More councils are considering setting up arm’s-length management organisations in the wake of a government report on the decent homes target.
The Office of the Deputy Prime Minister’s PSA Plus Review said councils will only get extra money to improve their stock if they transfer it to a housing association, set up an ALMO or pursue the private finance initiative. Councils that choose to keep their stock can use their own resources and those of the single capital pot.

It also revealed there will be two more rounds for new ALMOs. Bids for the next round must be submitted by May.

Camden council, north London, is exploring the ALMO option in the wake of the Communities Plan. Director of housing Neil Litherland confirmed Camden would put in an expression of interest: “We hope to submit a bid. We have lots of work to do on the bid and on answering questions on whether this is the right approach.”

The PSA Plus Review also proposed that stock option appraisals – which must be done by July 2005 – should be signed off by government offices. They will check the appraisals are robust as the review criticised the quality of some appraisals. The review also emphasised that tenants must be involved in the appraisals.

The Local Government Association welcomed this but said the range of options, which included tenant advisers and training, was rather narrow.

new ideas for decent homes: what the psa plus review recommends

  • benchmarking to encourage councils and housing associations to compare performance
  • failure to achieve the decent homes standard is to get a bigger weighting in the Comprehensive Performance Assessment
  • bundling transfers to get a better funding package
  • explore whether PFI schemes can be joined together for wider regeneration
  • treating early redemption premiums in transfers in the same way as overhanging debt
  • “ALMO Plus” – a self-financing approach for three-star ALMOs

    • Source

    Housing Today