Newcastle council is to bid for £160m from the government to set up an arm’s-length management organisation.
The council has decided arm’s-length management is its only feasible option. It will have a £60m investment gap if it retains direct management of its stock.

Without setting up an ALMO, the council estimates more than 13,000 homes, or 45% of the stock, would be left below the decent homes standard.

Cabinet member for housing Ruth Robson said: “For two years we’ve been considering the options available to us. An ALMO is the only option that will bring us the potential of significant extra investment for our homes, allow the council to retain ownership of the properties and provide tenants the same rights and security.”

However, an ALMO would not deliver all the resources the council believes it needs to produce fully modernised homes and secure neighbourhoods. The council could probably count on having £317m available to 2010, which would easily cover the decent homes standard, but says £477m is ideally needed.

The council says more than 5000 homes will have to be demolished at a cost of £14m – up from a previous estimate in July last year of 4000 homes last year.

A roadshow will take the ALMO plans out for tenant consultation. In March the council will submit a bid to the government, aiming for a decision in June 2003. It hopes the money will be available in 2005, but the government has yet to announce a third round of ALMO funding.

Source

Housing Today