Coastline Housing (CHL) is reviewing how service charges are charged to customers. At the moment all service charges are spread equally across all properties even if some customers do not receive these services. Although this is how many landlords and local authorities collect service charges, the Government recognises that this system is not fair. Therefore CHL want to change the way service charges are calculated to provide a fair system.
CHL has set up a Service Charge Core Group consisting of customers. The group have met three times to discuss the various issues regarding service charges. Below is a list of involved customers in the Service Charge Core Group:
William Vincent Lynn Curnow Rose Davies
Jeanette Smith Julie Cooper Chris Ponder
Sue Shepherd Adrian Dudley Heather Nettles
Mr Armstrong Carol Moreton Alan Moreton
Sue Roberts Philip McDonnell Chris Knuckey
Hazel Polkinghorne Anita Botheras Geoff Gordon
Babs Eveson Pam Clarke Peter Eddy
CHL will keep customers informed of what is happening with the review through this webpage, published articles in the Coast Lines Newsletter, and by writing to you as we have recently.
Please click on the following links to read the published service charge articles in the last two customer newsletters
http://www.coastlinehousing.co.uk/about-us/documents/CoastLines14Web.pdf
http://www.coastlinehousing.co.uk/about-us/documents/015Autumn2009.pdf
Here is also a list of Frequently Asked Questions regarding service charges. Some questions relate to sewage service charges, these are only for tenants that are connected to Local Sewage Treatment Plants. If you want to know more, or have any questions not listed below, please do not hesitate to contact Tom McQuaid on 0808 2027728.
Service Charge Question and Answers
Why are you reviewing service charges?
At the moment all service charges are spread equally across all properties even if some customers do not receive these services. Although this is how many landlords and local authorities collect service charges, the Government recognises that this system is not fair. Therefore CHL want to change the way service charges are calculated to provide a fair system.
Will this mean I will pay more service charges?
At the moment we cannot say. We are currently working out the figures. However as soon as these are available, we will be writing to you to let you know what your charges will be and give you an opportunity to discuss the charges with CHL.
Will the charges be covered by Housing benefit payments?
Yes, if you currently have your service charge payments paid for by Housing Benefit, then this will continue regardless of any changes to the amounts. The only exception is sewage costs, (please see sewage service charge FAQ’s)
I don’t receive any of the services mentioned above, will this mean my service charges will go down?
The aim of the review is to provide a fair charge for only those services that you receive. The review will look at all services that customers receive, this may mean some customer’s charges may be reduced. However the review may highlight charges that were not charged previously. Again all customers will be notified of any changes and will be given the opportunity to discuss with CHL.
Will there be any customer consultation?
We have already set up a customer core group who is looking at all aspects of service charges. We will also be contacting all customers providing them with an estimate of their service charges plus an opportunity to discuss any issues with CHL.
Sewage Service Charge Question and Answers
Why has there been a large increase?
CHL has changed the way it collects the cost of maintaining the sewage plants. CHL had charged a portion of the costs to tenants connected to the plant and the remainder was collected through the rent. However, the government says this is unfair, as customers paying rent should not subsidise other customer’s sewage costs.
Why is the cost so high?
CHL has to maintain all the sewage plants to comply with standards set by The Environmental Agency. This includes all the repairs and servicing, emptying and disposal of waste, and any non routine maintenance. These costs are determined by our maintenance contractors, and South West Water, and EDF electricity. The costs are then passed directly to our customers.
How much do CHL make from this arrangement?
CHL do not profit from this arrangement, we add a 15% administration charge which is allowed under current legislation. This enables CHL to manage all the different contracts, such as sorting out the invoices and managing the contractors.
There are private owners connected to the plant, how much do they pay?
Private owner’s pay the full amount of their cost, and have done since they purchased their property.
If we are only paying 50% of the actual cost as from next year, will we be expected to pay the full cost the following year?
CHL will be consulting with all customers affected by sewage charges to see what the best way will be to divide the charges.
Will the charges be covered by Housing benefit payments?
Sewage charges are not eligible for Housing Benefit and so even if you are currently on full Housing Benefit you will still be liable for the full charge.
I know someone who has their own private sewage plant but their costs are nowhere near what you are charging, why is this?
As previously stated we have to comply with Environmental Agency standards. However, we are retendering our sewage maintenance contract to start from April 2010. We will be consulting with all customers connected to the plants to ensure we provide value for money.
Please look out for further updates in your newsletter, by post and on this website.