Housing Assocations Guide Part 6 Appendix 2Miscellaneous Works
Contents
1.01Miscellaneous Works – are defined as remedial works to specifically identified ‘components’ or ‘areas’ of Association-owned dwellings/property where works or measures are necessary to ensure the health and/or safety of tenants/others, or to comply with new statutory requirements. Most of the miscellaneous works situations listed below have existing since the dwelling/property was built/improved - when the problem/hazard was not known or recognised as such - and, in certain circumstances:
- May now be detrimental to the tenant’s and others health, and require work/measures to ensure the dwelling remains safe for occupation; or
- May not comply with new statutory requirements or responsibilities on the Association as a Landlord.
Failure to take action in known circumstances or to assess the risk could leave the Association open to criticism or the possibility of legal action, or to render the dwelling uninhabitable or ‘difficult to let.’
1.02Unlike Major Repairs - see Appendix: 1 to Part 4 – the risk or problem posed may not be obvious and can only be assessed by specialist testing or survey. Miscellaneous works comprise:
- Asbestos (see Annex E for more details);
- Designing Out Crime (see Annex F for more details);
- Disability Discrimination Act (DDA) (see Annex G for more details);
- Energy Conservation (see Annex H for more details);
- Fire Precautions (see Annex I for more details);
- Houses in Multiple Occupation (HMOs) (see Annex J for more details);
- Lead in Drinking Water (see Annex K for more details);
- Radon (see Annex L for more details).
1.03Grant Position – the NIHE (DPG) will not necessarily provide funding for remedial works and may amend, withdraw, or provide funding depending on the risk posed and the general availability of public sector funding. Associations as good Landlords have a responsibility to be aware of any threat or risk to their tenants’ and to plan accordingly. Where such work is essential and complementary to other necessary grant earning work – e.g., as part of a re-improvement scheme – it may be includes in that scheme. A summary of grant availability – if any - for individual miscellaneous works and conditions that apply are included below, along with the procedures to be followed by Associations in claiming grant.
2.00 Housing Association Grant (HAG)2.01Grant Availability – the following table summarises the availability of grant – if any - from NIHE (DPG) for individual miscellaneous works and particular conditions that will ‘trigger’ funding for that item. General conditions for funding also apply and are included as Certifications on Forms etc.
Miscellaneous work items
Issue |
Funding Available from NIHE (DPG) |
Conditions for funding |
| Asbestos
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Yes, but asbestos is more likely to be found in property constructed pre-1990’s.
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When Tenants require to be decanted to temporary accommodation
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| Designing out crime
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CCTV to shared entrances only.
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Where a PSNI Crime Prevention Officer recommends this measure.
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| DDA
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For Hostels providing a service
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To ensure that the services provided comply with the DDA
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| Energy conservation
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No*
|
NA
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| Fire precautions
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No
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NA
|
| HMOs
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For certain HMO related works only
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To ensure compliance with HMO requirements
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| Lead in drinking water
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No
|
NA
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| Radon
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For certain Radon measures only
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Where a HPA (Health Protection Agency) survey report indicates that remedial works are necessary
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(*Note: funding or part funding may be available from other sources for certain energy conservation measures).
2.02Miscellaneous Works to Dwellings – are eligible for Housing Association Grant (HAG) if it meets the requirements for funding individual miscellaneous works from NIHE (DPG) (see Para 2.01 above). Necessary works costs - including the ‘net’ works cost, any VAT applicable to the works cost and the on-cost applicable to the scheme – will be eligible for 100% HAG funding from the NIHE (DPG).
2.03On-Costs – a fixed on-cost of 16% will normally apply to any eligible works and to any VAT applicable to the eligible works costs. The Association is advised to liaise with NIHE (DPG) to ensure that any works to be undertaken fall within the definition of Miscellaneous Works, are eligible for grant and that on-costs will apply.
[Note: a supplementary on-cost of +8% can be applied where the works required are such that tenants need to be decanted to alternative or temporary accommodation until some or all of the works are complete. This supplementary on-cost will normally only apply in the case of extensive works for Asbestos, DDA, HMOs or Radon.]
2.04Project Approval – applications for project approval must be submitted to the NIHE (DPG) and approval issued prior to the work commencing on site. In cases of emergency, the NIHE (DPG) can give the Association approval to proceed prior to an application being made.
2.05Revised Approvals – if after project approval, additional unforeseen costs are required that differ significantly from that originally envisaged, the Association may exceptionally approach the NIHE (DPG) for a revised approval. The NIHE (DPG) will require documentary evidence to be submitted to explain the reasons for the cost differences. If the NIHE (DPG) decides to issue a revised approval, amended forms etc, may be required.
2.06Cost Overruns – the total costs qualifying for grant are normally fixed at project approval stage and are subject to a cost overrun limit at Practical Completion stage. When an Association seeks grant on a cost overrun situation, the application will be subject to scrutiny to determine the reasonableness of the claim. The cost overrun limit will be 120%. Any additional grant to cover cost overruns will be at 85% for overruns up to 10% above the original approved costs; and 60% thereafter up to the overrun limit.
2.07Tranche Payments - valid applications for Housing Association Grant (HAG) for Miscellaneous Works will normally be paid in one Tranche after Practical Completion Stage. In exceptional cases the NIHE (DPG) may allow the Association to claim up to 80% of approved costs. Associations requiring this facility should contact the NIHE (DPG).
3.00 Action by the Association
3.01Policy Statement - Associations should formally adopt a policy statement, which sets out the organisation’s approach to miscellaneous works and its housing stock, and the priority that should be attached to undertaking this type of work. In order to expedite miscellaneous works, the Association should appoint a member of staff to oversee all schemes and act as a ‘contact point’ for queries and progress. The appointment of consultants, contractual arrangements and the Association’s formal approval of schemes should be streamlined and, where possible performance/time targets established for the various processes.
3.02Need for Miscellaneous Works – the need for works may be identified in a number of ways including routine surveys for other works and/or defects. In some cases, the Association may need to commission specialised surveys or testing to identify the problem or hazard. The appointment of a suitable consultant will probably be necessary to advise on the measures required and to ensure that remedial works or measures comply with statutory requirements etc, unless the Association has the appropriate in-house expertise. Advice may also be required on the selection of suitable contractors and tendering procedures. Associations can combine miscellaneous Works with other non-grant works, provided the cost of this work can be isolated for grant claim purposes. Guidance on Procurement requirements for miscellaneous works is contained in Annex A.
3.03Application for project Approval – once the necessary measures and estimated cost of an individual miscellaneous work item or items eligible for HAG funding has been identified, the Association should submit an application for project approval to the NIHE (DPG) on Form MW1 – see Annex B to this Part of the Guide. This Form includes Certifications by which the Association will certify compliance with this Appendix of the Guide, and is signed by a Member or Officer of the Association, acting with the delegated authority of the Management Committee. The Association will submit the following documents:
- Form MW1 (for Project Approval Stage);
- A detailed description of the proposed works including estimated costs; and
- A copy of any relevant report required as a condition of funding.
After Project Approval is issued by NIHE (DPG) the Association should endeavour to have the works undertaken as soon as practical – and after necessary consultation and liaison with tenants.
3.04Start on Site Stage (SOS) – in exceptional cases the NIHE (DPG) may allow the Association to claim up to 80% of approved costs at this stage. Associations allowed this facility should claim grant on Form MW3 – see Annex D.
3.05Practical Completion Stage – after this stage, the Association should determine the final cost of the work and submit a grant application to the NIHE (DPG) on Form MW3. This Form includes Certifications by which the Association will certify compliance with this Appendix of the Guide and is signed by a Member or Officer of the Association, acting with the delegated authority of the Management Committee. The Association will submit the following documents:
- Form MW3 (for Practical Completion Stage and Grant Application);
- Certificate of Practical Completion and Consultant’s breakdown of works costs applicable to each dwelling (or equivalent documentation, e.g., receipted invoices clearly identifying works cost applicable to each dwelling);
- The Association’s case for consideration of a cost overrun being applied for (if applicable) including supporting documentation.
4.00 Action by the Northern Ireland Housing Executive (DPG)4.01On receipt of a valid application for Project Approval – the NIHE (DPG) will check that the submission is complete and that the Form has been signed by an authorised signatory. It will then check briefly that the works are eligible for grant in accordance with the criteria laid down in this Appendix of the Guide and if cost estimates are reasonable. If satisfied the NIHE (DPG) will issue project approval on Form MW2 – see Annex C – and confirm:
- The total scheme costs that will qualify for Grant;
- The amount of Grant available at each stage;
- The maximum cost overrun figure that can be approved – subject to scrutiny after Practical Completion stage; and
- Any special conditions that apply to Grant Funding.
4.02Grant Claim at Start on Site Stage – subject to this facility being available to the Association, on receipt of a valid application for a grant claim for 80% of approved costs, the NIHE DPG) will check that the submission is complete, the Grant claimed is reasonable and that the Form has been signed by an authorised signatory. If satisfied the NIHE (DPG) will issue approval on Form MW3 and advance the amount of Grant due to the Association’s bank account.
4.03Grant Claim after Practical Completion Stage – on receipt of a valid application, the NIHE (DPG) will check that the submission is complete, grant claimed is reasonable including any cost overrun and that the Form has been signed by an authorised signatory. If satisfied the NIHE (DPG) will issue approval on Form MW3 and advance the amount of Grant due to the Association’s bank account.
4.04Advice on how to proceed – if an Association is unsure of the procedures with a difficult or exceptional case, the Association should contact the NIHE (DPG) for advice.
5.01Regulation and Inspection – as part of this process the DSD will check the validity and accuracy of the Certifications given by the Association as part of the procedures for Grant. The main purpose will be to verify that all the DSD’s requirements and conditions have been met, and that the Association has properly exercised its responsibilities set out in the relevant Appendix of the Guide. This does not reduce the responsibility of the Association to ensure that the costs of any claim for Grant are appropriate and have been properly incurred.
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