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ALMOs – The Right Option For Your Housing Stock?

ALMOs – The Right Option For Your Housing Stock?. A presentation by Gary Ekpenyoung, Solicitor 13 th September 2006 . Agenda. Background – Decent Homes Options For Local Authorities Relationship between Local Authority and ALMO Financing of the ALMO The Future of ALMOs

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ALMOs – The Right Option For Your Housing Stock?

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  1. ALMOs – The Right Option For Your Housing Stock? A presentation by Gary Ekpenyoung, Solicitor 13th September 2006

  2. Agenda • Background – Decent Homes • Options For Local Authorities • Relationship between Local Authority and ALMO • Financing of the ALMO • The Future of ALMOs • Questions?

  3. Background • Decent Homes – “ By 2010, bring all social housing into a decent condition with most of this improvement taking place in deprived areas and, for vulnerable households in the private sector, including families with children, increase the proportion who live in homes that are in a decent condition” The Governments Spending Review 2004

  4. Background • A decent home is one which is wind and watertight, warm and has modern facilities • The Government are keen on making Homes Decent because: • Enhance Reputation of Area • Increase popularity of run down areas • Improve sustainability of Community

  5. Sounds Good On Paper But How Are Local Authorities To Meet The Decent Homes Standard in Practice?

  6. The Option Appraisal • Government encourages local authorities to consult tenants • Tenants should be actively encouraged to get involved

  7. Options For Local Authority • Retention • Housing Transfer • Arms Length Management Organisation • Private Finance Initiative

  8. Retention • No additional funds to meet Decent Homes Standard • Could be appropriate when housing stock is already in a good condition • Council unable to borrow money from lending institutions to assist with regeneration

  9. Housing Stock Transfer • Council transfers its housing stock to a Registered Social Landlord (RSL) • RSLs are registered with and regulated by the Housing Corporation • For the Transfer to take place, tenants must be balloted and a majority must not oppose the transfer • The tenants landlord will be the RSL

  10. Housing Stock Transfer • Following transfer – tenants become Assured tenants of the RSL • RSL can borrow from banks and building societies to buy and invest in the housing stock to bring it up to Decent Homes Standard • Preserved Right to Buy • Right to Acquire

  11. Arms Length Management Organisation • Company set up by local authority • Almos are eligible for additional funding from Government • Tenant participation is vital • Ownership of the housing stock remains with the local authority • Local authority remains landlord • Tenant remains secure tenant

  12. Housing Private Finance • Central government provides financial support for partnerships between public and private sectors • Projects deliver refurbishment of existing social housing and associated services • Must comply with complex PFI procurement process • Tenants remain secure tenants of local authority • Not universally popular

  13. Relationship between local authority and its ALMO • The Management Agreement – sets out the obligations of both parties • Typically the Almo takes over the responsibility for the following:- • stock investment decisions and repairs ordering • rent collection, dealing with arrears • direct liaison with tenants • promoting tenant participation

  14. Relationship between local authority and its ALMO • enforcement of tenancy conditions • Similar functions for leaseholders • Managing lettings, voids and under-occupation • Estate management, caretaking and housing related support services

  15. Relationship between local authority and its ALMO The local authority may retain the following functions:- • overall housing strategy • homelessness responsibilities • lettings policy, in consultation with Almo • general housing advice • policy on tackling anti-social behaviour • Owner-occupation strategies including determination of eligibility for right to buy

  16. Relationship between local authority and its ALMO • housing benefit/rent rebate administration • determining minimum standards and monitoring performance of the ALMO

  17. Financing of ALMOs • ALMOs will have access to the same funding as local authority housing • In addition government has made available additional funding • To qualify ALMO must receive a “good” or an “excellent” rating when they are assessed by the Audit Commission’s Housing Inspectorate • Housing Inspectorate make a detailed assessment of all services provided by the ALMO

  18. The Future of ALMOs • Management Contracts are only temporary • After 2010? Uncertain future • No proposals for additional funding after 2008 • Unlikely that any new ALMOs can be created • Government’s intentions are unknown

  19. Questions?

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