Ealing Conference

15th November 2003 Martin ThomasODPM’s Community Housing Task Force

ArmsLengthManagementOrganisations

agenda

Why ALMOs…..?

What is an ALMO……?

WHAT’S NEW?“For more than 30

years this country has lost its way. All governments failed to meet housing need. We did not invest in the long term”

John Prescott

Government target

•To bring all social housing into a decent condition by 2010:– 1.6 million social rented homes (42% of

the stock) were non-decent in April 2001

– A small group of mainly inner city local authorities account for nearly two- thirds (1.1 million) of the non-decent stock

WHATS NEW?

COMMUNITIES PLAN• February 2003• Vision for the Future• Decent Homes a high

priority…..• Recognise backlog of

disrepair• Improved ALMOs as a

way of getting money into Council Housing

ALMOs - key aimsDriving up housing standards by:

• investing in repairs and improvements

• improving housing management

• creating housing organisations directly controlled by a majority of council and tenant nominees

ALMOs – key features

• Tenants remain secure tenants of the Council- all rights remain- Council still sets rents and overall policy

• Board with representation of tenants, the Council and independents, normally with no group in a majority

• Ownership of stock does not transfer from the Council- but responsibilities and money does

• ALMO wholly owned by the Council

• Extra money linked to good housing management

ALMOs - how do they work?

Council

delegates services

retains ownership and responsibility

ALMO

provides services

tenants are still council tenants

Tenant board

members

ALMOs – responsibilities

Homelessness obligations

Lettings & rent policy

Providing resources

Private sector renewal

Setting standards & monitoring ALMO

performance

Rent and arrears collection

Tenant participation & consultation

Repairs & improvements

Enforcing tenancy conditions

Estate management

Environmental protection

CouncilALMO

ALMOs – the process

If awarded at least 2*, eligible to draw extra funds8

Inspection by the Housing Inspectorate7

ALMO goes live and operates for at least 6 months6

s.27 approval to delegate responsibilities5

ALMO runs as shadow body4

Conditional ££££ allocation3

i] Expression of interest - summary sheet ii] Bid – full details2

Option Appraisal1

Funding for ALMOs

•£1,994 million under Sustainable Communities Plan– £323 million in 2003/04– £852 million in 2004/05– £820 million in 2005/06

ROUND 3 ALLOCATIONSAuthority tenanted Conditional Total bid

properties allocation2004-06 2004-11

£m £mBarnet 11,452 19 88.5Camden 25,772 45 283Easington 11,212 23.6 117.3Gateshead 24,663 63 232Harrow 5,258 5 11.9High Peak 4,389 4.7 9.4Islington 30,231 24.9 157.5Newcastle 32,092 64 348Poole 4,726 17.4 35.4Sheffield (part) 11,074 49.7 144.8Solihull 11,541 21 63.3South Lakes 3,421 4.2 21Warrington 9,935 18.3 30.4

Totals (13) 185,766 359.80 1,542.50

Progress so far

Rounds 1 & 2– All round 1 ALMOs have qualified for funding– 4 of the 18 ALMOs in round 2 had qualified for funding by

September– They have generally been spending what they said they would– High levels of tenant support - 57- 90% in Rnd 2

Round 3– Further 13 local authorities given allocations in July 2003 to begin

spending in 2004/5– 1 in 5 council homes (550,000 units) now covered by ALMO

proposals

Round 4– Expressions of Interests 26 September 2003– 19 Bids, 300k homes, £2179m

TENANT SUPPORT Rnd 1

Authority Method Response In FavourAshfield Survey 8% 97%Derby Ballot 48% 88%

Hounslow Ballot 35% 83%Kirklees Ballot 47% 81%

Rochdale Ballot 43% 90%Stockton Ballot 44% 93%

Westminster Survey 5% 70%Wigan Survey 3% 96%

TENANT SUPPORT Rnd 2Authority Method Response In Favour

Barnsley Ballot 25% 57%Blyth Valley Survey 14% 93%

Bolton Survey Sample > 90%Brent Phone Survey Sample 62%

Carrick Ballot 61% 96%Cheltenham Survey 24% 90%Colchester Ballot 57% 76%Hillingdon Phone Survey Sample 61%

K&C Survey and Vote Info not availableLeeds Ballot 39% 88%

Oldham Survey 2% 70%Salford Survey 2% 71%

Waltham Forest Ballot 49% 85%

Contact details• email:

– martin1.thomas@odpm.gsi.gov.uk• telephone:

– 07810 657287– 020 7944 8145

• in writing:– CHTF, 2F8 Eland House, Bressenden

Place, LONDON, SW1E 5DU