Housing Association Guide Part 5 Appendix 3
Joint Management Agreement GuidanceContents
1.01Unlike most Housing Association accommodation - supported housing may not always be managed directly by the Association which owns the property. Associations are responsible for providing efficient and cost effective management in the best interests of tenants, and are accountable for the public funds invested in the scheme. However, within those requirements, they can adopt a variety of management arrangements, including management agreements (see Para 3 below) with other agencies to which part, or all, of management responsibilities can be delegated provided that, ultimately, the responsibility for effective management remains with the developing Association.
1.02There are a number of models - for the management of supported housing and a wide variety of levels of involvement by other agencies. The DSD does not wish to direct Associations towards any particular pattern of management, and they are free to choose how schemes will be managed, provided the requirements of this item are met.
2.01Associations are expected - to weigh the benefits of directly managing the scheme against those of entering into a management arrangement. The decision to manage special needs housing should be based on a realistic assessment of the Association's skills, capacities and experience in relation to the needs of the particular client group.
3.00 Management Agreements3.01Before entering into a management arrangement Associations must ensure:
a. Compatibility of the aims, objectives, and governing instruments of both the Association (Principal) and Managing Agent; and
b. That the Agent:
- Is an identifiable legal identity;
- Is a non-profit making organisation;
- Is a viable organisation;
- Has the management expertise appropriate to the special needs of residents;
- Has the capacity, resources and the appropriate range of skills to undertake the management or responsibilities proposed under the management arrangements.
3.02Where an Association decides to enter into a management arrangement for a scheme - it is required to draw up a management agreement. The agreement is a legally binding contract between the Association and the Agent which sets out the duties and responsibilities of both parties in the scheme and which protects the legitimate interests of the Association, the Agent and the tenants. Associations should of course be careful not to enter into actual legal partnerships which would make both parties jointly responsible for all of each others assets and liabilities.
3.03The form of agreement will vary - according to the nature of the scheme, the agencies involved and the division of responsibilities. The agreement must however make it clear that the Association retains overall control of the property and the housing aspects of the scheme. Even where the Association delegates the authority to grant tenancies/licences to the Agent, all residents are tenants or licensees of the Association.
3.04The Association should regularly put into practice - the review and control mechanisms contained in the management agreement to ensure that the scheme is continuing to meet the agreed objectives and policies.
3.05A lease or tenancy agreement of the property to a Managing Agent - is not normally acceptable unless both parties are registered Housing Associations, in which case NIHE (DPG) consent must be obtained.
3.06The agreement should set out the financial arrangements - the exact split of allowances between the Association and agent must be based upon an agreed assessment of the work to be undertaken by each party.
3.07Management agreements involving the delegation of management responsibilities -
As a minimum the agreement should contain the following basic controls:
a. Managerial Controls:
- Clarification that the ultimate responsibility for the scheme is with the Association;
- The right of both parties to take action in cases where the agreement has been breached;
- An agreed procedure in the event of a dispute between the parties to the agreement;
- Provision for regular review and for termination of the agreement;
- Provision for at least one representative of the Association to attend meetings of the Agent where the scheme is discussed, or liaison meetings held at regular intervals; and
- Details of the form of tenancy/licence agreement to be used.
b. Financial Controls:
- Agreement between the Association and the Agent of a budget for the scheme, to be drawn up before the start of each financial year;
- An agreed method of reporting progress against the budget;
- Arrangements for meeting deficits on the scheme;
- Access for the Association to such accounting information as is necessary for it to satisfy both its auditors and the DSD's accounting requirements; and
- Arrangements for the payment and apportionment of allowances between the parties (see also Para 3.06 above).
3.08Schemes involving the delegation of any housing management responsibilities to a statutory body e.g. a Health & Social Services Board, are ineligible for HAG funding - for this purpose housing management responsibilities can be defined as those activities which the DSD management and maintenance allowances seek to cover i.e. selection of tenants, collection of rents, granting of tenancies, carrying out repairs etc.
3.09Support Agreement – an Association may decide to enter into a support agreement with another agency to ensure that the care and/ or support needs of tenants are met. It is acceptable for a support agreement to be entered into with a Statutory Body providing it does not involve the delegation of any management responsibilities to it (see Para 3.08).
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