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TROWERS AND HAMLIN - Manchester Strategic Housing Partnership

TROWERS AND HAMLIN - Manchester Strategic Housing Partnership

TROWERS AND HAMLIN - Manchester Strategic Housing

TROWERS AND HAMLIN New Approach to Council Housing Management Seminar – 11 November 2010 London ISSUES HRA Subsidy Reform • Still going ahead – expect announcement in January 2011. Will be a tighter deal than previously and will be imposed by Localism Bill. Discount rate may be lower than 6.5% (was 7% in PW Model) • RTB receipts to HM Treasury – unclear about other disposals. • 80% intermediate rents – doesn’t apply to Local Authorities (this has now been clarified in the CLG consultation paper on the future of social housing and LAs can charge “affordable” rents). • Some Decent Homes funding but not likely to cover amount previously allocated/identified to ALMOs. • HRA Ring-Fence will be tighter. Options – bring service in-house or safeguard housing services by allocating funding to ALMO (at least one service area will be protected despite the cuts!). • No assumption in HRA Subsidy review that debt is repaid – so could agree Business Plan, which simply services the interest payments. Future Options being considered • Joined up services – East Kent – 4 councils joining up – one housing management service. • New ALMO – no funding – Welwyn Hatfield (Grant Shapps area). • Housing Management and Repairs and Maintenance Joint Venture Companies. • Tenant ownership – in a Council Centric model (Community Owned company) (with employees) getting a stake too – as per Rochdale. • Simple outsourcing – to Registered Providers/others. 1 If ALMO agreement extended (on back of HRA reform) – need to make sure we can terminate if Government re-open the debt settlement. 2 If we give ALMO more certainty of funding (e.g. 30 years rental income) we should impose a much more rigorous performance management regime – Expect something like PFI performance regime – Clear Output Specification; Payment Mechanism, Penalty deductions for poor Trowers and Hamlin/11Nov10/Page 1 of 3

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