Salford Council tenants voted to transfer their homes to a new housing association rather than remain with the existing ALMO, New Prospect Housing. The City Council is, therefore, likely to become the first council to transfer its homes from a failing arm's-length management organisation to a housing association.
As a result of the vote, New Prospect Housing will now be wound down. Staff will be transferred to City West Housing Trust, which is taking over 14,500 of Salford's homes, or to another ALMO - Salix, which has already taken over the management of a further 10,600 homes.
The vote brought to an end a long-running sequence of events, which started after an Audit Commission inspection found that New Prospect Housing was a 'one-star organisation with uncertain prospects for improvement'. ALMOs have to achieve a 'two-star' rating to access government funding to make their homes decent.
Almost 73% of the 9,322 tenants who voted said that they wanted to transfer their homes. There was a 53.3% turnout. The housing association has pledged to spend £640 million on improving the housing stock.
Troubled Black Roof Community Housing Association proposed transfer of all its homes to England's largest Vietnamese housing association. The Association has drawn up the alternative plan, following the Housing Corporation's announcement of its intention to tell Black Roof to transfer its land to ASRA Greater London Housing Association.
While the proposed transfer to ASRA Greater London is awaiting Government consent, Black Roof is exploring a different move that would see the land transferred to New World Housing Association, which manages around 240 homes across five London boroughs. Black Roof contends that the alternative proposal would lead to better local accountability to tenants.
The Corporation decided to transfer Black Roof's land after a statutory inquiry found there had been mismanagement of its affairs. The inquiry concluded that the management of its land would be improved if it were transferred to another housing association.
Lambeth Council was reported to be pressing ahead with controversial plan to set up an arm's-length management organisation - despite only 42% of residents voting in favour of the proposal. A rowdy council meeting saw the ruling Labour party quash opposition motions to ditch the plan.
The decision follows a letter by a tenant member of the shadow board set up to oversee the transition, which warned councillors the ALMO was 'doomed to failure'.
The Council came under fire in July for claiming that a majority of tenants supported its plans to set up an arm's-length management organisation. But the 51% figure quoted included 1,398 'don't know' votes, with only 42% voicing support.
The stock transfer programme in Scotland was clouded in confusion after Aberdeen Council was told to put a hold on its tenant ballot. Communities Scotland informed the Authority that it was not to put its proposal to transfer 9,000 of its 22,000 homes to a housing association to the vote. The move would help Aberdeen fund a £750 million regeneration project.
Communities Scotland has advised the Authority to delay the ballot until the Scottish Government sets out its spending and affordable housing plans. The letter offering this advice suggests that both of these matters may have a significant bearing upon the transfer plans, and for this reason it may be wise for the Council to avoid the expense and effort of further detailed preparation.
Aberdeen's application for stock transfer is the first to be decided by the Scottish National Party administration, which seized control of the Scottish Government in May this year.