Supervision means England's largest RSL will not be among Corporation's favoured few
The boardroom row at Places for People has cost it a place among the Housing Corporation's elite development partners.

However, England's largest housing association is still free to makes its bid for approved development programme funding. It is expected to make a bid for £87m before the 5 December deadline.

The Housing Corporation "red light" for governance that Places for People earned in October precludes it from becoming a development partner under corporation rules (HT 17 October, page 7).

It will not be eligible for the long-term funding guarantees open to an elite group of associations with partnering status under the corporation's new method of allocating grant.

A Places for People spokesman said: "Our financial position remains as strong as ever and this decision by the Housing Corporation does not affect our ability to progress with current projects and partners."

The news caps a bad week for Places for People. On Monday tenants of the Tollington estate in Islington, north London, voted against the transfer of their 1530 homes to North British Housing, Places for People's largest subsidiary.

Almost 60% of the tenants and leaseholders who voted rejected the £140m plan that would see their estates regenerated. The turnout was around 69%.

Places for People estimated that the total cost of working up the proposals, including legal fees, extra staff and developing a masterplan, was £500,000.

Blame for the "no" has been attributed to the 583 demolitions proposed by NBH and to the governance crisis that hit Places for People in the run-up to the ballot.

Marta Paluch, a member of Tollington Against Privatisation, said:"We didn't need such drastic proposals, or the £140m. What we need is ongoing maintenance and improvements and that won't require as much money."

Steve Hitchens, leader of Islington council, said: "The governance issue didn't help to people's confidence. It's an emotional issue for tenants. Initial support for transfer disappeared after exposure to the debate."

Responsibility for Tollington's 1530 homes will now fall to Islington's arm's-length management organisation.

This has led to fears that the borough will face a shortfall in funding to meet the decent homes standard for its almost 40,000 homes. Islington's £156m ALMO allocation was based on the assumption that the transfer of Tollington would take place. Unless the government steps in with extra money, the £156m will have to pay for improvements to the Tollington estates as well.

Source

Housing Today