Support the NEW PETITION - ROYAL COMMISSION INTO CEHL & HOUSING REGISTRAR
https://www.change.org/RoyalCommissionintoCEHLandHousingRegistrar
We demand a Royal Commission into Common Equity Housing Limited (Victoria) CEHL and the Housing Registrar (Victoria)
- Into CEHL Management
- Into Housing Registrar Management and Investigation processes
- Into CEHL financial mis-management – millions in taxpayer funds
- Into CEHL reporting of conditions of houses and the desperate maintenance issues
- Into CEHL and the treatment of members and Co-operatives
- Into CEHL changing Insurance and leaving Co-op’s with an excess of $10,000
- Into CEHLs extensive use of Consultants (Capire) who then try to influence outcomes in CEHLs favour
1. It has now been proven that CEHL raised rents during the Victorian Government Moratorium for COVID - illegally
2. NEW RENT MODEL as per original Petition – LACK OF CONSULTATION - despite our calls for an investigation into when/where/how/who agreed to this new rent model – this has not happened, and CEHL have continued to implement increasing rents to Market Values and above – this has increasing become apparent that even those on the lowest incomes are affected greatly
3. HOUSING REGISTRAR – state they have ‘investigated’, how can investigation been done that is completely one-sided, Housing Registrar DID NOT contact one single complainant to get the other side other story, CEHL were the only people consulted in their “so-called investigation” I wonder what would happen if the Police did not ask the victim’s side of a story, just the alleged offender, and then closed their case as investigated??
4. THE FOLLOWING POLITIANS HAVE IGNORED OR DISREGARDED EMAILS AND PHONE CALLS
1. MICHAEL SUKKAR - FEDERAL MINISTER FOR HOUSING, ASSISTANT TREASURER AND MINISTER FOR HOMELESSNESS & SOCIAL & COMMUNITY HOUSING - even went as far as is his office promising to call, and he never did - twice
2. RICHARD WYNNE - VICTORIAN MINISTER FOR HOUSING
3. DANIEL ANDREWS - VICTORIAN PREMIER
4. JAMES MERLINO - VICTORIAN DEPUTY PREMIER
5. ANNE RUSTON - FEDERAL MINISTER FOR FAMILIES & SOCIAL SERVICES AND MEMBER FOR WOMENS SAFETY
6. JASON CLARE - SHADOW MINISTER FOR HOUSING
7. LUKE HOWARTH - ASSISTANT MINISTER FOR COMMUNITY HOUSING, HOMELESSNESS AND COMMUNITY SERVICES
8. JOSH FRYDENBURG – FEDERAL TREASURER
9. DANNY PEARSON – VICTORIAN ASSISTANT TREASURER
10. CHIA – COMMUNITY HOUSING INDUSTRY ASSOCIATION
11. KAT THEOPHANOUS – STATE LABOR MEMBER FOR NORTHCOTE
12. TANYA PLIBERSEK – LABOR PARTY MEMBER OF PARLIAMENT
13. MELISSA HORNE – MINISTER FOR CONSUMER AFFAIRS
14. MARTIN FOLEY – VICTORIAN MINISTER FOR EQUALITY & MINISTER FOR HEALTH
And there would be many more
Below is the complaint sent to all of the above. – original complaint sent 10 June 2020
We the 145 undersigned Members, (from 42 different Co-ops), of Common Equity Housing Limited and representatives for the 693 signatures on the attached change.org petition (attachment No. 1) (over 350 confirmed co-op members from over 72 co-ops, and many more that are unconfirmed), and the attached survey results (attachment No. 3) from 143 definite members, are explicitly demanding a full and complete independent financial, administrative, moral and ethical investigation into every part of CEHL, The Management, CEO and Board.
We are aware, through numerous members’ comments, that a number of other members would also sign this letter, except for the real concerns of being intimidated, retaliation or losing their homes.
We want an independent investigation with full disclosure, into the general mis-management, financial mis-management, not working for the benefit of co-ops and members, degrading and uncooperative mentality of Management (especially CEO and Program Director) and the general uncaring and out of touch nature of CEHL.
We also request an inquiry into the extensive use of consultants and their ties to CEHL. We are concerned about the increased expenditure associated with this and whether ties to these companies are ethical.
FUNDING/WASTING OF MONEY
There are numerous examples of complete mismanagement and wasting of money by CEHL.
St Marys Geelong- Government funding received of $7.36 million with the promises of a revitalised 193 apartment housing estate, in 2016 CEHL backflipped on their promises (as per newspaper reports attached) and only have 13 affordable housing apartments within the site. Numerous newspaper articles are attached (attachment No. 10).
Larissa Ave Ringwood (Lakewood)- apartment building built by CEHL with major maintenance issues, for the past 3 years, CEHL have been moving residents into private rentals until rectification maintenance works could start. We are aware that CEHL is paying the differences in rental costs, how can it take 3+ years to move 80 families? Why have these people been moved to private rentals instead of being re-located to homes within the Co-op programs to benefit Co-ops until works are completed? There is currently 50+ empty Co-op homes across the program that could have been utilised for this purpose.
Harmony Dandenong – Attached email and documents relating to Harmony Dandenong (attachment No. 14)
The National Rental Affordability Scheme – CEHL receive funding from this scheme. How is this funding used? Members that have signed paperwork for this scheme have never had their Co-ops receive a share of this, nor been advised of what it is actually used for.
RENT MODEL
The new rent model was completed without proper consultation of CERC and CMC members. Even though CEHL say there was extensive collaboration with co-ops, this is completely untrue (187 responses, with a majority from Committee members), CEHL declared what was going to happen and all Co-op input/feedback was ignored. CEHL have ignored the very unique structure of CERCs and CMCs, and the fact that many members contribute enormous amounts of time and effort into the running of the Co-ops, all financials, Co-Op maintenance, rent arrears negotiations etc etc etc
The rent model Q&A forum held by CEHL on Wednesday 6 May via Zoom, was farcical, no members could speak, everyone was muted, questions sent in prior and during the forum where selectively answered by CEHL.
Of the 180 questions asked during the Forum – 64 were supposedly answered
60 were re-classed as ‘Statements’ – usually in response to something that was been said by CEHL Management but could not be voiced
Most questions sent in to CEHL prior to the forum were ignored and unanswered, these have now been answered with a document posted to the CEHL member portal, however, they have not actually answered the questions from a human perspective, just as matter of fact statements, with no real regard for members who are not understanding or members that are wanting more information.
Our survey and petition results confirm the lack of consultation.
MARKET RENTS
Whilst we understand the need for rents to increase to some extent, we believe that the new rent model is not a true reflection of the Co-op program, nor does it reflect the true state of properties or market rents for the areas.
Market rents have been done on inaccurate data held by CEHL in regards to the state of their properties, not one home that we are aware of has had a proper market assessment done, CEHL property reports indicate houses are in good conditions, this is most definitely not the case. Many members have done their own research into market rents for their specific area, and there are major inconsistencies between CEHL and actual market rent prices with CEHLs valuations being to the extreme higher end. CEHLs properties are in no way well maintained, in the vast majority due to the mismanagement of maintenance by CEHL directly. This is something CEHL refuse to acknowledge or discuss with members.
There is a lot of documented research showing that market rents in Australia are unaffordable, so why does CEHL think that affordable housing, for people usually with a medical issue, that contribute immense amounts of time to the running of their co-ops, is ok to be at market rent pricing.
Single parents with children receiving benefits or wages will be paying maximum rents and as a result, children will leave their family home, hence breaking up families unnecessarily.
This has already occurred in numerous co-ops.
MAINTENANCE
3rd Schedule maintenance frequently is not completed, and houses are left to reach a state where they are no longer viable to repair. There are many instances of this occurring, i.e. 2 houses from one Co-op alone in 3 years having to be handed back due to this issue, and therefore making people leave their homes and their surrounding communities and support networks. (attachment No. 8 is one example)
It seems apparent that CEHL are much more interested in building new high-rise buildings instead of maintaining the properties that they already have. Too many are run down and require 3rd Schedule maintenance, that CEHL never seem to do, and find a multitude of reasons not too.
Re-Housing Members – when having to re-home members due to CEHL maintenance issues and the property being classed as ‘not meeting program standards’ and therefore the member needing to be re-homed. CEHL has no consideration for health and support networks already in place in the members area, telling a family to move from their home in Ferntree Gully to Carlton, Box Hill etc as ‘temporary housing’ is unacceptable, especially when another co-op has an empty property in Ferntree Gully which has not been offered. CEHL do not work for the benefit of members or Co-ops in regard to these matters, and actually make the entire experience extremely stressful. (member is happy to elaborate further on this)
As the Q&A answers say, there are 13 untenantable properties, and most will be for lack of maintenance by CEHL directly. It should be noted that this is not the fault of CEHL property maintenance staff, but a direct result of CEHL’s continual shortfall in maintenance budgets.
Why do people have to wait years and years for CEHL to act regarding maintenance, it is simply unfair, unnecessary, and causing valuable people to leave co-ops.
PROPERTIES
CEHL claim to be working for the good of Co-ops and members and yet in 2017/2018, 15 properties were sold with only 2 being replaced. (No actual data available apart from that).
In 2018/2019 CEHL sold 20 CERC properties and only replaced 3, sold 2 CMC properties and replaced none, sold 3 Vic Wide properties and replaced all 3.
So overall, CERCs have lost a total of 17 properties in one year, CMCs have lost 2 properties and Vic Wide have stayed the same.
A total loss of 32 properties across the CEHL program between 2017 and 2019. (attachment No. 6)
It is of huge concern the serious dismantling and liquidating of houses from the individual Co-ops who have proven to be supportive and efficient for its members, and that has the best interests of the original mission and philosophy statement of Community Housing. The pressure towards Vic Wide is not in community interests in any way, Co-ops are like-minded people working together, helping and supporting each other, learning new skills, and contributing to the community, Vic Wide is not being run with any of those things in mind. The Co-ops are also not compensated for their loss of property even when it is sold off by CEHL. The new fixed term tenancy policy for new members clearly shows that this is the direction CEHL are preferring to go in and that Co-ops will be extremely disadvantaged if they happen to end up with a bad tenant, and eventually would have to fold. (attachment No.18)
It should also be noted that Vic Wide is operated by CEHL. Vic Wide is basically a housing rental business and nothing more.
Another worrying issue is why Vic Wide tenants are excluded from CEHL forums etc, the attached email trail shows that Vic Wide tenants are not permitted to attend a CEHL Forum on sustainability and tips on how to save on bills that was being held in March 2020. It should also be noted the extremely brief, no explanations response received from the CEHL staff member. This is no way to be treating any members or direct tenants, regardless of if they are Vic Wide, CERCs or CMCs. (attachment No.17)
We find this complete dis-regard for Vic Wide tenants unacceptable.
If you are a Vic Wide tenant, there is no support from CEHL at all.
CEHL do not offer any properties to other Co-ops in the same area, even though this is exactly what their ‘Strategic Leasing of CEHL Housing Stock’ policy claims. The ‘Strategic Leasing of CEHL Housing Stock’ clearly states the following (quoted from the program policy itself) (attachment No. 16)
· Usually a vacant property held by CEHL is allocated to a co-op as quickly as possible. – very few known examples of this
· Such properties may be leased for short periods of time on the private rental market until the best use is identified and the property can be returned to program use – return to program use very rarely happens, or it can be sold – CEHLs usual solution
· This policy only applies where allocating the property within the current program and with ongoing security of tenure would not support the strategic capacity of the program in the long-term – only if is going to benefit CEHL directly
This is not in the best interests of co-ops to be reducing property numbers without replacements.
CEHL are in no way working for the benefit of Co-ops or members, instead of merging Co-ops for the benefit of everyone, they push ruthlessly for Co-ops to become CMCs or Vic Wide and therefore only benefiting CEHL. They are reducing Co-op numbers and houses instead of working to improve the current program, they do not want any Co-ops to ‘merge’ if there is that opportunity and staff and management will be secretive with information instead of being honest and forthcoming.
Numerous stories of absolutely shocking, uncaring and ruthlessness in the way they communicate.
BOARD, COMMITTEES AND CONSULTANTS
We want to know why Board members and Committee members are all hand selected by CEHL management and not elected by the members they are supposed to represent. CEHL hand pick who they want on committees, our input in ignored.
Why are Board members told not to communicate with members, especially regarding finances?
We also request an inquiry into the extensive use of consultants and their ties to CEHL. We are concerned about the increased expenditure associated with this and whether ties to these companies are ethical.
CEHL spends our money on consultants (without member consultation), and now we are wanting the same, however this is to be an independent company to investigate the potential mismanagement of CEHL.
Eventbrite.com.au – CEHL do not even arrange their own events (meetings, forums etc), it is outsourced to Eventbrite.
Why? Google search screenshot is attached (attachment No. 15). Even more money spent on consultants needlessly, there is no reason that something as basic as arranging meetings and forums cannot be done by the multitude of staff.
SURVEYS AND CONSULTATION
Why do CEHL not reach out to members when survey results are so low? Reports attached shows results as low as 32 members, which then passed major policy changes. (attachment No.4 and No. 5)
Our petition and survey results were obtained with very limited reachability and resources but have still outweighed any surveys done by CEHL who have contact details for every member! (CEHLs Rent model survey had 187 responses – as per CEHL reports, our petition has 693 signatures and survey has 143 responses. (attachments No. 1 and No. 3)
People will respond to surveys if and when they feel their views actually matter and are being heard, this is not the case with CEHL.
Any initiatives like the newsletter or members forums are so heavily censored so as to render them ineffective – departure from the company line is shamed and labelled as negative and unconstructive by CEHL. You cannot disagree with them or you are targeted.
You cannot answer a survey without CEHL knowing who the respondent is as, you have to login to the member portal to be able to take them and not everyone has access or the knowledge to be able to do this, CEHL are meant to be helping the community and supporting people with limited ability’s, instead you receive condescending and hurtful remarks and comments, shouldn’t there be other avenues and options for anonymity? as this is another reason for non-participation.
Why are timelines so unrealistically short? not allowing enough time for Co-ops to meet, or discuss what it happening properly, getting a group of people together for an unexpected meeting or discussion can be difficult, but this is not considered by CEHL when arranging timelines for surveys, feedback etc. (Numerous examples held by writer)
Why do CEHL always ignore any input from members and co-ops? (attachment No. 7 is one example, no response from that whatsoever)
This is one of the crucial reasons for non-participation with CEHL causing many members to feel as though they are being punished and dismissed. Attitudes from CEHL staff regarding questions and requests for clarity are usually met with rudeness, hostility, and shortness despite CEHLs claims they are open for discussion.
Despite CEHL’s claims they are doing the right thing, we insist that is not the case and that they, the processes, and unrealistic timelines, need to be thoroughly investigated.
STAFF
We want a complete investigation into why staff levels have increased significantly over the past few years (2014-2015 Annual Report 52 employees, 2018-2019 Annual Report 70 employees) what exactly do all the managers, team leaders and co-ordinators actually do?, the staff levels completely outweigh the requirements, especially considering every CERC does their own paperwork and finances, maintenance staff are completely under staffed and yet there are managers for everything. We have also compiled a list of staff form the limited information CEHL make available. (List held by writer)
We want a complete explanation as to why CEHL Staff and Board members, are instructed to be secretive and unforthcoming with information. Another reason for disillusionment and mistrust.
The support for Co-ops from CEHL staff has been in decline for the past several years, in particular finance staff are often rude and condescending, all staff are very poorly trained, have no idea of Co-operative rules and regulations and are generally very unhelpful.
We want complete explanations of all financials, and, for example, how admin expenses are millions of dollars more than housing expenses. In the last financial report, June 2109, admin expenses were $7,930,511 and property expenses were $6,074,606, how can this be? (attachment No 9), and have been that way for numerous consecutive years.
Exactly how much are CEHL wages? Especially since renumerations were increased at the 2018 AGM.
- The report from charityguide.com.au shows average wages of $92,553, this report is attached. (attachment No 11)
- CEHL is NFP and should be offering salary packaging to staff, therefore reducing wages costs.
- The attached job advert from Indeed – shows that salary packaging is available to staff, so if they are entitled to $15,000 tax free, why are salaries so high? (attachment No. 13)
- Australian Services Union information from October 2019 states that a new Enterprise Agreement is being negotiated. (as per attachment No. 12)
That does not include all the ‘extra’s’ that numerous staff receive, vehicles, all fuel expenses, phones, ipads (or tablets) and other ‘lurks and perks’.
COMPLAINTS
Numerous complaints have been sent from many individuals and Co-ops, with responses from CEHL and the Housing Registrar that are generic and identically the same to everyone. The Housing Registrar has apparently ‘looked into’ the complaints, with no contact from them to the complainant, and no correspondence to clarify anything.
We are very concerned about the relationships between CEHL, The Housing Registrar, ACNC and Community Housing Industry Association CHIA.
CEHL have completely forgotten the reason this company was started in the first place. It was to help people with extra needs and difficulties and to provide them with long term affordable housing, this is not the case anymore. It should also be pointed out that a lot of members have disabilities or other medical concerns and also have vastly increased needs, regarding extra costs in their lives i.e. monthly medications, doctors’ charges etc another reason CEHL was started. CEHL do not take those circumstances into account when talking to members. If you do not understand, they are hard to deal with or intimidating and members often give up, especially management.
We have received several accounts from members where their children have already moved out due to the higher rents and long-term active members that have already left co-ops. CEHL are breaking up families and removing support people (from co-ops and people with disabilities) due to the rents becoming even higher than market rents for that area, contrary to CEHL stating that this is not happening. A majority of the issues have occurred in the past 10 years since Stephen Nash has been CEO. We feel he is in no way community minded, he is out of touch, pompous, rude, derogatory, and demeaning, as is Nicola Foxworthy, Program Director and most of the management staff. Prior to this CEHL was working with, and for, members and Co-ops.
We care about our co-ops, we care about our fellow members, many of whom are experiencing extra stress and anxiety due to the changes brought on by CEHL, we want our co-ops to continue, we want what is best for affordable co-operative housing.
As you will see when reading the comments from both the petition (attachment No. 2) and survey via SurveyMonkey (attachment No. 3), there is an overwhelming position of hopelessness, despondency, disillusionment, anger, mistrust, mismanagement, and general unhappiness with CEHL overall, this does not happen for no reason and be so wide spread and heartfelt. 340 confirmed members from over 72 co-ops (out of 108 total co-ops) have signed our petition, and it should be mentioned that of the remaining anonymous petition signatures (693 total signatures), a significant portion will be unconfirmed members/co-ops.
These are some of the Survey results (attachment No. 3 are full results)
To be updated 117 of 133 respondents (87.97%) – do not think CEHL is working for the benefit of Co-ops and Members
To be updated 111 of 134 respondents (82.84%) – will probably no longer do any home improvements from their own pockets
To be updated 118 of 135 respondents (87.41%) – do not think members are getting any value from paying CEHL
To be updated 100 of 135 respondents (74.07%) – are either dissatisfied or very dissatisfied with CEO, Management and Board
To be updated 116 of 135 respondents (85.92%) – disagree or strongly disagree with the new rent model – clearly shows that consultation was not comprehensive or explained in detail properly, and that feedback was not considered.
To be updated 106 of 133 respondents (79.70%) – do not think CEHL are helpful
This is only a small portion of the issues that have been raised by members, CERCs and CMCs.
Some of the nature of these issues are not suitable for including in a broadly viewed letter, this is better explained in person.
WE INSIST THAT AN INDEPENDENT INVESTIGATION, WITH FULL DISCLOSURE, MUST BE UNDERTAKEN. Ideally this Independent would be chosen by member