What is an ALMO?

An ALMO is an Arms Length Management Organisation.  It is a relatively new Government initiative that means that the City Council sets up a separate company to be run at Arms Length.  The Council owns 100% of Your Homes Newcastle.  We have taken over the management of the Council’s homes. 

Setting up an ALMO meant that the Council was able to bid for extra money from the Government to invest in much needed modernisations and improvements to your homes.

Why has the Council done this?

The Government expects all Councils to look at the most appropriate management, ownership and investment arrangements for their housing stock.  Newcastle City Council did this as part of an “options appraisal”.  A survey of the condition of the Council’s houses showed that more money needed to be spent improving them than the Council was going to have available to it.  Setting up Your Homes Newcastle was the best of all the options looked at.  It gave the Council the best answer to the issues that need to be addressed.

Why did the Council not consider Stock Transfer?

Stock Transfer means the sale of Council homes to an established housing association or to a new housing association set up by the Council.  Newcastle City Council needed a substantial amount of money to invest in your homes.  The Council would not have got enough money  from your rent over the next 30 years to do up all of its houses.  This “negative valuation” meant that stock transfer was not an option.

Have other Councils gone down the ALMO route?

Yes, however ALMO is a new initiative.  By April 2004, 34 councils had set up or were setting up ALMOs to manage, repair, and improve their homes.  There is funding available from the Government for investment and Councils have to bid for funds.  Under the current rules Councils not only have to bid, but also have to achieve a good rating for their housing service from the Government’s Housing Inspectorate.

What does Your Homes Newcastle do?

The basis of the new organisation is the staff that used to provide the housing service with the Council.  Your Homes Newcastle is run by an independent Board made up of:

• Council nominees (elected Councillors)
• Tenants
• Independent people

This board has control of the day-to-day housing service delivery and sets the policies.  Board members do not get paid for their time though they are able to claim reasonable out-of-pocket expenses such as travel to meetings and childcare.

How have the Board members been selected?

The Council nominees were put forward by the Council.  Tenants were elected by other tenants. A panel of tenant and Councillor Board members chose the independent people based on the additional skills and experience they would bring to running a housing company.

Why can Your Homes Newcastle spend more than the Council on housing?

Government rules currently mean that local authorities, such as Newcastle City Council, are limited in how much they can borrow to spend on services.  This situation does not change with Your Homes Newcastle.  However Your Homes Newcastle as an ALMO can access additional money.  To do this we had to receive a minimum of 2 stars in a Best Value inspection once the ALMO had been set up.  We got 2 stars in February 2005.

Who is my landlord?

The Council is still your landlord and it still owns your home.  The difference is that it does not manage them.  Your Homes Newcastle and our staff now delivers the day-to-day housing service.

What sort of organisation is Your Homes Newcastle?

It is a not-for profit organisation.  All of our income must be spent on our agreed objectives, including providing the housing service.  We are owned by the Council and the services we deliver have been agreed with the Council and set out in a contract.  The Council keeps ultimate control.

Who makes sure that the Your Homes Newcastle delivers?

Ultimately, it is the Council’s responsibility to make sure that we deliver good quality services and improvements.  However, in addition to the Council there is also:

• Your Homes Newcastle Board – which oversees the day-to-day running of Your Homes Newcastle.  The Board also monitors performance and makes sure that we meet our targets.
• The Housing Inspectorate - inspects the services that we deliver as it did previously for the Council.  They make sure that we meet Government standards.

Has an ALMO ever gone bankrupt?

No.  The same bodies that monitor Councils will monitor the ALMOs.  No Council has ever gone bankrupt and there is comfort that the Audit Commission would step in at the first sign of financial trouble.

Will we ever go back to being managed by the Council?

In theory, yes it is possible for the Council to take back management of its homes if we fail to deliver.  But only if tenants support this change and the Secretary of State agrees to it.

Who works for Your Homes Newcastle?

The staff that provided the housing service with the Council have joined us on at least the same terms and conditions they had with the Council.  So you’ll be still be dealing with the same staff you knew and trusted.

Who does repairs to my home?

We have not taken on the delivery of repairs.  However, we will make sure that you receive a good service.  You can still report repairs in the same ways as you did before, including in person at a Housing Office or by phone.

Will you be modernising and improving homes?

One of the reasons that we were set up was that the Council didn’t have the money to carry out the necessary programme of repairs and improvements to its homes.  By setting up Your Homes Newcastle, the Council was able to bid for the extra money needed to modernise homes and meet the Government’s new Decent Homes Standard by the target date of 2010. 

The Government accepted the Council’s bid for additional ALMO funding and made a conditional allocation covering the first two years of £64million.  We only received that £64million when we got 2 stars in the Best Value inspection in February 2005. 

Now we have to carry on doing well in Government spending reviews to get hold of more funding.  But the Government is committed to ALMOs and we are confident that they will give us sufficient funding to enable us to deliver the improvements that your homes need.

Will I have to move because of Your Homes Newcastle?

No! The Council is still your landlord and you keep your Secure Tenancy.  You still have all the same rights.  You still keep your:

• Right to Buy
• Right to Rent to Mortgage
• Right of Succession
• Right to Transfer and Exchange
• Right to Sub-let or take in lodgers
• Right to Repair
• Right to Carry Out Improvements
• Right to be Consulted
• Right to Information
• Right to Manage

Will I still have a Right to Buy Discount?

Discounts built up over the years will not change.  You will still continue to accumulate discount.

Can I still pass on my home?

The same rules governing passing on a tenants home still apply.

Have I lost any of my tenant rights?

No, you haven’t.

What is to stop you changing my tenant rights in the future?

We are not your landlord.  The Council is still your landlord and your tenancy agreement is still with them.  Only they can change your tenancy agreement after consultation - there is no change!

What about new tenants?

New tenants will be treated exactly the same as before.  They will become new tenants of the Council.

Who will tell me how much rent I pay?

We do not set the amount of rent you pay, the Council still does that.  The Government has set new rules for how rents for tenants of social landlords are to be set.  Social landlords include Councils.  These new rules, which came into effect in 2002, are designed so that a similar rent is paid for a similar property, no matter who the landlord is, Council or housing association.  These rules will still apply because the Council still owns your home.

Will I pay extra rent for improvements?

The Government has said social landlords must use value of the property as part of the calculation for setting the amount of rent you pay.  Some improvements may increase the property value and might therefore lead to a small increase in rent.  But remember this is for the Council to decide, not us, and it has strict rules to stick to.

Can I still claim Housing Benefit?

Yes you can.  You still apply to the the Council and the Council will continue to make the payments. 

I’m a leaseholder, what about me?

You have your own set of rights which are set out in your lease.  We will not affect these rights.  The Council will continue to hold the leases on the same terms and conditions.

What about service charges for tenants?

The Government has introduced new guidelines on how service charges must be worked out for social landlords including the Council.  Service charges typically cover things such as warden services, communal cleaning and lighting, caretaking and so on.  The existence of Your Homes Newcastle does not affect service charges.

What has happened to services such as Community Alarm System, Sheltered Schemes, and the Concierge service that the Council provided?

These services are still available and delivered to tenants in the same way as they were before.