Magna Housing Association 2010/11 budget

Our income for the coming year is budgeted at just over £27 Million. This has increased from last year’s budget as we have built and bought an additional 100 new affordable homes for rent.

There are three principal areas of spend: maintenance, management and interest payments. There is an overview of our income and expenditure at the bottom of this article.

Maintenance

We intend to spend nearly £13 million on maintenance. The biggest part of that is £7 million on major repairs to make sure that your home meets the Decent Homes Standard. This includes replacing kitchens or bathrooms in 497 homes, 359 new front doors, 67 new roofs and new windows for 107 homes. There are also £2.5 million of cyclical repairs to be undertaken. The biggest part of that is gas servicing and heating system replacements and £1 million on painting homes both externally and internally. The repairs call centre will deal with about 30,000 phone calls and this will result in roughly 19,000 response repairs at an average of just over £100 each. We will get about 450 properties handed back to us and we will spend an average of £1,500 to bring each of them back into use for the next tenant. We relet properties in just over 3 weeks so we don’t have long to do the necessary work.

There is an increase in the budget for aids and adaptations for those with particular needs. Last year (2009/10) it was £100,000 but we have increased it to £120,000 this year (2010/11).

Your community representatives determine where a budget of £150,000 will be spent to benefit your community. This is used for improvements rather than maintenance. Last year, for example, we increased the number of parking spaces, installed fencing and bollards, improved lighting and undertook improvements to shrub beds and borders. If you have any ideas of where we could spend this money get in touch ken.bodycombe@magna.org.uk

Management

Management expenditure will total nearly £8 million. The cost of managing sheltered housing is £1.2 million and for supported housing it’s £712,000. General housing management, including the cost of your housing and rent officers, the resident involvement staff and receptionists as well as the staff managing the maintenance service, is all included here. There are also costs for departments such as finance, IT and personnel.

Interest

The final big budget is that for interest payments. MHA owes money to our banks. We borrow money to maintain your homes and buy or build new ones. MHA has debts of around £116 million, which is normal for a housing association, and we repay our debt just like a mortgage over 30 years or so. The interest bill for 2010/11 is budgeted at £5.1 million. If everything comes in as expected, MHA will make a surplus next year of £1.5 million. Our borrowing, will approach £140 million this year. The extra borrowing will mean that we can develop over 170 new homes in 2010/11.

	£ Expenditure	£ Income	£ Total
Income
Rent properties		24,476,722
Service charges		1,151,314
Rent garages		409,472
Supporting People		1,070,162
Other income		268,082
Total Income			27,375,752
Expenditures
Management Expenditure
Housing Management	1,798,291
Sheltered Housing	1,222,460
Supported Housing	712,238
Office Services	198,138
Neighbourhood Services	587,338
Building Services Agency Fee	367,824
Technical Services	449,514
MHA Overheads	565,333
Group Recharge	1,817985
MHA Contingency	35,000
Total Management Expenditure			7,754,121
Maintenance Expenditure
Response Repairs	2,115,999
Voids Repairs	695,865
Cyclical Repairs	2,418,094
Major Repairs	7,093,892
Community Initiatives	150,000
Aids and Adaptations	120,000
Building Services(Surplus)	(5,276)
Total Maintenance Expenditure			12,588,574
Total Expenditure			20,342,695
Operating Surplus			7,033,057
Interest
Interest Payable	5,116,362
Interest Receivable	(10,806)
Group Interest Received	(9,284)
Total Interest Expenditure			5,096,272
Surplus Before Exceptional Item			1,936,785
Exceptional Items- Skilling Regeneration			490,000
Overall Surplus			1,446,785