What is happening at Cosmo?
12/03/2013 10:25 am
After a flurry of articles and much concern amongst investors and looming deadlines regarding the crisis at cosmopolitan its all gone... well... a bit quiet.
Not a good sign.
When will the sector, government and the HCA "grasp the nettle" and change the basis of regulation and activity to drive good behaviours, stablise an effcient focussed sector for the next century of housing supply?
The answer at Cosmo aoppears straight forward.
Lift all of the assets and libailities relating to, and secured directly by, social housing properties. De-register Cosmopolitan and leave the executive and board sort the rest of their non sector mess out.
Going forwards the following 10 point plan could be used to ensuree that these situations (unfortunately Cosmopolitan will not be last) are resolved quickly for the benefit of all.
1. Regulate the sector with periodic licences (say 3Y licences) giving current housing associations the ability to opt out, transfer publicly funded stock and no longer be supported by government
2. Target operating efficiency improvements and reduce the number of housing associations (say to 800 within 5Y and 500 within 10Y)
3. Have all grants and surpluses (unless taxed) repatriated to the Regulator
4. Centralise purchasing and delivery of all new homes to maximise efficiency and standardise publicly funded housing procurement
5. Allocate new completed units to licenced operators based on bids driven by operating efficiency and effectiveness of wider licenced activity
6. Performance review of allocated units and repatriation to other licensed operators in event of under-performance
7. Revoke lifetime tenancies and grant publicly funded housing rented occupants 2Y tenancies
8. Review the needs of publicly funded rented occupants every 2Y and include reference to the needs of communities as well as individuals (balancing communities to encourage employment and employability preventing sink estates)
9. Nationally encourage and process a low cost home ownership offer to working families in social rented housing embedding them in their current communities preventing residualisation and releasing capital to be centrally reinvested in new supply
10. Ring-fence non-social housing activity, assets and liabilities in licenced operators from 'private sector' activity