How we became an

Arms Length
Management Organisation

How we became an Arms Length Management Organisation
In 2001, Central Government set a target to ensure that all social housing would meet the Decent Homes standard by 2010. Councils needed to complete an options appraisal to assess how they might meet the standard. They were also encouraged to consider how a higher standard might be delivered.

• The options available were:
• No change (stay as we are)
• Arms Length Management Organisation
• Stock Transfer
• Private Finance Initiative

An Arms Length Management Organisation is a company owned by the Council. The company manages housing services to tenants and leaseholders under a management agreement with the Council. The Council retains ownership of the housing and the tenants remain tenants of the Council, although the ALMO undertakes the management and provision of services.

A stock transfer involves transfer of ownership of Council Housing to a registered social landlord (RSL - known as Housing Associations). An RSL owns and manages the tenancies.

A private finance initiative (pfi) involves using an existing private company to manage and invest in the tenancies over an agreed period (usually 25 to 30 years).

Doncaster began an options process in 2003. The process consisted of an analysis of each option and consultation with customers - through the Standing Joint Committee of the Doncaster Federation of Tenants and Residents Associations, the Tenants Commission, open meetings and road shows for all tenants, and questionnaires and newsletters to all tenants, leaseholders and waiting list applicants.

Consultation was also undertaken with members of staff, through newsletters and focus groups and with Members of the Council through reports and meetings.

It was decided that:

  • stay as we are was not an option because there would not be enough funding to deliver the decency standard in the required timeframe;
  • a pfi was not a borough-wide solution as it was only suited to small housing schemes;
  • an Arms Length Management organisation or stock transfer would attract sufficient government funding. Of the two options, the Arms Length Management organisation was the preferred option, based upon the outcome of the consultation.

The consultation continued during preparation for an ALMO (August 2004 to October 2005) so that St Leger Homes of Doncaster could make sure that the way in which the ALMO was set up and the way in which it operated reflected customer needs and views and took into account the views of staff and members.

St Leger Homes of Doncaster came into being on 1 October 2005 - with a series of celebratory events for customers and staff.

It is committed to providing improved services (2 star/3 star) and to accessing the funding to allow for the delivery of the Decency Standard and above.

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Doncaster Federation, The Haywood Room, Council House, College Road, Doncaster, South Yorkshire. DN1 3AJ
Tel: (01302) 737490 Fax: (01302) 341620   © Diogenese