1. The purpose of this Code is to promote best practice in the management of owner-occupied sheltered housing in Scotland. The Code has been prepared by a Working Group containing representatives of a range of interested organisations. Details of the composition of the Working Group are given at Annex 4. It sets out guidance on the procedures that the managers should follow and the standards of service which owners should expect to achieve. Although the Code is not intended to provide comprehensive advice to owners or potential purchasers on owner-occupied sheltered housing developments, it should provide a helpful source of reference to owners, potential purchasers and those advising them.
2. This Code is also intended to provide a framework for Codes for individual developments that may contain more detailed provisions on particular topics or additional topics. All provisions contained within these Codes should, however, be fully consistent with the provisions contained within this Code.
3. The Code covers the main features of a good quality management service and it is envisaged that its provisions, where relevant, should feature in management contracts. However, some management companies may wish to issue their own codes containing more detailed or additional provisions on particular topics. All the provisions of this Code, where relevant, should be reflected in any company codes and owners, potential purchasers and their advisers will wish to check that this is the case.
4. The Code has been prepared within the existing framework of property law in Scotland. At present, when developers sell individual houses within a sheltered housing scheme, this is normally done by way of a feu disposition in favour of the purchaser subject to a Deed of Conditions. These Deeds usually contain a number of provisions which are relevant to the management of the scheme, for example, they may provide for the appointment of a manager with authority to instruct repairs and maintain the property, to appoint and employ a warden or "house secretary", to set and collect service charges to pay for maintenance and repair work and the cost of the warden service and, possibly, to establish a sinking fund for major repairs. This legal framework could, however, change if the Scottish Parliament decides, in due course, to approve legislative proposals put forward by the Scottish Law Commission for the abolition of the feudal system and the reform of real burdens. The recommendations on best management practice set out in the Code are unlikely to be directly affected by any changes that may be introduced but it is possible that owners may be able to agree, if they so wish, to amend provisions in the Deed of Conditions so that, for example, owners may be able to establish an owners association or agree to replace an existing manager more easily than at present. It may, therefore, be necessary, to extend the terms of the Code if and when these proposals have been taken forward into legislation.
5. The Code, which refers to Scotland only, is not intended to be a statement of law and anyone requiring advice as to his or her legal rights or obligations relating to the management of sheltered housing should seek independent legal advice. The Age Concern Scotland Advisory Service (see paragraph 20 and Annex 1) may also be able to provide assistance.
6. The definitions of terms used in this Code are given at Annex 2.
7. Sheltered housing was conceived in the 1960s in response to an identified need for a form of housing specifically designed with the particular needs of some older people in mind and which could offer a degree of security and peace of mind. It aimed to fill a gap between ordinary houses and flats, and residential care.
8. Projects were originally developed for rent; but housing for owner-occupation began to appear in the 1980s, following recognition that many owner-occupiers, while seeking the benefits of sheltered housing, wished to remain as owners.
9. Housing for older people is increasingly provided in a range of forms with levels of service varying from one complex to another: this code relates to sheltered housing but its principles will apply to other forms of retirement housing which may contain some of the features listed below.
Objectives
10. Over the years, sheltered housing has been developed and improved but the principle objective remains the same — to take all possible, cost-effective measures to encourage older people to continue to maintain an independent household for as long as possible.
Key Features of Sheltered Housing
11. A number of features distinguish sheltered housing from other types of owner-occupied housing. These are: -
- a compact, accessible, easily run, well-located and secure home, purpose designed in a group setting;
- a warden, normally resident, trained in matters affecting older people;
- an alarm system for owners to summon help in an emergency, normally operated in conjunction with a master key;
- a manager who will oversee the management of a development and take responsibility for:
- service provision
- policy making
- employment and training of staff
- common maintenance and repairs
- property insurance
- gardening
- communal cleaning
- finance
- general organisation
- advice and support, where requested, on matters related to an older person’s ability to maintain an independent household;
- a charging system to enable the manager to meet the cost of the above services.
12. Management services are as important as design in achieving the objectives of sheltered housing. Policies are required relating to the warden’s role; use of the master key; and dealing with emergencies. Training needs to be in place to prepare the warden for bereavement counselling; illness; emergencies; dementia; maintenance procedures; fire precautions; Health and Safety; Data Protection; and Equal Opportunities. Professional back up is essential to deal with more complex problems that can occur in the management of any development.
13. The warden service is a key feature of sheltered housing — usually provided by a resident member of staff, possibly with relief staff to cover days off. The aim is to provide peace of mind through having someone available to respond if a resident has an accident or gets into difficulty and through taking responsibility for day to day management of the sheltered development. The warden will not provide nursing or personal care, although may do so in emergency situations until appropriate assistance arrives. This fact is essential to a proper understanding of the warden’s role; the warden is effectively providing an enhanced housing management service to include "acute" support in event of emergencies. Any further extension of the warden’s role would stray into the fields of medical or social care and costs which the concept was never intended to carry.
14. Another essential feature is the alarm system — all, or most, rooms in each house are fitted with call units and pull cords to allow the occupier to contact and talk with a warden in the event of needing assistance. A single system normally serves one sheltered housing development. In many instances, the system is also connected to a community alarm centre to enable calls to be dealt with when the warden is off duty. Most sheltered housing has a master key system to give the warden speedy access in the event of an emergency.
15. Costs are met through service charge payments and fall into three main categories. First, direct costs such as warden’s salary, maintenance contractors’ charges and bills for light and power met by the manager. Second, funds are set aside in "sinking fund" accounts that are held by the manager and used to meet future costs of major repairs or renewals. This allows the costs of such works to be spread over a long period, ensures that funds are available when needed, and that the sheltered housing remains suitable for older people. Third, the manager’s overhead costs are met through a management fee.
Role of Manager
16. Sheltered housing involves both special design features and management arrangements in seeking to offer an assurance that adequate levels of service will be available when required by individual owners. As ultimate responsibility for achieving this aim lies with the manager, certain decisions may be made by management on behalf of owners. For these reasons, it is essential that the management is seen to be open and accountable to owners, allows for proper consultation and involvement of owners where appropriate, and follows a recognised code of practice. This framework code of good management practice for owner occupied sheltered housing brings together the essential elements required to achieve these aims.
17. To date, it has been customary for developers of owner-occupied sheltered housing to use the Deeds of Conditions to reserve for themselves the right to appoint the management agent for the development. The extent to which provisions of this nature, linked to feudal dispositions, create real burdens binding on subsequent purchasers is currently unclear. However, it is anticipated that the Scottish Law Commission’s eventual recommendations for the reform of the law on real burdens, taken together with the legislation that has recently been introduced on the abolition of feudal tenure, will seek to resolve this uncertainty and provide a mechanism which would allow owners, if they so wished, to replace the management agent appointed by the developer.
18. Owners will have the right to seek a review of the management contract entered into by the developer and, if mutually agreed by them, replace the existing management agent. The views of the Working Group on this matter were as follows: -
- The developer of a sheltered housing development should be responsible for appointing the first manager and that this appointment should expire no later than 3 years from the date on which 80% of the houses in the development had been sold. (Any warden’s house, dwellings deliberately retained by the developer and communal facilities would not be included in the calculation of the 80%);
- All aspects of the management contract should receive careful attention, including the length of the management contract;
- Any proposed change of manager should be agreed by a significant majority of the owners following a secret written ballot conducted by an independent party;
19. Where it is formally decided to proceed with a transfer of management and the owners have selected a new manager, the outgoing manager and incoming manager must co-operate in providing the information detailed at Annex 5.
20. Age Concern Scotland has established a pilot service providing independent advice, information and support to owner occupiers of sheltered and retirement housing. The service offers a range of help from general advice and assistance on the operation of sheltered housing developments, the rights and responsibilities of owners, how to follow a complaints procedure to complex legal issues such as arrangements for the change of a development manager. Further details of the service and the address at which Age Concern Scotland can be contacted is given at Annex 1.