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 joint 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 joint 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 Joint Management Agreements3.01Before entering into joint management arrangement Associations must ensure:
a. Compatibility of the aims, objectives, and governing instruments of both the Association and partner agency; and
b. That the partner:
- 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 joint management arrangements.
3.02Where an Association decides to enter into a joint management arrangement for a scheme - it is required to draw up a joint management agreement. The agreement is a legally binding contract between the Association and the partner which sets out the duties and responsibilities of both parties in the scheme and which protects the legitimate interests of the Association, the partner 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 partner, 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 joint 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 partner agency - 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 partner must be based upon an agreed assessment of the work to be undertaken by each party.
3.07Joint management agreements involving the delegation of management responsibilities -
Para 4.00 below provides a checklist of points to be considered when drawing up an agreement which involves the delegation of housing 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 partner 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 partner 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).
4.00 Joint Management Agreements ChecklistGENERAL
- Specification of the parties to the agreement, with their respective aims, objectives and legal status;
- The property covered by the agreement;
- Duration of the agreement;
- Statement of the aims and objectives of the scheme including definition of client group to be housed;
- Procedures for monitoring and review of agreement and success in meeting aims and objectives defined above;
- Rights of both parties to take action in cases where the agreement has been breached;
- Procedure for dealing with disputes between the parties to the agreement;
- Termination of agreement;
- Clarification that ultimate responsibility for the scheme and its management lies with the Registered Housing Association;
- Representation on respective committees;
- Indemnity;
- Confidentiality;
- The basis of apportionment of allowances is specified
DEVELOPMENT
- Provision for consultation on design, appointment of consultants, and any savings or changes to the scheme;
- Handover arrangements;
- Arrangements for apportionment of Special Projects Promotion Allowance;
- Meeting non-qualifying costs;
- Notification of defects;
FINANCIAL
- Arrangements for drawing up a budget for the scheme prior to the start of each financial year;
- Method of reporting progress against budget;
- Authorised level of expenditure within budget;
- Procedures for expenditure outside budget;
- Procedures for expenditure in emergencies;
- Arrangements for meeting budget deficits;
- Accounting information to be made available to the Housing Association;
- Arrangements for apportioning and payment of Supporting People funding;
- Division and payment of management and maintenance allowances;
- Responsibility for payment of VAT, rates, any mortgage or rent etc;
- Responsibility and method of setting rent and charges, including any reviews;
- Responsibility for obtaining additional revenue finance;
- Responsibility for maintaining bank accounts;
- Responsibility for keeping scheme accounts;
- Insurances;
MANAGEMENT
- Agreement on access to the scheme, specifying clear processes and criteria for referral and selection of tenants;
- Agreement on form of occupancy (i.e. tenancy or licence), and procedures for termination of residency, specifying responsibility for issuing, ensuring compliance with and terminating the occupancy agreement, providing this information to tenants, and ensuring that, as far as possible residents understand the agreement;
- Agreement on house rules, specifying responsibility for informing residents of rules, and procedures for monitoring and revising rules;
- Agreement on staffing and responsibility for employment of staff;
- Agreement on tenant’s privacy and personal rights including arrangements for tenant consultation; making provision for access to the property by housing association staff;
- Arrangements for paying of rent and charges and procedures for arrears, specifying responsibility for collecting and recording payments;
- Repairs obligations:
a. Interior decorations;
b. Exterior decorations;
c. Maintenance of the structure;
d. Maintenance of fixtures and fittings;
e. In the event of emergency;
- Responsibility for furnishing the property, its maintenance and replacement;
- Responsibility for cleaning and gardening;
- Observance and compliance with statutes and bye-laws;
- Action following receipt of any statutory or other notice;
- Arrangements and responsibilities in relation to move-on accommodation;
- Arrangements for provision of care and support to tenants.
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