Plans to limit Approved Development Programme funding to larger housing associations could endanger the Housing Corporation's duty to promote diversity in housing.
That was the message this week from the chief executives of leading smaller and black and minority ethnic housing associations.

They told Housing Today that the corporation's discussion paper on ADP (HT 1 August, page 7) could cause major problems.

The corporation proposes streamlining ADP funding to larger developing registered social landlords. The aim is to squeeze more homes from the system, encourage partnering and increase cost efficiency.

Clare Winstanley, chief executive of north-west London's Innisfree Housing Association, said: "The corporation is going to have to do a fairly delicate balancing act if it is going to maintain its commitment to BME and smaller associations. The proposals look as though these will be squeezed out and those that do their own development work are going to struggle."

She said it was likely a large number of smaller housing associations would turn to larger ones to do their development work, effectively sacrificing their independence.

This would give rise to serious concerns for the sector, she said: "It cuts across the diversity agenda, as BME associations are better placed to carry out services to their tenant communities.

"It would be sad to see the majority of BMEs becoming management only, but it is a danger."

Ronnie Moodley, chief executive of ARHAG Housing Association, north London, said: "The corporation has promoted power to smaller and BME associations, yet this change would set us back 15 years.

It addresses the needs of larger RSLs while leaving us stranded."

Ita Symons, chief executive of Agudas Israel Housing Association, also in north London, said: "I will kick and punch for every brick to get our rights."

A Housing Corporation spokeswoman said: "We are not moving away from diversity but are looking at economies of scale.

"Community-based, smaller associations will still be expected to deliver on the ground.

This will be an opportunity for them to increase their asset base without taking the risks which can be associated with new development."

Source

Housing Today