AGENDA ITEM 3

VECTIS HOUSING ASSOCIATION LIMITED

MINUTES of a meeting of the Board of Management held at the

Association’s offices, Chapel House, 30 Chapel Street, Newport, Isle of Wight,

on Thursday, 4th February 2016, at 5.15 pm

Present:Mr. G. Hibberd,Mr. R. Biggs, Mr. K. Hopkins,Mr. R. Kaminski, Mr. J Maton, Mr. D. Newton, Ms S Pedrick, Mr. C. Squibb, Mr. M. Starke, and Mr. M. Ward

In Attendance: Mr. M. Pearl (Chief Executive CE)Mr. P. Hann, Finance Manager (FM), Nicola Betchley Housing Services Manager (HSM), Grahame Law Property Services Manager (PSM)

  1. APOLOGIES

These were received from Miss Cullis, Mr. G. Ball,Mrs. M. Wilkinson (Community Services Manager)

2. DECLARATIONS OF INTEREST

The Chairman sought declarations of interest in relation to the matters contained on the Agenda. There were none reported at this time.

  1. MINUTES OF THE PREVIOUS MEETING HELD ON 24TH MARCH 2016

The minutes were accepted as a true and accurate account of the meeting. The Vice Chair duly signed them as such.

  1. MATTERS ARISING
  • Bembridge Recipient Agreement – The CE reported that the money for the Bembridge Recipient Agreement had now been received. The FM indicated that this amounted to £216,000.
  1. HOUSING MANAGEMENT AND MAINTENANCE

5a.Chief Executive’s Report –The CE presented his report. He indicated that it would be slightly different in future as a number of the issues covered would be addressed by the HSM. He highlighted the significant level of tenant profiling information that had now been collected, amounting to 79% of tenants. One of the key points of analysis emerging from the data was that only 50% of tenants had contents insurance. Board Members felt that this was a position that should be rectified in the future. The CE undertook to bring a report back to members with a range of options on how this could be achieved.

Reference was made to the increasing local importance of the Health and Social Care integration and of the growing recognition of the role of housing in this agenda.

In referring to the performance data, the CE indicated that void costs and rent arrears were two areas in which performance will need to be improved moving forward.

The Board noted the report.

5b.Property Services Manager’s Report –The PSM presented his report. He referred to the level of spend in repairs and maintenance across VHA’s stock. He also outlined levels of performance and the proposed programme for Cyclical, Planned and Responsive repairs. He indicated that significant improvement in value for money had been achieved through improved procurement and improved focus following the data from the Stock Condition Survey.

CS asked whether there was a programme of disposing of high cost properties. The CE indicated that this was a feature of the Asset Management Policy that had been approved in 2015, but that properties were considered on an individual basis as and when they became vacant.

The PSM also reported that additional income had been generated through carrying out works for private owners of HAL properties.

MS indicated that he felt that the Repairs and Maintenance Team had significantly improved their approach and performance in managing the programme and were to be congratulated.

The Board noted the report.

5c.Amendments to Mutual Exchange Policy – The HSM presented a report recommending that certain additional exemptions be included in the policy relating to Mutual Exchanges. This recommendation was approved by the Board.

5d.Management Transfers –The HSM presented a report recommending a clear procedure for approving and managing management transfers. This recommendation was approved by the Board.

5e.NHF Merger Code – The CE reported that the NHF had produced a merger code in November 2015 that had not received universal support across the RP sector due to its apparent support for mergers. He also reported that a number of RPs were apparently looking to produce an alternative code. The Board had already agreed, through its adoption of a new Business Plan in October 2015, that it favoured independence, but could consider merger in limited and appropriate circumstances. The CE therefore recommended that rather than adopting the NHF code in part or entirety, it recognised that should the circumstances arise, the Board could look to the Code as a source of good practice and guidance. The Board approved this course of action.

5f. Community Services Update – The CE reported the CSM’s apologies for the meeting and circulated an update of the initial activities of the team since starting on the 11th April. He indicated that this information was also available on the members’ area of the website. MS made the point that the PR activity referred to in the CSM update continued to be an area in which he had an interest. It was agreed that the CE would arrange a meeting to discuss this further.

5g.Voluntary Right to Buy –The FM presented an update to the proposed voluntary RTB, based on a recent seminar he had attended. Although there is currently a pilot scheme in operation, he reported that there was still relatively little indication of how the final voluntary scheme would work. He indicated that there was unlikely to be any impact on VHA in the current financial year. However, it was clear that there would be a number of exemptions, including to properties covered by s106 requirements. MW also pointed out the disincentive of proposed purchasers having to pay £250 in advance in making their application. The FM indicated that when there was further clarification on any specific requirements published a VHA policy document would be brought to the Board. The Board noted the report.

  1. FINANCE, RISK AND VALUE FOR MONEY

(a)Management Accounts for the year ended 31 March 2016 –The FM presented the Management Accounts for the year 2015/6. He pointed out that there had been a healthy surplus and that performance in a number of areas had been good in terms of cost reductions. This had borne out the investment decisions made during the year.

He indicated that discussions had taken place with our auditors in relation to finalising the annual accounts for 2015/6. Unfortunately the auditor would not be available to attend the Finance Committee in July, but the Chair of Finance, MW had agreed to meet with them separately.

The FM shared a number of concerns in terms of the impact of FRS102 on the presentation of accounts moving forward. In particular, the impact of the requirement to move mortgage finance into current liabilities will have the effect of seeming to wipe £5m off of the value of VHA’s worth. Of further concern is the prospect of having to account for the potential early repayment costs of our historic loan from the Housing Corporation.

He did however point out that despite these changes to presentation of the accounts, the underlying financial viability of VHA remains the same. He remains confident that there will be no deterioration of the position regarding covenant compliance, but will be in contact with lenders.

The Board noted the report

(b)Development update –The FM reported on progress in respect of the developments at Bembridge, Greenmount and Ashey Road.

Bembridge – Tenders had been received and although initially above the budgeted costing, work by our development agents, ERMC had indicated areas of potential cost reduction. In the view of the FM, the current tenders represent a viable basis on which to proceed.

Greenmount – The FM indicated that the 8 flats in this development are due for completion in July. This is a slight delay due to an electricity sub-station needing to be installed. He pointed out that these dwellings would bring VHA’s stock holding to in excess of 400 properties. It was agreed that there should be an event to mark this achievement.

Ashey Road – The FM reported that no further contact had been had with R.Warner and that this opportunity would not proceed.

(c)Any Other matters – There were no other matters

  1. ANY OTHER BUSINESS

7.1Governance Update -The CE reported that following his verbal update at the previous Board meeting, he had identified two potential ways forward for Board development and appraisal. The first was involvement in a number of seminars entitled `Moving Up The Gears’ offered by Grahame Maunders. These would connect Board Members with those of other RPs and address key issues.

The second was a series of interventions with individualBoard Members to support development and appraisal offered by Brenda Infante (BI). The CE recommended that both options should be pursued and that the Chair and Vice Chair should be delegated the responsibility to meet with BI to progress this further. This recommendation was agreed by the Board.

7.2Statistical Data Return 2016 – The CE reported to Board that the most recent statistical return to the HCA had been made and was included for information. The Board noted the return.

7.3Business Strategy Review – Awayday – The CE referred to the success of the Strategy Review Day in June 2015 and recommended that a further event should be organised for 2016, preferably in September. This recommendation was supported by the Board. A further discussion identified that external partners should continue to be invited to contribute.

  1. DATE OF NEXT MEETING

Confirmed as 11thAugust2016. .

There being no other business the meeting was closed at 7.40 pm.

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