Ferguslie Park Housing Association 30 Years of community ownership in Ferguslie Park

1988 - 2018

BUSINESS PLAN 2017-2020 (Updated February 2018)

Version: 22nd Feb 2018

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Contents

Section 1: Introduction INTRODUCTION PURPOSE OF OUR BUSINESS PLAN OUR BUSINESS PLANNING PROCESS ENGAGING WITH STAKEHOLDERS

Page 3 3 3 4

Section 5: Key priorities FOCUS ON AFFORDABILITY EARLY ACTION PROGRAMMES STRATEGIC ASSET MANAGEMENT PROCUREMENT & CONTRACT MANAGEMENT WIDER ROLE CONNECTIVITY GOVERNANCE & BUSINESS IMPROVEMENT

Page 22 22 23 24 24 24 25

Section 2: About us OUR STRUCTURE THE FERGUSLIE GROUP OUR HISTORY OUR TRACK RECORD OPTIONS APPRAISAL OUR STRENGTHS OUR WEAKNESSES

Page 5 5 5 7 8 9

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Section 6: Resources OUR FINANCES OUR PEOPLE OUR SYSTEMS

Page 26 27 27

Section 3: Operating environment THE NATIONAL CONTEXT THE LOCAL CONTEXT THE OPPORTUNITIES THE THREATS

Page 11 13 16 17

Section 7: Risks OUR APPROACH OUR RISK FRAMEWORK OUR AUDIT & RISK COMMITTEE OUR RISK REGISTER OUR RISK CONTROLS

Page 29 29 29 30 30

Section 4: Our business strategy THE GROUPS’ STRATEGIC FRAMEWORK OUR VISION STATEMENT OUR STRATEGIC DIRECTION OUR SOCIAL IMPACT OUR CORE VALUES OUR STRATEGIC OBJECTIVES OUR UNDERLYING APPROACH

Page 18 18 19 19 20 20 20

Section 8: Review MONITORING & REVIEW PERFORMANCE MANAGEMENT OUTCOME BASED APPROACH OUR EVIDENCE-BASE KPIs

Page 31 31 31 32 32

Appendices: Key Performance Indicators

SWOT matrix Statements of Comprehensive Income and Financial Position

Organisation Structure

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Section 1: Introduction

INTRODUCTION

This business plan is our central strategic document and sets out our strategic direction up to March 2020. It is primarily for internal use

and we review and update it annually. It is approved by the Board prior to the start of each financial year. In developing this plan, we

have taken account of business planning guidance published by the Scottish Housing Regulator (Dec 2015).

PURPOSE OF OUR BUSINESS PLAN

The purpose of the business plan is to:

help us to understand the opportunities and threats inherent in our operating environment as well as our own internal strengths

and weaknesses;

clarify and communicate our strategic objectives and priorities and set out the key actions we will take to achieve these

objectives;

demonstrate that we have the resources necessary to carry out these actions and help us to identify and mitigate any risks we

face in delivering these actions;

provide a strategic overview for our other strategies and plans; and

provide a framework with which we can monitor our progress and measure our success.

OUR BUSINESS PLANNING PROCESS

We reviewed and strengthened our business planning process in 2016 and introduced a new protocol which sets out the key steps we

take to prepare our business plan. They are:

business planning timetable is agreed

data is collected and strategic analysis undertaken

vision, strategic direction and objectives are reviewed

action plan for the years ahead is developed

financial and resource plans are prepared

risks are assessed

business plan and budget are approved

objectives and targets are communicated to staff

monitoring and review are embedded.

This process is led by our Board, supported by senior staff, and is highly participative ensuring a whole organisation approach.

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ENGAGING WITH STAKEHOLDERS

In preparing (and updating) this business plan, we spoke to several of our key stakeholders and received invaluable feedback from:

a focus group of our tenants

a focus group of our staff

telephone interviews with individual stakeholders (CEOs of neighbouring RSLs and community organisations, local & national

politicians, senior government officers and consultants)

a comprehensive, independent, tenant satisfaction survey as well as quarterly pulse surveys

a joint meeting of the governing bodies of the association and our subsidiary The New Tannahill Centre Ltd

initial discussions with the newly formed Ferguslie Community Council

informal feedback from residents, not only tenants, at the summer Gala Day.

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Section 2: About Us

OUR STRUCTURE

Ferguslie Park Housing Association (FPHA) is an independent community-controlled housing association governed by a volunteer

Board, several of whom are our customers. We are a registered social landlord and a society under the Co-operative and Community

Benefit Societies Act 2014. We are also a registered Scottish Charity and do not distribute our surpluses, but rather, we reinvest these

for the benefit of our current and future customers. We currently employ around 15 permanent staff members and a copy of our staff

structure can be found in the appendices to this plan. We have one wholly-owned subsidiary, the New Tannahill Centre Ltd. It is also

a registered Scottish Charity and is run by a Board of volunteers. Together we form The Ferguslie Group.

THE FERGUSLIE GROUP

FPHA acts as the parent organisation in The Ferguslie Group of companies. We have a formal intra-group agreement which sets out

our relationship with our subsidiary and reinforces our responsibility for overall strategic direction and control for the Group. We each

employ our own staff and we also have a service-sharing agreement which allows the subsidiary to draw on our staff in accordance

with agreed work plans. Along with our subsidiary, we seek to make a positive contribution to the Group’s core purpose, namely:-

To work together to regenerate Ferguslie Park; and

To work with partners to channel ideas, action and investment.

OUR HISTORY

Ferguslie Park was built as a council housing estate, from shortly before the Second World War and expanding until the 1950s. Ferguslie

Park became a working class neighbourhood in the west end of Paisley, with residents working mainly in the huge Chrysler car plant

in neighbouring Linwood, the nearby Stobo carpet factory and making textiles in the Ferguslie Mills. The demise of the car factory has

been commemorated in The Proclaimers' reference to "Linwood no more" in their hit song "Letter from America". Ferguslie had its own

artists too. John Byrne lived in Ferguslie Park and his "Slab Boys Trilogy" of plays features rebellious carpet factory workers from the 1950s

to the 1970s. The closure of traditional textile and manufacturing industries in the '70s and '80s led to widespread unemployment,

poverty and stigma. Even so, Gerry Rafferty and Joe Egan had success in the '70s with their band Stealers Wheel and their album

covers, including "Ferguslie Park", were designed by John Byrne. Rafferty went on to great commercial success, including with "Baker

Street". But Ferguslie Park continued to slide. Renfrewshire Council made many attempts to stem the growing unpopularity of the estate

which was almost cut off from the rest of Paisley, intensifying its reputation as a no-go-area.

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Ferguslie Park Housing Association was established on 1 July 1988 as Dalskeith Housing Cooperative. The Co-op was set up to acquire

and improve Renfrewshire Council homes in the Dalskeith area of Ferguslie Park. Westburn Woodvale Housing Association was

established later, to build new homes in another part of the estate. In a strategic move to strengthen community ownership, the Co-

op changed its structure and its name to FPHA. Westburn Woodvale HA became part of the organisation in November 1993 to form

Ferguslie Park Housing Association. This created a single housing association for the whole of Ferguslie Park as part of the widest-

ranging strategy to date to regenerate the area. This was the New Life for Urban Scotland programme, in which Ferguslie Park was

one of four areas facing deprivation which were identified for a new multi-agency and innovative area-based approach. As FPHA,

we were a partner in the Ferguslie Park Partnership; with the community, the council, Scottish Executive, health board and police.

Significant progress was made in replacing unpopular council housing with 750 new association homes, improving the 500 remaining

popular council homes, introducing over 600 homes for owner occupation and shared ownership, building a new link road and

improving the environment. The Tannahill Centre was completed in 1995 and John Byrne opened the new Community Library.

It was not an altogether smooth transition. Late in 1994 Paisley suffered extensive and serious flooding. Ferguslie Park, being flat and

low lying, experienced the most property damage. 250 homes were flooded; 100 of these so seriously that residents had to move out

for around a year while they were repaired. Just before Christmas, this made international news. Her Majesty the Queen and Prince

Philip visited Ferguslie Park the following summer to meet people who had been affected and to see the on-going repairs. The flood

risk restricted sites for further house building. The association built a pumping station in the lowest part of the area which has protected

the homes there from further flooding.

From 1996 Ferguslie became part of the Paisley Social Inclusion Partnership. We became a founder member of FLAIR, the federation

of local associations in Renfrewshire, set up to foster collaboration in the social inclusion partnership area, benchmarking and wider

regeneration activity. FLAIR brought Youthbuild to Scotland – a ground-breaking partnership with Barnardo's supporting unemployed

young people into construction apprenticeships in our house building projects. In 2006 we formed a Group with the New Tannahill

Centre Ltd as our subsidiary. This was so we could combine our regeneration activities. For 30 years, we have played a key role in the

improvement of Ferguslie Park, responding to the needs of the local community and the opportunities available for significant

investment into the area. This has involved us in a range of high-profile programmes, many of which were trailblazing but some were

ultimately short-lived. Housing has been transformed, there are low levels of crime and there is a strong community spirit. However, it

has been much harder to improve health, educational attainment and to tackle poverty. The local primary schools remain well

regarded and highly valued in the community but Ferguslie pupils still mostly underachieve at secondary schools. It is poor health,

underachievement in education, low income and stubborn unemployment that distinguishes a few "datazones" in Ferguslie Park as

repeatedly suffering the most deprivation in Scotland.

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However, we are preparing Ferguslie Park Housing Association for what we believe will be a new and successful chapter in its history.

This business plan recognises our key role in improving Ferguslie Park, our determination to increase our impact and our plans for

delivering it.

OUR TRACK RECORD

As part of the partnership initiatives, the Association and Renfrewshire Council undertook a significant demolition and new build

programme and as a consequence of this, less than 8% of all our homes today comprise of the pre-existing tenements and flats.

Although we have not built any new homes for a few years now, we have been able to increase the number of homes we own and

manage by working with Renfrewshire Council to transfer vacant properties in the area to us. Most recently we took ownership of and

refurbished 15 properties in Blackstoun Oval which brought our total number of homes to 803.

We have always been keen to be more than just a landlord and have delivered a diverse range of wider role and community

engagement projects over the years. This work was significantly strengthened when we took over the management of the Tannahill

Centre in 2006, re-launching it as the New Tannahill Centre Ltd, a subsidiary of the housing association. Our own offices are in the

Centre and together with our local partners we have operated the centre as a local hub for the delivery of a wide range of

commercial and community services.

We have continued to respond to the needs of the local community and have developed new projects and services as needed. One

of the most significant of these was when we decided in 2013 to establish our own welfare rights team. This team continues to manage

a busy caseload helping to sustain tenancies and support our tenants deal with the consequences of Welfare Reform.

Over the years we also sought to develop the capacity and competence of the organisation investing in our people, technology and

systems. Much of this work was recognised when we were awarded Silver accreditation from Investors in People in 2014 and retained

it in 2017. More recently we embarked on a major review of our governance and financial management arrangements. An

independent review carried out by the association identified weaknesses and the Scottish Housing Regulator subsequently appointed

a Manager and three members to the Board. With this assistance, our Board went on to commission further investigations. The Board

approved and adopted a comprehensive Governance Improvement Plan in June 2016, designed to strengthen a number of critical

business areas across the group structure. Since then, we have significantly improved our policies and processes and have enhanced

our management reporting systems. We have strengthened our audit arrangements and have introduced a more robust framework

for identifying and managing risk. We have also reviewed our asset management plans, our procurement arrangements and the

associated budgets.

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We recognised that our operational approaches needed to be significantly improved – to meet current standards and best practice,

and to respond more specifically to the needs of our tenants. The Board approved a Corporate Action Plan which resulted in changes

in senior staff, additional skilled resources at operational level and re-established our partnership commitment to our key stakeholders

such as Renfrewshire Council, the Tannahill Centre and FLAIR. The ending of the Statutory Manager's appointment in January 2018

reveals just how much ground we have covered in a short time.

OPTIONS APPRAISAL

As part of this review, we undertook an option appraisal exercise in 2016 to consider how we should operate in the future and whether

the interests of our current and future tenants were best served by us remaining independent, entering into a constitutional partnership

with another housing association, merging or transferring all our assets.

After full consideration of the options, associated risks, benefits and financial implications the Board reached the conclusion that the

best way forward for our tenants was for Ferguslie Park Housing Association to remain independent but also to seek opportunities to

collaborate with others in an effort to achieve our vision, maximise our impact, achieve value for money and access (and share)

expertise.

The Board recognises that we must resource this option with a strong and effective governing body and management team. We

have recruited talented new board members from within and outside Ferguslie Park, to join our longer serving members who have

embraced and embedded change. We are on track to fully restore compliance with regulatory standards in governance and

financial management, and to increase investment in homes, improve operational standards and customer service. We are well

placed to achieve this, being close to completing our governance improvement plan which was 96% complete in January 2018. This

business plan includes arrangements to continue to strengthen the Board with on-going training and more networking with peers and

good performers.

Our Interim Management Team is concluding its task by handing over to a permanent Group Chief Executive in 2018.

The Association's financial position is strong, with low debt for an organisation of our size. However, Welfare Reform poses a threat to

our income and to the living standards of our tenants. Our plans for remaining independent have been tested with long, medium and

short term financial projections, and with associated sensitivity analyses. The Board is satisfied that independence plus collaboration

is the most affordable and value for money option.

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OUR STRENGTHS

We review our operational performance on a quarterly basis and report annually on how we meet the Scottish Social Housing Charter

standards. Our performance is published in our annual report to tenants. In this business plan update, we have reviewed our current

organisational strengths; which we plan to build on over the period of this plan. They include:-

Strategic clarity - we have worked hard to clarify our strategic direction, re-align our priorities with those of our key stakeholders and

develop a more forward-looking approach. We have embedded a new corporate planning process which ensures that our service

delivery plans are closely aligned with our new vision and strategic objectives. Being part of a Group structure enhances our ability to

make a significant impact and communicate our strategy more effectively.

Our people – our Board and staff continue to demonstrate their commitment to the organisation, our tenants and the local community.

They have also demonstrated their resilience to challenge and change. We have considerably strengthened the working relationship

between our Board and staff by developing a culture of openness, empowerment, good practice and learning.

Asset management – we now have a clear asset management strategy, ensuring that our planned maintenance and capital

investment programmes are properly prioritised, costed, affordable and underpinned by an updated stock condition survey, to which

we are fully committed to regularly adding new information about the attributes of our assets. We are actively managing and

enforcing our contracts, ensuring that we deliver these programmes on time, on budget and to the satisfaction of our tenants.

Customer insight – we have a good understanding of our customers. We are committed to delivering a personal service, taking time

to get to know our tenants and local community. A comprehensive customer satisfaction survey undertaken in August 2016 gave us

excellent information, including pointers for expanding our social impact activities. We continue to update this information through

quarterly pulse surveys, regular focus groups and wider community engagement.

Service performance - we continue to perform well in some critical operational areas e.g. we experience low voids and modest void

rent loss, we are good at keeping our tenants informed, our homes meet the SHQS and gas safety standards, our emergency repairs

are dealt with very quickly. Over the last 3 years our rent increases have been below or equal to CPI (inflation) which has brought

them close to the Scottish average, amongst the lowest in Renfrewshire and our rents continue to be seen as offering value for money.

We have also worked hard to improve some key processes which have resulted in, for example, a large reduction in our repairs costs

and our void turnaround times.

Financial health - we are in good financial health and have significantly improved our financial and risk analysis and reporting

processes. Our 30-year life cycle cost model is up to date. We know we have the full confidence of our lenders.

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OUR WEAKNESSES

We are also aware of our current weaknesses and where we need to strengthen our organisation, namely:

Performance management – we are very aware that in some areas our performance is not as good as we would like, e.g. our levels

of rent arrears. We have invested in our performance reporting systems, joined Scotland’s Housing Network and re-joined FLAIR which

allows us to benchmark, co-operate and share good practice. Our tenants tell us that they just want us to do what we promise. We

are making progress in regaining the trust and confidence of both the Scottish Housing Regulator and our tenants.

Affordable homes – whilst we have managed to keep our recent rent increases low, we know from focus groups and our involvement

in a Renfrewshire rent affordability study, there are many other factors which affect the affordability of our homes, e.g. the cost of

heat, Welfare Reform, and changes in households’ personal circumstances. We know many of our tenants worry about the future

affordability of their homes. We already offer a highly effective and valued welfare rights service which is well placed to support our

tenants through these challenges, but we are keen to do more, especially in partnership with The Tannahill Centre.

Customer engagement – Whilst our tenants tell us we do well in keeping them informed, we're keen to establish regular dialogue with

the community and engage tenants more in reviewing and shaping their services. Over the last two years, we've issued our regular

newsletter, begun focus groups and text messaging, and over 25% of our tenants responded to our 2018 rent proposals. Nonetheless,

we recognise there's still room for improvement e.g. how we connect with our customers during home improvement programmes.

Stakeholder confidence - we are acutely aware of the damage that the weaknesses leading to regulatory intervention have had on

our reputation. This continues to be an anxious time for our tenants, staff, and partners. We are working hard to regain the trust and

respect of our tenants, our members, our staff, our partners and the wider community and know that this will take time. We made a

start with our new Communications and Media Strategy and will be highlighting how much FPHA has been a positive part of Ferguslie

as we celebrate 30 years of community ownership in 2018.

Facilities & Infrastructure –we recognise the need to fully develop our ICT systems and our business processes. We are committed to

ensuring our offices remain fit for purpose. We are keen to offer modern working practices and an environment which is both

accessible and comfortable for staff and visitors alike. We know we need to move on to making these significant improvements.

Capacity – we have addressed capacity in terms of Board member numbers and all our staff will be on permanent contracts in 2018.

However, succession planning is still a key issue for us to get right. Having all the skills we need, available when we need them, is an

on-going challenge, particularly given our ambitions.

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Section 3: Operating Environment

THE NATIONAL CONTEXT

The Economy

At the time of updating this plan, the Scottish economy continues to grow, but the pace of growth is very slow indeed. In terms of

volume, retail sales show only a marginal increase on the previous year and although employment is up by 1.7% over the year,

unemployment rose slightly in the last quarter. Average hourly earnings remain relatively static, although Scottish Government has

recently committed to lifting the public sector pay cap. Consumer confidence remains low. On top of this, despite the Government’s

ambitious house-building targets, the construction industry has contracted significantly over the past year or so. We have witnessed

the highest rate of inflation in 3 years with the CPI standing at 3.0% in January 2018(down from 3.1% in the previous month). In this past

year, the Bank of England’s base rate was increased by 0.25%, the first increase in 10 years. Clearly, Scotland continues to be affected

by the uncertain global economic situation, and as a result economic forecasts predict only marginal growth for 2018.

Poverty & Deprivation

Our country’s performance in eradicating deprivation, and more acutely poverty, is generally poor. Foodbanks report a 20% rise in

their use over the past year and the most recent Scottish figures show that in 2015/16, 17% of the population lived in relative poverty,

an increase from 15% in 2014/5 and 14% in 2013/14. Poverty is assessed against the minimum income standard and means not being

able to heat your home, pay your rent, or buy the essentials for your children. Poverty wastes people’s potential. We know that the

reasons for poverty are complex. A recent study by the Joseph Rowntree Foundation has identified that long-term poor health is one

of the key contributing factors and we know that previous approaches of area-based regeneration had more success with

improvements to the physical and built environment and achieved less in terms of health and wellbeing.

Ferguslie Park is often quoted as the most deprived neighbourhood in Scotland. It was ranked the worst in 2006, the 2nd most deprived

in 2009, the worst in 2012 and then again in 2016. It is important that we put this into context. The few datazones in Ferguslie Park which

are the "most deprived" contain less than 10 streets in total. Multiple deprivation indices are assessed on employment, education,

health, income, crime, access to services and housing. It's the health, income, education and employment aspects that are proving

most difficult to change and which are keeping a small part of Ferguslie Park at the bottom of the list. The stigma this places on all

residents has the effect of lowering self-esteem and encouraging external pre-conceptions and discrimination.

Recently, local groups have been inspired to challenge these perceptions. Their and our participation in the bid to make Paisley the

UK City of Culture in 2021 has raised spirits and increased confidence in the power of culture to enrich lives. This is why The Tannahill

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Centre plays such an important role in The Ferguslie Group by providing an environment in which culture can help address health,

education, employment and, as a result, income issues.

New legislation

During the last few years, we have witnessed a raft of legislation aimed at improving the integration of health and social care,

reforming public sector procurement, enhancing community empowerment, and improving the effectiveness of the private rented

sector. Right to buy has been abolished, new restrictions on tenancy succession now apply, and the Office of National Statistics

reclassified housing associations as public bodies. Now we are seeing changes to our planning system, the criminality of domestic

abuse, a strengthening of data protection and a potential shift in the regulation of housing associations. We have taken account of

these in preparing and updating this business plan.

Social Security and Welfare Reform

One of the most important recent legislative changes was the Scotland Act 2016 and in particular the intention to establish a social

security agency in Scotland. The Scottish Government is currently setting up the new agency and finalising the new Social Security

(Scotland) Bill but has already started to implement changes which effectively abolish the bedroom tax in Scotland (one of the most

unpopular elements of Welfare Reform), allow the housing element of Universal Credit to be paid directly to landlords and offer

flexibility in the frequency of payments to claimants.

Meanwhile, the Department of Work and Pensions continues to roll-out Universal Credit, despite the publicly-reported concerns of

Scottish Government, Citizens Advice and others. So, as we prepare for the roll-out in Renfrewshire in late 2018, Scotland's children's

commissioner threatens legal action if Universal Credit further disadvantages Scotland’s young people.

Access to finance

Access to finance to support the delivery of our plans remains a challenge. Although the financial markets have more than recovered

since the Brexit vote, repayment terms remain short and refinancing is required more frequently. In the context of the Scottish

Government’s ambitious plans for 50,000 new affordable houses, the Scottish Housing Regulator continues to warn that whilst investors’

appetite remains strong, housing associations should not take access to finance for granted. We do, however, have low long-term

debt for an association of our size and this puts us in a good position should we wish to raise new finance to fund our ambitions.

THE LOCAL CONTEXT

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Community profile

According to the 2011 Scottish Census, Ferguslie Park has a resident population of 4,227. We expect this to remain stable for at least

the next 10 years in line with Renfrewshire’s population as a whole. Almost 70% of Ferguslie Park’s population are of working age with

a disproportionately low level of pensionable age.

Ferguslie Park residents live in 1,964 households with around 41% of these single person households. Again this reflects the wider area

where household growth in Renfrewshire is primarily driven by the increasing number of single person and older single person

households. Just under 30% of Ferguslie Park households live in owner-occupied properties, 5% live in the private rented sector with the

majority (around 64%) living in social rented homes, most of whom are our tenants. This contrasts sharply with Renfrewshire as a whole

where the private rented sector has grown rapidly and now accounts for around 11% of the total stock.

The census also tells us that Ferguslie Park has a significantly lower percentage of people in full-time employment (29%), and part-time

employment (14%) compared with the whole of Renfrewshire. Ferguslie Park has a significantly higher proportion of people

unemployed (11%), and long-term sick or disabled (15%) compared to all of Renfrewshire. Ferguslie Park also has a smaller proportion

of individuals who are self-employed (3%) or full-time students (3%). Overall, Ferguslie Park has a lower level of economically active

population (60%) than Renfrewshire (69%) and Scotland as a whole (70%).

Our connection with Professor Carol Tannahill from the Glasgow Centre for Population Health, and the Scottish Government, has

helped us to understand how public policy from decades ago has bequeathed to us the health challenges faced by Ferguslie Park

residents today. The number of people considered to be in ‘very good health’ is lower in Ferguslie Park (46%) than the whole of

Renfrewshire (51%) with over 2% of local people considered to be in ‘very bad health’ and almost 8% considered to be in ‘bad health’.

Both these figures are higher than Renfrewshire and Scotland as a whole. On average, men in Ferguslie Park live two years fewer than

men in Scotland overall. It is shocking that life expectancy for women in Ferguslie Park is almost 2 years shorter than for men in our

area, and that local women lose 8 years of life compared to women in Scotland as a whole.

Educational attainment statistics indicate that qualification levels are significantly poorer in Ferguslie Park where around 42% of people

aged 16 and over have no qualification.

Our community profile contributes to considerations in house letting, medical adaptations, welfare rights and particularly in the

priorities for the Tannahill Centre.

Local Housing Strategy

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Renfrewshire Council updated its local housing strategy in 2016 underpinned by a housing needs and demand survey for the whole

of Glasgow and the Clyde Valley (2015). In the strategy, it set out its 7 strategic outcomes:

The supply of homes is increased.

Renfrewshire will have sustainable, attractive and well-designed mixed communities with well-functioning town centres.

People live in high quality, well managed homes.

Homes are energy efficient and fuel poverty is minimised.

Homelessness is prevented whenever possible and advice and support is provided to vulnerable households.

People are supported to live independently for as long as possible in their own homes and communities.

People can access affordable housing that meets their needs at the right time.

The Council recognises that the housing market in Renfrewshire is deeply fragmented, with distinct markets operating in different areas.

It continues to focus on providing a mix of physical, economic, social and environmental improvements within existing places. For the

past 12 years or so, Renfrewshire Council has had a demolition and regeneration programme to replace unpopular/poor quality social

rented stock with new good quality affordable housing, provided by RSLs and more recently by the Council itself. This strategy will

continue in order to address on-going issues of stock quality and to rebalance the Council’s stock profile, which is currently 79% flats

and only 21% houses.

The Council's current strategic housing investment plan (SHIP) sets out its priority programme to deliver 1,000 new affordable homes by

2023 with a current resource planning assumption of £46.224m over the next three years. Following local government elections in 2017

which saw a change of leadership at the Council we are especially interested in the Council’s reconsideration of its regeneration

strategy for Ferguslie Park. We would like to work in partnership with the Council to build new homes in current gap sites in our area,

and hope that we can either become the landlord or managing agent for these homes.

We are concerned that the failure of tenement flats provided in the 1990s for owner occupation in the Glencoats Drive area of

Ferguslie Park has led to the worst form of private renting. It seems to have resulted in opportunistic "buy to lets" which initially led to a

concentration of vulnerable households and now to a small area of unoccupied and abandoned buildings. More popular house

types alongside these properties have also become "buy to lets" and we are convinced that intervention by ourselves and the Council

is required immediately to prevent further, possibly unstoppable, deterioration.

Community Planning

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The new local community plan, Our Renfrewshire, with its focus on inclusive growth and the associated single outcome agreement,

identifies the key challenges for the wider area: poverty and disadvantage; misuse of alcohol and drugs; low attainment and

worklessness; offending and violent behaviour; and preventable ill-health and injury. All of these equally apply to Ferguslie Park and

are reflected in some of it being recognised as the most deprived neighbourhood in Scotland.

However, it is important to remember that the Scottish Index of Multiple Deprivation identifies deprived places, not people. Not

everyone living in a deprived area is deprived, and not all deprived people live in deprived places. Renfrewshire Council, its partners

and the local community are keen to transform the image of the area and more specifically Ferguslie Park and there are some major

programmes in place to help to do this.

For example, Renfrewshire Council is partner to the £1.13bn Glasgow City Region City Deal and the area is due to benefit from three

of the biggest infrastructure investments; the Airport Access Project, the Clyde Waterfront and Renfrew Riverside project and the

Glasgow Airport Investment Area. Together these projects will transform local and regional connectivity and will offer significant job

opportunities through business growth and inward investment. Clearly there are potential opportunities for the people who live in

Ferguslie Park.

Despite the recent news that the bid for Paisley to be awarded UK City of Culture status in 2021 was unsuccessful, Renfrewshire Council

and its partners have committed to carry on making it easier for every child and family in Renfrewshire to access cultural activity, have

fun and play, and ultimately to transform Paisley’s image and build a new sense of pride in the town. Programmes and investment to

date have already seen visitor numbers rise by 25% in 2016 and 23% in 2017, outperforming the rest of the Glasgow City Region. Having

signed up as a supporter of the original bid, we will continue to play a role in this wider Paisley initiative, keen to see Ferguslie Park

become a venue for cultural events and to encourage a wider recognition of Ferguslie Park as a safe and interesting place. Our

journey continues.

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THE OPPORTUNITIES

When we look at this operating environment, a number of external factors reveal some potential opportunities for us. These include:

Wider role & social impact

Together with our subsidiary, the New Tannahill Centre, we are well-placed to increase our social impact. In the last year the Tannahill

Centre has taken opportunities to obtain £200k in grants for an enhanced wider role programme and to align with the activities of our

partners. We are keen to encourage community-led solutions and to channel ideas, action and investment into the area. We want to

ensure our value can be clearly demonstrated; not least as a key employer in the local area.

Collaboration & partnership

We are keen to continue reconnecting with our partners and to identify new opportunities to collaborate. We are already working

with the Scottish Government and the Council to re-establish a multi-agency partnership approach. Working in the context of the

City Deal, we will focus more on the non-physical aspects of tackling deprivation, although we will also strongly encourage good

environmental, drainage and roads maintenance.

We have recent and very positive experience of working closely with Linstone and Eildon Housing Associations which has supported

us to improve some of our key services. This has shown us the true value of collaboration and we are keen to build on this experience

by working with others to share expertise and resources. We are open to different forms of collaboration and keen to explore all

opportunities.

Meeting demand

We are keen to continue to develop the housing opportunities we offer. We have identified opportunities to increase the number of

homes we own and manage e.g. continuing to work with Renfrewshire Council to transfer some of their empty properties in the area

to us in order for us to upgrade them and exploring the opportunity to work with the Council to provide new homes in the area currently

identified in the SHIP. As well as meeting the needs of current residents for the first home of their own, or for transfers, we are keen to

respond positively to the increasing demand from Polish and African households, households with particular needs, refugees and those

who wish greater security than that currently offered by the private rented sector.

Place-making

We know that there is currently an appetite and funding support for asset-based community development and more design-led

approaches to regeneration. There are opportunities to improve the local environment and to encourage people to appreciate and

value the local natural environment we have on our doorstep. Linked to the renewed focus on local culture and heritage, we are

keen to work with partners to re-present Ferguslie Park as an attractive environment which makes a positive visual impact.

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THE THREATS

There are also a number of clear challenges, or threats:

Welfare Reform

The imminent roll-out of Universal Credit (UC) will have a detrimental impact on many of our customers, although some of this will be

softened by the new social security powers in Scotland. Without early action, the roll-out could also affect our own cashflow and

operational performance. Early evidence is that all our tenants on UC have either increased their rent arrears or accrued arrears for

the first time. We expect it will take some time for the full impact to be experienced both by our tenants as well as our business.

Affordability

The current economic climate, coupled with Welfare Reform, means that many householders are continuing to struggle to make ends

meet. Increases in fuel prices have resulted in increased heating and transport costs. Pressure from tenants, especially those not

receiving benefits, to keep our rents affordable is considerable. At the same time increased operating costs due to increasing

regulation (e.g. data protection) pension deficits, cyber security and the cost of materials place pressure on our financial position.

Community health & wellbeing

With around 10% of our local community reporting they are in bad or very bad health; health and wellbeing is a significant problem

in Ferguslie Park. Research tells us that long term poor health is the major cause of poverty in our area. We know that previous

regeneration programmes failed to adequately address this issue. The integration of health and social care is on-going and the new

practice is not yet embedded. Poor health and inadequate local healthcare provision affects many of our customers’ ability to work.

All of this suggests that the solutions will not be easy.

Reputation

Both the housing association and the local area have experienced more than their fair share of bad press. Ferguslie Park received

unwanted attention with the release of the latest Scottish Index of Multiple Deprivation, and inevitably we received attention when

the Scottish Housing Regulator intervened to protect the interests of our tenants. It is important for the future sustainability of the

community and the housing association that we both quickly regain the trust of local people and develop a more positive image.

Competition

The competition for investment, customers and partners has increased. We are not yet as well-connected as we would like and need

to address this. We recognise the growth of the private rented sector locally as well as the ambitions of other housing associations and

are keen that we do not lose out. Our commitment to collaborate with peer associations will be important in securing our position.

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Section 4: Business Strategy

THE GROUP’S STRATEGIC FRAMEWORK

Our business strategy must be set in the context of the Group as this sets the framework for both the housing association and our

subsidiary the New Tannahill Centre. The governing bodies of both organisations worked together to review and develop the vision,

purpose and approach for the whole Group.

The Ferguslie Group

Our Vision:

Where the potential of Ferguslie Park is fully realised

Our Purpose:

To work together to regenerate Ferguslie Park and

to work with partners to channel ideas, action and investment

Our Approach:

To drive forward a better future and a better now, for all.

Both governing bodies agree that this new vision, purpose and approach signals an appetite and energy for renewed action; action

which leads to lasting and positive change and harnesses the talent and resources already in the community. The Association's Board

is keen to ensure that this appetite and energy for action is cascaded down to inform the business strategy for Ferguslie Park Housing

Association.

OUR VISION STATEMENT

Ferguslie Park Housing Association’s vision is for a vibrant community which leads its own future and values the work we do in support

of this. We wanted to encapsulate all of this into a short simple vision statement which serves to remind us of our role and our ultimate

goal, namely:

Serving the community – Valued by the community

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OUR STRATEGIC DIRECTION

Throughout our history, we have gone through a number of different phases which could perhaps be described as emerging, growing,

stabilising and then more recently as a phase of internal review and strengthening. We are emerging from this last stage confident

about our future and motivated to continue to build the trust and respect of our tenants, partners and the wider community.

We recognise that for this next phase we need to ensure we apply the lessons we have learned and seek to continue to improve our

governance, services and organisational performance. From our analysis of our operating environment, we know that there are some

significant challenges ahead. We also know that we need to draw a line and signal a positive change in our attitude, energy and

professionalism. To this end, we intend that this next phase will be a period of rejuvenation for us.

We will continue to embed the improvements we have made, strengthen our collaboration and partnership working, re-energise our

tenant and community engagement activities and deliver tangible and positive social benefits. We hope that by drawing on our new

attitude, energy and professionalism new opportunities will emerge allowing us to better serve our community and be valued by our

community.

OUR SOCIAL IMPACT

We are keen to develop a more outcome-based approach to service planning and to align this to Scottish Government’s national

outcomes. We recognise the following five national outcomes to be particularly relevant to our activities:

We live our lives safe from crime, disorder and danger.

We live in well-designed, sustainable places where we are able to access the amenities and services we need.

We have strong, resilient and supportive communities where people take responsibility for their own actions and how they affect others.

We value and enjoy our built and natural environment and protect it and enhance it for future generations.

We have tackled the significant inequalities in Scottish society.

This approach will help us to maintain our focus on our Group vision and the social impact we wish to make. It will also provide us with

a framework to assess how well we deliver value to our current and future tenants, as well as the community as a whole. In our delivery

plans, we have therefore set out how our actions will help us to achieve our strategic objectives and deliver social outcomes.

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OUR CORE VALUES

We have developed a set of organisational values which we use to guide our behaviour. These values also inform our strategic

objectives and the approach we will adopt.

Our Core Values

Compassion

Inclusion

Integrity

Professionalism

OUR STRATEGIC OBJECTIVES

To ensure we stay focused on improving our services and rejuvenating our organisation, we have developed a set of 5 strategic

objectives for the period of this business plan. All our activities will be linked to these objectives. We will also measure our success by

setting targets against these objectives, ensuring that we deliver them efficiently and effectively. The five objectives are:

1. To provide excellent homes, services and a local environment to be proud of

2. To support and enable local people to realise their full potential in a vibrant community

3. To inspire confidence and trust from our tenants, staff and partners

4. To develop a strong team of talented and committed people

5. To safeguard our assets, sound financial position, long-term affordability and sustainability

OUR UNDERLYING APPROACH

Underpinning these objectives and values is a series of principles which serve to reflect and reinforce the organisational culture of our

Group. We will continuously seek opportunities to ensure they are embedded in all our activities:

Promoting customer and community engagement - we seek to embed customer engagement in our organisational culture, ensuring

that we involve our tenants in all aspects of our organisation in a meaningful way (e.g. strategic leadership, needs assessment, service

design and performance measurement). As a community-controlled housing association accountable to its tenants and members, it

is vital that we continue to have tenants on our Board helping to shape our future and guiding us to make the right decisions.

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Promoting collaboration and partnership working – as a relatively small housing association wishing to make a significant impact in our

community, we are keen to work with others and keen to embed a collaborative culture. We know from past experience that pooling

our efforts, as well as our resources, more often than not leads to more effective and sustainable solutions. We are very much

encouraged by the recent interest and support from the Scottish Government to revive a wider and more formal partnership approach

to a sustainable future for Ferguslie Park.

Having re-joined FLAIR we are benefiting from more collaboration. We also bought in invaluable support and expertise from Linstone

and Eildon Housing Associations to help us improve our procurement and asset management processes. We are keen to identify

opportunities for us to share our own skills and expertise to support others.

Promoting opportunity and creativity - we do not underestimate the challenges we face in working to achieve our vision, not least the

public’s perception of the area and the limiting affect this can have on the local community. Together with our subsidiary, we wish to

channel ideas, action and investment in the area and we believe that one of the best ways we can do this is by promoting Ferguslie

Park as a place of opportunity and creativity. We will reflect this across our work.

Fostering social inclusion – in our efforts to help support and sustain our local community, we take care to facilitate social inclusion

through our actions. We will continue to work to encourage and support the engagement of all sections of our local community

helping people to feel included and valued. Tackling inequalities matters to us, as does ensuring we harness the full diversity of our

community.

Delivering value for money - it has probably never been more important than in the current climate, that we deliver value for money

for our funders, our partners, our community and above all, for our current and future customers. We will work to ensure that the

relationship between our costs and service levels is transparent. We will also work to ensure that we not just maximise value, but that

we also demonstrate it clearly.

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Section 5: Key Priorities

Our analysis of the external and internal environment has helped us to identify a number of important cross-cutting themes. From these

we have identified our key corporate priorities for the remainder of this plan. These can cut across our strategic objectives and service

areas and so rather than repeat them across our delivery plans, we set these out here.

(i) Focus on affordability

As a contributor to Renfrewshire Community Planning Partnership we support the recommendations of Renfrewshire’s Tackling Poverty

Commission and understand the need to not just increase the supply of good quality affordable housing in the area, but also to

address the current financial pressures on households. Whilst there is no single, universally-accepted definition of affordability and no

access to data on tenants’ incomes, we do know that almost half of our tenants can struggle to pay their rent. Our experience tells us

that those in part time employment and especially households headed up by women working part time or irregular hours are among

the worst affected. We also know that 25% of children in Renfrewshire are living in poverty, and that child poverty is rising. Even more

worrying, two thirds of children living in poverty are living in a household where at least one person is working.

We have recently adopted the SFHA’s new affordability tool to check how our rents affect different household types. Although this

indicates that our rents are either affordable or just affordable according to house type, we intend to review our rent policy and

service charges during 2018. We are committed to maintaining rents at an affordable level and helping our tenants to reduce or meet

their other housing-related costs (heating, decoration and floor coverings, furniture, moving costs, etc.) We know that fuel poverty is

a particular issue for many of our tenants with 74% using pre-payment meters and with several choosing to have their fuel supplies cut

off. Ensuring that all our properties meet the new EESSH standards (revised in Dec 2017) will be critical, as will our current boiler-

replacement programme and planned window and door replacements.

Our Welfare Rights service will continue to play a key role in supporting our tenants to deal with Welfare Reform. We intend to work

more closely with Connect4Renfrewshire, a Big Lottery funded partnership project offering energy advice, budgeting and recycled

furniture. We will also work with our subsidiary, the New Tannahill Centre, to deliver a range of wider role projects aimed at improving

the health and wellbeing of the community and reducing fuel poverty. Our subsidiary will also seek to ensure that key services continue

to be delivered locally reducing the need for our tenants to travel to other parts of Renfrewshire.

(ii) Early action programmes

Although our level of rent arrears has been low in the past, many factors (none more so than Welfare Reform) are putting considerable

pressure on our ability to maintain any performance improvements. We know that many social landlords are experiencing significant

increases in arrears and abandoned tenancies and although this has not been a significant issue for us, we know we cannot afford to

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be complacent. No doubt as a consequence of our recent re-negotiations with Renfrewshire Council over homeless (Section 5)

referrals and seasonal pressures on households’ ability to afford their living circumstances, we have recently seen an increase in arrears,

highlighting the precarious nature of household circumstances. We are keen to adopt an early action approach ensuring our response

is quick and effective, to avoid the situation escalating any further. We have improved our arrears management processes and have

clarified these with our tenants. Our Housing and Welfare Rights Officers are well placed to support our tenants to maintain their

tenancies and we have set new targets for this. We have also set targets for settling-in visits for new tenants to help us identify where

we can offer early additional support. We now have a strong focus on Human Rights and Equalities and plan to evaluate and enhance

our customer care practices through a service review using independent advisors.

(iii) Strategic asset management

We suspended our investment programmes in 2016 as we recognised that we needed to be more strategic in how we manage and

protect our assets – our tenants' homes – and ensure we follow recommended practice. However, our tenants have told us that they

do not like it when we make changes to our capital and cyclical maintenance programmes. We have, therefore, taken action to

bring our knowledge of our stock up to date so we can publish investment programmes which reliably reflect the age and needs of

each house type, and which can be relied upon by tenants.

We have recently updated our life cycle cost model and arranged to undertake further stock condition surveys to reduce our reliance

on cloned data and improve the accuracy of our information. We have also re-prioritised our schedule of component replacement

to take account of; our legal duties and responsibilities, our need to smooth the programme to ensure we have sufficient capacity,

and not least the priorities of our tenants. In our recent full tenant satisfaction survey (August 2016), tenants told us they were most

dissatisfied with windows, external doors and door entry systems, bathrooms and the landscaping in common areas. These areas have

therefore been prioritised in the investment programme which re-started in 2017.

We are also aware that we have had some challenges in trying to adapt our existing homes to suit the changing needs of our tenants,

and as a result some of our tenants have requested transfers. We are keen to resolve these issues and ensure that our homes remain

fit for purpose. We are also preparing to meet the new EESSH standards in line with guidance published in late December 2017.

We will continue to work with Renfrewshire Council to explore opportunities for suitable void properties in Ferguslie Park to be transferred

to the association. We are in discussion about a prominent corner-site property at Candren Road. We will also widen our attention to

the local environment and in particular, gap sites and opportunities to improve the attractiveness and usefulness of these areas. We

are also keen to contribute to Renfrewshire Council’s regeneration and affordable housing plans as set out in their recently updated

Strategic Housing Investment Plan. We know the Council is consulting on the future of some properties in the Tannahill Terrace area

which are no longer fit for purpose and we are keen to play a role in the anticipated re-provisioning of replacement homes.

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(iv) Procurement & Contract Management

Procurement legislation and practice has been overhauled over the past 2-3 years with some of the changes only coming into force

in the past year. We recognised that our own practice was no longer fit for purpose and so we commissioned external support to help

us identify where and how we can improve. We have introduced new procurement routes, procedures and contract management

systems from early 2017 and have re-procured several planned maintenance and service contracts since then. We re-procured our

repairs and maintenance contract for commencement in 2018. We have reduced our repairs costs considerably and will continue to

actively manage and enforce this and other new contracts. We are committed to using procurement as a strategic tool to improve

our performance, increase tenant satisfaction, offer community benefit and ultimately deliver value for money for our tenants. As part

of the procurement exercise, we were keen to provide opportunities for tenants to inform the new service specification and so in late

2016 we set up a tenant focus group which influenced the service specification on which we subsequently went to tender. We are

keen to build on this, ensuring we fully engage with our tenants throughout our capital programmes.

(v) Wider Role

In our vision and strategic objectives we have set out our desire to help create and support a vibrant local community where the

potential of Ferguslie Park is fully realised. We recognise that this requires us to be more than a landlord and to use our skills and

resources to deliver enhanced social impact. We have a history of delivering successful wider role projects – we introduced Youthbuild

to Scotland - and are keen to build on this over the remainder of this plan. We will continue to work with others, for example, our

partners in FLAIR, the local community, Engage Renfrewshire, the private sector and in particular local employers as well as our own

subsidiary, the New Tannahill Centre.

Most of our direct delivery will be channelled through our subsidiary. The Tannahill Centre is developing a programme of wider role

activities which includes: promoting and supporting community-led action to overcome the isolation and disadvantages experienced

by local people; support for families and young people; skills development and employability programmes; tackling social isolation

and loneliness; improving health and wellbeing and increasing participation in sport and physical activities.

FPHA’s role in each of these will vary depending on where we feel we can best add value. We will actively seek new funding for

projects, use social benefit clauses in procurement processes, and offer training and support. We have already achieved one-off

benefits but our new repairs contract will maximise longer term apprenticeships.

(vi) Connectivity

In our efforts to be more collaborative, we need to first be better connected. We have made great strides in this over the past year

having re-established old links and formed new ones. We will continue to prioritise and learn from our membership of FLAIR, Scotland’s

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Housing Network, the SHFA, and the Glasgow and West of Scotland Forum of Housing Associations. We will also continue to promote

our achievements and demonstrate our improved performance. We are also keen to see the community of Ferguslie Park better

connected with the rest of Renfrewshire and indeed Scotland, and will work with our strategic partners to ensure that we can all

benefit from the opportunities for inclusive growth set out in the City Deal programme.

(vii) Governance & business improvement

We will continue to implement our business improvement programme which builds on the considerable progress we have achieved

over the past two years, particularly in terms of strengthening our governance and financial arrangements. We will continue to work

through our other Action Plans; to improve our operational performance, embed good practice, ensure our policies and procedures

are always up to date, develop a strong leadership and management team, establish an effective tenants’ scrutiny panel, and build

the trust and respect of our tenants, members and partners. Over the next year, we will introduce new customer care standards, carry

out a comprehensive risk review, re-organise our office accommodation and recruit and settle-in permanent staff to replace our

interim appointments. We will also continue to make the most of technological advances to communicate and engage with our

customers, in particular our younger customers. Many of the other priorities listed above will form part of our efforts to improve business

performance.

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Section 6: Resources

OUR FINANCES

We expect to start this financial year (2018/19) with overall net assets of just over £11m. This includes expected cash balances of

around £2m and is after taking account of our loan debt with The Royal Bank of Scotland of around £2.3m. A surplus of around £831k

is expected for 2017/18.

Our long term projections continue to demonstrate viability over the short, medium and long term. Based on reasonable assumptions,

our financial projections show annual surpluses and confirm more than adequate liquidity in order to allow implementation of the

financial plans. No issues arise in the base case model in respect of loan covenant compliance.

Cash resources, due to changes in assumptions, are at lower levels compared to last year’s business plan. This is primarily due to

provision for higher staff and overhead costs in the next 3 years. For that period of continuing rejuvenation, management costs are

estimated to exceed local housing association peers by around 10% and this adversely impacts on other financial ratios. However,

from year 4, staffing costs as a % of turnover are projected to come back in line with local associations.

In years 1 to 5, surpluses of £4.9m are achieved and cash balances in the first 5 years average £1.2m. Full SHQS compliance is

comfortably achieved and total major repair spend by year 5 is around £6m. This is after additional rental losses have been provided

for the potential adverse impact of Welfare Reform and a reduction in loan debt of around £476k.

The next five year period projects surpluses of £5.4m, a reduction of 32% in debt levels and major repair spend of £6.1m. Cash balances

average £2.9m over this 5 year period.

Thereafter, the annual surplus position continues to improve with cash resources (as debt levels continue to drop) increasing at a

significant rate. The "year 30" cash balance is projected at £21m and this is achieved on inflation-only rent rises, real increases in

maintenance costs at 0.5% throughout the plan period and real increases on management costs of 0.5% until year 10.

By year 6, cash balances are expected to exceed debt levels and, in the event of no changes in assumptions, there is an ability to

repay debt earlier than the 2036 repayment date.

Our sensitivity analyses show that each of the adverse scenarios could, assuming they arise as single events, be managed by the

association. Some factors remain within our control such as rental policy, staffing levels, the timing of maintenance contracts and any

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combination of adverse scenarios would need to be managed on an ongoing basis. The most extreme sensitivity (which combines six

adverse single event scenarios) reduces cash resources by £13m over the long term but, with remedial action, would be capable of

being managed.

We have the ability to draw down additional debt for appropriate purposes should the need or any suitable opportunity arise. We will

continue to produce our long term projections on an annual basis. The short term annual budget exercise considers the first 12 months

of the plan period in detail and the quarterly management accounts will be used to monitor achievement of the short term budget.

As long as the short term position remains broadly in line with the annual budget then our overall financial plans will remain on target.

OUR PEOPLE

Our people are our voluntary Board members and our paid staff, who together have shown resilience and dedication throughout our

recent changes. Over the past two years or so we have had an interim management team and have initially focused our support and

development activity on the Board in order to strengthen our governance. The progress through the Governance Improvement Plan

has been remarkable and has given individuals the knowledge, skills and confidence to deliver this business plan.

We now have effective arrangements for the induction and appraisal of committee members and have recently attracted new

members following a skills analysis. We have updated our code of conduct, our register of interests and our entitlements, payments

and benefits policy. Our Board members have completed an extensive training programme and have included staff in much of this

in an effort to improve joint working and shared understanding.

Over the next two years we will consolidate the improvements we have made to date and continue to develop a strong team of

talented and committed people. This will include a review and update of our Board members' handbook, introducing team building

activities for Board and staff, developing our staff and Board training & development plans and enhancing the work of the staffing

sub-committee. We will re-introduce a staff appraisal system in 2018. We will continue with our regular monthly staff training sessions

and to use these to introduce and support new procedures in service delivery.

OUR SYSTEMS

We are committed to investing in our systems to improve our productivity, efficiency, response rates, and communication. Our current

systems include key housing management, maintenance and finance processes.

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Our focus in this business plan is on upgrades or improvements, e.g. the new interface with our maintenance contactor, using mobile

apps and SMS and fully exploiting the capabilities of our housing management software. We also wish to share our systems across the

Group, where appropriate, to improve productivity.

We have two main computer systems. These are the Microsoft office systems, and our telephones and hardware, which are

maintained by our IT Consultants. The software for our housing, rent and asset systems are provided and maintained by SDM and we

are considering how to comprehensively improve how these are used. In the period of this plan, we will continue to maximise the

efficiency opportunities and be able to build an accurate database of comparable performance information. This will be crucial to

continuing to improve our services and performance.

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Section 7: Risks

OUR APPROACH

Effective risk management is a core ingredient in any successful business. It is particularly important in increasing the likelihood of the

successful delivery of the business plan. Managing the risks to our organisation reduces the chance of us having to deal with the

unexpected and ensures proactive management rather than reactive crisis management. At a time when we continue to resolve old

weaknesses it is especially important to reduce the number of unwanted surprises.

We have therefore adopted a comprehensive approach to risk management to ensure that we:

are more flexible and responsive to new internal and external demands;

are able to make informed decisions;

can provide assurance to the Board, the Audit & Risk Committee and the management team;

reduce incidents and control failures; and

are able to achieve our key targets and priorities.

OUR RISK MANAGEMENT FRAMEWORK

We are providing much-needed strengthening to our risk management framework, setting out the process through which risks will be

identified, assessed, controlled, monitored and reviewed. This framework is designed to:

integrate risk management into the culture of the organisation;

raise awareness of the need for risk management;

encourage a positive approach to risk management;

support improved decision making, innovation and performance through a good understanding of risks and their likely impact;

and

manage risk in accordance with good practice.

OUR AUDIT & RISK COMMITTEE

The Board is responsible for overseeing risk management in the organisation. It is assisted by the Audit & Risk Committee, charged with

monitoring the management of high level risks, reviewing the risk appetite, ensuring proper controls are in place and annually

reviewing the organisation’s approach to risk management.

The role of the former Internal Audit Committee was broadened and strengthened considerably in 2016. Previously focused only on

internal audit, it has now become a group-wide sub-committee, addressing control effectiveness in both FPHA and the New Tannahill

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Centre, and, as the Audit & Risk Committee, extending its remit to include both external and internal audit, and a key role in risk

management.

OUR RISK REGISTER

We maintain a detailed and up-to-date register of all risks (including strategic, operational, reputational, financial, etc.) where we set

out their causes and potential impact, assign a named person to be responsible for their management, the controls we have in place

together with a scoring system to help us to understand their seriousness. We use this proactively to identify, assess, control, monitor

and review the risks to our organisation.

OUR RISK CONTROLS

Over the past year or so we have significantly bolstered the controls we have in place as part of our drive towards good governance,

effective business planning and safeguarding stakeholder assets. In doing this, we have taken account of the Scottish Housing

Regulator’s Regulatory Standards of Governance and Financial Management (2012).

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Section 8: Review

MONITORING & REVIEW

We will review and update this business plan every year as part of our annual business planning cycle. Although this is primarily an

internal process, we are keen to widen the scope to include our new Tenants Scrutiny Panel and other key stakeholders.

PERFORMANCE MANAGEMENT

We have developed a performance management policy which sets out formally how individuals within FPHA can contribute towards

achieving organisational goals, and how they will be held accountable for their performance. The preparation and updating of the

business plan is at the heart of this process, and the respective roles and engagement of Board members, management team and

frontline staff are clearly set out within the agreed Business Planning Process document.

There will be an annual review of which Key Performance Indicators (KPIs) should be reported to the Board as part of the monitoring

and review process, to ensure that a limited number of appropriate indicators are identified which will demonstrate whether or not

strategic objectives are being successfully progressed and met.

Staff will continue to be fully engaged with management in drawing up annual delivery plans to move forward the strategic objectives

and key priorities identified within the business plan. Following Board approval of the business plan for the year ahead, the staff

appraisal process will be used to cascade delivery plans and targets down to individual staff objectives and targets through the

annual appraisals to be held in April and May each year, and also to measure performance relating to the previous year. On-going

one-to-one meetings, including quarterly reviews of individual tasks and targets, will maintain the focus throughout the year. The staff

appraisal process is being revised and improved to reflect this approach.

Board will receive a quarterly review of progress with the business plan which will include:

Delivery plan tasks programmed for completion

KPI targets – position at each quarter end

Quarterly management accounts, including financial KPIs and loan covenant compliance

Review of key risks affecting successful delivery of the business plan

OUTCOME-BASED APPROACH

This business plan signals a move towards a more outcome-based approach to business planning. We want to be able to measure

our social impact as well as our operational performance. Measuring impact is very difficult as many who have struggled with this will

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attest, and often despite bringing significantly more skills and resources to the task than we can. Nonetheless, we are motivated to

achieve our vision and make a difference in Ferguslie Park and are keen to be able to demonstrate this unequivocally. Over the next

three years we will develop and implement a new evaluation framework.

OUR EVIDENCE BASE

We have made significant progress over the past year or so to develop our evidence base and improve our assurance levels and are

working on an improved performance reporting framework. We intend to carry our further stock condition surveys to improve the

accuracy of our property database, to continue to benchmark our performance with the other members of FLAIR and Scotland’s

Housing Network, and to undertake a customer profiling exercise to allow us a better understanding of our tenants’ needs and

expectations. All of this evidence will be used to underpin future business plans.

KEY PERFORMANCE INDICATORS

The following appendices begin with the key indicators to be reported quarterly to the Board. These are linked to our objectives and

priorities.

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KPIs for Strategic Objective 1: To provide excellent homes, services and a local environment to be proud of.

Outcomes Actions Key Performance Targets Timescales 17/18 18/19 19/20

Lead Responsibility

1 High overall tenant satisfaction with FPHA as a landlord – valued by the community

Regular independent Pulse Satisfaction Surveys to track and respond to changing views, priorities

Grow very satisfied proportion of Overall satisfaction from 15.8%, to 50%. (2013 performance was 41.3%) (2017/18 performance was xx%)

41.3% 45% 50% Management Team

2 More tenants happy with the standard of their home Implement and communicate progress & satisfaction with investment programme of home improvements Re-procure Repairs and Gas Maintenance contracts for quality and speed

Grow very satisfied proportion of Overall satisfaction with quality from 9.7% to 40% (2013 performance was 30.5%) (2017/18 performance was xx%)

30.5% 35% 40% Head of Operations

3 More tenants satisfied with services Implement and manage Housing & Property Services Delivery Plans Influence Council to improve roads, drains and flood prevention (Agree an Area Environmental Management Plan)

Grow satisfaction with the repairs and maintenance service provided by FPHA from 86% to 98% (2013 performance was 92%) (2017/18 performance was xx%)

92% 93% 95% Head of Operations

Grow very satisfied proportion of satisfaction with overall management of the neighbourhood from 6.1% to 45% (2013 performance was 38%) (2017/18 performance was xx%)

17% 35% 45% Head of Operations

4 Gas Safety Compliance Manage achievement of gas safety checks within regulations

Maintain 100% gas safety checks within 12 months (2017/18 performance was xx%)

100% 100% 100% Head of Operations

KPIs for Strategic Objective 2: To support and enable local people to realise their full potential in a vibrant community.

Outcomes Actions Key Performance Targets Performance 2017/18

Timescales 17/18 18/19

19/20

Lead Responsibility

5 New Investment in Ferguslie Park people so residents recognise increased opportunities (for work, training, leisure, culture)

Support the Tannahill Centre as a vehicle of social impact Include Community Benefit requirements in Procurement

Traineeships/apprentices Environmental Improvements Support for Community Events

1 1 1 1 1 1 1 1 1

Head of Operations

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KPIs for Strategic Objective 3: To inspire confidence and trust from our tenants, staff and partners.

Outcomes Actions Key Performance Targets Timescales 17/18 18/19 19/20

Lead Responsibility

6 Excellent perceptions of FPHA as a landlord Regular independent Pulse Satisfaction Surveys to track and respond to changing views

Grow agreement with Landlord has a Good Reputation in the Area from 81% to 95% (2013 performance was 93%) (2017/18 performance was xx%)

85% 90% 95% Management Team

7 Co-operative and productive relationship with Renfrewshire Council delivering excellent environmental and shared services

Agree & deliver Joint Action Plan Local newspaper articles Support local council housing service delivery in Tannahill Centre

Agree future for unpopular council homes. Establish common allocations policy Partners deliver service standards & responsibilities for environment

In 18/19

In 18/19

In 18/19

Management Team

8 Co-operative and productive relationships with other stakeholders, eg Scottish Government, FLAIR.

Secure and maintain political support for Ferguslie Group Campaign on effects of Welfare Reform and SIMD, including via 9 Streets Project Contribute to FLAIR annual partnership delivery plan actions

Quarterly meetings with all local and national politicians

- 4 4 Management Team

Six-monthly meetings to identify relevant support and programmes with Scottish Government

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Deliver annual FLAIR commitments - 100% 100%

KPIs for Strategic Objective 4: To develop a strong team of talented and committed people.

Outcomes Actions Key Performance Targets Performance 2017/18

Timescales Lead Responsibility

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Highly skilled and experienced Board and staff Recruit new Board members with appropriate skills, knowledge & values. Support all committee members with induction, training, appraisals etc. Refresh Board induction for long-serving members Networking with peers and best performers Participation in FLAIR meetings and training for different Board & staff groups

Achieve a Board of 12 ( excl statutory appointees)

Annually

Management Team

75% of Board members serve for 5 years

Annually Management Team

75% Board attendance at meetings and sub committees

Annually Chair

No more than 2 staff departures per year

Annually Chief Executive

Max of 3.92% of working days lost through sickness

Annually Chief Executive

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Use membership of SHARE, SFHA, EVH, GWSF

KPIs for Strategic Objective 5: To safeguard our assets, sound financial position, long-term affordability and sustainability.

Outcomes Actions Key Performance Targets Timescales Lead Responsibility 10 Rent collection is high and arrears are under control Review best practice, Policy, Procedures

and training Reduce Arrears to top quartile by 2021 (2017/18 performance was xx%)

17/18 18/19 19/20 6.5% 6.4% 5.9%

Head of Operations

11 Responsive maintenance costs compare well with peers New repairs contract with manageable costs

Reduce repairs per house from £750 to national median of £487 a year by 2020 (2017/18 performance was £xxx)

£630 £550 £487

Head of Operations

12 Properties are in good condition and high demand Implement Investment Programme on time and budget

Reduce days to let to top quartile by 2020 (2016 performance 25 days) (2017/18 performance was xx days)

17 days 16 days 15 days

Head of Operations

13 Homes are affordable to rent and live in Pursue value for money to reduce costs Investment programme to include energy efficiency measures Consider district heating systems Join consortia providing affordable energy, eg Citrus, Our Power

Rent increases at maximum of CPI for 3 years

CPI CPI CPI Head of Operations

All homes to meet energy efficiency targets ( EESSH)

100% 100% 100%

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SWOT MATRIX STRENGTHS

People – our staff and Board Members are committed, loyal, approachable, and resilient. We are establishing a more open and collaborative culture.

Strategic clarity – we now have a good understanding of local issues and a clear strategic focus. We are more forward-looking and have improved strategic alignment across our Group and with our partners.

Customer insight - we know our tenants well. We carry out regular surveys and seek to deliver a personal service.

Service performance – we have areas of good performance e.g. low voids & rent loss from empty houses, SHQS compliance, emergency repairs, keeping tenants informed, rents seen as VFM, etc.

Asset management – we are committed to maintaining the high quality of our homes and have a major programme of improvements underway.

Financial position – we are in good financial health and have the confidence of our lenders.

Governance – we have gone through a comprehensive governance improvement programme and are well placed to sustain good practice.

Customer engagement – we are engaging better with our tenants and the local community, e.g. the huge response to our rent consultation.

Fair rents – tenants say their rent is value for money and our rents are reducing in real terms.

WEAKNESSES Our capacity - we have increasing capacity in both staff and Board and we are

removing interim staff posts. However, the availability of certain skills may change and there may be a loss of momentum as senior staff change.

Service performance – we know where we still need to improve e.g. rent arrears, void letting standards, windows and door replacement programmes, etc.

Housing needs - we know that we have some difficulty in adapting our properties which means that our tenants with particular needs often seek transfers.

Stakeholder confidence – the confidence others place in us remains fragile and we know that any failure to deliver on our promises puts this at risk.

Facilities & infrastructure - the access, layout, condition and comfort of our offices are no longer fit for purpose. Our broadband service is very poor.

Business improvement - we have not yet completed our business improvement programme which turned out to be bigger than expected and will need current resources for the next 3 years.

OPPORTUNITIES Partnership working – either directly or indirectly to improve health, education

and employability in our communities, e.g. the 9 Streets Project.

Relationships in Government – we have the support of very senior influencers which we have to take advantage of.

Place-making – we have the advantage of a clear geographic focus and a current policy agenda focused on place-making.

Meeting demand - we want to respond to the increasing demand for our properties and expand the opportunities we offer. We are keen to build new homes and better meet the needs of households with serious health issues.

Wider Role – working with NTC to adopt an outcome focus, increase our social impact and play to our strengths as a social enterprise and anchor organisation.

Differentiation – the significant size of the private rented sector means we can showcase what we can offer in terms of quality, price and security.

New Technologies - making better use of ICT e.g. social media.

THREATS Economic – range of factors including BREXIT, inflation, fuel costs, affordability, etc.,

but most significantly at this time, Welfare Reform.

Affordability - fuel poverty, macroeconomic and more local factors place considerable pressure on the affordability of living in our homes to many households.

Health & wellbeing – many of our residents experience serious and persistent disadvantage e.g. long term illness, mental health, employability, addiction.

Competition – increasing competition for funding and/or support, with Renfrewshire Council now wishing to build in Ferguslie Park and tenants potentially choosing to go elsewhere e.g. growth of private rented sector.

Relationships – we are keen to collaborate with partners, but building and maintaining strong and effective relationship is not completely within our gift.

Reputation – previous bad press has been detrimental to the trust and loyalty of our tenants and any failure to deliver on our promises could damage the progress we have made, as could a poorly received Intervention Report when published by SHR.

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Statements of Comprehensive Income and Financial Position

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