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Guidance for Local Authorities on Improvement and Repair Grants - Housing (Scotland) Act 1987 Incorporating amendments made by the Housing (Scotland) Act 2001 and implemented from 1 October 2003.

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GUIDANCE FOR LOCAL AUTHORITIES ON IMPROVEMENT AND REPAIRS GRANTS

13. NON-OCCUPIERS' ASSESSMENT

13.1 The assessment for applicants in the "non-occupier" category is based on the increase in property value which will result from the proposed works, so that grant is awarded where the work may not be commercially viable. Additional criteria adjust the applicant's contribution to reflect the contribution of the works to housing and regeneration priorities. Worked examples of this assessment are provided at Annex E

Valuation
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13.2 The first stage of the test is for the local authority to determine the increase in value which will arise from the planned works. Valuations should be obtained through a qualified valuer nominated by the local authority. This may be the district valuer, an in-house valuer or another surveyor acceptable to the authority. The starting valuation should reflect the condition of the property as it is at the date of application. The second valuation is an estimate of the value that property would have, at the same date, if all the proposed works had already been completed to a satisfactory standard. By taking an estimate of the value at the same date, any change in value due to fluctuations in the market are disregarded. Valuations should reflect the price which the house could be expected to fetch on the open market with vacant possession, and assuming that no grant was to be available.

13.3 Since valuations are to be obtained through a valuer nominated by the local authority, the cost of valuations may be included as part of the general administrative costs of the grants system, and charged to the Private Sector Housing Grant. Alternatively, local authorities may choose to require the applicant to commission a valuer nominated by the authority, and pay for the valuations. Bear in mind that an applicant may be aggrieved at being asked to pay for valuations if no increase in value is identified, and therefore no grant is payable.

13.4 The applicant has no specific right to a review of the valuation of the property (see paragraph 16.7). Local authorities may wish to make arrangements to obtain a second pair of valuations if requested, and should keep this in mind when identifying their principal nominated valuer.

Excess expense
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13.5 The increase in value is compared to the approved expense. If the increase in value exceeds the approved expense, the applicant's contribution is 100% of the approved expense. If the approved expense is greater than the increase in value, the excess expense is the amount on which the level of grant/applicant's contribution is calculated. The applicant must always pay the amount of the increase in value (except where a minimum percentage grant applies).
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13.6 For non-profit housing providers (see paragraph 13.12), there is assumed to be no increase in value, and the excess expense is therefore equal to the full amount of the approved expense. There may also be other situations where the proposed works do not add to the value of the property and the excess expense equals approved expense. If the works result in a decrease in value, as may occasionally be the case, for example with some disabled adaptations , the approved expense is still the maximum amount which can be paid in grant.

Criteria
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13.7 The applicant's contribution is then calculated as a percentage of the excess expense. The maximum applicant's contribution is the added value plus 80% of excess expense. This reflects whatever criteria the local authority uses to determine whether or not to approve an application for grant. Since most grants are discretionary, it is felt that any application which in the local authority's view merits approval, merits at least 20% of the excess expense. An additional 20% of the excess expense is then deducted from the applicant's contribution for each of the following criteria that are satisfied:
The works:
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a) provide additional housing by the conversion or subdivision of property or by bringing back into use housing which has been empty for at least two years;
b) bring the property up to at least the Tolerable Standard;
c) are part of a refurbishment scheme;
d) are common works to a building which includes more than one house (or a house and other premises);
e) are carried out by a not-for-profit housing provider;
f) significantly increase the extent to which a disabled person can independently enter and move around the house and operate all fittings, services and controls.

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13.8 A refurbishment scheme is defined as a scheme where a single contract is to be let to undertake a similar programme of improvement or repair works to 3 or more houses. This might include a project by a private-sector landlord to upgrade all their properties in one or a number of areas, a mixed-tenure scheme undertaken by the local authority or Registered Social Landlord (RSL), or a scheme simply agreed on by a number of owners in one area. In each case, it results in a pro-active improvement of a portion of the local housing stock.

13.9 A refurbishment scheme which only comprises works to common parts of a building is excluded from this definition, since such works will gain additional funding under criterion (d). Works undertaken to implement repair notices are included where they are instigated by the owners involved, but not where they are undertaken by the local authority as a result of the owners' failure to comply with the notice.

13.10 Criterion (d) is included to facilitate agreement between owners.
A33(2)(d)
The definition of common works requires that:
  • the building comprises two or more houses, or a house or houses and other separate premises;
  • the works will benefit two or more such houses or premises; and
  • the costs will be shared among the owners or occupiers of those houses or premises.

13.11 To ensure this provision applies in all cases, and to avoid any complications as the reform of property law in Scotland takes effect, there is no reference to title conditions or liability for maintenance. Minimum percentage grant may be awarded even where the works are technically the responsibility of only one owner, if other owners have agreed that the works will benefit their property and they are willing to share the costs. An example would be where the roof of a tenement belongs only to the top flat, but leaks affect the stair and could damage the fabric of the whole building.

A33(2)(f)
13.12 A not-for-profit housing provider is an RSL, or a recognised charity or other organisation which does not trade for profit and which includes among its objects and purposes the provision, construction, acquisition, improvement, repair or management of houses for letting, sale or shared ownership. The organisation's aims need not be limited to housing activities. For example, this category could include local community trusts which might also work to increase employment opportunities and improve other community facilities.
A33(2)(e)
13.13 To determine whether proposed works will significantly increase the accessibility of the house for disabled people generally, the local authority should have regard to the standards in the Scottish Homes guidance "Housing for Varying Needs". To meet this criterion, the works must in this respect exceed the requirements of the Building Standards (Scotland) Regulations 1990, which specify a standard of "visitability". A significant increase in accessibility might be achieved by increasing the number of rooms with wheelchair access and other accessible features, or by changing fittings throughout the house. Consideration should be given to features which may help people with sensory and mental impairments, as well as physical disabilities.

13.14 The enhancement of grant for works which increase accessibility for disabled people generally is distinct from arrangements for adaptation work to meet the needs of a particular disabled occupant. Where the works are tailored to an individual's assessed needs, it will normally be most appropriate for the disabled person to make the application for grant - see paragraphs 11.5 to 11.7.

Relationship to minimum percentage grant
13.15 Some of the criteria for enhanced grant are the same as categories of works eligible for minimum percentage grants ( see section 10). However, this is not double-counting, since the two calculations are separate. Minimum percentage grants are set at 50% of the approved expense. The assessment for landlords etc calculates a percentage of the excess expense, where the approved expense exceeds the increase in value. In some cases the excess expense and the approved expense may be the same. In those cases, an application which meets two or more criteria under the assessment will qualify for more than the minimum percentage. Where the excess expense is less than the total approved expense, the application will need to meet more criteria to exceed the minimum percentage grant. Worked examples are provided in Annex E.

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Page updated: Friday, June 23, 2006