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National NewsTaking stockALMOs across the country are facing up to the tougher spending environment after thegovernment's comprehensive spending review (CSR).So what were the mainimplications of the spending review,announced last autumn, for ALMOs?The good news is that the DecentHomes programme will continue, withthe government committing £2.1billion over four years to completingthe programme and halving thebacklog by 2015. In reality, after gapfunding for stock transfers and localauthorities is taken into account, thisfigure shrinks to £1.6 billion,significantly short of the £2.2 billionthe NFA had called for.Other major headlines of the CSRinclude a cut in the capital budget for theNational Affordable Housing Programme(NAHP) from £8.4 billion over the last threeyears to £4.4 billion over the next four years,which the government claims will enablethe delivery of up to 150,000 new“affordable homes” over the spendingreview period. This will not include anyfunding for new social rented homes butinstead introduces a new affordable rentregime, set at up to 80 per cent of marketrents, or Low Cost Home Ownership if thelatter can demonstrate good value formoney.The details of these models have yetto be announced, with the Homes andCommunities Agency due to produce thenew bidding framework shortly.However, indications are that ALMOswill be able to bid into the NAHP, but will becompeting with housing associations onvalue for money under the new regime. Inthis context how any borrowing undertakenby the ALMO is taken account of and theamount of grant required to build the newhomes will be critical in negotiations withthe HCA. Developing ALMOs across thecountry are keen to continue to deliver newhomes for their local communities and areworking hard to find innovative ways inwhich to do that.The government also announced thatit would protect investment in theHomelessness Grant (which will stay at itscurrent level) and the Disabled FacilitiesGrant. But additional cuts to welfare benefitswere also announced that the NFA isconcerned will penalise those in long-termunemployment without taking into accountthe personal circumstances of tenants thatcould be preventing them from finding work.Despite the spending cuts, the NFA hashighlighted the efforts made by many of itsmembers to analyse properly wherespending cuts should be made, to involvetheir tenants in important financial decisionmaking,and ultimately to minimise theimpact of the CSR on the lives of tenantsand future of social housing. This sort ofactivity also sits perfectly within thegovernment’s localism agenda and isprecisely how the NFA views effectivecollaboration between ALMOs and theirtenants, no matter what the economicclimate.Salix Homes is one of those leading theway in consulting with tenants on servicedelivery, having recently won a UK HousingAward for its customer senate (see page 4).Many ALMOs use tenant review panels toensure that their services are performing aseffectively and efficiently as possible.Homes for Islington tenants, for example,have even been involved in selectingcontractors, with decisions based on qualityand value for money, to deliver a range ofservices to their properties. Others areeffectively handing over community pursestrings to their residents by allowing them tovote on which services and initiatives aremost deserving of funding, and how to savemoney. Consultation surveys, like the onedistributed by Barnet Homes inside itsregular tenant newsletter, are anothereffective way of giving residents a say onhow budgets are spent.For more on what specific ALMOs aredoing to consult with their tenants, turn topages 6 and 7.Long-term partnersIn this issue of ALMOs in Action, we put the spotlight on ALMOs who have successfully secured theirfuture with extensions to their management agreements.Cheltenham Borough Homes had itsagreement extended in 2009 for theperiod 2010-2020, making it one of thelongest in the sector. The ALMO hasattributed this success to the continualimprovement of performance and tenantsatisfaction levels; the completion ofDecent Homes works two years ahead ofgovernment targets; its award of threestars with excellent prospects by the AuditCommission in 2009, and its efforts inbuilding stronger and safer communities.Paul Davies, chief executive atCheltenham Borough Homes, said: “Wewere delighted to have our managementagreement extended for a further tenyears. For our first seven years we haveshown that we have had an impact waybeyond the management and repair ofcouncil housing and are actively improvingquality of life for our residents by buildingsustainable communities with a brightfuture where our tenants want to live andwork.“The security this ten-year agreementgives us, has allowed us to plan for anddeliver even better services and positivechanges for our tenants and thecommunity. In recognition of our excellentservices and prospects we have been ableto attract £3.4 million in HCA fundingwhich is making it possible for us to buildour first new affordable homes.”Derby Homes, meanwhile, has had anextension to its management agreementapproved by Derby City Council for theperiod 2012-2022, dependent onconsultation. The council asked all tenantsand leaseholders whether or not theyagreed with this proposal and 90 per centof residents supported the plans. The finaldecision of the council to award thecontract is expected in March 2011.One of the first ALMOs to launch in2002, Derby Homes today manages anddelivers vital services to 14,200 rentedand leasehold homes across the city.Derby Homes completed its DecentHomes programme in 2006. According tochief executive Phil Davies, councilhousing is now the rented housing ofchoice in the city.He said: “I’m delighted that tenantsand leaseholders have overwhelminglysupported the council’s decision to awardus a further ten-year contract. The boardtook the lead and although fullycommitted to Derby Homes continuing itswork, asked for an independent report byhousing experts Rachel Terry and JohnPerry which gave them the confidence topush for a new contract. We have a soundrecord of performance and takinginitiatives, such as building some of thefirst ALMO-owned houses in the country.But the most important factor in oursuccess has been the support of ourtenants, who want to continue having adirect say over the services they receivethrough their ALMO.”2 | ALMOs in Action