Fears that teething troubles could cause huge problems for online ADP applications
The digital revolution aimed at streamlining the bidding process for social housing funds is in danger of disintegrating before it has even begun.

The Housing Corporation is braced for technological "teething troubles" as the process of applying for approved development programme cash goes online.

Not only will housing associations without internet access be unable to use the specially-designed web system to apply for cash, those who can will find access rationed.

Associations on the net are preparing for weeks of torment as it emerged that the bidding system, to be announced by IT contractors later this week in time for its launch on 18 September, will only be able to cope with around one third of the potential demand at any one time.

Although there are up to 900 associations preparing to use the technology, the corporation admitted a maximum of 300 will able to log on at a time.

The quango is attempting to address fears that the system will crash as everyone attempts to access the system at the same time by rationing access time alphabetically.

Morning access will be reserved for RSLs beginning 'A' to 'M' while afternoon sessions will be for 'N' to 'Z'.

Concerns are being raised at corporation training sessions. Sources say they are worried the new system will end up more bureaucratic than the one it is replacing.

Associations not on the net will have to visit regional corporation offices where they can print the relevant forms. One northern-based association said it faced two 120 mile round trips under these arrangements.

National Housing Federation head of regeneration and investment Abena Nsia is preparing to "salvage the situation" at a meeting with the agency.

She said: "We wrote to the corporation several weeks ago to raise concerns about how the system would operate. At that time we were assured that adequate arrangements would be put in place for those without internet access. It's disappointing now to find that this is not the case."

The corporation advised associations to get bids in as early as possible before the 20 October deadline. A helpdesk will be established to deal with enquiries.

"There is going to be a little bit of teething troubles. Demand is something that we are going to have to manage," a spokeswoman said. "This is the first year that we are doing this and obviously there are going to be concerns expressed."