GHA faces legal action after taking direct control of LHOs

Glasgow Housing Association is facing a series of legal challenges from its network of local housing organisations after controversially stripping them of their housing management function.

Ardenglen Housing Association is the first to publicly threaten GHA with legal action, warning in a letter sent to the association, communities minister Malcolm Chisholm, Glasgow City Council, Communities Scotland, MSPs and Inside Housing that it will take legal action if the decision to get around European Union procurement rules by taking away its management role is not reversed.

In the letter, Ardenglen Housing Association LHO chair Isobel Pope said: ‘If the GHA attempts to directly manage the properties in Ardenglen LHO, we will be discussing with our legal advisors and Glasgow City Council how to ensure this return to direct management is stopped.'

Kenny Stocks, director of Ardenglen, said: ‘I think legal action is something that all the associations in our position will be looking at, particularly the smaller LHOs like ourselves who have staffing issues.

Legal action is to ensure that our position is protected.'

New Gorbals and Glen Oaks housing associations said they were also considering legal action. Glen Oaks Darnley LHO tenant chair Neil Elliot said: ‘It's something that we have to seriously look at.'

Susan Crookston, director of Blairtummock Housing Association, said GHA could face more pressing legal challenges from Glasgow City Council and Communities Scotland. By dropping LHO management, the association was in breach of its registration agreement with the regulator, and had broken its promises to the council, she said.

The threats come as political rumblings within Holyrood have sparked speculation over whether GHA chief executive Michael Lennon will be forced to resign over the issue.

But consultant David Alexander, director of Alexander Consulting, said it was too soon for heads to roll. ‘There are a lot of mischief makers around who are looking for the good ship GHA to sink with all the hands,' he said. ‘I think people generally feel that Michael Lennon has done a good job.'

European social housing umbrella body CECODHAS is fighting for exemption from EU procurement legislation for all housing organisations.

Scottish communities minister Malcolm Chisholm, who deemed GHA's decision ‘precipitate', this week announced a £85 million investment from the Scottish Executive's community regeneration fund to regenerate Glasgow's most deprived areas.