Saturday, 27 July 2024

Aberdeen Homeowners Risk Undervaluation Under Voluntary Agreements Due to Lack of Awareness

Hannah and Wilson holding the sheet of questions they raised with Aberdeen City Council

PLEASE JOIN OUR 'UK RAAC CAMPAIGN GROUP' FB PAGE (HERE)


PLEASE SIGN OUR PETITIONS  FOR UK GOVERNMENT (CLICK HERE) and OFFICIAL SCOTTISH GOVERNMENT (CLICK HERE)


Please join our protest today at Scottish Parlaiment from 2pm -4pm (more details here)

We share the outcomes of the meeting held between Wilson and Hannah Chowdhry and with Stephen Booth, Chief Officer- Corporate Landlord, and John Wilson Chief Officer - Capital. Please note Mr Booth intimated that Aberdeen City Council may be further ahead in their deliberations than other councils and that many will be looking to them for advice. These responses affect all RAAC Communities across Scotland. These outcomes have been reviewed and amended by both Mr Booth and Mr Wilson.  

1.     Which of the two remaining options for the future of the affected homes in Torry is more favorable: demolition or remedial works?

Mr. Booth explained that there were currently still four options under consideration.

In the discussion, it was noted that the first two options may leave homeowners with insurance or mortgage concerns.

When Mr. Chowdhry mentioned that the community did not favor temporary solutions and preferred either demolition or remedial works, Mr. Booth responded that the council is still to determine which option to pursue. The engagement survey will contribute to the report that councillors will review in making their decision. Mr. Chowdhry also noted that all nine people protesting outside the council preferred remedial works.

Mr. Booth then mentioned that the indicative cost of remedial works for the RACC remedial or replacement work could be as much as  £71,000 (option 3), as noted in the engagement documentation.  The council may however wish to make further investment in the Council houses to meet environmental standards.

Mr. Wilson, the Chief Officer, stated that the cost estimates for remedial works focused on council-owned properties this being the council's primary responsibility. Mr. Chowdhry expressed concern that homeowners were being sidelined, despite the success of the last Communities Housing and Public Protection Committee (CHPPC) meeting in May, where homeowners were deemed essential to the options appraisal. The council officers confirmed that the purpose of the engagement was to understand the impact of each option on all parties and that the impact of each option on homeowners would form part of the report to the council It was clarified that remedial works would require the council to engage all parties to ensure options were deliverable and the potential for  shared contracts that benefits everyone involved could be explored.

Mr. Booth explained that any options appraisal must comply with best value principles as mandated by various legislation. Mr. Chowdhry asked that councillors be reminded that under Section 71 of the Housing (Scotland) Act 2006, they have broad powers to assist homeowners. He requested this be included in the final report and sought clarification on whether this act supersedes other provisions. The officers agreed to respond to this query.

 Mr. Chowdhry also inquired about the suspension of the buy-back scheme for homeowners facing the RAAC crisis. Mr. Booth reiterated the need for best value, explaining that the scheme is funded by council tenant income.  This can only be spent on properties which could then be re-let as council houses.  As this requires further investment and a decision on the options it cannot be considered at this time. The properties would also fail the financial test for this at the moment and any grant support from the Scottish Government cannot be used for the same reason. , Mr. Chowdhry mentioned that his question was prompted by a Torry Community RAAC Campaign (TCRC) member on Facebook.  Mr. Chowdhry explained that he had already received a similar response in a previous CHPPHC meeting and simply wanted this response in writing for people still not yet quite up to speed.

2.      Paul McLennan, the Scottish Housing Minister, has advised us in a letter that there are no strict limitations on the support a Council can offer to residents. Having read Section 71 of the Housing Act, I am aware that various forms of assistance can be provided, including advice, training, or other helpful services; information about housing; access to council staff who can assist; assisting in guaranteeing payments on loans or interest; covering expenses related to setting up a maintenance account; managing and using land or buildings; providing financial grants; offering standard loans; and providing loans with reduced interest rates. Are these forms of assistance being considered or implemented by the council in response to the RAAC issue, and if so, can you provide details on how each type of support is being or will be utilized?

Mr. Chowdhry asked about the application of loans, grants, or a combination of the two, and whether loans would be interest-free or administered as shared equity options. He also inquired about other financial support options such as a home-for-home scheme. Both officers indicated that these options would be highlighted within future reports to the council.

3.      Once you make your decision on August 21st, will there be pressure applied on homeowners to undertake remedial works themselves or accept the council's chosen option? If demolition is chosen and an occupier refuses this option, will you enact your statutory powers under the Building (Scotland) Act? If so, how long will residents be given to decide and explore their options?

Mr. Booth explained that occupiers have been reminded of their duties to undertake RAAC inspections and necessary repairs. He explained that Health and Safety remained the primary priority for the council and following a decision on the preferred option consideration would be given to how best to ensure properties remained safe.

Mr. Chowdhry noted that many people were waiting for the council's decision before investing in repairs. Mr. Booth confirmed that the planned rehousing of council tenants was still hoped to be  complete by December, with works to progress the preferred option being progressed during this time.

If homeowners in blocks containing council flats refused voluntary agreements, statutory powers could be used to demolish the whole block subject to future decisions by the council on their preferred option.  However, if a block contained no council tenants and inspections showed no high-risk status, there is the potential that private owners could retain their homes if any required works were undertaken. Mr. Chowdhry asked if homeowners could keep their properties if they added beams or undertook any other required works to remove high-risk status, and he was told this was correct.  [This may be a less expensive option that some homeowners who meet the criteria above follow.]

4.      What rights do homeowners have to appeal against the exercise of such statutory powers?

No information was provided. Mr. Chowdry was offered the information, but he declined, stating that the guidance is available online.  You can read about the Building (Scotland) Act 2003 (here) and Compulsory purchase orders (here).

5.      Can the council demolish buildings that are attached to occupied homes?

Both Mr. Booth and Mr. Wilson confirmed that if the option to demolish buildings was taken it would be very challenging to retain any properties within individual blocks and this would impact what could be done with the site in the future.  In this scenario, subject to council decisions They would seek voluntary agreements with owners, prior to taking forward compulsory purchase orders (CPOs), or use any other statutory powers under the Building (Scotland) Act 2003.  Mr. Chowdhry mentioned that misinformation was spreading within the community. He stated that he would attempt to clarify the situation to local residents, some of whom believe that the council cannot demolish property adjacent to an occupied private home.

6.      What measures will be taken against residents who refuse voluntary purchase offers if demolition is chosen over remedial works

See above

7.      What care provisions will be available for elderly victims of the RAAC scandal who may         find it challenging to start anew?

Mr. Booth stated that more detailed discussions would be required with any residents with additional support requirements as part of the discussion after the committee decides to determine their housing needs. Mr. Chowdhry reminded the officers that 4 local residents are receiving palliative care, those too old to restart their lives, and young homeowners facing significant financial burdens who need to be accommodated within the options appraisal report.

8.      How do you intend to ensure the Voluntary Purchase Orders process is fair?

Mr. Booth confirmed that ACC would follow all statutory requirements and obtain valuations from RICS-qualified surveyors.

9.      What negotiation powers do residents have during voluntary purchase orders?

Mr. Booth stated that residents could obtain their own valuations from RICS surveyors, and ACC would cover these reasonable costs in the event that an option was selected that required the council to acquire properties. Mr Chowdry asked if consideration could be given to some negotiation for costs associated with renovations undertaken by homeowners that have increased property values and further losses as per government guidance (click here).

10.  Will voluntary purchase offers reflect pre-evacuation valuations rather than current valuations where homes now hold zero equity?

Mr. Booth clarified that in relation to the options that may involve CPO, the report to the council would highlight the legal process for valuations, which would be based on the value at the time any CPO was approved.  This would be different from the valuation prior to RACC being confirmed and surveys showing the condition of the roofs.  

Valuations will be conducted by RICS surveyors using current market values. However, Mr. Chowdhry expressed concerns that these current market values might result in zero equity. Mr. Chowdhry noted that many local homeowners were unaware of this fact and may need to reconsider their survey responses. 

[It should be noted that homeowners in Deans South received between £20k - £40k for properties worth £120,000 in 2004 and that valuations in Basildon for properties worth close to £300,000 before RAAC disclosure are £70,000 undervalue].

Mr Chowdhry explained that Clackmannanshire Council desires to pay pre-October values and has since the meeting notified Mr Booth and Mr Wilson that Clacks Council is seeking funds with the Scottish Government via a regeneration loophole.  Mr. Chowdhry also expressed his concern, stating that many people might have chosen options 3 and 4 based on a misunderstanding and may want to change their preference once they understand the full implications of their survey responses. 

He reminded Mr. Booth that he and Hannah had raised a query in two previous CHPPC meetings about whether any Voluntary Agreement or CPO would be valued pre-October. He stated that Mr. Booth had failed to respond, leading to the spread of misinformation. Mr. Booth asserted that "all questions at committee have been factually answered." Mr. Chowdhry is now communicating with Mr. Booth to seek clarification on the answer Mr. Booth believes he provided in response to this query.

Local people demonstrated outside Marischal House


What are the funding sources for voluntary purchase offers?

No specific funding sources have been confirmed.  

ACC have a General Fund and Housing Revenue Budget, both of these are under significant pressure.

ACC has approved the use of an initial £3m budget for dealing with the RAAC  within council-owned properties by reallocating these funds from housing capital projects scheduled this year (kitchen, bathroom replacements etc.)

 Mr. Chowdhry asked if the council was still seeking funds from the Scottish Government and if such funds would improve offers to homeowners. It was confirmed that ACC continues to pursue funds from the Scottish Government.

Mr Chowdhry stated that protests to the Scottish Government would continue to take place and hoped these would be helpful.  The officers reassured that those protesting would not be treated any differently than any other tenant/ owner.

What is the potential impact of compulsory purchase orders (CPOs), and what is the appeal process at each stage?

The impact would be similar to the voluntary agreement framework, Homeowners served with a CPO have a right to object to the process

If someone repairs their home, can the council still issue a CPO?

Yes, but there were options for further discussion if a block contains no council tenants and necessary inspections and remedial works are undertaken.

How were the 'options' in the Aberdeen City Council (ACC) consultation appraised? What criteria and methods were used for the evaluation?

Mr. Booth said that this work was ongoing, and the methodology used would be outlined within the report to the Council.

Cost has been cited as a factor—please provide the detailed calculations and financial analysis that support the claim that certain options are cost-prohibitive.

Mr. Booth explained that ACC is working through the calculations and confirmed that all costs would be detailed in the August report. See above.

Who is accountable for the decision-making regarding the RAAC issue, such as the relevant directorate or director? Has ACC used its software program to map properties with RAAC, similar to their asbestos tracking? When was this data entered, and which properties does it cover?

Mr. Booth confirmed that the council maintains a register of local RAAC-affected buildings. When asked if this information was in an electronic database, Mr. Booth confirmed it was held in electronic records and the council were looking at a better way to store such information going forward. Mr. Chowdhry asked if this data could be integrated into a national database, which Mr. Booth said was possible. Sharing any information would need data protection consideration.

 

When did ACC (or its predecessor) first become aware of RAAC issues?

Mr. Booth confirmed the council became aware of the presence of RAAC panels, forming the roofs of properties in the Balnagask area of Aberdeen, in September 2023. Once confirmed the Council issued letters to all affected parties in October 2023,. A significant number of invasive surveys have been carried out by independent structural engineers which has highlighted the high-risk categorisation of the RACC panels. In February 2024, officers stated their intention to report back to the council within six months with a preferred option to mitigate the RAAC issue.

Since February 2024, the Council has continued to monitor the situation with a RAAC mitigation plan in place and at the same time they have continued their  research of a number of  different mitigation options.

Officers intend reporting a preferred option to Council in August 2024.

Which service or directorate was assigned to address this issue, and when were the elected ACC councillors first informed?

Mr. Booth reiterated that the details had been iterated in several council meetings. Mr. Chowdhry noted that some local homeowners still did not understand this and wanted written responses.

Can you provide a list or bibliography of all Aberdeen City Council documents related to RAAC?

Relevant documents have been published as appendices to the reports to Council.

We are aware that funds have been reallocated from a budget originally designated for Ukraine. How much of that has been used to support homeowners affected by RAAC, if any? Are there any other budgets that could similarly be reallocated for this purpose? If you cannot answer this, could you direct us to someone who can?

Mr. Booth confirmed that some funds from the Scottish Government had been made available to refurbish 500 void properties for Ukrainian asylum seekers and that with the agreement of funding partners some of these units have been used to provide accommodation for RAAC council tenants. ACC will be required to replace this stock and no actual funds were reallocated. 


No comments:

Post a Comment