Contents

Glossary 2

Foreword 4

Introduction5

Scope6

Key principles7

Role of the parties7

Contract initiation 8

1.1 New funding9

1.2 Contract execution & handover9

Contract performance management 10

2.1Reporting11

2.2Monitoring12

2.3Performance management13

2.4Record keeping16

Contract administration17

3.1Contract review, extension and variation18

3.2Contract termination18

3.3Core operating policy variation19

3.4Managing contractual disputes19

Appendices20

  1. Key performance indicators& data sources21

2. Contract initiation:new funding, contract execution & handover process22

3. Contract management: reporting & monitoring process 23

4. Contract management: performance management process 24

5. Contract administration: contract variation process25

6.Contract administration: management contractual disputes process 26

GLOSSARY

community housing means housing for people on a very low, low or moderate income or for people with additional needs that is delivered by non-government organisations (registered community housing providers).

Community Housing Agreementmeans an agreemententered into between the South Australian Housing Trust (SAHT) and a community housing provider, pursuant to section 20 of the Community Housing Providers (National Law) (South Australia) Act 2013 and includes:

  • The Master Community Housing Agreement, including all attachments, annexures and schedules to it; and
  • Any agreement, deed or instrument executed under or which is subject to or bound by the Master Community Housing Agreement (including but not limited to project agreements, deeds of statutory charge and pre-existing agreements).

community housing assetshas the definition as provided for by the Community Housing Providers (National Law) (South Australia) Act 2013.

Community Housing Customer Register (CHCR)means the register of that name which comprises a list of persons seeking access to community housing (or any replacement register determined by South Australian Housing Trust (SAHT) maintained by SAHT.

community housing providermeans an entity that provides community housing.

Community Housing Providers (National Law) (South Australia) Act 2013means the community housing legislation in South Australia.

contract manager means theRenewal SA employee responsible for managing the contractual relationship between the South Australian Housing Trust (SAHT) and the community housing provider under the community housing agreement. The contract manager will act as the key contact point for community housing providers regarding contractual matters.

core operating policiesmean the policies published by the South Australian Housing Trust (SAHT) relating to the operation of community housing by community housing providers and includes, but is not limited to, the Core Operating Policy: Eligibility, Community Housing Maintenance Accommodation Standardsand the Community Housing Rent Policies. The core operating policies in existence at the date of execution of the community housing agreement are attached to the Master Community Housing Agreement as Attachment E.

fundermeans the South Australian Housing Trust (SAHT).

Office of Housing Regulation (OHR) is the office established to support the Registrar, Community Housing to perform the duties assigned under the Community Housing Providers (National Law) (South Australia) Act 2013.

partymeans a party to the community housing agreement.

performance reportis the report to be analysed by contract managers periodically throughout the term of the community housing agreement. The performance report enables contract managers to assess the performance of a community housing provider in delivering the agreed contractual outcomes and also provides an early intervention mechanism for addressing any issues or concerns that may arise.

project propertyhas the definition as provided for by theMaster Community Housing Agreement.

Renewal SAis the trading name of the Urban Renewal Authority and has delegation to act on behalf of the South Australia Housing Trust (SAHT) in relation to the funding of community housing in South Australia. This includes, but is not limited to,responsibility for ensuring community housing providers comply with the terms of theircommunity housing agreement with the SAHT to deliver quality community and affordable housing outcomes.

significant issuemeans a performance issue deemed to have the potential for serious negative impact on tenants, community housing assets or the reputation of the community housing sector. A significant issue may also exist where:

  • Minor performance issues continue to occur or escalate; or
  • There is a continual lack of engagement by the community housing providerto address the identified issue; or
  • There is a continuing absence of adequate reporting required for KPI assessment.

South Australian Housing Trust (SAHT)is the statutory corporation incorporated under the provisions of the South Australian Housing Trust Act (1995)(SA) that is party to a community housing agreement with a community housing provider.

unresolved failuremeans a community housing provider has not taken adequate action to remedy an identified significant issue and is deemed non-compliant with the requirements of theircommunity housing agreement. Unresolved failure will be reported to the Office of Housing Regulation.

FOREWORD

Community housing providershave managedgovernment subsidised social and affordable housing program properties and tenancies in South Australia since 1979. Providers’ management structures vary,as do their size, location and target group, however all providersdeliver housing for disadvantaged South Australians on low to moderate incomes.

TheCommunity Housing Providers (National Law) (South Australia) Act 2013(‘the Act’) introduced a standard system of regulation for providers nationally. Thisled to theseparation of regulatory, policy and funding roles at state government level and significant sector consolidation.

The new legislative and policy arrangements require providers to register under the Act by demonstrating compliance with the National Regulatory Code.The Office of Housing Regulation (OHR), established in 2013,is directly responsible for the registration and ongoing regulation of registered community housing providers against this Code.

Renewal SA, acting on behalf of the South Australian Housing Trust (SAHT), is responsible for funding community housing providers in South Australia. This includes pro-actively managing the contractual relationship between the two parties relating to the delivery of quality community housing outcomes for low to moderate income South Australians.

All funding agreements previously contracted under the repealed South Australian Co-operative and Community Housing Act 1991(SA)are to be re-negotiated and consolidated under one standard contract, the Community Housing Agreement(‘the Agreement’). This new Agreement streamlines reporting requirements and applies consistent performance monitoring by government across all project properties. A suite of core operating policies linked to the Agreement further establish how community housing properties are to be managed.

The purpose of thisContract Management Frameworkis to ensure the contractual relationship between the SAHT and community housing providers is managed equitably, transparently and accountably by Renewal SA.

Renewal SA will continue to work in partnership with the sector to further refine these working arrangements and practices.

Diagram: Links between legislation, policy and the community housing agreement


SCOPE

This document sets outRenewal SA’sapproach in this regard as it relates to a community housing agreement entered into by registered community housing providers,pursuant to the Community Housing Providers (National Law)(South Australia) Act 2013.

The document focuses on long term management contracts where title is held by the community housing provider. Contracts for development and construction are not dealt with in detail. Nor does the document deal with leasehold arrangements between SAHT and community housing providers.

A robust contract management framework will guide both contract parties to take action to improve community housing delivery.

It also assistsRenewal SA (on behalf of the SAHT) to:

Ensure delivery of funding and support for the provision of social and
affordable housingoutcomes forlow to moderate income South Australians;

Safeguard public contributions and advocate for the interests of the State Government;

Provide mechanisms whichensure tenancy services are fair and accountable;

Build strong working relationships with community housing providers;

Co-ordinate streamlined data collection for performance analysis and
statistical purposes; and

Meet internal and external reporting accountabilities and responsibilities.

The framework is presented in three parts:

  1. Contract initiation
  2. Contract performance management
  3. Contract administration

KEY PRINCIPLES

Thefollowing key principles underpin this framework:

►Quality service– The delivery of quality housing outcomes for low to moderate income South Australians is at the forefront of all contract related actions and decisions.

►Professionalism–Applying best practice in contract and performance management, and implementinggovernment policies without bias or favour.

►Trust and respect – Building strong working relationships between the contracted parties based on mutual understanding and appreciation of their objectives and constraints, and respect for their independence.

►Collaboration and engagement– Demonstrating a commitment to continued positive working relationships between the parties through open communication, early identification of potential performance concerns and constructive appraisal/feedback.

►Honesty and integrity – Demonstrating and valuing decision-making which is impartial, ethical and transparent.

►Courage and tenacity – Working persistently over the long term to ensure that contract outcomes are achieved and are in the best interest of tenants.

►Sustainability– Ensuring continued relevance and efficiency through regular review of both the mutual expectations of the parties and Renewal SA’s community housing contract management framework.

These principles closely align with the South Australian Public Sector Values which guide the behaviours and practices of all public sector employees, regardless of position, technical expertise, or location.

ROLE OF THE PARTIES

Contract management brings together the funder(SAHT) and the community housing provider in a relationship that works to deliveragreed social and affordable housing outcomes. TheCommunity Housing Agreement, which encompasses theMaster Community Housing Agreementand related project agreements,prescribe theobligations, rights, responsibilities and mutual intentionsof the signatories.

South Australian Housing Trust (SAHT) is the legal entity that is party to the Agreement with registered community housing providers.

Renewal SAis responsible for administering the contractual relationship between the SAHT and registered community housing providers. Each provider will be assigned a contract manager within Renewal SA who will act as their key contact point for all contract related matters.

Community housing providersare responsible for achieving agreed outcomes and providing accurate, complete data in a timely manner to demonstrate achievement.

Contract Initiation

Contract initiationrelates to the arrangements preceding entry into a new community housing agreement. These arrangements include:

  • Determiningfunding allocation and related terms and conditions
  • Contract execution and handover
  • New funding

Renewal SA will follow approved internal procedures relating to decisions aboutthe allocation of available government funding for the delivery of community housing.

These procedures provide for:

  • Clear project deliverables and objectives to be established prior to release of available funding;
  • Application of relevantstate government procurement processes; and
  • Financial and contract approvals within appropriate instruments of delegation.
  • Contract execution and handover

Renewal SA will follow approved internal procedures when negotiating and executing a new community housing agreement.

These procedures provide for:

  • An initial written request to the provider for authorised contact officers;
  • Preparation of the Master Agreement including:
  • Property details by reconciling property and project data held by Renewal SA on the community housing database (Schedule 1 of the Agreement)
  • Portfolio profile (Annexure A of the Agreement)
  • Key Performance Indicators(KPIs) and agreed benchmarks
  • Project agreements and expiry dates
  • Core operating policies and procedures
  • Review and signing of the prepared Agreement;
  • Opportunity for negotiated changes where necessary to address specific circumstances of individual providers;
  • Preparation of final Agreement for signature; and
  • Assignment and notification of contract manager.

(Refer Appendix 2: Contract initiation -new funding, contract execution and handoverprocess flow diagram)


Contract Performance Management

Contract managementincludes the processes for proactively managing the contractual relationship to ensure that agreed outcomes are achieved. These processes include:

  • Reporting (thedata collected against Key Performance Indicators);
  • Monitoring (how that data is assessed);
  • Performance Management(the action taken where data provided does not demonstrate agreed contractual outcomes have been met); and
  • Record keeping.

2.1Reporting

2.1.1Key Performance Indicators :

Key Performance Indicators (KPIs) are quantitative or qualitative measurements that help determine the extent to which agreed contractual outcomes have been achieved. The KPIs against which a provider’s performance will be measured are attached at Appendix 1 and broadly relate to:

  1. Housing the right people;
  2. Providing fair and accountable tenancy services; and
  3. Managing project properties

These measures reflect key State Government expectations and priorities ofprovidingaffordable housing for people on low to moderate incomes, including vulnerable households requiring support to maintain their tenancy.

In setting these measures, Renewal SAhas:

  • Allowed greater flexibility for the utilisation of project properties across the portfolio of individual providers;
  • Minimisedreporting obligations of community housing providers;
  • Developed a common minimum data set allowing for tailored thresholds which reflect the individual requirements of programs and providers where necessary; and
  • Recognised that the parties’ expectations and/or the service environment may change over time and agreed program/provider specific requirements will require regular review.
2.1.2Regular reporting:

Community housing providersare required to provide regular data returns (e.g. quarterly/annually as required) which demonstrate performance against the KPIs, agreed targets and/or benchmarks. Providers are also responsible for the correction of any identified data errors and for notifying their contract manager of any non-compliance with the requirements of their Agreement outside of the regular data collection and assessment period.
In addition to the regular data return, otherdata held by government will also be utilised to assess the provider’s performance including (but not limited to):

  • The Australian Institute of Health and Welfare (AIHW) annual data collection;
  • Reporting extracted from the Community Housing Customer Register (CHCR) and other Renewal SA administered systems; and
  • Any performance related complaints received which directly relate to the requirements of the community housing agreement.

(Refer Appendix 1: Key Performance Indicators and data sources).

2.2Monitoring

2.2.1Monitoring proportionate to risk:

Monitoring intensity will be proportionate to identified program risks and the agreed outcomes for each individual provider. Renewal SA will:

  • Identify risk to contractual outcomes on a provider by provider basis;
  • Evaluate risk and determine where impactsare greatest; and
  • Manage contractual risks by developing appropriate risk mitigation strategies.It is not intended that these strategies be onerous or complex but will require periodic review through the lifecycle of the contract.

For example:

A file history of complaints regarding maintenance, and lower than average capital maintenance expenditure may trigger:

→A focus on physical standards for a defined period; and/or

→Regular supportive contact by the contract manager

A provider with a large proportion ofrequired specialised housing outcomes may need a stronger focus on program specific allocation targets and service partnership arrangements than a provider with a more general allocation profile.

2.2.2Consistent engagement:

Strong, effective working relationships between the parties are critical to ensure timely and accurate reporting is provided to meet agreed contractual requirements. Contract managers will take care to ensure that contact with providers is consistent and objective. Contact on all but the most minor matters will be in writing or confirmed in writing (email acceptable).

Providerswill designate an individual or small group of individuals authorised to provide reliable and approved information to Renewal SAfor the purpose of monitoring contractual performance. Renewal SA will assign a contract manager to each provider who will provide feedback on any identified trends or emerging performance issues requiring further scrutiny or discussion.

Contract managerswill engage with providersquarterly, as a minimum. Regular data returnswill berequired quarterly or annually in most cases.

Providers can liaise with their contract manager at any time to relay information that may impact their ability to meet reporting requirements or contracted outcomes.

2.2.3Evidence-based analysis:

Data submitted will be validated by the contract manageragainst previously submitted information and checked to ensure it is reasonable and accurate. A performance measurewill be assigned for each KPI together with agreed benchmarks where applicable. These will be outlined in the individual Agreement of each provider and may be varied on the basis of operational history. A consistent and objective assessment will be applied across all contracted community housing providers.

The contract manager will seek to promptly identify any emerging performance issues which potentially compromise the ability of the provider to meet KPIs in the longer term. The contract manager will identify any potential performance issues early and,together with the provider, agree on any remedial action required.

A quarterly performance reportwill be preparedfor each individual provideridentifying where:

►KPIs are met(no further action is required)

►Potential performance concerns have been identified (furtherinvestigation and remedial action to be agreed)

►Significant performance issue/s are evident (urgent remedial action required)

This performance report will be provided in writing to the provideras soon as practicable following the end of the reporting period.

Contract managers will not enter into discussions on matters regulated bythe Office of Housing Regulation (OHR). Where such issues emerge, the contract manager will ensure any information exchange with the OHRis in accordance with the Operating Arrangements agreed betweenRenewal SA and the OHR.

(Refer Appendix 3: Contract reporting and monitoring process flow diagram)

2.3Performance management

Performance management refers to the process of ensuring both parties to an Agreement meet their obligations as effectively as possible in order to achieve the agreed outcomes.