1. Bridging the Decent Homes Funding Gap Paul Field, Interim CEO

2. Background on Sandwell Homes Excellent Good Uncertain Poor Fair * Good ** Excellent *** Prospects for Improvement? A good service? Jan 04 July 05 Sept 08

3. Decent Homes- 2004 70% non decent Building cost model £450m Funding available £131.1m £318.9m backlog funding

4. Decent Homes - 2011 11% non decent Received £291.3m of backlog funding Re - profiled £18.5m to 2011/12 Re - profiled £9.5m to 2012/13 Total £27.6m But only £1.6m now allocated, £26m gap Sandwell Homes Investment Division – Making Homes Decent

5. Not the first gap In 2006 we had a £88m gap Less demolitions – 12 high rise blocks Less RTBs Higher costs – inflation, electrical regs

6. Bridging the £88m gap EXAMPLES 31/12/12 – 2 years MRA £36m Scaled back high rise spec £20m Allowed for 3% refusal rate £14m Prudential Borrowing£11m Deferred 600 roofs £ 2m Gain Sharing £ 5m Not one solution

7. Uncertainty Decent homes remains the priority for Council & Company Uncertainty of future funding through HRA self financing Therefore uncertainty of programme for tenants (and Councillors)

8. Bridging the gap - money CESP funding (£1.4m) ERDF funding (£1.5m) Company targetting savings for decent homes (£2.5m) HRA self financing (? £6m pa more MRA) Prudential borrowing (debt cap) Green deal funding Sandwell Homes Investment Division – Making Homes Decent

9. Bridging the gap - approaches Reprofiling further into future ? reduce standard ? whole house or component approach ? maximise income from green deal to prioritise heating & insulation programme Sandwell Homes Investment Division – Making Homes Decent

10. Added Value 22 new lifetime flats added in void space 94% spent locally Partners employ 4.5% apprentices Now up to £10m gain sharing Community projects Partnership working with Housing Strategy, Corporate Property, Highways, ASB

11. Questions