Council plans to turn housing provider into a mutual

Rochdale Council is planning to transfer all its housing stock to Rochdale Boroughwide Housing (RBH) on the condition that RBH then converts into a mutual housing association.

Councillors have approved an initial report and consultation with residents has begun.

A report presented to the Council said: “The preferred option for the Council is to transfer its housing stock to Rochdale Boroughwide Housing (RBH) on condition that it would be converted from an Arms Length Management Organisation (ALMO) into a housing association registered with the Tenant Services Authority (“a Registered Provider” or “RP”) before transfer;

“In principle RBH convert into a mutual housing organisation as set out in this report and authorise the Council’s officers and advisers to continue to develop the detail of the mutual model with RBH and its advisers to ensure that this is in the best interests of the Council, RBH and Rochdale.”

The plans are subject to negotiations between the council and RBH and the Department for Communities and Local Government (CLG).

The Council will now develop an “offer” to tenants and consult with the tenants and leaseholders on the transfer proposal.

The first tenants’ conference was held on Saturday (9 April 2011).

RBH and the Council officers are in the process of developing the detail of the mutual model which will be brought presented at a Cabinet meeting for approval later this year and will form part of the “offer” to tenants if transfer is approved.

The conclusion of an Investment and Involvement Commission worked to find the best housing stock options available to the Council.

The commission made the following recommendation:

“Rochdale MBC and its partners pursue transferring the Council’s housing stock to a new mutual organisation, co-owned by tenants and employees. The Commission believes that this is the best way of ensuring the long-term financial sustainability of the housing stock while giving both tenants and employees a stronger sense of ownership in providing a high quality housing service in the future.”

As yet, no final decision or offer with respect to transfer has been made by CLG, though this is expected in the near future.

Tenants will be balloted on the proposals in the autumn.