Minutes:
The Committee considered the undernoted report:
“1 Relevant Background Information
Housing Functions
1.1 As part of Local Government Reform, responsibility for the regulation of houses of multiple occupancy (HMOs) and unfitness is transferring from NIHE to Councils.
1.2 The regional Housing sub-group to the Transfer of Functions Working Group (ToFWG) has been tasked with facilitating the smooth transfer of these functions from NIHE to the new councils.
1.3 An agreed regional approach is required on a sustainable delivery model for these transferring functions to ensure service continuity for the public and service users.
1.4 The purpose of this report is to set out the range of options explored in relation to the transfer of HMOs and unfitness to local government and put forward a recommended preferred option for the consideration of Members.
Property Certificates
1.4 It is proposed to retain this function in its current location and make it part of the new Fermanagh and Omagh District Council.
Group Structures
1.5 Members are also advised that the Chief Executives Forum has developed a principles paper that is currently being presented to the other 10 Councils to agree a direction in terms of how the functions provided by the existing Group structures for Environmental Health and Building Control, and transferring functions, will be delivered post 1st April 2015. The recommendations set out below regarding the future delivery of HMOs and unfitness functions and Property Certificates have been incorporated within the principles paper.
Consequences
1.6 Should the Councils fail to agree an approach the issue will be referred to the Minister for the Environment for direction. To date the principles paper has been considered and agreed by 5 of the shadow Councils.
2.0 Key Issues
Houses of multiple occupancy
2.1 NIHE currently have two regional HMO offices in Northern Ireland, located in Belfast and Coleraine. The Belfast office is charged with the administration of HMOs within the current Belfast City Council boundary, whilst the Coleraine office is responsible for the administration of HMOs regionally in all areas outside of Belfast. The Belfast HMO Office operates currently with 23.9 FTE and the Coleraine HMO office with 13.20 FTE. Based on the current operating model and the projection of registrations to 2015/16, the NIHE has proposed to transfer the following FTE staff numbers:
· Belfast HMO Office: 14.96 FTE (currently 23.9 FTE);
· Regional HMO Office: 11.37 FTE (currently 13.20 FTE).
2.2 The current regional operating budget for the regulation of HMOs is £1.54 million. The proposed budget transferring to the 11 new Councils is £751,000. NIHE have indicated that this reduction is based on a forecasted reduction of HMO registrations and associated costs based on a reduced resource for delivery. The Deloitte Due Diligence exercise has raised concerns with these figures. They are subject to challenge and the Council and chief executives group are continuing dialogue with the NIHE on validation and due diligence challenge around the transfer of resources.
2.3 Discussions are ongoing with the DSD and NIHE regarding the workforce planning model used to calculate the number of staff transferring and it has been agreed with the NIHE that the model will be rerun in the Autumn, in discussion with Councils.
2.4 Figures provided by NIHE indicate that there are approximately 4151 HMOs within the Belfast City Council area and a total of 2719 HMOs in the rest of NI, with the highest proportion of these, a total of 789, located within the new Causeway Coast and Glens Council area. Further breakdown of the HMO concentrations in the new 11 Council areas can be found in Appendix 2.
Unfitness
2.5 Housing Unfitness is currently the responsibility of the NIHE, however, it should be noted that fitness inspections are already carried out by an Environmental Health Officer within the relevant local Council. There are very few staff dedicated to unfitness within the NIHE and a budget allocation is still to be proposed to transfer to Local Government as a whole. A regional decision is required as to how this transferring budget will be allocated.
2.6 DSD are currently reviewing the statutory fitness standard with a view to updating and modernising the current minimum standard applied and have approached Councils to seek views via a pre-consultation process on how the standard may be amended most effectively.
2.7 Agreement on future delivery models is required in order to progress the issue of the transfer of the Housing and Planning property certificate functions and to ensure the implementation of practical arrangements necessary to maintain and deliver agreed services and resources on 1st April 2015.
Proposed Approach (HMOs)
2.8 After considering a range of options available and the associated pros and cons of each (refer to Appendix 3), the Chief Executives Forum commend that the current two location regional delivery model would be the most sustainable option and should be retained for an interim period. It is recommended that two Councils be designated to oversee the administration of HMOs on behalf of local government for a specified period. This proposed model would see Council administer the function for HMOs within the Belfast City Council boundary and the Causeway Coast and Glens Council administer the function for HMOs in the rest of Northern Ireland, on behalf of the remaining nine Councils.
2.9 Given that there may not be sufficient budget transferring or a sufficient number of HMOs in many of the new District Council areas to support a dedicated resource, a shared service will allow Councils to discharge their functions to enable a smooth point of transfer on 1st April 2015, with the view that future regional delivery models can be reconsidered as part of the Council transformation post 2015.
Proposed Approach Unfitness
2.10 As all Councils already have a significant role and operational commitment to administering fitness inspections, it is recommended that an 11 Council delivery model would be the most sustainable delivery model available for the transfer and future administration of unfitness related functions. This would result in Councils gaining additional new powers including the ability to issue repair, closing and demolition notices.
Property Certificates
2.11 It is proposed to retain this function in it’s current location and make it part of the new Fermanagh and Omagh District Council.
Transition/Transformation
2.12 Given the potential risk to service delivery if these functions were dispersed it is considered that these arrangements provide for a smoother transfer on 1 April 2015. However, within 12 months Councils would reconsider these functions with regard to the revised Council organisational design, and better alignment of all functions in Councils.
Proposals for the future of the Group Building Control & Environmental Health Functions
2.13 If agreement is achieved in relation to the principles paper through all 10 Shadow Councils outside Belfast, the 10 councils will begin the process of transferring group staff and establishing shared informal arrangements for some of the group functions. Whilst Belfast City Council is not currently part of the group system opportunities for possible collaborative working may arise that are of benefit to the council. Officers will maintain a watching brief on this work.
3 Resource Implications
Financial
3.1 At this stage it is proposed that a budget of £751,000 will transfer to Local Government as a whole in relation to the regulation of HMOs. It is further proposed that a budget of £100,000 will be transferring to Local Government as a whole in relation to unfitness. Further consideration of the allocation of these budgets will be required, before final sign off by Departments in the Autumn.
Human resources
3.2 It is proposed that 15 staff will transfer to the Council from NIHE for the regulation of HMOs in Belfast and 11/12 staff to the Causeway Coats and Glens Council.
Assets and other implications
3.3 No assets will be transferring to the Council in relation to the transferring housing functions.
4 Equality & Good Relations Considerations
4.1 There are no known equality or good relations considerations associated with this report.
5 Call In
5.1 This decision is subject to Call In.
6 Recommendations
6.1 It is recommended that Members agree in principle to the following Regional models:
· The retention on the 1st April 2015 of a two Council regional delivery model for the administration of HMOs, with a review by all the Councils during transformation, and:-
· an 11 Council delivery model for the regulation of unfitness, and:-
· the retention of the property Certificates Unit in Planning Service in its current location in Enniskillen and make them part of the new Fermanagh & Omagh Council, with a review by all the Councils during transformation.
6.2 Members are requested to note that
· Officers will keep a watching brief on the developments of future collaborative working arrangements between Councils and in particular in connection with the group systems for Environmental Health and Building Control.”
The Committee adopted the recommendations.