A third of early arm’s-length bodies examine their stock options
Future of ALMOs in limbo amid subsidy reform confusion
Councils are putting decisions about the future of their arm’s-length management organisations on hold because of uncertainty over the housing subsidy system.
Eleven of the 33 local authorities that received funding under the first three rounds of the ALMO programme but have since completed improvement work, are either undertaking stock options reviews or balloting tenants about the future of their homes.
But they are having to make their decisions against a backdrop of a government review of the £18 billion council housing revenue account.
The government has also indicated that it will not write off the housing debts of councils that transfer their homes to a housing association, as it has done in the past. Three ALMOs, Derby Homes, Bolton at Home and Poole Housing Partnership, confirmed their decisions were being delayed because of uncertainty over funding.
Joe Logan, chief executive of Poole Housing Partnership, said: ‘We have a major problem with financing into the future. In 2012/13, we have an unfinanced capital programme and the gap between the required investment and current finance is averaging at about 40 per cent shortfall.’
Dennis Rees, vice-chair of Derby Homes, said HRA reforms meant stock transfer ‘isn’t so attractive.’
Gwyneth Taylor, policy director at the National Federation of ALMOs, said: ‘We urge the government to move forward with the reforms as quickly as possible to avoid the uncertainty ALMOs face at the moment.’
Future options
ALMOs undergoing stock options reviews
Derby Homes, Rochdale Boroughwide Housing, Kensington & Chelsea TMO, Bolton at Home, Homes for Islington, Poole Housing Partnership, South Lakes Housing
ALMOs balloting tenants on stock transfer
Tristar Homes, Golden Gates Housing Warrington and First Choice Homes Oldham
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Readers' comments (1)
Fingers | 20/11/2009 8:56 am
This news may only be the tip of the iceberg, there is a belief among tenants that more than these listed ALMOs are looking at the options open to them. There is nothing wrong with that but are they following Nolan Principles, and will tenants have the final say by ballot into which option is chosen? Or more likely are we going to be foisted off once more by a decision made on our behalf, by non elected staff recommendations, to an elected members that do not live in local authority owned properties.
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