Arms Length Management Organisation (ALMO) - other options considered

As Lambeth cannot afford to bring all its homes across the borough up to the Decent Homes Standard without additional funding, the council has considered and pursued different options to bring in the money it needs.

There are three options available to bring in the additional investment needed and the council has always looked to use a combination of these options.

ALMO

When the council consulted residents about what option would be best in creating decent homes, the creation of an ALMO was considered as a way to improve housing management and tenant control as well as a way of bringing in additional investment.

There are already 60 ALMOs set up across the country and delivering Decent Homes. Of these 11 are 3* and 29 are 2* organisations delivering £3.7 billion of extra funding.

One of these is being set up in Lambeth by four tenant management organisations and is called United Residents Housing (URH). A test of opinion was carried out recently with residents of the four estates involved in United Residents Housing. Some 2,500 homes were surveyed and 45 per cent responded. Of these, 69 per cent were in favour of setting up URH with only 10 per cent against.

Visit the ALMO page for more information.

Stock Transfer

On some of the council's estates Tenants and Residents' Associations and Tenant Management Organisations have asked to explore the possibility of stock transfer.

Stock transfer is where homes and estates are transferred from the council to a registered social landlord such as a housing association. The housing association can then raise private finance to fund the required investment.

Unlike ALMOs this involves a permanent change of ownership to all tenants' homes and the freehold of leaseholders' homes. All transfers are subject to a ballot of the tenants and leaseholders involved and the result of the tenant ballot must be in favour of transfer if it is to go ahead.

However, transfer of all of the council's stock right across the borough is not a viable option because of the impact that the loss of the rental income would cause and because many of our residents want to remain tenants and leaseholders of the council. Also the bidding rounds for a Large Scale Voluntary Transfer are finished.

Stock transfers 2006 to 2010

• Clapham Park and Stockwell Park estates voted for transfer with Clapham Park in 2005 and successfully transferred in June 2006
• Bolney Meadow, part of the South Lambeth Estate, transferred to Presentation Housing Association which is a subsidiary of Nottinghill Housing Association in March 2008
• Ashmole Estate residents were balloted in August 2009 and will be transferring to Metropolitan Housing Trust in March 2010.

Leigham Court residents voted not to transfer in 2007 and are now managed by Lambeth Living.

Private Finance Initiative (PFI)

PFI is where a consortium, usually made up of a Registered Social Landlord, contractors and funders invest in and improve the stock. The consortium will take on the management and maintenance of those homes under a 30-year contract with the council.

The stock must stay at the improved level throughout the contract and transfer back at that level. At the end of the 30 years, the properties would revert to the council. The council through the PFI credits from government and other revenue funding streams provide annual payment for improvements and service delivery.

Lambeth is developing a housing PFI on the Myatt's Field North estate after extensive consultation with residents and other stakeholders. For this estate the option includes refurbishment, demolition and new build, as well as a new park and community centre.

A PFI for all of a council's housing stock is not a viable option, as it takes a long time to 'go live' for a PFI contract (in the region of four years) and can also be an expensive option.

These projects are normally set up to cover a particular estate or a distinct neighbourhood. Also, the bidding rounds for housing PFIs have now finished.