Funding the Gap

Danny Key:

Support Solutions

30th April 2013

Key IssuesWhat is exempt accommodation?What is intensive housing

management/additional housing management services?

Case law precedentCommunication systems/alarms in

designated older persons housingCan communication systems/alarms

be funded?

Exempt Accommodation Exempt Accommodation is exempt from Universal

Credit – Exempt Accommodation tenants will have the housing component of their benefit administered at local level under the existing HB Regulations

Exempt Accommodation is exempt from Bedroom Tax

Exempt Accommodation is exempt from Benefit CapTherefore important for landlords and support

providers to establish accommodation for vulnerable people as exempt accommodation

What is Exempt Accommodation?Non-profit organisation (County Council,

Registered Provider*, Voluntary Organisation or Charity)

Must be landlord - legal interest in accommodation (ownership or lease), and….

….where “care, support and supervision” is provided………

………….by or on behalf of the LandlordLevel of Benefit not restricted if exempt

accommodation status achieved

Exempt AccommodationWhat about agency managed schemes, are these

exempt?What about designated older persons housing?Two Fundamental questions

….is care, support and supervision provided by or on behalf of the landlord?…and

…..is the provision of care, support and supervision more than minimal?

Exempt Accommodation definition changing….see letter from Lord Freud

Exempt Accommodation – case lawCase law suggests;

not exempt accommodation where care and support provided by managing agent/support provider under a contractual relationship with commissioner (may not matter soon!)

support provided does not have to be all, or majority of support provided

does not have to be commissionedsupport can be made available whereas care has to

be actually be provided

Exempt Accommodation – case law

Case law suggests; there does not have to be a charge levied for

provision of support (although this helps)it must be case that the tenant may require the

support that is made available or provided

Intensive/Additional Housing Management (IHM/AHM)What exactly is AHM?

ordinary housing management functions, i.e. lettings, tenancy sign ups that are more intensively provided due to the needs of the tenants

Additional housing management functions due to the nature of the tenant group and the accommodation (assessments, health and safety, property checks, HB claims, administration relating to housing management requirements etc.)

Housing Management functions linked to communal areas and the provision of systems, i.e. testing of door entry, CCTV and alarms, re-provision of furniture and equipment etc.

Intensive/Additional Housing Management (IHM/AHM)Judge Turnbull Legal Precedent

Bristol CC v AW [2009] UKUT 109 (AAC) – satisfactory test for determining support is more than minimal is to ask whether support provided likely to make a real difference to the claimant’s ability to live in the property

Why refer to support when defining IHM?Judge Turnbull Legal Precedent continued;

R(H) 6/08, R(H) 4/09 – ‘Support’ involves the landlord doing more than, or different from, the exercise of its ordinary property management functions

Intensive/Additional Housing Management (IHM/AHM)

Chorley BC v IT (HB) [2009] UKUT 107 (AAC) – support not confined to counselling, advising, encouraging etc. ‘the carrying out of repairs which clearly go beyond ordinary housing management can amount to support’

AHM can therefore be sufficient to qualify as exempt accommodation! (based on case law precedent)

Accommodation based low level tenancy sustainment and floating support services can be exempt accommodation

Exempt Accommodation and AHM outcomesA good way of funding prevention & taking

pressure off statutory servicesCreating Exempt Accommodation

scenarios is a good idea:For tenants: service levels maintainedProviders: income levels maintainedLocal Authorities: recover amounts paid

through HB from the DWP

Reactive Communication Systems

Provision of emergency alarms are ineligible to be met by Housing Benefit – Schedule 1 of HBR 2006 and UC Regs 2013

Fewer LA HB decision makers are funding any part of the emergency due to linked system

Fewer Commissioners funding hard wired alarms

Proactive Communication Systems

Non emergency communications systems are now established

Positive OutcomesProactively communicating with residents to

ensure safety of accommodation and individuals 365 days a year

More efficient deployment of staff timeResident news messages and emergency

messaging

Funding Additional Housing Management and Communication Systems

Non emergency communications systems can be defined as a form of intensive housing management required due to the nature of the tenant group

Service Charges?HB Regs 2006 – communication system not

specifically established as ineligibleHB Regs 2006 – service must be connected to

the provision of adequate accommodation

Funding Additional Housing Management and Communication Systems

Case Law suggests that decision maker must take into account the nature of the tenant group when determining whether service is connected with the provision of adequate accommodation – CIS 1460/1995

Funding Additional Housing Management and Communication Systems

Rent?Any form of housing management should sit within

the rentBarrier to doing this…………..rent restructuring for

registered providersHCA has confirmed that additional housing

management costs incurred in providing supported/older persons accommodation can be included within gross rent separately to net target rent

This element would be ignored when assessing rent levels in line with HCA rent standards

Outcomes

PreventativeEfficientValue for Money

Questions?

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