Social Landlord Service: HRA Income Policy

Having access to a good quality home plays a fundamental part in our tenants qualify of life. To achieve this GYBC must have a robust approach to income management to ensure that it maximises rental and service charge collection whilst also supporting tenants and leaseholders to be able to afford their housing costs. 

9.1Priority one: supporting tenants and sustaining tenancies

GYBC will act early, giving advice and support to our tenants to help understand the importance of paying rent on time, signposting to support and maximise income before arrears accrue. To achieve this, we will:

• complete a home visit to all new tenants
• provide an excellent service, be fair and equitable
• listen to our tenants and seek feedback
• work with our partners to provide advice and assistance to tenants to maximise their incomes, sustain their tenancies and enhance financial inclusion at the start of tenancies and when arrears occur
• be an advocate for timely rent and other charge payments
• be clear that rent is due in advance
• engage with tenants, freeholders and leaseholders as soon as the first payment is missed

9.2Priority two: maximising income & minimising arrears

Where tenants, freeholders and leaseholders owe money to GYBC through arrears and recharges we will take action to make sure payments are recovered.

To achieve this, we will:

• take prompt and appropriate action to recover arrears and other debts
• keep in regular contact with tenants in arrears helping them to stay on track with repayment plans
• be proactive and use measures which prevent and minimise arrears
• use alternative payment arrangements where tenants are in arrears on UC
• request Third Party deductions from DWP benefits
• be proportionate and take account of the impact on the tenant or leaseholder as well as the wider implications for the service
• stay aware of developments in arrears prevention and recovery and will develop new and effective initiatives
• be committed to using legal possession action, proportionate to the debt owed, but only as a last resort and when all alternative measures have been exhausted and in compliance with the Pre-action Protocol for Possession Claims by Social landlords before taking any formal court steps
• work with our Homelessness Prevention Team if arrears are likely to result in an eviction complying with GDPR to ensure tenants consent to any support before referrals are made to any external agencies
• comply with our statutory duty under the Homeless Reduction Act 2017, being an enhanced prevention duty to extend the period a household is threatened with homelessness from 28 days to 56 days, so that the Service works with tenants to prevent homelessness at an earlier stage

 9.3Priority three: improving collection of leasehold and freehold charges and debts

As the Landlord we are committed to managing leaseholder and freeholder income in a firm but fair way to recover monies due.

To achieve this, we will:

• deliver accurate billing on services and works completed
• ensure that leaseholders and freeholders pay their service charge and any other charges in accordance with their lease and agreement
• encourage leaseholders and freeholders to make payments in advance to support with budgeting
• we will share information to leaseholders and freeholders about what works we plan to do and estimated costs
• being committed to maximising income through a proactive and preventive approach of the accumulation of arrears.
• introduce twice yearly billing, issuing estimated bills and final bills, providing more certainty to leaseholders and freeholders of the costs they will be asked to meet each year

9.4Priority four: achieving equity in tenant service charges

It is important we understand the services we deliver, and charges for tenants are value for money.

To achieve this, we will:

• be clear and open on the services delivered
• ensure that the costs and basis for service charges are clear and transparent
• review and identify opportunities for improving services
• ensure the services and charges are reasonable

9.5Priority five: maximising income collection to sustain the HRA

Rental income makes up 90% of the income available to the HRA, 9% on charges for services and facilities and 1% on non-dwelling rents. Therefore, it is important that tenant rents are set accurately and service charges to tenants, freeholders and leaseholders reflect the cost of the services which are provided.   HRA income is used to pay for:

• the costs of managing the Council's homes
• repair maintenance and improvements of homes
• the new Housing Investment Plan will set out the priorities for investment in the Council's homes
• provision of additional Council homes
• adaptation of Council homes to meet the needs of tenants or their family members who have disabilities or long-term health conditions