Audit Commission report on Homes for Islington

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p 10 London Borough of Islington - Homes for Islington (ALMO) Report Context 14 This <strong>report</strong> has been prepared by the <strong>Audit</strong> <strong>Commission</strong> (the <strong>Commission</strong>) following an inspection under Section 10 of the Local Government Act 1999 and issued in accordance with its duty under Section 13 of the 1999 Act. The locality 15 The London Borough of Islington is in North London. The population of the area is 176,000, living in 86,300 dwellings. Twenty five per cent of the population are from black and minority ethnic (BME) communities 3 . The figure rises to 58 per cent for children at local schools. Islington contains the second highest proportion of single-person households in the country, 43 per cent against 23 per cent nationally. The average age of the population is below 35 years old, the eighth lowest figure in the country. 16 Unemployment stands at 10 per cent, which is above the London average (6.6 per cent). The borough contains areas of affluence, and the average house price is £347,000, the sixth highest in London. However, the Borough is ranked the fourth most deprived in London, based on national indices of deprivation. The council 17 The council comprises 48 councillors. The Liberal Democrats have overall control, with 36 Councillors; there are ten Labour and two independent councillors. Islington has adopted a cabinet structure, with an executive board comprising a leader and eight Liberal Democrat Councillors. There are three review committees and four area committees. 18 The council’s overall budget for the year 2004/05 is £499 million, including a £2.5 million contribution to reserves. 19 The community and neighbourhood renewal strategy has three high level objectives: promoting neighbourhood renewal across the poorest communities; promoting active citizenship and community empowerment; and promoting sustainable improvements to mainstream services. 20 It also has a shared vision: a safer, more inclusive Islington; learning Islington; healthier Islington; affordable, quality homes; a place to work and do business; a cleaner, greener Islington; a place made up of inclusive communities; and services that meet the needs of a diverse population. 3 In addition there are 5.7 per cent Irish and 12.9 per cent Other White (Office of National Statistics 2002).
The service London Borough of Islington - Homes for Islington (ALMO) p 11 21 Islington held an option appraisal exercise in 2002/03, which led to the decision to establish an arm’s length management organisation (ALMO), Homes for Islington (HFI), to undertake the landlord functions of its housing service to the 30,000 tenants and 9,000 leaseholders. 22 The initial agreement between the council and the ALMO commenced in April 2004 and is for ten years, with a break clause after five years and an option to renew for further five year periods. The functions delegated to HFI are for the council’s tenanted, leasehold and some temporary accommodation. These are set out in their Section 27 application and can be summarised as: stock investment and repairs ordering; environmental protection and improvement; rent collection, dealing with arrears and debt counselling; estate management, caretaking and support services under Supporting People; managing lettings, voids and under-occupation; enforcement of tenancy conditions; similar functions for leaseholders; and tenant participation, information and consultation. 23 The functions retained by the council include: housing strategy and enabling; homelessness, housing advice and money advice; and administration of the Housing Register. 24 Islington carried out a ballot among tenants and leaseholders for the ALMO in November 2003. This resulted in a response rate of 24 per cent, of which 83 per cent supported the ALMO. 25 The ALMO is a company, managed by a board made up of seven residents (tenants and leaseholders), five council nominees and five independents. There are also two sub-boards which are the Managed Property and Contracted Services sub-boards. The day-to-day running of the company is delegated to a senior management team, headed by a Chief Executive. Approximately 630 staff transferred from the council to the ALMO in April 2004, when the ALMO took over management of the stock. 26 If the standards of Homes for Islington meet Government criteria, the council will receive Supported Borrowing of £24.9 million to 31 March 2006 and be allowed to seek up to a further £132.6 million in later years if the ALMO progresses well. 27 Homes for Islington has responsibility for delivering the programme of improvements and also manages £35,840,000 revenue of the Council’s funded repairs budget. 28 The budget for services for 2004/05 is £55,860,000 including delegated budgets but excluding managing agent fees and capital programme.
Page 1 and 2: Inspection report
Page 3 and 4: Summary London Borough of Islington
Page 5 and 6: London Borough of Islington - Homes
Page 7 and 8: Recommendations London Borough of I
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Documents reviewed London Borough o
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Gary Doolan GMB London Borough of I
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Positive practice London Borough of
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Audit Commission report on Homes for Islington

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