Temporary Accommodation Housing Assciation HALDS scheme

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  • #45654
    Nick Baugh
    Participant

    We have ongoing arrangements with RSLs where we have HALDS scheme and accommodation in Redbridge has been made available to the claimant, by Redbridge, to either discharge a homelessness function or to prevent the person being or becoming homeless. So we pay the HB and subsidy is based on 90% LHA and £40.

    However one of the properties in our HALDS scheme was turned doen by Redbridge and the RSL then took a placement from another authorities homeless unit. The rent level charged is actually higher than the relevent LHA rate and £40.

    Should we pay the HB as it is rent allowance and incur the subsidy loss even though we did not place the person. Should the other authority pay or should we trat it as a standard RSL claim and consider a referral to the RO.

    #128517
    Andy Thurman
    Keymaster

    The subsidy part is straightforward enough (if odd) in that, as not placed by your LA, you treat as ‘normal’ RP expenditure.

    You should consider a referral – as you should be doing with any of your own LA’s cases. What you don’t say is whether you take a subsidy hit on these? Does the RP (RSL) charge rents above your 90% + £40? If so (and you have reasonably decided not to refer) then a referral in this case doesn’t seem appropriate.

    If the rent is higher in this case, you need to consider why. If the rent has been based on the other LA’s subsidy levels (is their LHA higher??) then this doesn’t justify a higher rent if you know that the actual lease plus actual management charge should come in lower – in this case, I would talk urgently to the provider about setting an appropriate rent based on actual costs.

    Then again, if this property was turned down by your LA because the cost would be too high, there may be a rational argument for the other LA accepting it – assuming this would be due to the cost of the lease, you would have to examine the reasonableness of this i.e. if the property is very close to the other LA (& their BRMA) and market rents in that locality are generally higher than the ‘average’ for Redbridge as a whole, it may not be unreasonably high.

    With referrals, the devil is in the detail so the above are just some ‘signposts’ but I would definitely discuss with the provider/other LA before referring (if you decide that you must) to see if the rent can be adjusted or justified. If they only reduce the rent as a reaction to a referral being imposed, the LRR will be binding for 52 weeks but if they reduce under the threat of a referral, you won’t then need to make it.

    #128550
    Nick Baugh
    Participant

    Thanks Andy
    Looking more carefully at this the rent is at 90% + £40 for the relevent BRMA for Jan 2011. The property was not turned down on a cost basis more a matter of timing and the other authority (outside London) had a placement ready. We would rather not refer but the rent does exceed our current 2 bed rate and would be the highest rent we have for a 2 bed RSL by some margin.

    #128555
    Andy Thurman
    Keymaster

    I do think you need to go back to them (RP first, maybe then other LA) – it sounds as if the rent would have been ‘magically’ lower had your LA taken it on! Tell them straight that you’re faced with a difficult decision you don’t want to take!

    #128558
    Nick Baugh
    Participant

    Thanks again Andy

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