Sector Performance Report 2009-10 - Housing …...Commonwealth housing initiatives Introduction Our 2009-10 Sector performance report marks the second year of publication of this report

Sector performance 2009-10 Victorian registered housing agencies

Contents

Introduction 3 Sector performance 13 Operating environment 4 WEllGOVErnEd 13 FInAnCIAllY VIABlE 31

Commonwealth housing initiatives 4 Governance of the agency 13 Operating performance 31 State housing initiatives 4 Regular board meetings 13 Operating revenue and costs 31

The registered sector 4 Board member participation 14 Return on average assets 32 Operating cash flow 32

WEll MAnAGEd 152009-10 Highlights 5 liquidity 33 Management of the agency 15 Capital structure 34 Staff turnover 15Sector growth 5 Total assets 34

Tenancy management 16 Assets 6 Interest bearing debt 35 Turnaround time 16Grant Funding 6 Interest cover 36 Void loss 17Operating revenue 6 Loan to valuation ratio (LVR) 36 Current tenant rent arrears 18Capital Expenditure 7 Capital expenditure 36 Tenants owing more than eight weeks rent 19Households assisted 7 Outlook 36 Arrears written off as bad debt 21 EvictionsSector Profile 8 22 Appendix 1 37Tenancies maintained 23

37Housing stock 8 Complaints management 24 Key performance measures – definitions Tenants 9 Tenant satisfaction with housing services 25 Vacancy rates 10 Tenant satisfaction – views 26 Staffing 10 Housing management and maintenance 27 Board members 11 Urgent repairs 27

Non-urgent repairs 29 Tenant satisfaction with maintenance 30

Introduction

Our 2009-10 Sector performance report marks the second year of publication of this report.

The report provides:

> an overview of the highlights within the sector during the financial year;

> a profile of the registered housing sector as at 30 June 2010; and

> a summary of performance of registered agencies against key performance measures.

Operating environment 2009-10 has seen further significant growth in affordable rental housing as major investment programs commenced in earlier financial years by State and Commonwealth governments continued to be rolled out. These programs featured an emphasis on the non-government sector playing a key role in delivery.

Commonwealth housing initiatives

Significant Commonwealth initiatives included:

>� National Partnership Agreement on Social Housing (NPSH) supporting the National Affordable Housing Agreement (NAHA) - an allocation to Victoria of $99 152 000 was equally divided across the 2008-09 and 2009-10 financial years. 554 new dwellings were approved in total under the allocation. 318 dwellings of this total (representing $63 million of the total $99 million) were to be delivered by the community housing sector.

>� Nation Building and Jobs (NBJ) program (an economic stimulus package) - an allocation to social housing in Victoria of $1.167 Billion has been made with an expected total of 4 500 units to be delivered by 30 June 2012. Registered housing agencies are expected to deliver nearly 2 500 of these units.

>� NBJ provided a further $99.2 million for repairs and maintenance of existing social housing units in Victoria with $76.1 million of the allocation expended in this financial year and over 9 100 existing homes benefiting from this program.

>� National Rental Affordability Scheme (NRAS) – growth of housing via this scheme continued in Victoria, with approvals totalling over 6 000 units, and units delivered 453. Of these, over 1 500 units had been approved for registered housing agencies (across 6 agencies), and units delivered by agencies totalled 432 or 95 per cent of units delivered to date.

State housing initiatives

Key state initiatives included:

>� Growth Strategy - continued delivery of the previous government’s Growth Strategy was boosted by a commitment of $510 million in 2007 to increase social housing supply in Victoria over four years ($300 million of which was directed to the not-for-profit sector with a target of 1550 units)

>� Additional leasing - an expansion of the leasing program occurred in 2009-10 with 1379 housing units added to social housing stock. In many cases, the Director of Housing subsequently sub leased these units to registered housing agencies to manage.

The registered sector Registered housing agencies are not-for-profit organisations that provide affordable rental housing for low income households. The Housing Act 1983 provides for rental housing agencies to be registered as either housing associations (HAs) or housing providers (HPs).

Housing associations are expected to grow social housing by leveraging government funding and existing property portfolios and must be companies limited by shares or guarantee.

In addition to managing Director of Housing properties, housing providers may also manage and/or own other properties. Housing providers can be companies limited by shares or guarantee, incorporated associations or co-operatives.

For many registered housing agencies, the past year has been characterised by heavy workloads involved in delivering housing projects and/or new homelessness and support initiatives, as well as meeting accompanying requirements for greater financial management sophistication in handling significant investments and associated data reporting.

The excitement and challenge of expanding rental housing portfolios, completing significant maintenance and upgrades with existing properties under their management, and/or extending their service delivery responses to homelessness, for some agencies has been accompanied by the demands of meeting regulatory requirements for the first time.

2009-10 Highlights

Sector growth

During the year the registered sector grew by five agencies to 40 in total, and the number of rental housing units coming under the sector increased to 14 378 from 11 700 at the end of 2008-09.

Of the growth in units under management of the sector:

> 64.4 per cent were attributable to newly registered agencies,

> 14 per cent were new units built or purchased by existing agencies under State and Commonwealth Government investment programs such as Nation Building – Economic Stimulus Plan, and

> 21.6 per cent were existing rental housing units incorporated under the management of registered housing agencies for the first time.

Assets Total assets of the registered sector grew significantly during 2009-10, mainly through developments and purchases of new housing assets. The total assets of the sector reached $1.8 billion by June 2010 from $1.2 billion at the end of the previous financial year. The majority of this growth occurred in associations ($523 million).

Total Assets

Grant Funding During 2009-10 the registered sector received both capital and operating funding from government sources which was significantly higher (74 per cent) than the previous financial year. Of the total of $377m in grants received, 83 per cent came via capital grants for development and acquisition of housing assets and 17 per cent in operating grants.

Grant Funding Breakdown

Operating revenue Total operating revenue of the sector increased by 25 per cent to $145 million in 2009-10. This increase was mainly attributable to increases in rental revenue (due to the larger number of units let) and operating grants received by the registered sector.

Total Operatingrevenue

2000

1199.0 1260.9

1722.8 1823.1

350 150 200809

165.8

51.7

311.8

65.2

Capital grants

63.4

52.3

83.2

61.9

HPs 1800

200910 300 Operating grants HAs 1600 120

2501400

1200 90200 1000

150800 60

600 100

400 30 50

200 100.361.9 0 0 0

HAs HPs Sector 200809 200910 200809 200910

Capital Expenditure The registered sector invested $370 million in housing assets during 2009-10, of which associations contributed almost 95 per cent. This capital expenditure was funded through both capital grants and interest bearing debt.

Capital Expenditure

400

350.7

HPs 350

166.6

370.4 HAs Sector300

250

200

150

100

50

0

179

12.4 19.7

200809 200910

Households assisted During the year, the registered sector assisted a total of 5 279 households1 to establish new housing tenancies, 42.3 per cent of which were in long-term housing. The number of households assisted was a 32 per cent increase on the previous year’s result.

new tenancies by housing type 2009-10 HAs HPs Sector

Long-term housing2 1 534 699 2 233 Transitional housing 1 139 1 907 3 046 Total 2 673 2 606 5 279

1� Number of households that were allocated housing during the year, either to existing or new/upgraded tenancy units.

2� Long-term housing includes affordable housing, rooming-houses and group housing.

Sector Profile

This section provides a profile of the registered housing sector

at 30 June 2010.

Housing stock As at 30 June 2010, the registered sector had 14.378 tenancy (rental) units under management. Of these, 53.1 per cent were managed by associations and 46.9 per cent by providers. Associations owned a majority of their stock (68.1 per cent). In contrast to this, providers managed most of their stock on behalf of the Director of Housing (89.5 per cent), another registered agency or other party (6.9 per cent).

Total tenancy units, 30 June 2010 Associations Providers Sector

Owned 5 199 245 5 444 Managed - Government 2 255 6 036 8 291�Managed - Other 181 462 643�Managed - Total 2 436 6 498 8 934 Total tenancy units 7 635 6 743 14 378

Notes to table

•� Providers Managed - Other includes 392 units managed under the public housing program.

•� Tenancy units managed by a registered agency on the behalf of another registered agency have been counted under Owned only.

•� Tenancy units include all forms of long-term housing, transitional and crisis housing.

Long-term housing accounted for the largest proportion of stock in the registered sector and the majority of stock in the portfolios of both associations (77.8 per cent) and providers (58.2 per cent). The proportion of long-term housing decreased slightly from 73 per cent in 2008-09 to 68.9 per cent whilst the proportion of transitional housing rose from 25 per cent to 29.9 per cent. The increase in transitional housing reflected the 1 179 transitional housing units added to the sector through three newly registered providers.

Tenancy units by housing program, 30 June 2010

1.2%

68.9%

29.9%

Long term housing Transitional housing Crisis housing

Tenancy units by housing type, 30 June 2010 AssociationsProviders Sector

Long term 5 986 3 926 9 912 Transitional 1 611 2 683 4 294 Crisis 38 134 172 Total 7 635 6 743 14 378

Just over three quarters of dwellings have two or three bedrooms, with the proportions of each remaining stable from 2008-09.

Housing stock by number of bedrooms, 30 June 2010

1 bedroom 2 bedroom 3 bedroom 4+ bedroom

The profile of rooming house stock has also remained stable from 2008-09, with most rooming houses containing 6 15 units. Whilst the number of rooming house units has not changed, the quality has improved greatly due to the extensive rooming house upgrade program that was boosted by over $99 million in funding from the Nation Building – Economic Stimulus Plan.

rooming house stock by number of rooms/units, 30 June 2010

71.3%

18.6%

11.6%

615 units 1630 units 31+ units

Tenants At 30 June 2010, there were 12 683 tenancies let in the registered sector, with 73 per cent in long-term housing (including rooming house), and 27 per cent in transitional housing.

Tenancies by housing type, 30 June 2010 HAs HPs Sector

Long-term housing 5 663 3 597 9 260 Transitional housing 1 203 2 220 3 423 Total 6 866 5 817 12 683

41.5%

34.7%

14.2%9.5%

Vacancy rates The vacancy rate for vacant tenantable3 stock at 30 June 2010 was 1.6 per cent for associations, similar to the rate for 2008-09 of 1.7 per cent. This compared to a vacancy rate for vacant untenantable4 stock of 4.2 per cent, slightly reduced from 4.3 per cent in 2008-09. Maintenance required as a result of normal wear and tear or occasional tenant related damage, and the rooming house upgrade program all contributed to the vacant untenantable stock figure.

Vacancy rates, 30 June 2010

8 Vacant untenantable

7

6

5

4

3

2

1

0

1.9% 1.8%

4.0% 4.2%

4.5%

1.6%

Vacant tenantable

Associations Providers Sector

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3� A vacant tenantable unit is one where the unit is ready to be occupied and any maintenance required to facilitate this has been completed

4� A unit is considered vacant untenantable where maintenance required to have it available for occupancy has been deferred or has not been completed, or a decision has been taken for other legitimate reasons not to fill that unit

Staffing At 30 June 2010, there were 1125 staff employed in the registered sector. This equated to 978.5 full time equivalent (FTE) positions, of which associations employed 41.5 per cent of the total, and providers 58.5 per cent.

During the year 381 additional staff members were recruited, 46.2 per cent to newly created positions within the sector. Associations created the majority of the new positions.

Total staffing, 30 June 2010 HAs HPs Sector

Staff 444 681 1 125 FTE 410.5 567.9 978.5 Staff recruited 158 223 381 New positions created 101 75 176

The table below shows the growth in staff numbers in the registered sector for the past three years. The increase reflects the overall growth in the housing portfolio of the sector and the expansion in the number of registered agencies.

registered housing sector staff, three year comparison

1200

681 HPs HAs1000

800

600

400

200

0

444

592

365

273

308

200708 200809 200910

Board members As at 30 June 2010, there were 317 active board members in the registered housing sector, with an average of nine board members per association and eight per provider.

Board members, 30 June 2010

73

244

HPs HAs

Sector performance

This section presents the results from the 2009-10 Key Performance Measures (KPM) data collection as reported by registered housing agencies. The annual KPM data collection plays a key role in the monitoring of ongoing compliance and performance of registered housing agencies against Performance Standards. Results reported by agencies provide a solid, consistent base for identifying trends, both within agencies and across the sector as a whole.

The KPM data collection was first introduced for the 2006-07 financial year. Data submitted by the nine registered housing associations in this year’s collection has been presented in this section and compared to the performance of the associations across the four data collections undertaken to date5.

56

Due to the large number of housing providers registered at the end of the 2009-10 financial year (31) detailed data on providers will not be presented, although averages for this sector as a whole are reported as appropriate6.

In line with the mission of the Housing Registrar to protect social housing assets and ensure quality services to tenants by regulating well governed, well managed and financial viable rental housing agencies, data in this section is presented according to these three key areas of regulation.

5� Data for the 2006-07 financial year is for seven associations only. With the exception of KPM 1 (number of regular board meetings held), all 2006-07 averages are based on the KPM percentage figures. For a complete list of the KPMs see Appendix 1. Wherever possible, 2007-08 averages have been calculated from the raw data collected under the supporting data items for each KPM. Where this supporting data was not requested, the average for 2007-08 is calculated from the KPM percentage figure.

All averages from 2008-09 onwards are calculated solely on the supporting data items.

6� Due to the small number of providers registered at the end of the 2007-08 financial year (four), and the large diversity between these, averages for previous data collections are only provided from 2008-09 for providers.

WEllGOVErnEd

Data in the Governance and Management sections is presented for eight associations. Two of the associations operate under one umbrella organisation and report jointly on governance and management. These associations report against all other KPMs as individual organisations.

Governance of the agency

Regular board meetings

Associations held 96.4 per cent of all scheduled regular board meetings in the year, slightly down from 100 per cent in 2008-09 7. Most associations met monthly, excluding January meetings. Some associations met on a six-weekly basis.

number of regular board meetings held, 2009-10 (HAs)

12

10

8

6

4

2

0

10.1 11

9

1111

9

1111

8

HA1 HA2 HA3 HA4 HA5 HA6 HA7 HA8 2009 10

Average

The average number of regular board meetings held has remained broadly the same over the last four years. A small drop from 10.6 in 2008-09 to 10.1 in 2009-10 reflects a lower number of meetings held, rather than less meetings scheduled. Meetings do not take place when a quorum is not achieved, or are cancelled in December or January due to the other commitments of board members at that time of year.

2006-07 and 2007-08 data is not comparable as this requested the total number of meetings held

7

0

2

4

6

10

12

number of regular board meetings held, Board member participation Board member participation rate, four year trend (HAs) four year trend (HAs)

Regular board meetings were well attended, with the average board member participation rate for associations 100 stable at 77.5 per cent from 77.7 per cent in 2008-09, 90

200607 200708 200809 200910 200607 200708 200809 200910

10 (83.6 per cent). 70

8

10 10.1 10.6 a slightly lower result to that recorded in 2007-08 83.680

77.7 77.5 71.9

Perc

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ge

60

50

40

Board member participation rate, 2009-10 (HAs)

100

0

83.5 77.5

73.974.4

95.5

73.4

83.5

72.7

30 90

20 80

10 70

50

40

30

62.6

Providers also reported good results for governance

Perc

enta

ge 60

In addition to regular board meetings, associations have an 20 measures with 97.1 per cent of scheduled regular meetings

active sub-committee structure. On average, association 10 held, similar to 96.7 per cent in 2008-09. Of the 31

boards had three sub-committees that met 4.6 times. 0 HA1 HA2 HA3 HA4 HA5 HA6 HA7 HA8 2009 registered providers, 28 held all scheduled meetings.

Providers reported similar arrangements with an average 10 Each provider conducted an average of ten meetingsAverage of three sub-committees that met 5 times. during the year (unchanged from the previous year).

The board member participation rate for providers for 2009-10 increased slightly to 80.6 per cent from 78.9 per cent in 2008-09.

Achievement of quorums and participation rates are primarily affected by illness, travel and other commitments of board members resulting in non-attendance.

0

10

20

Staff turnover, four year trend (HAs) Staff turnover by program, three year trend (HAs) WEll MAnAGEd 30 Total

30 Transitional/crisis Excluding transitional/crisis

Management of the agency

Staff turnover, 2009-10 (HAs)

19.6 20.9

22.7

12.4 10.6

20.7

13.812.8

21.118.0

13.812.8

21.1

0 30 200607 200708 200809 200910 0

200708 200809 200910

Staff turnover 20

Perc

enta

ge 20 Staff turnover in associations ranged between 0 per cent and 23.1 per cent with an average of 13.8 per cent,

Perc

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ge

comparable to 12.8 per cent in 2008-09. 10 10

HA8HA7HA6HA5HA4HA3HA2HA1

0.00.0

2009

23.1

20.6 Despite individual association turnover results showing Providers recorded an average staff turnover rate of decreases from previous years, the average staff turnover 21.8 per cent in 2009-10 compared with 13.9 per cent increased slightly from 2008-09 due to an increase in in 2008-09. By work areas, the transitional housing turnover of long-term housing staff. program recorded turnover of 19.1 per cent with thePe

rcen

tage

16.9 15.3

13.8

9.2 figure for all other areas at 24.0 per cent. Whilst someBy program, a far greater proportion of transitional/crisis turnover is expected and can be positive, the rate forstaff left compared to other association staff although providers reported in the 2010-11 KPM data collection2.4 overall this figure decreased slightly from 2008-09. will be examined by the Housing Registrar, and if the

trend upwards has continued, further analysis of factorsTraditionally turnover in the transitional housing program 10 Average has been higher, due to the often more intense nature of

the work and a younger profile of staff who may move on

Two associations recorded a staff turnover above 20 per after gaining experience in this program.

cent. Of these, one association reported the figure to be higher than normal and does not expect the trend to continue. The second has finalised a new structure and shown an improvement from previous years. The Housing Registrar expects this reduction in turnover to continue as the organisation consolidates its operations.

contributing to this trend will occur.

Tenancy management

Turnaround time

Average vacant tenantable (VT)8 turnaround time for associations was 13.8 days, slightly down from 2008-09 at 14.5 days. Average vacant untenantable (VUT)9 turnaround time increased to 33.6 days from 20.7 in 2008-09.10

Average turnaround time (days), 2009-10 (HAs)

70

12

61 Vacant untenantable

29

52 Vacant tenantable 60

50

40

30

20

10

0

13.8

25

11 6

9

19

33.6

10

15

6

5 2

25

20

28

20

HA1 HA2 HA3 HA4 HA5 HA6 HA7 HA8 HA9 2009 10

Average

8� A vacant tenantable unit is one where maintenance has been completed and the unit is ready to be occupied.

9� A unit is considered vacant untenantable where maintenance has been deferred or has not been completed.

10� VUT turnaround time was not included in the data collections for 2006-07 and 2007-08.

Average turnaround time (days), 2009-10 (HAs)

70 Vacant untenantable Vacant tenantable 60

50

40

30

20

10

0

17.2 13.814.5

20.7

33.6

11.0

200607 200708 200809 200910

Whilst the average result for VT turnaround time shows a small improvement, results reported by individual associations for different housing types indicated a wide range of performance. For long-term housing stock excluding rooming houses, turnaround times varied from 2 days to 37 days. For rooming house stock, VT turnaround times ranged from 4 days to 46 days, and for transitional housing the range was from 2 days to 23 days.

Explanations provided to the Housing Registrar suggested that results are affected by various factors including delays occurring where nomination rights exist with partner agencies, extended tenant selection processes in group housing situations, as well as increased time taken to tenant new stock (for instance when new tenants are required to provide their current landlord with 28 days notice).

The slightly increased average for VUT turnaround time was explained primarily by the extensive upgrade and refurbishment program implemented for the rooming house stock, lengthy maintenance requirements for some units in the past year, and decisions in group housing to not tenant a unit due to issues with another existing tenant. As for VT turnaround times, there was a wide range of results reported by individual associations for different housing types.

Whilst acknowledging the validity of these explanations provided by associations, the Housing Registrar will be looking closely at 2010-11 figures reported and should such wide variance still exist, will be conducting further analysis with associations to determine how this range can be reduced.

Average turnaround time (days) by housing type, 2009-10 (HAs)

70 Vacant untenantable Vacant tenantable 60

50

40

30

20

10

0

16.0 13.8

11.5 8.1

19.1

28.0 33.6

39.7

48.7

19.6

Long Rooming Total Transitional Total term house long term

http:2008-09.10

0

10

20

30

40

50

Providers recorded an average VT turnaround time of 7.9 days and VUT turnaround time of 32.6 days. VT turnaround time in the long-term housing program was comparable to VUT turnaround time whereas for both the rooming house and transitional housing program VUT turnaround time was longer than VT turnaround time.

VUT turnaround time for the transitional housing program was particularly long at 38.6 days, primarily due to lengthy

Void loss

Overall, rent foregone due to tenancy units being vacant was a small percentage of total rent charged by associations. The average void loss (vacant tenantable) for associations was 1.1 per cent down from 2.1 per cent in 2008-09.

One association reported voids loss of over 2 per cent,

By housing type, the largest VT void loss was recorded in transitional housing where rent income is returned to the Office of Housing rather than retained by an association.

Void loss (vacant tenantable) by housing type, 2009-10 (HAs)

5 200809

RoomingLong term Total Transitional

4.8 200910however this result was a significant improvement overmaintenance requirements as well as issues associated

its previous year’s performance and reflected its improved 4with effectively managing shared tenancies. tenancy management practices. 3.7

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3

2

Average turnaround time (days) by housing type, Void loss (vacant tenantable), 2009-10 (HAs) 2009-10 (HPs)

2.1

1.71.6Vacant untenantable 2.5

0

2.1

1.1

1.8

1.2

0.5

0.1

2.3

0.6

0.4

1.6

0.9

HA1 HA2 HA3 HA4 HA5 HA6 HA7 HA8 HA9 2008 2009 09 10

RoomingLong

7.97.0 10.1

5.4

14.5

32.6

38.6

16.1 18.1

14.3

Vacant tenantable

Total Transitional Total

1.11

0

0.7 0.72.0Pe

rcen

tage

house long term1.5

1.0

0.5

Average term house long term

0

1

4

5

Providers recorded a similar average VT void loss to the Current tenant rent arrears, four year trend (HAs) Current tenant rent arrears associations of 1.5 per cent, with the largest percentage

Results reported for current tenant rent arrears as aloss also recorded in transitional housing (4.0 per cent). 3 percentage of total rent charged were low across all associations, with all nine associations recording arrearsVoid loss (vacant tenantable) by housing type, of 2.0 per cent or less. The average was 1.3 per cent2009-10 (HPs) 2

2.0

200607 200708 200809 200910

comparable with 1.4 per cent in 2008-09 and continued a trend of improvement across the past four years.

Perc

enta

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1.6

3 3

4.0

0

2

1.4 1.3

Current tenant rent arrears, 2009-10 (HAs) 1

Perc

enta

ge

21.5

1.4

0.1

1.0

1.3

1.6

0.8

1.2

1.9 2.0

1.7

0 HA1 HA2 HA3 HA4 HA5 HA6 HA7 HA8 HA9 2009

10 Average

Perc

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0.70.6 0.6 By housing type, rent arrears in transitional housing were again the highest, most likely reflecting the difficulties1Long term Rooming Total Transitional Total

house long term experienced at times in collecting rent from transitional housing tenants.

0

1

2

3

Current tenant rent arrears by housing type, The Housing Registrar has identified these issues in Tenants owing more than eight weeks rent 2009-10 (HAs) individual regulatory plans prepared with the providers and

At 30 June 2010, 2.2 per cent of tenants in associationcontinues to monitor their progress in reducing rent arrears. stock owed more than eight weeks rent, lower than 3.3 per200809

Arrears for the rooming house stock reduced in 2009-10 cent at 30 June 2009. Two of the associations recorded

Total Transitional Total

2009102.7 2.4

Registrar continues to monitor their progress in further

Current tenant rent arrears by housing type, reducing their figure.

due to improved tenancy management and rent higher than average figures have showed improvement collection processes. from the previous year’s performance and the Housing

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1.4 2009-10 (HPs) 1.31.2 1.2 1.2 1.21.1 1.1 Tenants owing more than eight weeks rent,

6 30 June 2010 (HAs)

5 5.5

4.0 4.8

Long term Rooming Total Transitional Total house long termThis result was largely attributable to four providers 0.5

0.0managing high levels of rent arrears in long-term housing, 0 HA1

Long term Rooming 4.2

3.0 3

3.63.54house long term

Perc

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2.7

1.7

1.0than transitional housing, reversing the trend from last year.

2.7

0

2.5 2.5

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2.4 2.2Providers reported an increase in current tenant rent 2 2.0

1.9arrears from 3.0 per cent in 2008-09 to 4.2 per cent in 1.5 1.52009-10. Rent arrears were higher for long-term housing 1

1.1

0.5

HA2 HA3 HA4 HA5 HA6 HA7 HA8 HA9 2009 although for two of these providers the actual number 10

Average of tenants in arrears was very small (as was the overall number of tenancies). Excluding these providers from this figure reduces the average for long-term arrears to 1.2 per cent.

0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Tenants owing more than eight weeks rent, Tenants owing more than eight weeks rent Tenants owing more than eight weeks rent three year trend (HAs) by housing type, 30 June 2010 (HAs) by housing type, 30 June 2010 (HPs)

8 12200809

8 2.3

3.3

10

6

7.4

4.0

8.9

1.6

10.92009107

52.2

2

Perc

enta

ge

Perc

enta

ge

Perc

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4 6

2.3 1.9

2 1

2.7

3.3

2.4 2.2

4.0

1.8

1.0

3 4

200708 200809 200910

Transitional housing again recorded the highest rate albeit an improved result from the previous year’s figure which was very high. This improvement was attributable to two associations that significantly improved their performance against this measure in 2009-10.

For providers, in contrast to the downward trend for associations the percentage of tenants owing more than eight weeks rent rose to 7.0 per cent from 4.1 per cent in 2008-09. This rise was an outcome of the significantly increased result for long term housing from 4.0 per cent in 2008-09 to 10.9 per cent in 2009-10.

0 0 Long term Rooming Total Transitional Total Long term Rooming Total Transitional Total

house long term house long term

As with the current rent arrears KPM, four specific providers were largely responsible for this high figure and their progress in addressing this issue is being monitored by the Housing Registrar.

7.0

0

0.3

0.6

1.2

1.5

Arrears written off as bad debt, four year trend (HAs) Arrears written off as bad debt by housing type, Arrears written off as bad debt 2009-10 (HAs)

Arrears written off as bad debt by associations represented 1.5

1.2 3.5

1.4a very low proportion of total rent collected. The results in 2009-10 were relatively stable at 0.7 per cent, and have

4.0 200809 3.7 200910

fluctuated between 0.6 per cent and 0.8 per cent in the 3.0past three years.

Perc

enta

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0.3

0.8

1.0

0.6 0.7

Perc

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Arrears written off as bad debt, 2009-10 (HAs) 2.00.6 1.71.5

Long term Rooming Total Transitional Total 0.9

1.3

house long term

1.5 1.4

1.2 1.0

0.70.60.50

200607 200708 200809 200910 0 0.4 0.40.3 0.3

Perc

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0.2 managing transitional housing stock reporting results transitional housing has reduced slightly however all other

HA1 HA2 HA3 HA4 HA5 HA6 HA7 HA8 HA9 2009 higher than this average. The Housing Registrar will types of housing stock recorded an increase, particularly for

0.7

0.0 0.2

0.5

0.7

0.2

10 examine 2010-11 figures once these are submitted and long-term housing (excluding rooming house) which roseAverage conduct further analysis on contributing factors if the trend to 1.1 per cent from 0.2 per cent in 2008-09. has continued.

The average figure for transitional housing however increased significantly from 1.7 per cent in 2008-09 to Providers recorded a slightly higher result of 1.7 per cent 3.7 per cent in 2009-10 with three of the five associations compared with 1.1 per cent in 2008-09. The result for

1.0

1.5

2.0

2.5

3.0

Arrears written off as bad debt by housing type, Evictions by housing type. 2009-10 (HAs) Evictions 2009-10 (HPs)

Evictions reduced in 2009-10 to 3.4 per cent from 8

5.1

4.3

6.4

5.4

7.3

3.4 3.8

3.0

2.3

3.3

200809 5.1 per cent in 2008-09 for associations. In actual 2009107

2.9

and 47 in transitional housing were reported across the 6 numbers, a total of 33 evictions in long term housing

nine associations. The evictions KPM is calculated as a 5

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1.1

1 0.5

2.0

Evictions four year trend (HAs)

1.3

0

1.7

Long term Rooming Total Transitional Total 0 house long term

Long term Rooming Total Transitional Total 6 house long term

5.6

percentage of exits, not of overall tenancies, which means

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4 that an agency with a stable tenancy profile and therefore

3low number of exits may record a high percentage of evictions even though the actual number is low. 2

200607 200708 200809 200910

5.15

4

3

2

1

0

4.7Pe

rcen

tage

3.4

The pattern of reductions in evictions was common to all housing types.

0

20

60

80

100 4

Data on reasons for evictions was very similar to Evictions by housing type. 2009-10 (HPs) Tenancies maintained (long term housing 2008-09. Most evictions in associations were for arrears. including rooming house) The relatively large percentage of evictions for other 12

The average result for tenancies maintained as reportedreasons in transitional housing were primarily attributable 10.4

Results for this year are not comparable to the previoustoo long a period in that form of housing.

by associations for long-term housing was 85.6 per cent.to associations moving on tenants who had remained for 10

8

Other

5.1

Tenancies maintained (long-term housing).

8.0

5.9 5.3

year’s results as the calculation method for the KPM was changed for the 2009-10 reporting cycle. Trend data will

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reason for eviction by housing type. 2009-10 (HAs) 6 be shown from 2010 11.

40 3

80

92

56

95

67

57

640

33

9

354 12 Antisocial 2 2009-10 (HAs) behaviour

0Arrears Long term Rooming Total Transitional Total 100 house long term

HA9HA8HA7HA6HA5HA4HA3HA2HA1 2009

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92.3 88.7 88.7 88.787.5 85.684.382.8 82.1

71.036

reasons for evictions in transitional housing. Providers also recorded a relatively large number of “other”

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60

40

Long term Rooming Total Transitional Total house long term 20

0 Similar to associations, the overall percentage of evictions 10 reported by providers reduced - from 6.8 per cent in Average 2008-09 to 5.9 per cent. However evictions in the long-term housing rose in 2009-10, particularly in rooming house stock where the result increased from 6.2 per cent to 10.4 per cent.

0

20

80

100

Both associations and providers also recorded significant Tenancies maintained by housing type Complaints management rates of tenancies maintained in transitional housing (35.7 (long-term housing). 2009-10 (HPs)

Registered housing agencies are required to take allper cent and 42.9 per cent respectively). As transitional reasonable steps to resolve a complaint referred to it,housing is a short-term housing option, the retention 100

90.0 particularly those from tenants or prospective tenants,of tenancies for a full-year indicates that tenants are within 30 days of the complaint being made. In 2009-10,84.3 89.5 per cent of complaints made to the associations wereof availability of suitable longer term housing options.

staying longer than anticipated, possibly due to a lack 80

67.4

The average result for providers was 79 per cent, slightly 20

42.9

lower than 81.5 per cent reported last year.

resolved within 30 days up from 85.2 per cent last year

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60 and continuing the upward trend. All associations recordedTenancies maintained by housing type. 75 per cent of complaints resolved or better.2009-10 (HAs) 40

60

87.7

100

40

71.0

85.6 0 Tenant/prospective tenant complaints resolved

Long term Rooming Total Transitional house long term within 30 days, 2009-10 (HAs)

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40

20

100

89.5

100100

78.9

93.390

93.3

7575

0 HA1 HA2 HA3 HA4 HA5 HA6 HA7 HA8 HA9 2009

10 Average

35.7 80

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60

Long term Rooming Total Transitional house long term

Tenant/prospective tenant complaints resolved within 30 days, three year trend (HAs)

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100

80

60

40

20

81.0

89.5 85.2

0

200708 200809 200910

number of complaints HAs HPs Total

Total number of complaints 214 913 1127 Total number of tenant/prospective tenant complaints 104 444 548

Advocate involvement

Yes 15.4% 7.0% 8.6% No 84.6% 93.0% 91.4%

Housing Type

Long term Transitional Crisis Other

60.3% 32.2%

0.0% 7.5%

36.8% 41.3% 57.2% 52.4%

2.5% 2.0% 3.5% 4.3%

Primary focus of complaint HAs HPs Total

Customer service/information referral processes Tenancy management Property maintenance Neighbourhood disturbance Security/personal safety Community/interagency relations Other

9.3% 17.3% 14.5% 42.5%

5.1%

1.4% 9.8%

3.4% 4.8%

32.7% 48.6%

4.1%

4.5% 7.2%

29.3% 47.5%

4.3%

0.8% 5.6%

0.9% 6.4%

Outcome of complaint

Not within agency jurisdiction -

complainant referred elsewhere 3.3% 7.2% 6.5% Resolved - apology by agency 7.0% 2.5% 3.4% Resolved - explanation/further

Only 3.3 per cent (down from 4 per cent in 2008-09) of all complaints directed to agencies were unresolved either because no resolution was able to be reached with the complainant (2 per cent down from 3 per cent) or because the complainant took the complaint to an external party (1.3 per cent up from 1 per cent). The table below provides a summary of complaints handled by agencies.

Complainant

Tenant (or advocate on their behalf) Prospective tenant (or advocate on their behalf) Neighbour (or advocate on their behalf) Another agency Other

38.8%

4.7%

39.3% 2.3%

15.0%

48.2%

0.4%

44.6% 2.8% 3.9%

46.4%

1.2%

43.6% 2.8% 6.0%

information by agency Resolved - change to decision/action Resolved - other Unresolved - no resolution able to be reached with complainant Unresolved - complainant took complaint to external party

23.8%

15.9% 47.2%

1.9%

0.9%

40.6% 37.4%

2.7% 5.2% 43.5% 44.2%

2.0% 2.0%

1.4% 1.3%

80

100

Tenant satisfaction with housing services Tenant satisfaction with housing services, Tenant satisfaction with housing services, four year trend (HAs) 2009-10 (HPs)

Seven of the nine associations conducted tenancy surveys11

during 2009-10. Overall, of the tenants that responded 100 100

0 0

88.589.388.4

75.8

93.3

Long term Rooming Total Transitional Total house long term200607 200708 200809 200910

to the surveys, 87.8 per cent indicated that they were

20

92.8

20

86.9 87.886.2satisfied with the housing services provided by the 80 80 association, compared to 86.2 per cent in 2008-09.

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60 60

Tenant satisfaction with housing services, 2009-10 (HAs) 40 40

60

40

20

82.1 87.8

100

78.4

90.490.8 86.5

92.8

0 HA1 HA2 HA3 HA4 HA5 HA6 HA7 2009

10 Average

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Data for providers indicated that the average satisfaction rating with housing services was 88.5 per cent, a slightly higher but very similar result to that for associations. Of the 31 registered providers, 20 provided data for this KPM 12. Data reported for rooming house residents showed a slightly lower level of satisfaction with housing services compared to tenants in other long term housing and transitional housing stock. Two providers reported satisfaction rates below the average for rooming house tenants, with one significantly below. This provider is working to improve the satisfaction rate of its tenants for the future, and the Housing Registrar is monitoring progress made towards achieving this.

Where response rates to surveys were very low, the Housing Registrar sought explanations from providers and strategies for improving upon this in the future.

Notes to table

Long term (excluding rooming house) data for 17 out of 31 agencies, rooming house 9 out of 31 and transitional housing 7 out of 31

1112

11� The response rates for the surveys varied between 16.3 per cent and 44.4 per cent (average 28.4 per cent) and the sample size between 67.4 per cent and 100 per cent (average 96.4 per cent).

12� The response rates for the surveys varied between 8.7 per cent and 100 per cent (average 31.1 per cent) and the sample size between 4.4 per cent and 100 per cent (average 85.1 per cent).

20

40

60

80

100

Tenant satisfaction – views Housing management Urgent repairs completed within 24 hours, four year trend (HAs)

This KPM was introduced in the 2008-09 KPM data and maintenance collection to measure tenant’s satisfaction around 100

200607 200708 200809 200910

95.0consideration of their views by the housing agency. Urgent repairs Seven of the nine associations provided data for this KPM 80 in 2009-10 with an average result of 77 per cent. Three Of the total number of urgent repairs requested of

87.3 86.885.6

associations were able to provide data for this KPM in associations during 2009-10, 86.8 per cent were

2008-09 with satisfaction ranging between 70 per cent completed within 24 hours, a slight rise on last year’s

and 100 per cent (average 75 per cent). result of 85.6 per cent. Eight of the associations recorded

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60

40a completion rate of 81.9 per cent or higher.

Tenant satisfaction - views, 2009-10 (HAs) 20

Urgent repairs completed within 24 hours, 2009-10 (HAs)

100

20

89

86.8 81.9

87.989.7 96.6

100

91.6

63.6

94.395.477

59

79

67

100

80

0 HA1 HA2 HA3 HA4 HA5 HA6 HA7 2009

10 Average 0

HA1 HA2 HA3 HA4 HA5 HA6 HA7 HA8 HA9 2009 10

Average For providers the average recorded was 88.2 per cent up from 86.5 per cent13. Of the 31 providers, 21 provided data for this KPM.

0

100

80

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60

40

13� From the 2009-10 KPM data collection, all agencies are required to use specific questions, developed by the Housing Registrar, for both KPMs concerning tenant satisfaction with housing services and consideration of views.

Analysing this data further by delivery type shows that Urgent repairs completed within 24 hours Urgent repairs completed within 24 hours 89.9 per cent of urgent repairs delivered directly by staff by delivery type, 2009-10 (HAs) by delivery type, 2009-10 (HPs) employed by an association were completed within the relevant timeframe as compared to 86.3 per cent of repairs 100 100200708

81.8

93.595.6

20 20

92.9 87.3

79.3 84.3

93 85.6

76.8

86.2 89.9

86.884.286.3 contracted by the association. 200809

80 200910 80 Reasons for repairs not being completed within the required timeframes included tenants being unavailable

PPerc

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cent

age

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ge60 60for contractors to access properties, weather delays, and waiting periods for parts or major repairs required (e.g. hot

40 40water service replacement).

Associations using government maintenance services for

some properties, particularly transitional housing stock, reported difficulties monitoring completion times for repairs. Government maintenance services do not provide the data directly to agencies, and agencies have had to develop alternative strategies to obtain required data through tenants or contractors reducing the reliability of this data at times.

0 0 Agency Agency Government Total Agency Agency Government Total

delivered contracted delivered contracted

The average proportion of urgent repairs completed within 24 hours for providers was 85.0 per cent. Similar to associations, urgent repairs delivered by the agency recorded the highest rate of completion (93 per cent). Repairs coming under government maintenance services produced the lowest result (64 per cent). As a greater number of properties managed by providers came under government maintenance services, this result significantly influenced the overall completion rate recorded by the sector.

85.0

80

100

Non-urgent repairs non urgent repairs completed within 14 days, Providers recorded a completion rate for non-urgent repairs four year trend (HAs) within 14 days of 82.4 per cent, with 98.4 per cent of

The completion rate for non-urgent requested repairs agency delivered repairs completed within the timeframe. within 14 days for associations was 86.1 per cent and, 100 similar to urgent repairs, the highest completion rate was

200607 200708 200809 200910

non urgent repairs completed within 14 days 83.5

10060

79.7 86.184.4recorded for agency delivered repairs and the lowest for 80 by delivery type, 2009-10 (HPs)

repairs managed by government maintenance services.

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60

78.7

20

40

79.0

0

93.2

non urgent repairs completed within 14 days Agency Agency Government Total delivered contracted

96.6

by delivery type, 2009-10 (HAs)

82.4 78.4

88.9

98.4

20

91.1

100

79.1

200708

88.1 86.1

100 93.8

0

non urgent repairs completed within 14 days, 2009-10 (HAs) 8040

HA9HA8HA7HA6HA5HA4HA3HA2HA1 2009

Perc

enta

ge 6020

400

Perc

enta

ge

91.6 91.691.2 20080910 86.185.2 84.483.6 200910Average 80 79.778.978.8 74.5

PPerc

enta

geer

cent

age 60

40

20

0

38.8

Agency Agency Government Total delivered contracted

80

100

Tenant satisfaction with maintenance by housing type, Tenant satisfaction with maintenance 2009-10 (HPs)

Six associations provided data for tenant satisfaction with the quality of maintenance conducted. This data showed 100 that overall, 79.8 per cent of tenants responding to the survey14 expressed satisfaction with maintenance. 80

Tenant satisfaction with maintenance, 2009-10 (HAs)

60 0

100

Long term Rooming Total Transitional Total house long term

89.3 83.083.582.8

68.6

40

20

76.7 79.882.8

70.3

79.4 75.5

0 HA1 HA2 HA3 HA4 HA5 HA6 2009

10 Average

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60

40

20

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Providers recorded 83.0 per cent satisfaction with maintenance15. The highest rate was recorded for transitional housing where maintenance is managed by the government maintenance services (NB. data for transitional housing was supplied by four providers only).16

14� The response rates for the surveys varied between 13.9 per cent and 36.6 per cent (average 24.2 per cent) and the sample size between 76.9 per cent and 100 per cent (average 95.6 per cent).

15� The response rates for the surveys varied between 17.6 per cent and 100 per cent (average 31.1 per cent) and the sample size between 3.3 per cent and 100 per cent (average 85.3 per cent).

16� From the 2009-10 KPM data collection, all agencies are required to use a specific question, developed by the Housing Registrar, for the tenant satisfaction with maintenance KPM

http:only).16

FInAnCIAllY VIABlE

The financial viability Performance Standard is measured in terms of operating performance, operating cash flow, liquidity and capital structure. During 2009-10, five additional agencies were registered as providers and one provider was upgraded to association status. As a result comparative financial data for 2008-09 has been adjusted to reflect these changes compared to what was reported last year.

Operating performance

Operating revenue and costs

Rental revenue of the sector increased to $59.1 million ($36.1 million contributed by housing associations) from $47.6 million in the previous year, predominantly due to the increase in the number of properties managed by the registered sector resulting from capital grants provided under Commonwealth and State government investment programs and five new agencies being registered during the year. As a result of increased activity in the sector (especially the associations), operating expenses increased by 19.3 per cent.

Operating EBITDA (Earnings before interest, tax and depreciation) of the sector increased by 73 per cent reaching $22.4 million during the year compared to $12.9 million in 2008-09. The operating EBITDA margin of the sector was at 15.5 per cent for 2009-10.

Operating revenue breakdown, 2009-10 (HAs)

$m

Other Revenue 150

Operating Grants Rental Revenue

16%

120 43%15%

90

41%

27%

41%

58%

26%

59%

59%

44%

13%

12%60

22% 62%

20% 18% 22%

30

0 HAs HPs Sector HAs HPs Sector

200809 200910

The proportion of operating grants from total operating revenue declined to 43.3 per cent in 2009 10 from 44.4 per cent the previous year. This shift in the revenue mix was due to rental revenue increasing by 24.2 per cent compared to 22.3 per cent in operating grants. 47.7 per cent of operating expenses consisted of direct administration and operating expenses, followed by corporate overheads (22.1 per cent) and property expenses (13.1 per cent).

Total depreciation expense for the sector during the year was $7.7 million ($5.5m in 2008-09). The increase in depreciation expenses was mainly due to an increase in housing assets. This resulted in an operating EBIT (Earnings before interest and tax) of $14.7 million for 2009-10 compared to $7.3 million in 2008-09.

50

Out of total operating expenses 70 per cent consisted of direct administration/operating expenses and corporate overheads. This was mainly due to agencies (especially associations) establishing project management teams to manage their development activities, an increase in finance/administration staff and increased costs in terms of managing a larger number of housing units and tenancies – this upward trend in staffing numbers was highlighted earlier in the report.

Operating expense composition of the sector, 2008-09/2009-10

200809

Return on average assets

Return on average assets (ROAA) of the sector was 1.5 per cent in 2009-10. ROAA for associations was 1 per cent in 2009-10 as a result of a larger asset base of $1.7 billion compared to $1.2 billion in 2008-09.The chart below depicts the ROAA of housing associations. The Housing Registrar noted the improved result for one association after a negative ROAA for 2008-09 mainly due to a negative operating EBITDA in that year.

The ROAA of housing providers (11 per cent on average) was much higher than associations. This was due to the significantly lower asset base of the providers compared to associations.

Operating cash flow

The overall operating cash flow of the sector was positive during 2009-10. The total operating cash flow of housing associations was $98.5 million in 2009-10 compared to $19 million the previous year. The main reason for this was an increase in operating revenue as a result of increased rental revenue, operating grants and other income. The total operating cash flow of providers was $17 million compared to $7.7 million the previous year.

2.0 2.2 200910

22.120

1.0

1.5

1.0 1.1

10 1.0 0.8g

e

1.9 1.7

1.21.2

0.9 1.0

0.9

0

MaintenanceExpenses Expenses

Planned Maintenance

oAdmin/ Operating Expenses

Other Expensesverheads P

erce

nta

0.5

0.0 HA4HA3HA2HA1

0.5

Average HA9HA8HA7HA6HA5

1.0 1.4

1.5

CorporateDirectNoncapitalisedRoutineProperty

1.5 1.2

49.5 47.7

40 return on average assets, 2008-09/2009-10 (HAs)

30 2.5 200809

200910

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19.7

13.1 13.1 11.0

9.3 0.8 6.9

0.30.3

0.6

0.3

0.7

4.9 0.3

liquidity The liquidity position of the sector is measured in terms of the current ratio (measuring a company’s ability to meet its current liabilities using its current assets which are easily converted to cash). For the sector as a whole the current ratio was 1.7 times in 2009-10 compared to 1.9 times the previous year. The current ratio for the associations was 1.8 times (1.9 times in 2008-09). The main reason for the slight decrease in the current ratio for the associations was the increase in accounts payable related to development work and capital grants received in advance as at the end of June 2010.

Current ratio, 30 June 2010 (HAs)

Associations manage significant growth programs with capital grants and debt funding causing fluctuations in cash flows and some variation in current ratios as a result of timing issues. All associations forecast stable liquidity over the next three years with an average current ratio of 2.7 times. For some associations the current ratio was quite high as a result of high cash balances maintained - due to capital grants received in advance. This will consequently change over time.

A major component of current assets consists of cash and cash equivalents for both associations and providers.

Cash as a proportion of current assets, 30 June 2010 (HAs)

0

2

4

6

8

10

12

1.81.9

11.6

3.5

6.4

0.80.5

7.5

1.61.3 2.0

Num

ber

of t

imes

HA1 HA2 HA3 HA4 HA5 HA6 HA7 HA8 HA9 2008 2009 09 10 Average

For a few associations, cash as a proportion of total current assets was quite high as a result of unspent capital grants as at June 2010 which were received in advance of payments needing to be made.

0

20

40

60

80

100

2009 10

Average

2008 09

HA9HA8HA7HA6HA5HA4HA3HA2HA1

54.0

75.5

99.3

30.6

22.3

98.899.9

30.6

83.1

12.7

56.5

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enta

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Total asset composition of the sector, 2008-09/2009-10 Total assets composition, 2009-10 (HAs) Capital structure 100 100 4.2Liabilities Liabilities

Equity

8184

20the 75 per cent capital grant contributions and operating

20

grants provided by the State government. 0 0

82.685.9

94.1

48.4

95.8

78.6

58.4

93.093.5 87.5

92.7

HA1 HA2 HA3 HA4 HA5 HA6 HA7 HA8 HA9 2008 2009 200809 200910 09 10

Average

Total assets of providers as at 30 June 2010 were $100.3m.

16 19 7.3 12.5 6.5 7.0 41.6 21.4 51.6 5.9 14.1 17.4Total assets Equity

80 80Total assets of the sector increased by 44.6 per cent during 2009-10, to $1.8bn. The growth in total assets of the sector was dominated by housing associations whose total

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60 60

assets grew by 43.6 per cent to $1.7 billion. 40 40

The increase in equity of the registered sector is due to earnings accumulating over a number of years buoyed by

Total assets and housing assets ($m), 30 June 2010 (HAs)

600 578

562

500

400

300

240 222 217

194

200 191

179 170 142

155 145 144141

109 133

117 122100

43 38 22 7 0


Housing assets of associations have grown over the last four years at a compound annual growth rate of 43 per cent to $1.7 billion by 2009-10. This has been predominantly due to capital grants provided by the Victorian Government and capital grants from Commonwealth Government’s Nation Building – Economic Stimulus Plan.

Interest bearing debt

Interest bearing debt is predominantly undertaken by associations for housing developments. As at June 2010 total debt undertaken by associations was $95.6 million compared to $13 million by providers.

Incease in interest bearing debt of the sector ($m)

120

100

80

60

40

20 23

0

200607 200708 200809 200910

74

108.6

42

Total interest bearing debt ($m), 30 June 2010 (HAs)

40

35 36.7 35.2

30

25

20

15

10 10.6

7.16.05 5.0 4.33.2 2.4 2.9 0.0 0


Interest cover

The interest cover, as measured in the following charts, indicates an agency’s ability to meet interest expenses from EBITDA, and is expressed in the number of times EBITDA covers interest expense. The average interest cover of housing associations was 2.6 times in 2009-10 compared to 2.8 times the previous year. The slight decrease in average interest cover was due to an increase in interest expenses as a result of undertaking additional debt to fund housing developments. The reason for two associations to have a significantly higher interest cover was due to their lower base of borrowings as at June 2010, which will decrease once they start borrowing during 2010-11.

Interest cover based on operating EBITdA, 2009-10 (HAs)

Loan to valuation ratio (LVR)

The loan to valuation ratio has been calculated based on the value of the housing assets in comparison to total debt. Average LVR for housing associations (based on the value of housing assets) in 2009-10 was 6.2 per cent compared to 5.8 per cent the previous year. The marginal increase has been due to an increase in debt levels.

Capital expenditure

Capital expenditure of the sector totalled $370.4 million, of which 99 per cent was for housing assets. Capital expenditure was predominantly undertaken by housing associations. Housing providers spent $19.7 million as capital expenditure during 2009-10.

Capital expenditure, 2008-09/2009-10 (HAs)

Outlook Total assets of the registered sector are projected to increase by 57 per cent over the next three years. The growth in assets will predominantly be in the form of housing assets, which are projected to increase considerably during the next 24 months. The level of borrowings will also increase in line with housing development activity (especially with housing associations).

8.0 1208

7 7.5

100

6 80

5

4 60

3 2.8 40

2 2.1 20

1

0.3 0.0

2.7

0

43.8

18.5

4.7

62.4

15.0 23.5

16.1

36.9

100.9

3.0 36.0

55.3

2.62.8

3.8

0 HA1 HA2 HA3 HA4 HA5 HA6 HA7 HA8 HA9 2008 2009HA1 HA2 HA3 HA4 HA5 HA6 HA7 HA8 HA9 2008 2009 09 1009 10

Average Average

Appendix 1

Key performance measures -definitions

Key performance measure 1

Regular board meetings

Meetings convened by the board in quorum in the past 12 months as a percentage of scheduled board meetings for the year.


Active board members (including positions vacant) Active board members (excluding positions vacant)

Board members in attendance at board meetings held in the past 12 months as a percentage of total board positions.


Date of board approval of budget Date of board approval of business plan

Date(s) on which the budget and annual business plan (for the following year) were signed off by the board.


Staff turnover

Staff who left for reasons other than contract term ending during the financial year as a percentage of total staff employed during the year.


Senior staff turnover

Senior staff who left for reasons other than contract term ending during the financial year as a percentage of total senior staff employed during the year.


Turnaround time (vacant tenantable)

Total number of days tenancy units vacant during the year ended 30 June averaged across the total number of vacancies.


Void loss (vacant tenantable)

Rent foregone due to tenancy units being vacant as a percentage of total rent charged (plus void loss) for the year ended 30 June.


Current tenant rent arrears

Rent outstanding from current tenants as a percentage of total rent charged in the year ended 30 June.


Arrears written off as bad debt

Vacated arrears written off as bad debt as a percentage of total rent charged in the year ended 30 June


Evictions

Evictions over the 12 month period as a percentage of total tenancy exits.


Tenancies maintained (long term housing)

Tenancies maintained for the full 12 month period (July to June) as a percentage of total tenancies at 1 July (year start).


Current tenants owing more than 8 weeks rent at year end

Tenants whose arrears total more than eight weeks as a percentage of all tenancies as at 30 June.


Prospective tenant/tenant complaints

Tenant/prospective tenant complaints resolved within 30 days by the agency as a percentage of all tenant/ prospective tenant complaints for the year ended 30 June.


Tenant satisfaction – housing services

Tenants expressing overall satisfaction with housing services in a tenancy survey (point in time) as a percentage of all tenants responding.


Tenant satisfaction – consideration of views

Tenants expressing overall satisfaction that their views were being taken into account in a tenancy survey (point in time) as a percentage of all tenants responding.


Urgent requested repairs

Urgent repairs completed within 24 hours as a percentage of all urgent repairs for the year ended 30 June.


Non-urgent requested repairs

Other requested repairs completed within a 14 day timeframe as a percentage of all other requested repairs for the year ended 30 June.


Tenant satisfaction – maintenance

Tenants expressing overall satisfaction with the quality of maintenance conducted in a tenancy survey (point in time) as a percentage of all tenants responding.

Sector PerformanceContentsIntroduction2009-10 HighlightsSector profileSector performanceAppendix 1

Documents

Sector Performance Report 2009-10 - Housing …...Commonwealth housing initiatives Introduction Our 2009-10 Sector performance report marks the second year of publication of this report