ALMO secures £9m after dropping legal challenge
A London borough has secured £9 million of decent homes funding after withdrawing from a judicial review against a government decision to defer the cash.
Havering will get the funding for its arm’s-length management organisation, Homes in Havering, later in the year, as the first instalment of £112 million over five years.
The ALMO was among those hit by a government decision last year to divert £150 million scheduled for decent homes work into its house building programme.
The funding was due to go to ALMOs that achieved two star ratings from the Audit Commission, but the government delayed the allocation by a year until 2011/12.
Havering’s ALMO gained its two-star rating in November, and the council was among a group that have applied for a judicial review of the government’s decision. It has now withdrawn from the legal action.
In a statement the council said: ‘To facilitate discussions with officials from the government’s Homes and Communities Agency, which couldn’t happen with a judicial review pending, Havering decided to withdraw from the expensive legal action and focus on negotiations that would not cost council taxpayers any more money.
‘As a result of these negotiations, the government has now put Havering back on the decent homes programme.’
A spokesperson for Havering said the £9 million allocation was in line with the amount the ALMO would have expected to receive if the funding had not been deferred.
The money will be spent on new bathrooms, kitchens, double glazing and other improvements to council properties.
Sir Bob Kerslake, chief executive of the Homes and Communities Agency, said: ‘Withdrawal from the judicial review meant that we were able to continue discussions which began before the legal action was launched, and as a result we have all been able to agree a way to get Havering onto the decent homes programme.
‘I am delighted that the much-needed improvements to Havering’s tenants’ homes can now proceed.’
Last week ALMO Sutton Housing Partnership announced it has secured £5 million from April 2010 after gaining its two stars. Sutton council had been involved in the judicial review, but secured the funding after negotiations with the HCA.
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