FORMATION OF RESIDENTS’ ASSOCIATIONS

(Revised 2011)

Introduction

This note describes good practice for the formation and running of Residents' Associations. Residents' Associations can play a useful role in the smooth running of a retirement housing scheme.  That role is recognised in legislation that gives residents rights to consultation. It is important that people working for management organisations are able to advise on the setting up, and running of organisations.  The term ‘residents’ is used in preference to the term tenant as leaseholders will normally use the title Residents' Association.

 

Whilst the ARHM strongly supports the role of residents associations we think managers should also use a number of ways to consult and involve residents.

 

Recognition of residents’ associations is in Schedule 19 of the Housing Act 1980 as amended by the Landlord and Tenant Act 1985 and 1987. Leaseholders can apply to a rent assessment panel for a certificate of recognition of their association if the association has a membership of 60% or more of the owners, a proper constitution and elected officials

 

The ARHM Code chapter 12 states that managers should recognise an association with 51% or more of owners in membership, where the association has a proper constitution and properly elected officials.

 

 

1.      The Objects of a Residents Association. In preparing guidance notes for the formation of a Residents' Association, one or more of the following should be considered as the objects of the Residents' Association:- a)     To preserve the amenities enjoyed by the lessees/residents. b)     To ensure effective supply of services and rights as entitled to under the lease. c)     To consult with the lessor and/or managers. d)     To assist in securing variations of leases.  e)     To represent the lessees on matters of common interest.

2.      Recognition of a Residents’ Association by Managers The following points should be considered as good practice:- a)     Proposed Residents' Associations should relate to a single development/scheme which has its own service charge. b)     No two officers of the Residents’ Association should live in the same household. c)     The Residents’ Association must be properly constituted ideally with ARHM model constitution, the RPTS one or one broadly similar. d)     Legal recognition of a Residents’ Association by a Rent Assessment Committee will require that 60% of leaseholders are members. The ARHM code requires that managers should recognise a Residents’ Association with a lower figure, which represents 51% or more of units.  This should not preclude consultation and provision of information to individual residents.  e)     The manager should ask for a signed list of members before recognition, not simply a list of names. f)       Residents’ Associations should follow an equal opportunities policy g)     Accounting procedures should be in place for monies which may come into possession of the Residents’ Association h)     Membership of the Residents’ Association should be voluntary. i)       The scheme manager should not be a member or accept an executive appointment in a Residents’ Association. j)       The landlord or manager may consider providing some financial aid for residents wishing to form a Residents’ Association. k)     If recognition is granted the manager should agree when and how often the manager will meet representative of the Residents’ Association at the scheme. l)       Managers should require that Residents’ Associations seek annual renewal of recognition and require a list of officers and a signed list of members each year. m)    The manager should state that any correspondence from the Residents’ Association shall be signed by the secretary and no other party.

3.      How to start It is accepted that the initiative to form a Residents’ Association often comes from residents themselves. However the following  may be considered by the manager when wishing to take the initiative in forming a Residents’ Association:- a)     Discuss with residents whether they are interested in forming an association when there are sufficient     numbers to ensure that any group formed is a representative body. b)     If there is sufficient interest, call an informal meeting to discuss the formation of a Residents’ Association.  Ensure that the Scheme Manager is part of the process. c)     Ask someone to take notes of the main points of discussion, any decisions made and who is going to carry out what action.  Ensure a copy is supplied to the notice board. d)     If required organise a secret ballot so that all residents can have a private vote on whether they wish to form a Residents’ Association. e)     Members of the Residents’ Association should be aware that they could be held personally liable for the    liabilities and debts of the Residents’ Association. f)       Residents will need to decide: ·        Name of the Association ·        Objects of the Association, constitution, standing orders. ·        Membership fee, whether to charge and how much. ·        Number of members. ·        Date of initial election of committee and annual AGM. 4.      Voting Rights It is recommended that voting rights should be restricted to one vote per dwelling. Where there are joint leaseholders or residents then the first named person on the roll of members shall have the right to vote.

5.      Support for Residents' Associations The Tenant Participation Advisory Service (TPAS) is an independent organisation run by landlords and tenants together. TPAS provides advice, information, practical help and support to both landlords and tenants. It provides a full local training service and organises leading conferences and services. Further information can be obtained from Tenant Participation Advisory Service (TPAS), Brunswick House, Broad Street, Salford  M6 53Z   www.tpas.org.uk/

The Residential Property Tribunal Service publishes a free leaflet on ‘Tenants’ Associations’ which explains the role of Rent Assessment Panels in recognition of associations and a model constitution. See www.rpts.gov.uk. Tell. 0845 600 3178

Age UK are happy to give advice on setting up a Residents' Association. They  also give advice on suitable constitutions for resident associations. AGE UK, Astral House, 1268 London Road, London  SW16 4ER Tel:- 020 8765 7465  www.ageuk.org.uk/

 

Association of Retirement Housing Managers,
Southbank House, Black Prince Road, London SE1 7SJ
020 7463 0660
enquiries@arhm.org

Registered Office: 1-3 Manor Road, Chatham, ME4 6AE,
Registered in England No. 2625179. Vat No. 596 1126 28

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