Shropshire Council seeks ALMO switch

Published by Jon Land for 24dash.com in Housing

Shropshire Council is looking to set up a new ALMO to manage its housing stock.

The council announced the plans this week in response to the Government's reform of the housing revenue account subsidy system, which it believe will give it more freedom to manage the revenue from its 4,000 homes.

If councillors agree with the proposals at a Cabinet meeting next Wednesday (January 11), a consultation will take place later this year with the new organisation being set up by April 2013 if tenants are supportive of the plans.

Staff currently employed in the housing team at Shropshire Council would be transferred to the new organisation, which would be run by a management board which will include councillors and tenants.

Councillor Mal Price, Shropshire Council’s Cabinet member for housing, said: “It’s important to stress that we are going to talk to our tenants before any decisions are made, and we need the support of tenants to move the plans forward in any case.

"I hope they will see the benefits of the management board, which will give tenants more involvement in the service and will hopefully result in greater investment in their homes in the future.”

A Cabinet report setting out the proposals highlights the set-up costs of £150,000 which will come from the housing revenue account, meaning there will be no effect on any council service.

These costs will include an extensive consultation exercise, as well as the specialist legal advice required to establish an ALMO.

The report also explains that council housing services will have to be ‘self-financing’ from April 2012, which means that councils are given a one-off payment or loan by the Government and thereafter must rely on income from rents to fund the repayments and all services.  The report can be seen by clicking this link.

These new rules are one of the reasons the council feels the time is right to set up a management organisation to run the housing service, as it will give the service more flexibility to manage its budgets and invest income back into the housing stock.

If Cabinet agrees to go ahead with the consultation, tenants will be given more information about how to get involved over the coming months.

Shropshire Council currently owns and manages just over 4,000 properties in the Oswestry and Bridgnorth areas, which were formerly owned by Oswestry Borough Council and Bridgnorth District Council.

Social housing in all other areas of Shropshire is owned by a number of different housing associations.