Housing associations

The playing field of housing associations is changing quickly because of stricter legislation and regulations, rental adjustments and stagnation of the sale of houses. Your challenge is to convert these changes into not-to-be-missed opportunities. 

The time when housing associations only dealt with the construction, management and rental of affordable housing is long gone. Ever more associations are expanding their activities towards fulfilling the role of project developer. They also invest in projects that serve the general and economic interest. Examples of this are facilities for healthcare, social work but also education. Current topics such as "how do we deal with our equity" and "becoming independent" are creeping up the agenda. Further partnerships or mergers between associations is a trend that will only continue.

There is an increase in attention paid to the working domain of housing associations and which activities may or may not be financed with the support of the state under the influence of stricter Dutch and European legislation and regulations. Other sources of revenue are also being put under pressure. The costs related to rental adjustments are rising while the sale of houses is currently stagnant. All these issues mean that associations are again examining strategic choices closely. This, for example, means that the earning model and possible cost-cutting measures are being reconsidered. Associations must examine organisation processes more closely because cash flows are under pressure. Esize has become aware that many housing associations need support in controlling costs. How can we ensure there is better control of spend? Where do we start? And how do we approach this?

Cost control
Start by gaining insight into all your financial liabilities. How many contracts are there within the different departments? Who manages these contracts? How high is the value of these contracts? The Dutch organisation of housing associations AEDES and Esize have developed an automation solution to centrally support the management of supplier contracts in partnership with housing associations. You can annually save much money by adequately managing your contracts (and possible liabilities too). Ensure that different departments do not conclude the same contracts with the same suppliers. Create more purchasing strength and a better negotiating position. Both within your own association but possibly also together with other associations that work in the same field. Also ensure that contracts are actually made use of in the organisation.

Good Governance
In addition to cost control, transparency is important. The attention of the media to fraud and self-enrichment within housing associations has had a negative impact on the image of the sector. How can you prove to stakeholders that you are doing everything in your power to prevent this within your association? Provide insight to everyone about the contracts that your association has concluded. Ensure that you do not have to deal with unexpected surprises. This will guarantee that everyone knows which liabilities there are and which amount they represent. This data will also help you when analysing risks.