Two new arm's-length management organisations face an uphill struggle to access extra government cash after the Audit Commission revealed that they were not on track to gain two stars.
Inspectors gave South Lakes Homes, based in South Lakeland, and East Durham Homes, based in Easington, one star for housing services in indicative inspection reports released on 17 June.

Both third-round ALMOs need two stars to get additional funding to meet the decent homes standard.

The inspectors also said the ALMOs had "uncertain" prospects of improving in time for the full inspections in early 2005. If it fails to obtain two stars, South Lakes stands to lose £20m. East Durham would lose £23.6m.

Indicative inspections are used to help ALMOs identify areas for improvement before full inspections.

The report criticised South Lakes for failing to ensure that repairs are delivered cost-effectively and for its poor monitoring of services.

David Stubbs, head of housing services at South Lakes Homes, said: "We accept that there is work to do, but we have moved on and are confident of getting two stars."

East Durham's report warned that the ALMO showed little evidence of "cost effectiveness and value for money for services". It was not available for comment.

Solihull Community Housing was also awarded one star in an indicative inspection on 17 June. However, it is judged to have promising prospects for improvement.

Source

Housing Today