Wednesday, 15 October 2008
A ‘Decent’ home is one in reasonable state of repair with modern facilities and services. The Government is committed to ensuring that all social housing meets the DHS by 2010. Further information on the Decent Homes Standard can be found in Decent Homes: A Tenant’s Guide.
When a Local Authority is considering which option will enable it to achieve the Decent Homes Standard, it must first conduct an option appraisal. This involves investigating all the options for housing investment and working out the costs and benefits of each. Local Authorities must involve tenants fully in the option appraisal process and seek their views on the local priorities and outcomes. Tenant participation is essential to the option appraisal procedure, as this will help ensure that any scheme meets the need of the local community. The completed option appraisal has to be approved by the Government Office. If an ALMO is the preferred option, the Local Authority can then submit a bid to ODPM. Ministers will only give approval if the Local Authority satisfies the criteria in the ALMO Guidance. Details of the bidding process can be found in Section 9 of the ALMO Guidance.
www.odpm.gov.uk/stellent/groups/odpm_housing/documents/pdf/odpm_house_pdf_028590.pdf
When an ALMO bid has been approved by Ministers, the Council sets up the ALMO in shadow form and, when ready applies to the ODPM (Office of the Deputy Prime Minister) for consent to delegate its management functions to the ALMO under Section 27 of the Housing Act 1985. At this stage Ministers look in more detail at how the ALMO will operate. One criterion is the level of tenant and leaseholder support for the ALMO known as a ‘Test of Opinion’. Further information on Section 27 approval can be found in Annex C of the ALMO Guidance.
www.odpm.gov.uk/stellent/groups/odpm_housing/documents/downloadable/odpm_house_031688.pdf
An ALMO has to demonstrate that it is providing a high standard of service before it gets its extra funding. This is done by means of an inspection conducted by the Housing Inspectorate (which is part of the Audit Commission) at least six months after the ALMO is established. In order to qualify for the extra funding the ALMO’s services have to be rated as a 3 star (excellent) or 2 star (good). If the ALMO does not achieve the necessary rating it may be possible to give it more time to improve its performance. Otherwise, the Local Authority may have to reconsider its options.
The Government considers that in order to make the best use of the resources available, funding should be limited to Local Authorities who have separated their management and strategic functions. Allocating the funding on this basis will help to ensure that the additional public money available goes to the Local Authorities and ALMOs that deliver the highest standards of service to their tenants.
• Stock investment decisions and repairs ordering;
• Rent collection, dealing with arrears, debt counselling;
• Consulting and informing tenants on matters which are the ALMO’s responsibility;
• Promoting tenant participation, including involving tenants in monitoring and reviewing service standards;
• Enforcement of tenancy conditions;
• Similar functions for leaseholders;
• Managing lettings, voids and under-occupation;
The Council can decide to transfer additional services to the ALMO such as:
• Undertaking responsive repairs and major repairs;
• Clearance of and disposal of housing stock;
• Repairs call handling;
• Stock condition and energy surveys;
• Legal action on tenancy agreements;
• Conditions of Tenancy;
• Illegal occupation;
• Caretaking;
• Dealing with the common estate and grounds maintenance;
• HRA garages and shops;
• Caravan sites (Mobile Homes Act);
• Maintenance of Housing Register;
• Letting properties;
• Transfers, successions and mutual exchanges;
• Completing financial returns and managing the Housing Revenue Account;
• Dealing with insurance claims.
• Estate management, caretaking and services under the Supporting People programme.
• Housing strategy
• Housing Benefit/rent rebate administration
• Overall policy on rents.
The Local Authority would still be your landlord and all your rights, such as the Right to Buy, would remain the same. You would remain a secure tenant of the Local Authority. An ALMO dedicated to improving the condition of the stock would be able to deliver higher quality services. It would also give tenants the opportunity to have a greater role in the management of their homes by being represented on the ALMO Board.
Leaseholders have the opportunity to become more closely involved in the management of their homes by standing for the ALMO Board. Leaseholders are required to contribute towards the cost of improvement works to their blocks in the normal way.
ALMOs are managed by a Board of Directors which includes tenants, Local Authority nominees and independent members. No one group is normally in a majority. They operate under the terms of a Management Agreement which is drawn up by the Council.
One of the responsibilities of the Board is to monitor the ALMO’s performance. ALMOs have to provide regular returns to the ODPM to ensure that they are progressing as planned. They are also monitored by the Local Authority to ensure their obligations as laid out in the management agreement have been complied with. ALMOs also publish Annual Reports and Accounts.
With proper monitoring, any problems should be spotted and solved quickly. But if things go seriously wrong, the Local Authority can end its agreement with the ALMO.
