The National Federation of Arm's-length Management Organisations was officially launched on Thursday, writes Mark Beveridge – less than a week after the Audit Commission published new guidance for ALMOs outlining its expectations for achieving the two- or three-star ratings required to access government funding.
The guidance makes it clear that future inspections of ALMOs will put more emphasis on governance and commitment to independence. It follows the publication of new rules for rounds three and four earlier this month (see box below).

Audit Commission strategic policy adviser Roger Jarman said of the Audit Commission guidance: "The issue of governance will be at least, if not more, important in second-round inspections than it was in the first round. ALMOs must demonstrate commitment to the ALMO model – it shouldn't be seen just as a way of winning funds."

Second-round inspections are due to begin in April. If all 18 ALMOs – spread across 13 local authorities – achieve a two-star rating or better, they will get an initial allocation of £300m in total.

Alistair McIntosh, director of the Housing Quality Network, which helped to organise the National Federation of ALMOs, welcomed the guidance as an improvement on that previously available.

However, he added that greater clarity was needed on the difference between two- and three-star ratings. "Given that three-star ALMOs can make use of prudential borrowing, the stakes are high and there is still uncertainty surrounding the difference in what ALMOs need to do," McIntosh said.

The founding members of the National Federation of ALMOs are to meet the Office of the Deputy Prime Minister today to lobby for greater freedoms for ALMOs, including a broader role in regeneration and the power to issue antisocial behaviour orders.

Gordon Perry, chief executive of the Kensington & Chelsea tenants' management organisation and chair of the National Federation of ALMOs, said the new organisation would work hard to support round three and four ALMO bidders.

"We want people to choose the ALMO option and are seeking members. The Communities Plan guaranteed the long-term future of ALMOs, and the group needs a distinctive voice because of the distinctive challenges it faces," Perry said.

The decision to set up the federation was taken last November. The founding members include: Carrick, Kensington & Chelsea, Wigan, Hounslow, Leeds, Ashfield and Brent.

Rounds two and three: new rules

  • 5% of total ALMO funding from the government can be used to fund ‘sustainable’ works, such as lighting and security
  • the cap of £5000 per home has been scrapped to open up the process to councils that needed more investment than this
  • the limit of 12,000 homes per ALMO no longer applies, although group structures, such as that applied by Leeds, are recommended for councils with larger stocks

Source

Housing Today