The Association fully supports its tenants right to carry out improvements as part of its policy of maintaining its stock to the highest standard and will seek to assist tenants where possible.
 
The Housing (Scotland) Act 2001 introduces the Right to Compensation for Improvements from 30th September 2002.  This gives the tenant the right to receive compensation for certain works (or qualifying improvements) carried out by them during the course of the tenancy.  Operation of the scheme is below.  Details of qualifying improvements are also outlined below.

Right To Compensation For Improvements

1. The tenant must have the written consent of the Association prior to making the improvement.  The Depute Director has discretion, however, to grant retrospective consent.

2. The improvement must be a qualifying one in terms of the list at Annex 1.

3. Tenants applying for consent to make improvements must provide:

a) A description of each improvement proposed.
b) The proposed start/end date for each improvement
c) An estimate of the cost of each improvement
d) Details of any grants applied for.

Tenants will be asked to complete an application form or submit their request in writing.   

4. The Association will examine the improvements proposed, and will consent subject to an assessment of the quality of the work, once completed.

5. Tenants will be required to provide receipts for completed work.

6. Compensation can only be paid at the end of a tenancy.

7. Compensation will not be paid if the calculated amount is less than £100.

8. The maximum compensation payable will be £4,000.

9. A qualifying tenant must be:

a) The tenant of the house and the person for whom the qualifying improvement was carried out, or
b) A tenant of a joint tenant which existed at the time when the qualifying improvement was carried out, or
c) A tenant who succeeded to the tenancy, which existed when the qualifying improvement was carried out.

10. It is assumed that, in the case of a joint tenant, the right to compensation will be resolved between those who jointly qualify for compensation, at the time they join or leave the joint tenancy.

If one joint tenant cannot be traced when compensation falls to be paid, the full amount of compensation will be paid to the remaining joint tenants.  It is for the missing tenant to recover his/her share from those to whom it was paid.

11. A tenancy is treated as ending if there is a change of landlord, e.g. if there is a transfer of houses to any other landlord.

12. Tenants will not qualify for compensation under the scheme if:

a) They exercise their Right to Buy, or
b) The house is repossessed by the Association
c) The Association grants a new tenancy for the same property to the qualifying tenant, whether or not with anyone else.
d) The qualifying tenant or successor has already received compensation for the improvement.

13. At the end of a tenancy, the Association will check the tenancy files for details of any qualifying improvements, and will remind the tenant of their right to compensation if appropriate.

14. To qualify, a tenant must submit a claim on the appropriate form from 28 days before until 21 days after the tenancy end.  The Association will respond to the claimant within 28 days of the date of the claim.

15. Compensation will be calculated on ONLY the real cost to the tenant.  It will exclude:

a) Any costs attributed to the tenant’s own labour.
b) Any grants received by the tenant towards the cost of the improvement.

16. Depreciation for the elapsed time since installation of the improvement will be calculated as:

   C x 1-(Y/N)
    
C = the cost of the improvement work from which shall be deducted
  the amount of any grant received for the works

N = the notional life of the improvement

Y = the number of years that have elapsed from the date of the
 improvement to the date of end of tenancy (part of year shall be counted as one year)

17. If the result of this process is less than £100, compensation is not payable.

18. If the amount payable after the calculation of each improvement exceeds £4,000, the Association is not required to pay in excess of this, although it retains the discretion to do so.

19. In making an offer of compensation, the Association will state how the figure was calculated, including details of any deductions or supplements made, and how the offer may have been affected by the upper or lower limits.

20. Having calculated the compensation payable, the Association reserves the right to apply this to any amounts owning by the tenant, e.g. rent arrears.

21. If the tenant is dissatisfied with the compensation calculation, he/she may apply to have this reviewed by the Depute Director.    The Depute Director may seek the advice of an independent valuer or surveyor appointed for this purpose.