[Clare Heyes]

Dear Sally,

Sorry to confuse the situation. With regard to “individual utilities”, I have a site with a single communal electricity meter so the residents are all charged a service charge for their electricity but it is just divided up amongst the six of them. It is still a service charge but not covered by Benefits or Universal Credit. However, the electricity used by the lift to the flats or communal lighting is a service charge that is covered by benefits or UC! Obviously with only one meter we need to take a view on this and it is a best guess.

I am absolutely sure that general maintenance is not a service charge but stand to be corrected by the Association if I am wrong.

Kind regards,
Clare

[Clare Heyes]

Dear Sally,

The two maintenance items you mention are not service charges. If you download the specimen budget from the Association you will see these are separate items within the wmc . Service charge is usually things like communal or individual utilities or communal gardening/cleaning/lift servicing/warden costs. General maintenance is not a chargeable service. The basics of service charge is that you must be able to work out what it is from invoices and you can’t make a surplus. You can’t foretell maintenance issues, hence why they are not a service charge.

Hope this helps.

Kind regards,
Clare
Legacy East Almshouse Partnership

[Clare Heyes]

I haven’t even been able to login despite contacting them three times and having been sent multiple temporary passwords. Am at the end of my tether. Wonder if the Association can help at all….

[Clare Heyes]

However, a lot of Almshouses charities don’t have service charges as they are individual units, paying for their own utilities, looking after their own gardens and not having lifts or other communal items that could come under a service charge. I look after 24 charities and about half have no service charges.

[Clare Heyes]

It is all “rental” element. It is because we call it wmc that the numpties don’t understand! If you don’t have a service charge element for heating for example, then 100% is rent.

[Clare Heyes]

Stephen,

I have been involved in the conversion of several charities that I clerk to CIOs. In every case the original Trustees became Trustees of the CIO. In every case we had legal advice and at no time was any conflict of interest brought up. As the CIO receives all assets I do not see how this could possibly be the case. I suggest you ask for an explanation of the advice received as it seems very strange.

Good luck!

[Clare Heyes]

HI Elaine,

I agree, this is a nightmare. I have a small charity of 5 almshouses that has had to go through this rigmarole! I downloaded the from from the association and literally write two one sentence documents for the other requirements as we have not had a complaint in 23 years! This new compliance is enough to make you leave the Ombudsman scheme. Sorry to be no help at all.

Clare

[Author]

Posts