The Housing Corporation has asked deputy prime minister John Prescott to order a takeover of the troubled Clay's Lane Housing Cooperative.
In the latest twist to the 15-year saga, the corporation told co-op members it would not allow permanent staff to be appointed until Prescott has made a decision.

After an inquiry that uncovered a raft of serious failings, the corporation decided on a statutory transfer of Clay's Lane's assets to housing association the Peabody Trust in March last year.

The co-op has since proposed it become a subsidiary of Scottish co-op Tenants First, and began judicial review proceedings to challenge the corporation.

The corporation's latest move emerged in a letter from assistant chief executive Bob Dinwiddy, copied to all co-op members. He rebuked the co-op leadership over "inaccurate statements", and listed a catalogue of serious concerns.

Dinwiddy warned of "serious concerns about CLHC's governance, management and operations" and said the corporation was considering its options for further action.

The corporation already controls all Clay's Lane's spending after freezing the co-op's bank accounts last year. Clay's Lane has suffered high staff turnover, including the departure of four housing services coordinators in six months.

Source

Housing Today