the housing corporation's chief executive has spelled out the stiff new challenges that housing associations are to face if they want to get approved development grant next year.
The corporation is just weeks away from a formal consultation on reducing the number of registered social landlords allocated ADP.

The move could mean as few as 80 RSLs get nearly all of the grant, likely to be about £1.4bn for 2004/05.

Associations wanting to become the corporation's development partners in 2004/5 will have to:

  • provide a full 30-year financial viability plan, instead of the current five-year option
  • provide monthly performance reports
  • run the full gamut of inspections up front – they are normally spread over a five-year period.

Norman Perry told the National Housing Federation's East Midlands annual general meeting last Thursday: "We want to know how many homes they've built, their track record. Have they the capacity to take this on?"

He added: "A lot of what we're saying on this will be uncomfortable. If it's not, then I'd suggest you're not reading it properly."

Some associations are worried about how the move squares with the idea of "lighter touch" regulation.

Brendan Sarsfield, chief executive of New Islington & Hackney Housing Association, said: "The principal is fine, but this type of thing has been tried before and it breaks down.

"At some point the pressure for units becomes the main driving force and they lose interest in the quality of the services."

The proposal is conditional on the approval of housing minister Keith Hill after the consultation period.

Jim Coulter, chief executive of the NHF said: "Whether regulation is tough is less important than whether it is right. This is what we're looking for the corporation to get right."

Source

Housing Today