1973

VICTORIA

SECOND

ANNUAL REPORT of the

TEACHER HOUSING AUTHORITY

for the period

1st July, 1972 to 30th June, 1973

Presented to both Houses of Parliament pursuant to the Teacher Housing Act

179 QUEEN STREET, MELBOURNE

AUl'HDRITY

MEMBERS

A. A. ASHMAN, B.Com .. A.A.S.A., Chairman

J. W. JUNGWIRTH

B. D. HORGAN

Secretary: 0. J. O'CARROLL

AUTHORITY

CONTENTS page

INTRODUCTION 3

PURCHASE PROGRAMME 5

BUILDING PROGRAMME .. 8

MAINTENANCE 8

MODERNIZATION .. 9

TENANCY CONTROL 9

RENTS .. 9

DISPOSAL OF PROPERTIES 9

ADMINISTRATION .. 9

BALANCE SHEET .. .. 10-11

SECOND ANNUAL REPORT 1972-73 The Hon. Yance Dickie, M.L.C., Minister of Housing.

Sir, In conformity with the provisions of Section 22 of the

Teacher Housing Act, 1970, the Teacher Housing Authority submits this report on its operations for the year ended 30th June, 1973 together with financial statements incorporating the certificate of the Deputy Auditor General.

The Authority's allocations from the State Treasury for the 1972/73 financial year were:

Loan advances for capital purposes . . $650,000 Maintenance grant $536,000 For the purposes of calculating debt charges on the stock

of houses taken over, an agreement was reached with the Treasurer to a debt charge of $9,000,000. lt was further agreed that interest at a concessional rate of 3 per cent per annum would be charged on this amount which, with the necessary redemption payment, produced an annual debt charge liability of 3.75 per cent.

The Authority is satisfied with the terms of this agreement and recognises that the concessional rate of interest consti­tutes a significant Government subsidy for the provision of houses for teachers throughout the State.

With regard to special assistance to the Authority by way of interest free non-repayable grants for maintenance and improvement works, the Treasurer confirmed that grants of $536,000 for this purpose would be available in 1972173 and 1973/74 and that the question of the amount and payment of such grants would be reviewed for the 1974!75 financial year.

The allocation of these grants has enabled the Authority to take positive steps to deal with tbe problems of deferred maimenance and the need to prclV!de a better standard of accolllrnodation particularly in the older residences under •tsco:,,rol.

-fhe Authority realises that it must place itself in a position .,,hereby a proportion of its maintenance liability can be met f;·oJn it~ own resources.

However, as a large number of its residences arc situated in rctnole locations, often in areas of climatic extremes, and have reached an age where constant maintenance is un­:woidabk, costs related to labour, materials and volume are disproportionately greater than those incurred in a normal housing operation.

Because of this, the Authority believes that there will be a recurring need for the provision of non repayable grants if it is to nrovide adequate and suitable housing accommodation for tea~hers and continue to improve the standard of existing housing conditions.

After an examination of its existing stock of houses the Authority is of the opinion that approximately 500 of these units should be replaced over the next ten years at a rate of 50 per y,;CJr.

To achieve this objective without a detrimental effect on its growing commitments for new houses and flats, special financial support will be required.

The Authority has noted with interest the recommen­dations of the Interim Schools Commission, Karmel Com­mittee Report, wherein the Committee agrees that housing of a good standard for teachers in country locations may be one of the best ways to improve the quality of educational services in country areas.

The Committee is of the opinion that expenditure on the provision of such housing would be a valid use of part of the building grants recommended.

The Authority is seeking a share of funds being provided by the Commonwealth Government as a result of recom­mendations of the Karmel Committee.

The Teacher Housing Act 1970 amended paragraph (a) in sub-section (I) of section 75 of the Teaching Service Act 1958 by inserting the words "and the fixing by the Tribunal after consultation with the Teacher Housing Authority of rentals to be paid for residences provided by the Teacher Housing Authority."

The rental formulas applied by the Teachers Tribunal are-

(a) Five per cent of the capital value of a residence or­(b) Ten per cent of salary less $72.60;

whichever the lower. Because of substantial salary increases in recent years

rentals in the vast majority of tenancies are currently based on five per cent of capital value.

1t is the firm view of the Authority that the dual basis for assessment of rents should no longer apply and that all rents should be related to a percentage of capital cost.

Apart from the necessity of obtaining sufficient revenue to match expenditure there is a very real need to equate rents to the standard of accommodation offered.

The Authority believes that in order to adequately administer its responsibilities it must receive a rental return of eight per cent of the capital cost of a residence and has made submissions to the Teachers Tribunal seeking a revised rental formula on this basis.

As it is recognised that in certain isolated instances such a formula could create a degree of financial hardship, par­ticularly in the situation of a relatively low income tenant occupying a high cost house, the Authority would be in favour of applying the principle of modified averaging whereby rent bands can be established with the objective of obtaining a more equitable balance in the rent roll.

The average rent charged during the year was $13.00 per .fornight. An average rent based on an eight per cent return would be $20.80 per.fortnight, which is still significantly lower than that applying elsewhere in the community.

The need for a complete revision of rentals is urgent and the Authority is anxious for the Teachers Tribunal to deal favourably and quickly with its submissions on this subject.

3

Older style houses transferred to the Teacher Housing Authority.

4

PURCHASE PROGRAMME

Because of difficulties in the building industry particularly related to escalating costs and shortages of labour and materials, it was decided that a continuing emphasis should be placed on the purchase of existing residences in preference to erection,

During the 1972/73 Financial Year the Authority acquired 40 houses and 10 residential blocks at a total cost of $643,510.00.

Details of the locations in which the houses were purchased and the priorities to which they were allocated arc as follows

LOCATION

BAIRNSDALE BENALLA BEULAH BIRCH lP COBRA M COLAC .. ECHUCA EUROA HOPETOUN KANIVA KERANG KOO·WEE·RUP LANG LANG .. LEONGATHA HORSHA\1 KORU\'IBURRA MARYBOROUGH MARYBOROUGH MARYBOROUGH MOL MORWELL MOUNT BEAUTY MOUNT BEAUTY MURRAYVILLE NATHALLA ROBINVALE .. ROCHESTER .. SEA LAKE SEYMOUR SHEPPARTON STAWELL SWAN !I ILL .. TALLANGATTA TATURA TR/\RALGON TRARAL(10N TRAR;,L.liON WA"\GAJ~;\TTA

\\!\RR \(iU.

'v\ \Rk \(; l' t

ADDRESS OF RESIDENCE

Lot 2 Wallace Street 2 Kitson Court 64 Hcnty Highway 66 Cumming Avenue 4 Elizabeth Street .. 29 Ross Street 5 Rutley Crescent .. 21 Aitkens Street .. 90 Lascelles Street .. Cnr. Patterson and High Streets l 07 Cleeland Place 10 John Street Cnr. Oldbury and Carnarvon Streets 21 Brown Street 21 Gillespie Street.. Lot 5 Mair Crescent 8 Gillies Street 54 Holyrood Street 47 Laidman Street 11 Watsons Road .. 21 Hourigan Street 62 Lakeside Avenue 4 Park Street Lot 11 Poole Street Church Street Lot 212 Leonora Street 6 Northcote Street 20 Hamilton Street 51 Delatite Road .. 22 McDonald Street 81 Longficld Street Cnr. Pascoe & Sladcn Streets lO Kurewa Street .. 286 Hogan Street .. 2 Coronation Court 17 Elliott Street I Orr Brien Crescent 48 Blake Street 107 Albert Street 132 Victoria Street

PRIORITY

High School, Assistant High School, Principal

Primary School, Principal High School, Assistant High School, Principal High School, Assistant

Primary School, Principal High School, Principal High School, Assistant High School, Principal High School, Principal High School, Assistant

Primary School, Principal . . Technical School, Assistant

Special Services Division . . Primary School, Assistant

. Primary School, Principal .. Technical School, Assistant

District Inspector S.P.C., Principal

Primary School, Principal High School, Assistant High School, Assistant High School, Assistant High School, Principal High School. Assistant

Primary School.· Assistant High School, Assistant High School, Assistant

Primary School, Principal Special Services Division

.. Technical School, Assistant High School, Assistant

A.V.E.C., Principal Special Services Division

H1gh SchooL Assistant High School. Principal

Special Services Division .. Technical School, Principal

. Technical SchooL Assistant

5

..

. /

6

BUILDING PROGRAMME

The Authority erected eight brick veneer residences and four flats during the year at a total cost of $ 180,660.00.

The residences were of a three and four bedroom type, similar in design to those provided for Commissioned Officers in the Armed Services.

In cases where a fourth bedroom has been p rov ided , this room can be used as an optional study/ interview area.

The four flats represent a radical departure from the type of single teacher accommodation (Women Teachers Flats) provided in the past which mainly consisted of converted residences in which tenants were requi red to share lounge, dining, kitchen, bathroom, toilet and laundry facilities.

The new flats are self-conta ined with the only shared areas being the laundry and carport. The Authority has fully furnished each unit.

Apart from establishing a vast ly improved standard of accommodation, the fact that the Authority is now develop­ing self-contained flats for single teachers will enable it to be more flexible in the allocation of tenancies by provid. r·: for the needs of both male and female teachers.

The Authority is concerned over the abnorma l rises in building costs and construction delays resulting from shortages of labou r and materia ls.

The building programme dealt with the following priorities:-

High School Wedderburn P rincipal4 Bedroom Unit Primary School Katandra West

High School Balmoral Primary School Ba lmo ra l H .E.S. Omeo

Assislanl 3 Bedroom Uni t Principal 4 Bedroom Unit Assislanl 3 Bedroom Unit A ssislanl 3 Bedroom Unit

Primary School Watchem Principal 3 Bedroom Unit High School Myrt leford Assistanl 3 Bedroom Unit Primary School Pya long Head M aster 3 Bedroom nit High/Consolidated Schools, Murrayvi lle 4 Flats

Four hedroom house erected h)' !he Aurhorirr

Three hedmom hori\·e erected hr the Authorirt·

8

MAINTENANCE Despite certa in difficulties in retai ning the services of

contractors to work in remote loca tions and the strung competitio n existing for ma intenance labour over the past year , the Authority's pmgra mme of works was satisfactorily imp lemen~ed.

The actua l amounts expended du ring the fi nancial year under the various categories o f house maintenance were as fo llows :-

E xternal Painting In ternal Pa inting G as Plumbing Genera l Electrical Plumbing (othe r tha n gas)

TOTAL

$127,257 82,897

2,438 227,879

36,037 114,562

$591,070

An amount o f $3,756 was spent o n insurance repai rs. In accordance with sta ted policy, priorities for works of a

progra mmed nature ha ve been set on the basis of relat ive need .

It has been pleasing to note that tenants have been pre­pa red to read ily accept this po licy pan icularly in rela tion to works bei ng undertaken on the ex ternal pain ting and renovation of residences.

The Authority's object ive of having a l.l of its un its painted and renovated externa lly over a 4 to 5 year period is proceed ing in accordance with establ ished prio rities. 375 houses were deal t with in this manner over the past twelve months .

In order to improve the level of communications between tenants and Works Ollicers especia lly in conveymg informa­tion on main tenance requ irements, arrangements have been made in conjunctio n with the Housing Commission fo r the installatio n of telephone answering services in the various wo rks areas throug ho ut Victoria.

Wh;l ; t this system has only been operat ing for a short period there ts every indicat ion from t nan ts ' response that the provision o f an answering <; <.:n ' ice will be an outstanding success.

T he Authori ty has also arranged through the Housing Commission for the appointment of fo ur additiona l Works Officers.

T his has enabled the works areas to be redefined within reduc d boundarit:s thereby crea ting grea ter effic ien ies and a more balanced approach in the o rganiza tion a nd super­vis ion of maintenance a nd cap ital wo rks programmes.

Four S rnglr Teach a Flut1 ereoed hr !hi' Authority

MODERNIZATION As a result of works committed and carried out during

the year all residences arc now connected to either a sewerage or septic tank system and provided with a hot water service.

The provision of modern heating facilities by the instal­lation of oiligas heaters or heat banks at a total cost of approximately $240,000 was applauded by tenants and teaching unions as a major achievement in improving the standard of existing residences.

Other urgent modernization works were also arranged predominately in cases where tenants were living in relatively poor housing conditions.

The Authority is now considering the application of a long term modernization policy aimed at completely lifting the overall standard of accommodation of all its units over a ten year period.

This programme will be implemented on the basis of relative need and will cover, as far as possible, all aspects necessary to provide a vastly improved standard of housing.

An amount of $320,000 was spent by the Authority on modernization and capital improvements to its properties during the year.

TENANCY ALLOCATION CONTROL

The Authority was once again faced with the problem of a changeover of approximately one-third of its tenancies during the Christmas school vacation period.

New advice and control systems helped considerably in overcoming many of the past difficulties related to this exercise.

Common dates for the vacating and occupying of rcsid~nces were established and used without variation for the ceasing and commencing of rental deductions from salary.

No objection was made to tenants entering into private arrangements on mutually agreeable vacating and occupying dates provided all tenants involved in a particular chain of tenancy movement were in full agreement with the variation.

RENTS By agreement with the Teachers Tribunal rents remained

frozen at the level operating on the 1st July, 1971 pending finalisation of negotiations aimed at establishing a new formula for rental calculations.

The Education Department has continued to arrange for the collection of rents on behalf of the Authority by way of salary deductions.

The total income derived from rents during the year was $618.346 the average rent charged being $13.00 per fortnight.

DISPOSAL OF PROPERTIES

Six properties which were redundant for the purposes of teacher housing were disposed of during the year.

A total of $42,960 was obtained as a result of these sales. The Authority is, where justified, to continue to ration­

alise its holdings by the sale of assets no longer required. The revenue obtained from this source is to be used,

where needed, in other areas of teacher housing.

ADMINISTRATION The continuing help given by the Housing Commission

Victoria has assisted greatly in the efficient organisation and application of a number of the Authority's activities.

The contribution made by the Housing Commission to teacher housing is recorded with appreciation.

The co-operation extended by the Education Department particularly with the collection of rents is also recorded with appreciation.

The Public Service Board has approved the creation of two additional administrative positions which, when tilled, will assist in the development of a greater of efficiency in handling of the Authority's affairs.

The contribution made by all staff members over the past year is acknowledged.

Yours faithfully,

A. A. ASHMAN, Chairman

J. W. JUNGWIRTH

B. D. HORGAN

·o. J. O'CARROLL, Sccrelary

9

TEACHER HOUSING AUTHORITY BALANCE SHEET AS AT 30th JUNE, 1973

30th June, 1972 $

9,000,000

680,000

9,680,000

235,000

112,380 24

11,761

10,039,165

LOAN LIABILITY Loan Government of Victoria- 1/7!71 .. Less Repayments

Loan Government of Victoria Less Repayments

Advance - Government of Victoria

PROVISIONS AND RESERVES Maintenance Provisions Depreciation Reserve ..

CURRENT LIABILITIES Sundry Creditors Rent Paid in Advance ..

Accumulated Surplus ..

1971/72

1972/73

TEACHER HOUSING AUTHORITY REVENUE ACCOUNT FOR THE YEAR ENDED 30th JUNE, 1973

30th June, 1972

10

$ 360,000 538,570 123,019

5,036

37,888 5,481 4.057 1,289

414 257

2,79'}

879

11,761

1,091,450

Interest on Government Loans Maintenance .. Rates .. Agents Fees Depreciation ..

Administration: Salaries and Overtime Administration On cost Travelling Expenses and Meal AllowJinces Stores and Stationery .. Telephone Post:ige .. Rent, cleaning, light and depreciation Audit Fee Depreciation and Maintenance Office Furniture and Equipment .. Miscellaneous

Surplus for Year

$

9,000,000 137,025

-----·····

680,000 5,100

~·------~-

303,099 196

---~~~-

$

67,563 9,035 7,650 4.914

S95 329

4.362 LOOS

335

$

8,862,975

674,900 650,000

10,187,875

173,604 186,071

303,295 2,650

10,853.49?

$ 288,482 533,430 1-+0.009

!0,073 I ?(·,071

95,948

J .254.01 j

30th June, 1972 $

9' ()()()' ()()() 607,113

3,866 1,361

95 7,818

9,393 408,702

15 802

10,039,165

30th June, 1972 $

555,450 536,000

1,091,450

FIXED ASSETS Land and Buildings- Deemed Valuation as at 1/7/71 Land and Buildings Acquired since 1/7/71 Furniture and Fittings .. Equipment

CURRE!\'T ASSETS Sundry Debtors-Maintenance Arrears

Rental Arrears

Cash at Bank Petty Cash Stock on Hand ..

Party Fencing Debt. Accruals

Rent Charged Maintenance Grant Miscellaneous Revenue

Deficit for Year

$

9,000,000 1,694,626

10,988 I ,310

151 34,627

310 11,750 98,996

15 722

$

10,706,924

146,571

10,853,495

$ 618,346 536,000

2,379

97,288

1,254,013

ACCUMULA'IED REVENUE ACCOUNT

26th April, 1974

Deficit 1972{73 Balance 30th June, 1973

Balance 1st July, 1972 Adjustment 71/72 Redemption Adjustment 71/72 Interest ..

CERTIFICATE OF AUDITOR-GENERAL

$ 97,288 2,650

99,938

$ 11,761 67,500 20,677

99,938

The books and accounts of the Teacher Housing Authority for the year ended 30th June, 1973, have been audited. In my opinion, the above Balance Sheet is properly drawn up so as to show a true and fair view of the affairs of the Authority as at 30th June, 1973 and the accompanying Revenue Account properly summarises the financial operations for the year ended 30th June, 1973.

J. W. WOODS, Deputy Auditor-General

A. A. ASHMAN, Chairman Teacher Housing Authority

0. J. O'CARROLL, Secretary Teacher Housing Authority

11