The report explained that the Council’s housing stock was currently managed under an agreement with an Arm’s Length Management Organisation (ALMO), Homes in Havering.  The decision to establish the ALMO was made in order to access Decent Homes Funding to improve the Council’s stock.  In September 2009, Homes in Havering achieved the required two star standard that enabled the Council to obtain access to potential Decent Homes funding of £112m.  However, due to the previous Government’s spending reductions, access to funding was withdrawn, though reinstated following legal action in January 2010.  As a result, the Council received £9m of Decent Homes funding, which was spent in 2010/11.

It was noted that the requirement to have an ALMO in order to access Decent Homes funding had now been removed, and therefore the opportunity arose for the Council to consider whether this remained the best option for the management of the housing stock. 

This report considered three options, and recommended that the Council consult tenants on the future of the housing management service.

Reasons for this decision:

The changes to the funding of the Decent Homes programme open up options to the Council to decide how the housing management service should be organised in the future.  The report proposed that bringing management of the stock back in-house had the greatest potential for delivering financial efficiencies while maintaining service quality and tenants and leaseholder involvement and influence. There should be an extensive consultation exercise with tenants and leaseholders, who were the users of the service, about their preferences.  The implications for tenants, including the future of the Decent Homes programme, the financial positive of the options, and their opportunities for involvement needed to be put to the tenants in order to enable them to express their views on the future of the service.  These views would feed into the decision of the Cabinet in March 2012.

Other options considered:

If no decision was taken to go out to consultation, a significant opportunity to make savings in the service would be missed.

The Cabinet Member indicated that a report would be presented to the meeting of Cabinet in March 2012 which would detail the outcome of the consultation and recommend the preferred option for the future of the Housing Service.  The Cabinet  Members assured those present that Homes in Havering would be involved in the consultation process and that its hard work and success would be reflected in any consultation literature.

Cabinet AGREED:

1.         To consult tenants and leaseholders about the future of the housing management service, and establish a budget of £50,000 to carry out this work.

2.         That the Council’s preferred option was to bring management of the Council’s housing stock back in-house, although a final decision would not be taken until Cabinet had received the results of consultation with tenants and leaseholders.

3.         To receive a report on the results of the Consultation in March 2012 in order to agree the future management arrangements.

4.         To develop detailed proposals and consultation materials to put to tenants and leaseholders in order to seek their views on the future of the housing management service be delegated to the Cabinet Member for Housing and Public Protection.