The Housing Corporation has insisted that its plans for allocating resources on judgement rather than a formula will be fully accountable despite government concerns
The agency's new National Investment Strategy confirms that the Housing Needs Index is to be phased out as a method for allocating cash at a local level by 2002.

Investment decisions will no longer be "constrained by local HNI scores" and in their place regional housing statements will be used.

But the strategy adds: "We are acutely conscious of the need for a transparent framework which leads to accountable decision-making."

The emphasis on accountability comes after the government privately expressed concern that the corporation's initial plans appeared to ignore councils and other stakeholders, and were too reliant on the discretion of corporation officials (Housing Today, issue 139).

The strategy now talks of "the crucial role of local authorities" and "fully involving residents."

It also stresses that regional housing statements will only be used when they are of a sufficient quality and supported by local stakeholders. Some of the statements so far drawn up have been criticised for their poor quality and for failing to reflect councils' concerns.

The new approach means that the Approved Development Programme will no longer be diluted across the country but concentrated in areas where it is judged to be most needed. The statement warns that because of this system, "it is likely that in some years some local authority areas will not receive any ADP."

The new strategy outlines three key objectives which will determine how the Approved Development Programme is spent. These are:

  • Providing new homes in growth areas
  • Regeneration of deprived neighbourhoods
  • Funding supported housing.

This is the first time regeneration has been singled out at as an ADP objective and means that the ADP can now go on activities like repairs and demolition. But the corporation has dropped mention of more radical uses for the ADP such as dowry funding for stock transfer.

Speaking last month corporation chief executive Anthony Mayer said: "We did tend over the years to hide behind the fig leaf of the HNI. We are going to have less and less reliance on that formula and more and more reliance on judgement and the need to be accountable and transparent."

Source

Housing Today