder constituencies about the
         kind of service delivery structures that are being created within the Community Based
         Housing Organisations (CBHOs)



HRA Business Plan – March 2004                                                            Page 46 of 76
Birmingham City Council
      Independent Tenants Advisers (ITAs) are already working with tenants in our pathfinder
       constituencies to help them explore stock options. These are currently funded the
       Neighbourhood Renewal Fund

      We already have the capability (as set out in the Housing Strategy) to determine housing
       need and supply at constituency level

      We will be working with Constituency Directors to create mini HRA Business Plans for
       each constituency so that these can be fed into the formal Options Appraisal exercises.
       These will each identify and enumerate if there is a gap between available resources
       within a constituency and the resources required to bring tenants‟ homes to meet or
       exceed the Decent Homes Standard

      The Constituency Directors are leading on the carrying forward of stock options appraisal
       projects within their own constituencies. They will be supported by senior officers at
       Citywide level, ensuring that they have the information and data flows that feed into the
       analysis and decision making at constituency level

A Stock Options Appraisal Project Plan has been created that maps out the way in which we
are taking forward stock options appraisal, both at Citywide level, but also in the constituencies
as part of a rolling programme.

The project plan contains detail at two levels of how we are taking stock options appraisal
forward:

    We are moving ahead at a Citywide level, setting up the necessary decision making and
     consultative mechanisms to manage the whole process. We recognise that the City, as
     Landlord, has a responsibility to support the process so that tenants are given the choice
     about how their homes will be improved

    We are also moving ahead at constituency level, ensuring that the process fully conforms
     to the requirements of Government Office West Midlands (GOWM) and the Office of the
     Deputy Prime Minister (ODPM). We are firmly of the view that the stock options appraisal
     process needs to be owned by local people, making local decisions about investment
     options for their homes

This twin-track approach recognises the complexity of carrying out stock options appraisal in a
City the size of Birmingham in a context in which tenants have previously voted to retain
Birmingham City Council as the landlord. Our aim is to facilitate local decision making within a
supportive corporate context.




HRA Business Plan – March 2004                                                       Page 47 of 76
Birmingham City Council
Priorities
Introduction
This section of the Business Plan considers the priorities for action based on the issues already
considered within this document. The priorities have been set to reflect national and regional
priorities plus tenants‟ expectations.


Priority 1 – To improve the quality of service and responsiveness to tenants
Why? – Satisfaction with the Council is low at 54% (2002/03) and the repairs service received
an assessment of “poor service with promising prospects for improvement”. We clearly need to
improve the quality of our services. With a reducing stock base we also need to provide the
higher quality services with less resources

Fit with the housing and other key strategies – our Housing Strategy seeks to improve our
services and serve Birmingham well. Our corporate objectives are to put customers at the heart
of what we do and to improve housing services.

Tenants’ Views - Tenants fully support the implementation of the Housing Commission Report
and the establishment of CBHOs, with residents at the heart of the decision making process,
shaping the delivery of improved local housing services.

Options to meet this priority – After taking on board the views of tenants, we acknowledge
that can‟t meet the needs of the community through the provision of a citywide uniform service.
We are implementing the recommendations of the Independent Housing Commission which
considered in some depth the satisfaction with the services we provide for tenants and
leaseholders. Most importantly we must engage tenants in the process if it is to succeed.




Priority 2 - To develop the infrastructure to sustain improvements over the
longer term
Why? – The key theme running through all the Council‟s strategies and plans is the concept of
flourishing neighbourhoods. This recognises the diversity of Birmingham and that not all areas
of the City want to be treated the same

Fit with Housing and other key strategies – our Housing Strategy seeks to improve our
services and serve Birmingham well. Our corporate objectives are to put customers at the heart
of what we do and improve housing services

The number one priority in the strategy is Decent Homes. Our corporate objectives are for
flourishing neighbourhoods, providing Decent Homes for tenants, along side other
improvements, will help to improve neighbourhoods

Tenants’ Views - Tenants felt there was a greater need to monitor the work of contractors.
Concern with bureaucracy within the council and the need to for resources to be focused on
front line staff and doing the actual repairs. Tenants felt there was a need for local managers to
be empowered with greater control over the budget so they could involve and respond to the
HRA Business Plan – March 2004                                                         Page 48 of 76
Birmingham City Council
tenants needs at a local level. (Minutes of CHLB 18th September 2003).

Options to meet this Priority – We could have devolved services in accordance with our
Housing Management Areas but have decided to devolve in line with the corporate devolution of
services into 11 constituencies.



Priority 3 - To strengthen the financial position
Why? – To achieve our other priorities we need to maximise both the revenue and capital
resources available to us. We must also ensure that we provide value for money. It is a key
Government target for all social housing to meet the Decent Homes Standard by 2010. Tenants
have told us that their top priority is for new heating systems and windows. Our investment
strategy is “To maximise the number of properties made decent by 2010”. We need to ensure
that we have the resources to do this and, if we don‟t have the money internally, we need to
look at other options to secure resources.

Fit with Housing and other key strategies - The number one priority in the strategy is Decent
Homes. Our corporate objectives are for flourishing neighbourhoods, providing Decent Homes
for tenants, along side other improvements, will help to improve neighbourhoods

Tenants’ Views - Some concern was expressed about previous misuse of resources and that
discussion of 'options' to secure investment was another city led version of stock transfer.
Generally the residents wanted the role of the emerging role of CBHOs to be central to the
process of deciding the priorities for investment in homes so local people could ensure the best
use of capital resources. (Minutes of CHLB 15th January 2004).

Options to meet this Priority – In 2004/05 and 2005/06 we have the resources we need to
embark on works programmes. After 2006/07 we no longer have enough resources to keep on
target. We will be looking at options to secure additional funding at a constituency level through
the formal Stock Options Appraisal process. Solutions will be tenant and resident led and will be
decided through the Stock Options Appraisal process.

It will take some time for the before Stock Options Appraisals can generate the resources
needed. In the short term we will consider the following:

Actions to reduce costs e.g. repairs and management costs, Section 82 and Section 11
compensation or actions to increase capital resources e.g. further use of prudential borrowing,
use of non – RTB Capital Receipts or a review of the use of Regional Housing Board (supported
borrowing) allocations




Tenant Involvement in the Development of the Business Plan and Priorities
A sub-group of the City Housing Liaison Board (CHLB) has been set up to oversee the
development of the HRA Business Plan. The group meets on a regular basis and considers
issues raised within the business plan (e.g. investment programmes and rent increases) plus
future priorities for the service.


HRA Business Plan – March 2004                                                      Page 49 of 76
Birmingham City Council
The Tenants‟ Conference in October 2002 was hugely successful and provided us with valuable
feedback about the services we provide for tenants. Workshops were held covering the whole of
the housing service. The key priorities to emerge from this conference are detailed at Appendix
F.

This HRA Business Plan has been developed from the key priorities to emerge from the
Tenants‟ Conference, the results of the MORI survey in 2002, and in consultation with the CHLB
and the tenants‟ Business Planning Group.

At a meeting of the City Housing Liaison Board in February 2004, the tenants resolved to:-

a)   Endorse the priorities contained within the proposed HRA Business Plan

b)   Reinforce the need to develop local management of housing with tenants and
     leaseholders directly influencing local services and shaping future investment options

c)   Stress the need for continuing Government support to maintain and improve future
     investment resources in Birmingham

d)   Work towards delivering a Tenant Resource Centre in Birmingham, dedicated for the use
     of tenants and leaseholders of the City

e)    Demolitions should be no more than 600 per year




HRA Business Plan – March 2004                                                    Page 50 of 76
Birmingham City Council
Action Plan and Progress to Date
Introduction
The Action Plan is a key part of the Business Plan as it details how the priorities are to be met.
The Action Plan assigns responsibilities to each of the actions and considers the resources
required to achieve the targets so that we can be sure that we can deliver.

Key Achievements
In the last year the Council has moved forward positively and have been successful in a number
of areas including:

    We now have a definitive position on stock condition and where we are in relation to the
     Government‟s Decent Homes Standard and have a robust system in place to keep stock
     condition up to date

    Established cross-tenure Birmingham Anti-social Behaviour Unit (BASBU) with a
     resultant increase in legal actions. We estimate achieving 100 legal actions against a
     target of 84 for 2003/04

    Redirection of £12.2m of management costs to the repairs service over two years 2002-
     2004

    Cleared the backlog of housing repairs (approximately 48,971 repairs)

    Achieved a reduction in current rent arrears of £500,000 against a target of £330,000

    Reduced our void re-let times from 53.7 days in 2002/03 to an estimated 42 days for
     2003/04. Our target for this year was 46 days, but was revised to 38 days during
     2003/04. We are now achieving 38 days for the final months of this year

    Devolving our Landlord Service to the new pathfinder constituencies as the start of the
     devolution programme over the next three years

    We have set up two pathfinder constituencies and within these three Community Based
     Housing Organisations are being set up in Hodge Hill, Shard End, and Northfield. The
     process is being driven at a local level by tenants and residents

    We have set up robust performance management systems to ensure that we are
     delivering our objectives within our performance improvement plan


How Well Did We Achieve our 2003/04 Action Plan Targets?
The last Business Plan highlighted a number of actions but in reality, through the Performance
Improvement Plan, we have achieved a lot more. The achievements in 2003/04 have been
included with the new Action Plan for 2004/05 for consistency, and to allow us readily to track
our progress. The Action Plan and achievements for 2003/04 is shown at Appendix H.



HRA Business Plan – March 2004                                                       Page 51 of 76
Birmingham City Council
Action Plan 2004/05
The priorities are reflected in our Performance Improvement Plan which contains clear
objectives and targets to deliver these priorities. This has also been agreed with the Audit
Commission. The action plan is attached at Appendix G. It includes targets to build on the
achievements of 2003/04.

Monitoring of the Action Plan and Overall Scrutiny Arrangements

The Action Plan will be monitored on a variety of levels. The Executive is receiving regular
monitoring reports on progress under the Performance Improvement Plan and targets and
milestones are cross-referenced to the HRA Business Plan. These reports are also considered
by the Housing and Urban Renewal Overview and Scrutiny Committee at its regular meetings
and this Committee also has, as part of its membership, several tenants in a non-voting
capacity. In addition, a specialist group of City Housing Liaison Board receive the monthly
monitoring reports and, therefore, are assessing actions against the HRA Business Plan.

Involving Tenants in Monitoring Progress

The City has a well established formal framework of Tenant Participation which has been set
out on pages 41 to 43. At a City level, the CHLB will continue to review performance of the
Housing Department against targets set out in Business Plan, with a Service Improvement
Group (Sub committee of CHLB) taking a responsibility for more detailed monitoring of
performance.




HRA Business Plan – March 2004                                                      Page 52 of 76
Birmingham City Council
Appendix A: How Does The Housing Stock Contribute To
The Achievement Of Other Corporate Strategies?

Corporate Strategy              Key objectives                            Landlord contribution to the
                                                                          achievement of objectives


                                There are two central priorities in the
Community Strategy              Community Strategy:

                                To develop Birmingham as a City of
                                flourishing neighbourhoods:
                                                                          The development of CBHOs within the
                                       Going local - building stronger   eleven new constituencies and the
Contact:                                communities                       devolution of housing services aim to
                                       Making neighbourhoods clean       identify neighbourhoods across the City.
Andrew Kerr                             and safe                          The landlord services will meet the
Director of Performance                Investing in our children and     needs of local tenants, leaseholders,
Improvement                             young people                      and residents and tackle local problems.
0121 303 3018                          Preparing our City for the
andrew.kerr@birmingham.gov.uk           future
                                       Closing the gaps – tackling
                                        inequality

                                Improve services so that all              The devolution agenda will have much
                                Birmingham people are well served         more of a local focus. Within the
                                     Put customers at the heart of       constituencies CBHOs will be set up
                                       what we do                         and involve local people. This should
                                     Improve our social services         lead to the improvement in housing
                                       for children and families and      services.
                                       older people
                                     Improve housing services



Crime and Disorder Reduction    Produced by the Birmingham                The housing department has an anti-
Strategy 2002 - 2005            Community Safety Partnership              social behaviour team working across
                                (BCSP) to comply with the Crime and       all tenures throughout the City. The 15
                                Disorder Act and based on an audit of     strong team support area housing
                                crime and disorder in the City. There     management teams, assisting, advising,
                                are six priority themes:                  and bringing expertise their caseload.
Contact:                                                                  The ASB team become directly involved
                                       Responsive Support                in the investigation and management of
BCSP                                   Priority Neighbourhoods and       cases. Team members have a variety of
26 Waterloo Street                      Places                            specialist skills and we have a covert
Victoria Square                        Supporting Victims and Public     surveillance capacity.
Birmingham                              Reassurance
B2 5TJ                                 Youth Offending and Social        Stretching targets for legal actions have
                                        Inclusion                         been set with 2003/04 targets 50%
0121 303 2160                          Illegal Drugs and Substance       higher than for 2002/03. Performance to
                                        Misuse                            December 2003 was:
bcsp@birmingham-csp.org.uk             Information and Intelligence      Possession Orders                  9
                                        Development                       ASBOs                              6
                                                                          ASBOs varied                       3
                                                                          Committals to prison               3
                                                                          Introductory tenancies ended       1
                                                                          Undertakings / Injunctions        48
                                                                          Total                             70



HRA Business Plan – March 2004                                                                Page 53 of 76
Birmingham City Council
Cabinet & Corporate Plan         There are two central priorities in the
                                 Corporate Plan

Contact:                         To develop Birmingham as a City of        The development of CBHOs within the
                                 flourishing neighbourhoods:               eleven new constituencies and the
Andrew Kerr                                                                devolution of housing services aim to
Director of Performance                 Going local - building stronger   identify neighbourhoods across the City.
Improvement                              communities                       The landlord services will meet the
0121 303 3018                           Making neighbourhoods clean       needs of local tenants, leaseholders,
andrew.kerr@birmingham.gov.uk            and safe                          and residents and tackle local problems.
                                        Investing in our children and
                                         young people
                                        Preparing our City for the
                                         future
                                        Closing the gaps – tackling
                                         inequality                        The devolution agenda will have much
                                                                           more of a local focus. Within the
                                 Improve services so that all              constituencies CBHOs will be set up
                                 Birmingham people are well served         and involve local people. This should
                                      Put customers at the heart of       lead to the improvement in housing
                                        what we do                         services.
                                      Improve our social services
                                        for children and families and
                                        older people
                                      Improve housing services



Supporting People Shadow         The priorities for the next two years     The HRA provides sheltered housing for
Strategy                         are:                                      older people in the City. This will be
                                                                           included in the wider review of older
Contact:                                Review all existing schemes       people‟s services to ensure that we are
                                        Evolve systems to effectively     providing the right type of services in
John Hodges                              monitor services and quality      the right location at the right quality.
SP Manager and Lead Officer             Strategically map out the
Telephone: 0121 303 6640                 needs and unmet needs             We also need to ensure that future
e-mail                                  Consult with service users        provision meets the needs of our
johno.hodges@birmingham.gov.uk                                             increasing older BME population.

                                                                           The department has a tenancy support
                                                                           team to help vulnerable tenants
                                                                           maintain independent living. Across the
                                                                           City we have 60 Tenancy Support
                                                                           Officers who Provide support to 2,500
                                                                           tenants each year.




HRA Business Plan – March 2004                                                                 Page 54 of 76
Birmingham City Council
Appendix B: Key Documents and How to Obtain Copies

Document                     Name                 Telephone       e-mail


Community Strategy           Andrew Kerr          0121 303 3018   andrew,kerr@birmingham.gov.uk


Housing Strategy             Lisa Trickett        0121 303 4241   lisa.trickett@birmingham.gov.uk


Crime and Disorder           BCSP                 0121 303 2160   bcsp@birmingham-csp.org.uk
Reduction Strategy 2002-     26 Waterloo Street
2005                         Victoria Square
                             Birmingham
                             B2 5TJ


Cabinet & Corporate Plan     Andrew Kerr          0121 303 3018   andrew,kerr@birmingham.gov.uk


Stock Condition Survey       Helen Marson         0121 303 9420   helen.marson@birmingham.gov.uk


One size doesn‟t fit all     Abigail Robson       0121 303 3186   abigail.robson@birmingham.gov.uk


Performance Improvement      Viv Nind             0121 303 2477   vivien.nind@birmingham.gov.uk
Plan


Tenant Compact               Nick Parker          0121 464 4905   nickn.parker@birmingham.gov.uk


Supporting People Strategy   John Hodges          0121 303 6640   johno.hodges@birmingham.gov.uk
Interim Strategy


Capital Strategy             Martin Easton        0121 303 2384   martin_k_easton@birmingham.gov.uk




HRA Business Plan – March 2004                                                         Page 55 of 76
Birmingham City Council
Appendix C: The Strategy in Context




HRA Business Plan – March 2004        Page 56 of 76
Birmingham City Council
Appendix D: HRA 30-Year Operating Account 2004/05 to 2033/34

Birmingham City Council
Business Plan Assumptions
Operating Account
(expressed in money terms)

                                                                 Income                                                                         Expenditure
                                                                                                                                                   HRA                               Adjusting                    Transfer Surplus
                                                                                       HRA                                                  Other Cost of          Surplus            transfer   Net               from /  (Deficit) Surplus    Surplus
                                                                               Misc Subsidy Total                                  Cost of Revenue Rent    Misc     to be      Total    from   Operating Repayment (to)     for the (Deficit)   (Deficit)
     Year             Year             Net rent Income       Other income     Income Receivable Income Managt. Depreciation Maint. Capital spend Rebates expenses redistrib. expenses AMRA (Expenditure) of Debt   MRR RCCO Year b/fwd Interest c/fwd
                                           £,000                £,000          £,000    £,000    £,000     £,000      £,000     £,000   £,000    £,000      £,000     £,000     £,000    £,000      £,000     £,000                 £,000    £,000       £,000    £,000    £,000    £,000


       1                     2004.05               185,020               8,478 5,153     14,348 212,999    (57,581)   (39,036) (67,318) (46,062) (6,897)     (500) (3,244)              (220,638)     9,783       2,144   (1,225)            (1,028)      (109)    3,000      109     3,000
       2                     2005.06               185,237               8,112 5,228     16,116 214,693    (55,983)   (37,935) (65,355) (44,404) (7,069) (1,020) (3,278)                (215,045)     7,037       6,686    (600)             (6,194)      (108)    3,000      109     3,000
       3                     2006.07               186,826               7,754 5,306     16,394 216,280    (56,949)   (37,119) (63,951) (43,432) (7,246) (1,044) (3,041)                (212,781)     5,366       8,865    (576)             (8,397)      (109)    3,000      109     3,000
       4                     2007.08               188,045               7,979 5,388     16,778 218,190    (57,970)   (36,357) (62,641) (42,518) (7,427) (1,175) (3,041)                (211,130)     3,753      10,813    (553)            (10,369)      (109)    3,000      109     3,000
       5                     2008.09               190,569               8,206 5,522     16,870 221,167    (59,218)   (36,064) (62,139) (41,672) (7,613)     (984) (3,041)              (210,731)     2,205      12,641    (531)            (12,219)      (109)    3,000      109     3,000
       6                     2009.10               195,692               8,440 5,660     15,765 225,557    (60,712)   (37,341) (62,508) (41,856) (7,803)     (734) (2,853)              (213,807)     1,686      13,437    (510)            (13,036)      (109)    3,000      109     3,000
       7                     2010.11               201,088               8,680 5,802     15,397 230,966    (62,269)   (37,505) (62,966) (42,169) (7,998)            0 (2,744)           (215,652)     1,658      16,973    (489)            (16,592)      (109)    3,000      109     3,000
       8                     2011.12               206,442               8,926 5,947     14,736 236,050    (63,864)   (37,785) (63,409) (42,472) (8,198)            0 (2,339)           (218,067)     1,980      19,963    (470)            (19,602)      (109)    3,000      109     3,000
       9                     2012.13               208,898               9,156 6,096     13,494 237,645    (65,499)   (38,056) (63,834) (42,764) (8,403)            0 (2,032)           (220,589)     2,289      19,345    (451)            (19,003)      (109)    3,000      109     3,000
      10                     2013.14               211,317               9,393 6,248     12,243 239,201    (67,175)   (38,316) (64,241) (43,044) (8,613)            0 (1,773)           (223,163)     2,586      18,623    (433)            (18,299)      (109)    3,000      109     3,000
      11                     2014.15               213,693               9,635 6,404     10,984 240,717    (68,892)   (38,566) (64,629) (43,311) (8,829)            0 (1,539)           (225,766)     2,868      17,819    (416)            (17,512)      (109)    3,000      109     3,000
      12                     2015.16               216,021               9,884 6,564      9,719 242,188    (70,652)   (38,805) (64,995) (43,565) (9,049)            0 (1,539)           (228,605)     3,136      16,719    (399)            (16,429)      (109)    3,000      109     3,000
      13                     2016.17               218,296              10,140 6,728      8,448 243,613    (72,456)   (39,031) (65,340) (43,804) (9,276)            0 (1,539)           (231,445)     3,389      15,557    (383)            (15,282)      (109)    3,000      109     3,000
      14                     2017.18               220,514              10,402 6,897      7,174 244,986    (74,304)   (39,244) (65,661) (44,028) (9,508)            0 (1,539)           (234,284)     3,626      14,328    (368)            (14,069)      (109)    3,000      109     3,000
      15                     2018.19               222,668              10,671 7,069      5,899 246,306    (76,198)   (39,444) (65,958) (44,235) (9,745)            0 (1,539)           (237,119)     3,845      13,032    (353)             (9,888)      2,791    3,000      162     5,953
      16                     2019.20               224,753              10,947 7,246      4,165 247,110    (78,138)   (39,629) (66,228) (44,426) (9,989)            0 (1,539)           (239,949)     4,047      11,208    (339)                     0 10,869      5,953      420    17,242
      17                     2020.21               226,762              11,230 7,427      2,892 248,311    (80,127)   (39,799) (66,470) (44,598) (10,239)           0 (1,539)           (242,772)     4,229       9,768    (325)                     0    9,443 17,242        810    27,495
      18                     2021.22               228,690              11,520 7,613      1,624 249,447    (82,164)   (39,952) (66,684) (44,752) (10,495)           0 (1,539)           (245,585)     4,392       8,253    (312)                     0    7,941 27,495      1,160    36,596
      19                     2022.23               230,529              11,818 7,803        363 250,513    (84,252)   (40,088) (66,866) (44,885) (10,757)           0 (1,539)           (248,387)     4,534       6,660    (300)                     0    6,360 36,596      1,467    44,423
      20                     2023.24               232,273              12,124 7,998      (889) 251,507    (86,391)   (40,206) (67,016) (44,996) (11,026)           0 (1,539)           (251,174)     4,653       4,985    (288)                     0    4,697 44,423      1,725    50,845
      21                     2024.25               233,915              12,437 8,198     (2,128) 252,422   (88,582)   (40,305) (67,131) (45,086) (11,302)           0 (1,539)           (253,945)     4,749       3,226    (276)                     0    2,950 50,845      1,929    55,725
      22                     2025.26               235,445              12,759 8,403     (3,352) 253,255   (90,827)   (40,384) (67,211) (45,151) (11,584)           0 (1,539)           (256,697)     4,821       1,380    (265)                     0    1,114 55,725      2,075    58,914
      23                     2026.27               236,857              13,089 8,613     (4,558) 254,001   (93,128)   (40,441) (67,252) (45,192) (11,874)           0 (1,539)           (259,426)     4,867       (557)    (255)                     0    (812) 58,914      2,158    60,260
      24                     2027.28               238,142              13,428 8,828     (5,743) 254,655   (95,484)   (40,476) (67,254) (45,207) (12,171)           0 (1,539)           (262,130)     4,887     (2,588)    (244)                     0 (2,833) 60,260       2,170    59,597
      25                     2028.29               239,290              13,775 9,049     (6,903) 255,212   (97,898)   (40,488) (67,213) (45,194) (12,475)           0 (1,539)           (264,806)     4,878     (4,717)    (235)                     0 (4,951) 59,597       2,106    56,752
      26                     2029.30               240,293              14,132 9,275     (8,034) 255,667 (100,371)    (40,475) (67,129) (45,152) (12,787)           0 (1,539)           (267,452)     4,839     (6,946)    (225)                     0 (7,171) 56,752       1,961    51,542
      27                     2030.31               241,141              14,498 9,507     (9,133) 256,013 (102,904)    (40,435) (66,998) (45,080) (13,106)           0 (1,539)           (270,062)     4,770     (9,279)    (216)                     0 (9,495) 51,542       1,726    43,773
      28                     2031.32               241,824              14,873 9,745    (10,196) 256,246 (105,499)    (40,369) (66,819) (44,976) (13,434)           0 (1,539)           (272,635)     4,668    (11,721)    (208)                     0 (11,928) 43,773      1,394    33,239
      29                     2032.33               242,331              15,258 9,988    (11,218) 256,360 (108,156)    (40,274) (66,589) (44,838) (13,770)           0 (1,539)           (275,166)     4,532    (14,274)    (199)                     0 (14,474) 33,239        959    19,724
      30                     2033.34               242,650              15,654 10,238   (12,194) 256,348 (110,879)    (40,149) (66,305) (44,666) (14,114)           0 (1,539)           (277,652)     4,360    (16,944)    (191)                     0 (17,135) 19,724        411     3,000

HRA Business Plan – March 2004                                                                                                                                                                                                                                   Page 57 of 76
Birmingham City Council
Appendix E: Housing Subsidy Trends 2001/02 to 2009/10
                                                    Actual     Actual    Budget       Draft   Estimate   Estimate   Estimate   Estimate   Estimate
                                                  2001/02    2002/03    2003/04    2004/05    2005/06    2006/07    2007/08    2008/09    2009/10
Opening Property Numbers                          84,170     80,915     76,647     72,820      68,483     65,346     62,409     59,672    58,472
Sales                                              2,117      3,211      2,700      3,000      1,800      1,600      1,400      1,200      1,000
Demolitions                                        1,138      1,057      1,200      1,337      1,337      1,337      1,337         0         0
Closing Property Numbers                          80,915     76,647     72,747     68,483      65,346     62,409     59,672     58,472    57,472
Average Property Numbers                          82,543     78,781     74,697     70,652      66,915     63,878     61,041     59,072    57,972

Property Numbers for Subsidy Purposes
Number of homes* excluding shared ownership       82,627     78,989     74,797     70,652     66,915     63,878     61,041     59,072     59,672
Number of homes including shared ownership        82,695     79,053     74,861     70,716     66,979     63,942     61,105     59,136     59,736
                                                  £000‟s     £000‟s     £000‟s     £000‟s     £000‟s     £000‟s     £000‟s     £000‟s     £000‟s
Major Repairs Allowance                           42,604     41,617     39,887      39,077     37,935     37,119     36,357     36,064     37,341
Management Allowance                              28,093     29,703     31,266      31,381     32,249     33,404     34,635     36,368     39,860
Maintenance Allowance                             61,350     62,322     61,770      59,783     61,434     63,630     65,973     69,271     75,923
                                                  132,047    133,642    132,923    130,241    131,618    134,153    136,965    141,703    153,124

Notional Rent Income                             -159,233    -160,014   -161,109   -160,328   -161,357   -164,392   -167,598   -172,981   -186,243
Interest on Receipts                               -547        -199       -178         -126        -84        -42          0          0          0
Capital Financing                                 58,016      53,323     52,403      44,746     45,481     46,216     46,952     47,689     48,426
Other Adjustments                                  816         459        -230         -185        458        459        459        459        458

Rent Rebates Subsidy                              133,420    131,864    125,393          0          0          0          0          0          0

HRA Subsidy                                       164,519    159,075    149,202     14,348     16,116     16,394     16,778     16,870     15,765




Major Repairs Allowance – this is paid per home to maintain it to its current condition and represents depreciation. For 2004/05 this is
£553.09. The Government has stated that the MRA will increase by inflation. The MRA can also be used to repay debt but cannot be
used to support the revenue cost of new borrowing. We can also save MRA to meet the cost of larger projects.
HRA Business Plan – March 2004                                                                                                 Page 58 of 76
Birmingham City Council
Management and Maintenance Allowances – Resources have been increase to compensate for resources lost as a result of rent
restructuring. For 2004/05 these allowances have been revised for 2004/05 to provide a fairer distribution based on an authorities‟ need
to spend. For some councils the changes have had a significant impact on their business plans. For Birmingham, there is a loss of
resources due to changes in the maintenance allowance but an increase in resources due to the new management allowance.

Notional Rent Income – paid on the basis a notional rent within the formula. By 2011 this will be in line with the „formula rent‟.

Interest on Receipts – estimated income from mortgages advanced to tenants for the purchase of their council house.

Capital Financing – a payment to cover debt charges based on the attributable borrowing approval for the HRA. Debt repayment
requirements are removed from 2004/05 resulting in a reduced capital financing element within the formula

Rent Rebates – the cost of rent rebates are no longer be met from the HRA from 2004/05 and will no longer be included in housing
subsidy

NB The apparent increase in property numbers in 2009/10 is due to stock loss being less than 3000 units or 10% for the first time. There
will be no requirement to rebase during the year.




HRA Business Plan – March 2004                                                                                                Page 59 of 76
Birmingham City Council
Appendix F: Tenants Conference 2002 – Agreed Action Priorities

The Future Funding of Council Housing

      Lobby Government to pay off debt and give the Council the freedom to borrow and all the freedoms a RSL would have
      Debt Restructuring – cancel existing debt
      An assertive approach to arrears voids and housing benefit processing
      Single revenue pot for use on Council housing only and delegated to local level with local accountability
      Separate from the Strategic Function



Demolition and Rebuilding Policies

      Receipts from land sales to be used for housing
      More openness from Cabinet Members and Cabinet
      Build new houses hat meet standards – Size of rooms and adaptability
      Demolitions to be limited to 600 per year and that local people “own” demolition and rebuild actions, all land released used for building / for let
      Tenants rights in law to be implemented
      Demolition be avoided by good management of existing stock



Tenant/Leaseholder Participation and Control of the Housing Service

    A resource centre, be available centrally offering IT / Training / up to date information
    That HLBs should be able to expect feedback on all formal communications with neighbourhood offices within a given time
    That more „power‟ and „control‟ be given to local management of offices who will work closely with local residents
    To give greater voice to leaseholders welcome packs are provided to leaseholders as they are to tenants detailing HLB members and
     meetings and role to encourage them to have a greater voice.
    Job descriptions for HLB chairs and members and increase training where necessary. Members should be aware of their responsibilities and
     any boundaries




HRA Business Plan – March 2004                                                                                                            Page 60 of 76
Birmingham City Council
Performance and Accountability in the Housing Service

    That each neighbourhood office has a designated and trained officer dealing with anti-social behaviour
    Introduce main telephone answering system
    Contractors to be monitored and more closely
    That properties which have been adapted for disability are only let to people with disabilities
    That Birmingham City Council adopt a commitment to learn from practical and successful examples of locally based housing management,
     both within Birmingham, the West Midlands and elsewhere
    Tenants Service: Comprehensive corporate review of teams that includes tenants



Issues for Housing Estates

      Increase the responsiveness of Housing Offices, including better communication with tenants
      That firm action is taken to deal with, and prevent fly tipping
      More effective ways of dealing with anti-social behaviour should be found (e.g. underage drinking, nuisance, vandalism, irresponsible parents
      There should be better devolution of estate services and control over local budgets (e.g. the ability to vary services)
      That there is better police presence and / or liaison on estates
      That steps are taken to improve the standard of care taking on estates and standards of concierge service



Repairs Issues

      Improve monitoring of contractors in terms of quality and performance
      Contractors deliver first time every time
      Prioritise spending on Decent Homes by involving tenants
      Better inspections monitoring, and feedback to ensure better accountability
      Incentives for good tenants
      A flexible approach to work – arrangements to work outside of “normal” tenants working hours




HRA Business Plan – March 2004                                                                                                       Page 61 of 76
Birmingham City Council
Appendix G: 2004/05 Action Plan
The 2004/05 Action Plan for this HRA Business Plan is the Performance Improvement Plan (PIP) for the Housing Department. Great care has
been taken to create this HRA Business so that the priorities and proposed ways of moving forward on a wide range of issues are consistent
across these key strategic documents. The various Project Initiation Documents that sit alongside the Performance Improvement Plan (PIP)
contain the service and performance improvement targets that are also described, where relevant, in detail in this HRA Business Plan. The
following table shows the structure and content of the PIP/PIDs:

   1.    Improve the quality of service and responsiveness to Tenants – David Hucker
   1.1   Repairs Action Plan
   1.2   Voids
   1.3   Allocations
   1.4   Resident Involvement
   1.5   Estate Services
   1.6   Implement the Decent Homes Strategy

   2.    Develop the infrastructure sustain improvements over the longer term - Nigel Christie
   2.1   Implement the Housing Information Technology Solution Project Action Plan
   2.2   Establish the Strategic Housing Function
   2.3   Develop Community Based Housing Organisation inside two pathfinder constituencies
   2.4   Implement Devolution to Constituencies in Pathfinder Areas and create shadow devolved structure in Non Pathfinder Areas
   2.5   Drive cultural change to increase customer responsiveness and service diversity

   3.    Strengthen the Financial Position - Michael Irvine
   3.1   Strengthen and resubmit the Housing Strategy
   3.2   Achieve a balanced Housing Revenue Account
   3.3   Implement the Service Improvement Plan on Capital and Procurement
   3.4   Implement the Service Improvement Plan on Income and Debt
   3.5   Sickness Absence
   3.6   Strategy to deliver Decent Homes

HRA Business Plan – March 2004                                                                                         Page 62 of 76
Birmingham City Council
      Objective One – To improve the quality of service and responsiveness to tenants – David Hucker
   Audit Commission‟s Recommendations                                              Critical Project   Out puts & Outcomes                                                                 Sponsor

   from 2003 report                                                                1.1 Repairs                                                                                              Celia
                                                                                                                                                                                           Huxtable
   S1. In consultation with tenants, urgently determine budgets, procedures                           Completion of a maximum of 48,000 non-urgent repairs existing at the end of
   and clear criteria for the prioritised release of non urgent repairs which                         September 2003 by the end of March 2004. This output to be reviewed
   have been on ‟hold‟ and ensure that tenants are kept fully informed of                             following validation of the figure from the responses to tenants letters. All
   developments.                                                                                      repairs reported after 1/10/2003 to be completed within contractual timescales.

                                                                                                      A reduction in the number of aborted telephone calls for reporting repairs by
   S2. Ensure that measures are introduced that reduces the amount off                                20%. (this % to be reviewed following benchmarking).
   callers who ring off before getting through to a Call Centre operator.                             Call centre procedures aligned with Customer expectations.

                                                                                                      To review the current tenant „Welcome Pack‟ and re-issue to all tenants with up-
   S3 Develop a comprehensive welcome pack for new tenants, which                                     to-date information on repairs by December 2003.
   should include up to date information about the Repair and Maintenance
   Service.
                                                                                                      Identification of specific needs for individual tenants and the provision of
   S5. Ensure timely progress of the disability access audit action plan to                           flexible services to respond to needs.
   meet the requirements of the Disability Discrimination Act.
                                                                                                      Reintegrate relationship between Housing Management and Repairs (especially
   S6 Improve consistency of response for customers visiting decentralised                            customer interface at local office).
   offices by providing clearer and more succinct guidance for staff and
   telephone access to the contractors Call Centres for customers                                     Front line staff have more information and access to the repairs service.

                                                                                                      Use analysis of complaints to inform contract specification and working
                                                                                                      practices of repairs contractors.
   S7 Ensure a range of mechanisms for obtaining customer feedback on all
   Repair and Maintenance Services delivered, monitor feedback, including                             Tenant to sign off repair.
   paying attention to ethnicity and disability and ensure that a mechanism is
   in place to follow up individual cases of dissatisfaction and that generally,                      Develop system for informing tenants of repairs status for their residence
   feedback informs future decision making.                                                           (Quarterly statement).

                                                                                                      Develop a range of mechanisms for obtaining customer feedback.


                                                                                                      Monitor and report outcomes to inform decisions on service delivery.


   S8 Ensure customer complaints are effectively captured and monitored                               Review process of recording complaints and steps taken to resolve them.
   and widely promote the revised policy when introduced                                              (Review to include capture of feedback from all tenant groups/surveys, etc).

                                                                                                      Completion of 97% of right to repair jobs as defined in government guidance
                                                                                                      within time limits by the end of March 2004, 98% by the end of 2004/5.
HRA Business Plan – March 2004                                                                                                                                                       Page 63 of 76
Birmingham City Council
   S9. Proactively set targets and monitor what proportion of jobs are
   completed in one visit and take appropriate action to improve this
   proportion                                                                    Refer to S5

   S10. Ensure that the needs of vulnerable tenants are adequately identified
   and formal mechanisms put into place to share the information, as             Achievement of audit commission recommendation on % split of response
   appropriate, with contractors                                                 repairs expenditure.

   D16. In the longer term ensure that planned programmes of repairs are         Cyclical programme for planned maintenance informed by stock conditions
   informed by a wider consideration of stock condition which includes but       surveys
   is not necessarily restricted to tenants reported repairs of a non urgent
   nature                                                                        Meet Landlords Statutory Requirements. -All properties receiving annual gas
                                                                                 service. Publication of a gas-servicing programme which covers 100% of
   D20. Finalise and implement the review of „gas works and associated           Council properties by March 2004.
   servicing‟ to improve procedures and outcomes in 2003/04 and remove
   the current backlog                                                           District Audit findings incorporated and implemented into revised arrangements
                                                                                 for contract monitoring
   D23 Ensure that the Action Plan agreed with District Audit for
   improvements in contract monitoring is delivered and that more repairs
   are carried out to quality standards                                          New repairs service performance and quality standards identified that meet
                                                                                 tenant and statutory expectations, and link with Devolution structure for the
   C26. Carry out a structured analysis and exploration of VFM obtained          delivery of the repairs service.
   under the new contractual arrangements                                        Performance and Quality standards reflected in any existing extended or new
                                                                                 contracts – April 2004

                                                                                 Contingency plan documented, and risk analysis undertaken. Ability to re-tender
                                                                                 if necessary within timescales to ensure continuity of service delivery – April
   C27 Carry out a risk assessment to ensure adequate contingency plans are      2004
   in place, should any of the current managed contracts need to be
   terminated                                                                    Review the current tenant „Welcome Pack‟ and re-issue to all tenants with up-to-
                                                                                 date information on repairs
   From 2001 report:
                                                                                 HITs module implementation to reflect the needs of front line service users and
   2. Use the use of the tenant‟s handbook as an opportunity to standardise      client function to enable “seamless service” delivery and improved customer
   all repairs information.                                                      information/action. Contractor call centre to use BCC HITS repairs and repair
                                                                                 finder module.
   3. Clarify and agree respective roles and responsibilities with appropriate   Consider if and to what degree the Inspection and authorisation function returns
   staff across the Repairs Service, Service team and Accord, to ensure          to BCC client.
   clarity and consistency if service

   8. Establish the necessary telephone links that need to be in place between   Establishment of links to the Corporate Call centre for seamless integration to
   the Council‟s proposed Call Centre, those of the contractors and Housing      Contractors and Housing offices.
   Offices to ensure ease of access for tenants.

   9. Investigate what range of special needs tenants have in order to           Identification of specific needs for individual tenants and the provision of
   establish what additional and/or varied services could be provided in         flexible services to respond to needs.
   respect of repairs
HRA Business Plan – March 2004                                                                                                                                  Page 64 of 76
Birmingham City Council
                                                                                                          Improved Customer service via one visit to complete job. – Linked to
   12. In managing the contracts consider the qualitative aspects of getting it                           appointments.
   right first time as well as being on time                                                              Improved cost effectiveness, via better use of contractor resources.

                                                                                                          % of RTR jobs that take more than one visit reduced to less than 10% by March
                                                                                                          2005.
   13. Improve customer care in the light of comments made by tenants
   about the helpfulness of staff in customer satisfaction survey.                                        Use of analysis of complaints to inform contract specification and working
                                                                                                          practices of repairs contractors.
   14. Establish targets with AWG and Accord for the shift away from
   emergency and urgent repairs to routine repairs to improve value for                                   Achieve audit commission recommendation on % split of response repairs
   money.                                                                                                 expenditure.

   19. Given the high level of unfitness known to the authority, establish a
   risk based response that minimise claims against the Council whilst                                    Improve the standard of housing in line with Decent Homes Objective.
   protecting the interests of the 30,000 tenants affected.
                                                                                                          Reduce level of claims and cost on disrepair by 30% in 2005.

                                                                                                          Risk based approach to be developed in conjunction with expert advice

   Audit Commission‟s Recommendations                                                  Critical Project   Outputs & Outcomes                                                                 Sponsor

   from 2003 report                                                                    1.2 Voids          Improve the average re-let time for Council properties to 38 days (2003/4) to 30   Celia
                                                                                                          days (2004/5).                                                                     Huxtable
   S12. Review the void letting standard in liaison with tenants
                                                                                                          Achieve top quartile performance for Mets.
   D17. Ensure that adequate controls are in place to ensure that all empty
   homes are brought up to an agreed standard and consider involving                                      Reduce the average cost of all voids.
   tenants in post inspection regimes

   D18. Review the current procurement arrangements for void repairs to                                   Review the standard of voids on letting, to ensure minimum standard achieved
   ensure they provide VFM                                                                                for successful relet.

   D24. Ensure that the Service Improvement Plans arising from related best                               Implement a policy for the disposal of uneconomic, unsustainable low demand
   value reviews recently undertaken by the Council and by Druids Heath                                   properties.
   TMO are regularly monitored and that agreed outcomes are delivered
                                                                                                          Reduce the number of empty long-term (over 6 months) and uneconomic
                                                                                                          (extensive costs of repair) Council homes to a maximum of 200 properties by
   From 2001 report:                                                                                      March 2004 and 100 properties by March 2005.
   4. Finalise the pilot initiatives to establish best practice at a local level and
   roll out implementation as soon as possible                                                            To improve the Department‟s approach to the management of empty properties
                                                                                                          and to disseminate best practice.
   5. Publicise the 33 point Void standard with offer letters to improve
   acceptance rates for properties offered for letting




HRA Business Plan – March 2004                                                                                                                                                      Page 65 of 76
Birmingham City Council
   Audit Commission‟s Recommendations   Critical Project   Outputs & Outcomes                                                                  Sponsor

   No specific comments                 1.3 Allocations    An allocations service that meets the housing needs of our customers                Parveen
                                                           and is capable of achieving a good/excellent rating by the Housing Inspectorate.    Akhtar
                                                           And contributes to achieving a well above average Strategy rating by the
                                                           government office.

                                                           Have an allocations policy and process that is transparent and equitable to all,
                                                           whilst offering greater choice of housing tenure.

                                                           New banding and needs based allocations policy.

                                                           Choice Based Lettings scheme (in two Pilot areas) will open up choice and
                                                           access to housing for residents.

                                                           Review and re-registration of the waiting list will improve the quality of offers
                                                           and actual letting made. As well as improving staff efficiency by reducing time
                                                           taken by staff making offers to applicants where current information is out of
                                                           date

                                                           Introduction of a Joint Housing Register that will improve on access and choice
                                                           for people seeking housing, whilst ensuring that the City obtains its share of
                                                           nomination rights to RSLs.

                                                           Develop Local Lettings Plans to assist with sustainable neighbourhoods.


                                                           Allocations Policy and Procedures manuals to ensure consistent service delivery
                                                           and policy application.

                                                           An effective qualitative and measurable allocations monitoring service.




HRA Business Plan – March 2004                                                                                                         Page 66 of 76
Birmingham City Council
   Audit Commission‟s Recommendations                                              Critical Project   Outputs & Outcomes                                                              Sponsor

   From 2003 report                                                                1.4 Resident       To establish a framework where residents and the council are clear about the    Nick Parker
                                                                                   Involvement        level of landlord services to be provided and where „residents‟ satisfaction,
   S3. Develop a comprehensive welcome pack for new tenants which                                     complaints and performance provides intelligence for the housing service to
   should include up to date information about the Repair and Maintenance                             respond and take action to improve services.
   Service

   S4. Review the Tenants Quality Promise(TQP) standards with tenants and
   develop, publicise and report performance against a range of agreed
   service standards                                                                                  Updated Tenants Handbook and Welcome Pack

   S6. Improve consistency of response for customers visiting decentralised                           Revised complaints procedure
   offices by providing clearer and more succinct guidance for staff and
   telephone access to the contractors Call Centres for customers                                     Stakeholder agreed targets and revised monitoring reports

   S7. Ensure a range of mechanisms for obtaining customer feedback on all
   Repair and Maintenance Services delivered, monitor feedback, including
   paying attention to ethnicity and disability and ensure that a mechanism is
   in place to follow up individual cases of dissatisfaction and that generally,
   feedback informs future decision making
   S8. Ensure customer complaints are effectively captured and monitored
   and widely promote the revised policy when introduced

   S11. In re-engaging with tenants, seek to ensure broad representation
   from the diverse range of communities served

   D19. Ensure that key documents such as the repairs handbook, TQP and
   info for new tenants are available in different languages and formats

   C28. Ensure that an effective and inclusive communication and
   consultation strategy is put in place for both internal and external
   audiences



   From 2001 report:

   1. Ensure BT phone book, new tenants pack, TQP, newsletters and
   website have consistent accurate up to date info

   2. Use the issue if the new Tenants Handbook as an opportunity to
   standardise all repairs info

   6. With a high proportion of visits to Neighbourhood Offices establish
   how visiting tenants can best be served in respect of repairs ordering

HRA Business Plan – March 2004                                                                                                                                                   Page 67 of 76
Birmingham City Council
   8. Establish the necessary telephone links that need to be in place between
   the Councils proposed Call Centre, those of the contractors and Housing
   Offices to ensure ease of access for tenants

   11. include as part of a review of TQP the reliability and user friendliness
   of info to LHLBs

   13. Improve customer care in the light of comments made by tenants
   about the helpfulness of staff in customer satisfaction survey

   17. In accordance with the Tenant Compact involve tenants ad fully as
   possible consulting formally and broadly on matters of importance




HRA Business Plan – March 2004                                                    Page 68 of 76
Birmingham City Council
   Audit Commission‟s Recommendations                                      Critical Project   Outputs & Outcome                                                                   Sponsor

   From 2003 report                                                        1.5 Estate                                                                                             Dave
                                                                           Services Action    A thorough and comprehensive review of estate services in consultation with         Cusack
   D22. Consider the costs and benefits of maintaining communal areas to   Plan               residents in order to develop an improved service that is flexible and able to
   agreed standards                                                                           adapt to the changing needs of local neighbourhoods.

                                                                                              Taking into account how the role of Caretakers and Concierge can contribute to
                                                                                              the maintenance of communal areas to agreed standards. To achieve a localised
                                                                                              and speedier response to completing communal repairs.

                                                                                              Successful use of legal actions to control anti-social behaviour to increase by
                                                                                              50%. Legal actions to be defined as the award of civil order in the county or
                                                                                              magistrate‟s court (or relevant criminal court for ASBO on conviction) in respect
                                                                                              of a defendant accused of anti-social behaviour. Achieve 84 legal actions over
                                                                                              2003/04 and review performance in March 2004 to set new targets for 2004/05.

                                                                                              Provide a deterrent to further anti-social acts and so reduce ASB over time.
                                                                                              Improve sustainability in neighbourhoods, through a reduction in transfers due to
                                                                                              ASB.

                                                                                              Increase community involvement – sense of achievement, empowerment &
                                                                                              confidence.

                                                                                              Over the three-year life of the Safer Neighbourhoods Programme reduce the
                                                                                              overall level of anti social behaviour by 50%, youth crimes by 40% and all
                                                                                              crimes by 25-30%.
                                                                                              Improve sustainability and quality of life in the neighbourhoods measured
                                                                                              through a detailed impact evaluation at the end of the programmes in March
                                                                                              2004.

                                                                                              Options and recommendations for future service delivery of estate service
                                                                                              functions.




HRA Business Plan – March 2004                                                                                                                                            Page 69 of 76
Birmingham City Council
   Audit Commission‟s Recommendations                                          Critical Project    Outputs & Outcomes                                                                   Sponsor

   From 2003 report                                                            1.6 Implement the   All Council housing to meet the Decent Home Standard by 2010.                        Helen
                                                                               Decent Homes                                                                                             Marson
   D15. Finalise a medium term (5 to 7 year) plan to progress delivery of      Strategy            Achieve annual target (2003/4-2009/10) for number of dwellings made decent.
   Decent Homes
                                                                                                   Achieve annual target (2003/4 – 2009/10) of improvements to prevent dwellings
   From 2001 report:                                                                               becoming non-decent.

   18. Given the relatively low SAP rating, establish a programme for                              Improved performance in delivery of Capital Programme – April 2005
   improving the rating wherever possible to improve comfort levels and
   disposable income for tenants                                                                   An asset management IT solution developed and implemented for recording and
                                                                                                   updating stock condition information and programming maintenance and
   19. Given the high level of unfitness now known to the authority,                               improvement work - April 2005
   establish a risk based response that minimises claims against the Council
   whilst protecting the interests of the 30,000 tenants affected                                  Greater value for money achieved in unit cost of improvement works.

                                                                                                   11 Constituency Investment Plans developed by April 2004

                                                                                                   Decent Home targets set and resource requirements to achieve Decent Homes
                                                                                                   identified at a constituency level.



  Objective Two: Develop the infrastructure to sustain improvements over the longer term – Nigel Christie
   Audit Commission‟s Recommendations                                          Critical Project    Outputs & Outcomes                                                                   Sponsor

   No specific comments                                                        2.1 Implement       Replace existing IT systems with improved and enhanced management                    David Hart
                                                                               the HITS project    information system at a Citywide and local level, with go live by March 2005

                                                                                                   Improve responsiveness and capacity to deliver the business case for the Housing
                                                                                                   Service.

                                                                                                   Provides enhanced management monitoring information and improved access for
                                                                                                   all levels of staff to respond interactively to tenants‟ enquiries and widening up
                                                                                                   customer choice.
   Audit Commission‟s Recommendations                                          Critical Project    Outputs & Outcomes                                                                   Sponsor

   from 2003 report                                                            2.2 Establish the       Define and establish a Strategic Housing Function, which can support a           Michael
                                                                               Strategic               devolved service while at the same time maintaining a focus of service           Irvine
   C29. Ensure wide external advertisement of and open recruitment to the      Housing                 improvement, develop the Council‟s strategic vision for housing and
   proposed senior management posts within the restructured Housing            Function                formulating policy development and co-ordination.
   Service



HRA Business Plan – March 2004                                                                                                                                                Page 70 of 76
Birmingham City Council
   Audit Commission‟s Recommendations                                            Critical Project     Outputs & Outcomes                                                                  Sponsor

   from 2003 report                                                              2.3 Develop          6 CBHOs in development with at least one CBHO in place in each                      Nigel
                                                                                 CBHOs in two         pathfinder constituency area by March 2004. The latter having a resident            Christie
   C32. No specific recommendations were identified, however, the re-            Pathfinder           board taking action to influence the provision of services in line with a
   inspection report, as a recommendation, requires that the Council „take       constituencies       neighbourhood plan.
   action to address all other weaknesses identified‟.
                                                                                                      Greater influence and control by residents over day to day services and setting
                                                                                                      service standards in their neighbourhood.
   The Audit Commission‟s report notes that the Council has set an
   „ambitious agenda‟ and are concerned that the service may be „distracted                           Provides local resident clarity and influence on future investment options.
   by strategic developments instead of concentrating on improving front-
   line services‟.

   Further, the Audit Commission note that the Council „appears more able
   to recognise and respond to risks‟, and take appropriate action.

   Audit Commission‟s Recommendations                                            Critical Project     Outputs & Outcomes                                                                  Sponsor

   From 2003 report                                                              2.4 Implement                                                                                            Nigel
                                                                                 Devolution to        Implement governance and managerial changes so that housing service activities,     Christie
   C25. Carry out comprehensive risk management to minimise potential            Constituencies in    powers and budgets move away from the centre and devolve through to
   pitfalls in the large scale devolution of services                            Pathfinder Areas     constituencies over a four year period.
                                                                                 and create
                                                                                 shadow devolved
                                                                                 structure in Non     Housing Services to be fully devolved to constituencies in the two Pathfinder
                                                                                 Pathfinder Areas     areas and for shadow arrangements to be established in the Non Pathfinder areas
                                                                                                      by April 2004. With the outcome being that the Housing Service moves away
                                                                                                      from „one size fits all‟ and develops local solutions and services capable of
                                                                                                      meeting local needs.

   Audit Commission‟s Recommendations                                            Critical Project     Outputs & Outcomes                                                                  Sponsor

   From 2003 report                                                              2.5 Drive cultural   Achieve organisational focus and movement that delivers the overarching vision      David
                                                                                 change to            for the Housing service; „to work together so that people in Birmingham can live    Hucker
   C28. Ensure an effective and inclusive communication and consultation         increase             in comfortable and affordable homes in flourishing neighbourhoods‟.
   strategy is put into place for both internal and external audiences           customer
                                                                                 responsiveness       Deliver service improvements outlined in the Performance Improvement Plan to
   C30. Take positive steps to address the priorities for action identified in   and service          improve the Department‟s actions regarding customer care and response.
   the recent MORI survey of staff                                               diversity

   C31. Ensure new performance management arrangements are effectively
   introduced and cascaded to all staff and regular reporting and monitoring
   of outcomes to customers and stakeholders



HRA Business Plan – March 2004                                                                                                                                                      Page 71 of 76
Birmingham City Council
  Objective Three: To strengthen the financial position – Michael Irvine

   Audit Commission‟s Recommendations                                         Critical Project   Outputs & Outcomes                                                                   Sponsor

   No specific recommendations                                                3.1 Strengthen     To deliver a revised strategy and business plan by November 2003.                    Lisa
                                                                              and resubmit the                                                                                        Trickett
                                                                              Housing Strategy   To secure a Fit for Purpose rating on the majority of criteria for the Housing
                                                                                                 Strategy by March 2004.

                                                                                                 To have embedded the Housing Strategy within the housing service and wider
                                                                                                 council to secure at least a Band B rating within the CPA Balanced Housing
                                                                                                 Market assessment framework by March 2006.




   Audit Commission‟s Recommendations                                         Critical Project   Outputs & Outcomes                                                                   Sponsor

   from 2003 report                                                           3.2 Achieve a      Approval of a balanced HRA budget for 2003/04 incorporating the redirection of       Sukvinder
                                                                              balanced HRA       resources of £12m to repairs over 2 years from 2002/03 and 2003/04.                  Kalsi
   D14. Ensure regular review of projected savings, costs and resources to    account
   ensure that achievement remains on target                                                     Monthly financial and performance monitoring reports to achieve a balanced
                                                                                                 HRA at the year end and secure the redirection of £12m of resources.

                                                                                                 Ensure that the redirection of £12m of resources contributes towards achieving the
                                                                                                 DHS and delivering the responsive repairs service.

                                                                                                 An agreed corporate policy that maximises the use of land receipts for investment
                                                                                                 in housing.

                                                                                                 Increased investment in neighbourhood regeneration



   Audit Commission‟s Recommendations                                         Critical Project   Outputs & Outcomes                                                                   Sponsor

   from 2003 report                                                                              Modernise the procurement of maintenance and Improvement services and
                                                                              3.3 Implement      achieve greater value for money for maintenance and improvement contracts.           Helen
   D21 Review the procurement and planning of PVCv window                     the SIP on                                                                                              Marson
   replacement to maximise cost efficiency and effectiveness                  Capital and        Maximise the level of resources available for works, by reducing the cost of
                                                                              Procurement        administration, technical and professional services.
   D24. Ensure that the Service Improvement Plans arising from related best
   value reviews recently undertaken by the Council and by Druids Heath                          Achieve greater value for money and levels of tenant satisfaction by learning from
   TMO are regularly monitored and that agreed outcomes are delivered                            evaluation of previous major works schemes.

HRA Business Plan – March 2004                                                                                                                                              Page 72 of 76
Birmingham City Council
   Audit Commission‟s Recommendations                                        Critical Project   Outputs & Outcomes                                                                Sponsor

                                                                             3.4 Implement      Modernise the Department‟s approach to income and debt management                 Dave
   No specific comments                                                      the SIP on                                                                                           Cusack
                                                                             Income and Debt    Reduction of rent arrears of £330,000 within financial year

                                                                                                Achieve cash collection target of 94% this financial year

                                                                                                The success of this work will also be measured in terms of the impact that the
                                                                                                changes have on preventing new debt

   Audit Commission‟s Recommendations                                        Critical Project   Outputs & Outcomes                                                                Sponsor

   No specific comments                                                      3.5 Sickness       Reduce sickness absence to achieve the corporate target for 2003/04 in each       Celia
                                                                             Absence Action     division of an average of eight days per employee                                 Huxtable
                                                                             Plan
                                                                                                Reduce sickness absence in the department overall to an average of 12 days per
                                                                                                employee in 2003/04.

                                                                                                Reduce the number of employees absent due to long-term sickness (i.e. 4 weeks
                                                                                                plus)

                                                                                                Achieve a reduction in short-term repetitive absence.



   Audit Commission‟s Recommendations                                        Critical Project   Outputs & Outcomes                                                                Sponsor

   D13. Carry out a stock condition survey which will produce data capable   3.6 Strategy to    A strategy for all Council Housing to meet the Decent Home Standard by 2010.      Helen
   of extrapolation and develop a more planned approach to updating the      deliver Decent                                                                                       Marson
   stock condition information                                               Homes              Investment decisions for Council Housing Stock made as part of the wider
                                                                                                housing strategy for each Housing Market Area.

                                                                                                A strategy for asset management

                                                                                                Improved knowledge of stock condition and greater level of accuracy in
                                                                                                assessment of repair and maintenance liability over the period of Housing
                                                                                                Revenue Account Business Plan.




HRA Business Plan – March 2004                                                                                                                                              Page 73 of 76
Birmingham City Council
Appendix H: Progress on the HRA Business Plan Action Plan 2002/03
                                                                                      Target date for
                                     Priority                                                                             Progress
                                                                                       achievement
      Continue to improve existing services
       Achieve following BVPI targets in 2002/03
           92.30% of rent collected                                        )                           92.34%
           Rent arrears of current tenants at 6.9% of rent roll            )                           6.6%
           Rent written off as not collectable at 1.78% of the rent roll   )    31 March 2003          1.52%
           3.18% of rent lost through vacant dwellings                     )                           3.3%
           Average void turnaround – 54 days                               )                           53.7 days

      Complete Best Value Service Improvement Plans for
       Income Maximisation                                                 )                           Completed
                                                                                     st
       Voids                                                               )    31 October 2002        Completed
       Anti-social behaviour                                               )    to March 2003          Completed
       Capital Procurement                                                 )                           Completed
       Allocations                                                         )                           Completed
       The Strategic Housing Function                                      )                           Completed

                                                                                st
      Implement Service Improvement Plans                                   31 March 2003               Reported in the PIP.
      Repairs
                                                                                st
       97% urgent repairs to be completed within Government limits         31 March 2003               94.6 %
                                                                              st
       35 days to complete non – urgent repairs                            31 March 2003               32.1 days

      Complete work on the following themes
       Rebuilding relationships with tenants                               Ongoing                     Ongoing
       Devolving the service                                               )                           Pathfinders in development
       Using resources more effectively                                    ) Complete review by
                                                                                st
                                                                                                        Ongoing
       Making savings in Management costs and redirecting them into        ) 31 December 2002          Redirection of £12 million achieved.
         repairs and maintenance work




HRA Business Plan – March 2004                                                                                                                 Page 74 of 76
Birmingham City Council
                                                                                         Target date for
                                    Priority                                                                                Progress
                                                                                          achievement
      Develop a new investment strategy to achieve the Governments‟
      Decent Home standard
       Review Stock Condition Survey                                         )                            Completed
       Identify the up to date cost of achieving the Decent Homes            )                            Completed
        Standard, and the number of properties involved                       )
       For possible cost increases due to:                                   )                            Completed
          Price inflation                                                    ) 31st August 2002
          Revised procurement methods.                                       )
          Continued deterioration of stock since the survey was              )
             carried out, offset by the Council‟s capital investment during   )
             this period                                                      )
      Consult with our tenants about the standard of works to their homes.
                                                                               st
      Implement new Investment Strategy                                       1 April 2003                 Included in the Performance Improvement
                                                                                                           Plan.
                                                                               st
      Review Asset Management Strategy                                        1 April 2003                 Not achieved. To be rolled forward.
                                                                                st
      Support the work of the Commission                                      31 December 2002             Completed
                                                                                st
      Report of the Commission                                                31 December 2002             Completed
                                                                                st
      Review alternative funding options                                      31 December 2002             Ongoing and feeding into Stock Options
                                                                                                           Appraisal.
                                                                                    st
      Review Council‟s policy to try to ensure that Housing resources are     31 December 2002             RTB Capital Receipt Now Utilised for Housing
      used for Housing purposes                                                                            Investment.
                                                                                    st
      Review use of existing resources                                        31 December 2002
                                                                                                      st
      Work in partnership with tenants to ensure next year‟s Plan is built    On going complete by 31      Not Done
      from the „bottom up‟                                                    March 2003
      Consult with tenants, employees and Trade Unions about
      Revised Structure                                                                                    Incorporated into the Performance
       To achieve management cost savings                                    On-going                     Improvement Plan.
                                                                               st
       Devolution                                                            1 April 2002
       Implement necessary changes
      Compile individual property database                                    September 2003               Cloning of database completed February
                                                                                                           2004
      Develop stronger links between planning of new community renewal        March 2003                   Completed
      schemes with planning arrangements for programmed investments
      to ensure synergy
      Review planning processes and monitoring arrangements to ensure         March 2003                   Completed
      future HRA business plans are driven by strategic requirements




HRA Business Plan – March 2004                                                                                                                 Page 75 of 76
Birmingham City Council
Appendix I: List of Abbreviations
ASB       Anti-Social Behaviour
BASBU     Birmingham Anti-Social Behaviour Unit
BME       Black and Minority Ethnic
BVR       Best Value Review
CBHOs     Community Based Housing Organisations
CBL       Choice Based Lettings
CHLB      City Housing Liaison Board
CPA       Comprehensive Performance Assessment
DHS       Decent Homes Standard
DPHR      Disabled Persons Housing Register
FFP       Fit for Purpose
GOWM      Government Office for the West Midlands
HB        Housing Benefit
HITS      Housing Information Technology Solutions
HLB       Housing Liaison Board
HR        Human Resources
HRA       Housing Revenue Account
IIP       Investors in People
IT        Information Technology
MDP       Management Development Programme
ODPM      Office of the Deputy Prime Minister
PID       Project Initiation Document
PIP       Performance Improvement Plan
SAP       Standard Assessment Procedure
SHB       Strategic Housing Board
SMART     Specific, Measurable, Achievable, Realistic and Timely
SMT       Senior Management Team
TMO       Tenant Management Organisation
TQP       Tenants‟ Quality Promise
VFM       Value for Money




HRA Business Plan – March 2004                                     Page 76 of 76
Birmingham City Council

				
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