Property Assessment Survey (PAS) Policy

1. Purpose of policy

1.1 Purpose

This policy explains the Property Assessment Survey (PAS) process and how it functions to support Homes NSW management of its State-wide asset portfolio.

1.2 Background and policy links

Homes NSW prioritises the strategic management of its asset portfolio to:

• maintain service capabilities at optimum levels
• mitigate risks and losses arising from asset failures
• ensure the continued provision of appropriate accommodation for social housing tenants.

A constant flow of current information about the condition and performance of every asset in Homes NSW’s portfolio is essential to efficient portfolio management, facilitating the provision of safe, habitable and clean accommodation for social housing tenants.

The PAS entails regular site inspections of randomly selected assets, including their buildings, grounds and common areas to visually assess their internal and external condition. PAS information assists Homes NSW to prioritise those properties most in need of maintenance and/or upgrade work across the state based on the results when measured against Homes NSW Asset Performance Standards benchmark. The information and data collected via the PAS includes asset amenity, property condition, component failures, environmental attributes, Geo Coding, safety and structural integrity issues and information to validate existing property data. PAS does not include detail inspection of roof, infrastructure, non-core assets, etc., which is accommodated by more detailed assessments based on risk.

The PAS data is used in a variety of applications across the organisation to improve business performance. One important aspect is the link that PAS data provides between maintenance objectives and asset performance, setting a universal asset benchmark for the entire state-wide portfolio. In addition, PAS is to ensure maintenance programs and funds are allocated where needed to maintain properties to standard.

The PAS data is a fundamental component of strategic portfolio planning, corporate reporting, property valuing, and the development of maintenance and upgrade work programs. PAS data may also be used to quantify estimates for maintenance and upgrade works when seeking funding from NSW Treasury.

Between 2012 and 2014, LAHC’s entire portfolio of approximately 150,000 properties, as well as approximately 5,000 Aboriginal Housing Office (AHO) properties managed by Homes NSW, were surveyed. This data set was used to compile a comprehensive baseline survey.

A statistical methodology developed using a stratified random samples of properties across agencies, sectors (Homes NSW, community housing and AHO), regions, maintenance contract areas and property types, indicated that the minimal number of properties (% of properties) that should be surveyed annually was 10% of Homes NSW’s portfolio (i.e. approximately 15,000 properties).

However, as Homes NSW’s portfolio is constantly changing in terms of condition and size, it is considered prudent to increase this volume and frequency so that a minimum of 33% of the portfolio is surveyed annually and the entire portfolio every three years. Conducting a PAS survey every three years will allow each asset to be benchmarked against Homes NSW’s Asset Performance Standards and its performance measured according to its triennial maintenance expenditure. Real-time condition and performance data can be used to refine and inform asset life-cycle models, property disposals and acquisitions as well as planned and preventative maintenance programs.

This valuable data will be retained and made accessible through appropriate IT systems that meet Homes NSW business requirements and ongoing challenges.

2. Definitions

The table below is a list of terms, keywords and/or abbreviations used throughout this document.

3. Scope and application

This Policy applies to all properties owned and managed by Homes NSW, Aboriginal Housing Office (AHO) properties managed by Homes NSW and Homes NSW properties leased to Community Housing Providers (CHPs) under short-term leases.This policy does not apply to head-leased properties of private owners.This policy does not apply to Homes NSW owned properties managed by CHPs under long term leases of 20 years or more (e.g. under the Social Housing Management Transfer Program or similar), where CHPs are required to undertake the Homes NSW PAS.

4. Legislation

The PAS Policy was developed in accordance with:

• Housing Act 2001
• Residential Tenancies Act 2010
• Residential Tenancies Regulation 2019
• Terms of the residential tenancy agreement.

5. Policy statement

Homes NSW ensures its properties are habitable and fit for purpose through the timely delivery of maintenance to support Homes NSW’s property condition and asset performance standards for existing dwellings. These standards and conditions reflect the requirements of the RTA for the provision of clean, safe and habitable dwellings. To maintain fit for purpose properties, Homes NSW will undertake a range of annual property assessment surveys which collect information on the condition of property assets across its state-wide portfolio.

5.1 Usage of PAS data and information

Homes NSW will use data and Information collected via the PAS (and other property assessments) to develop planned and preventative maintenance programs and to estimate “Maintained Benchmark” standards for each dwelling. Dwellings that do not meet the maintained benchmark standards are prioritised for planned and preventative maintenance programs.Frequency and size of surveys

5.2 Frequency and size of surveys

Homes NSW is committed to undertaking the PAS on a minimum of 33% of the property portfolio each year and will ensure that the entire property portfolio is surveyed at least once every three years, subject to available funding. This will allow Homes NSW to use up-to-date property data for formulation of various policies and strategies and also for developing asset management and maintenance programs.

The program size will be designed to ensure that Homes NSW owned and managed properties, CHPs under short term leases as well as AHO owned properties managed by Homes NSW will be included, along with a ‘control group’ to make sure the maintenance program is aligned with PAS outcomes.

5.3 Transition-In

Homes NSW transitioned from a 10% annual PAS to a 33% annual PAS across its portfolio from the 2021/22 Financial Year. One of the benefits of increased sampling is there is no need to supplement PAS with additional compliance assessments under Homes NSW’s maintenance contract. These assessments will revert to a legislative check (e.g. smoke alarm servicing) at a reduced cost to Homes NSW, thus offsetting PAS costs to some extent.

6. Support and Advice

You can get advice and support about this policy from:

• Homes NSW Portfolio Management Division. Refer to Homes NSW for contact information.

7. Appealing decisions or actions

Many decisions made by Homes NSW can be reviewed and appealed. If a tenant disagrees with a decision, they should first contact their Homes NSW Client Service Officer to discuss the matter. If they are still not satisfied, tenants can ask for the decision to be reviewed. A review is a formal process that checks whether the right decision has been made on a matter. For more information about how reviews work visit the appeals and reviewing decisions page.