The government is set to announce a financial plan to help black and minority ethnic RSLs cope with the new rent restructuring regime, Housing Today has learned.
According to one well-placed source, the extra money may be linked to the capital grants system. But others claimed the DTLR might establish a specific fund to help BME housing associations cope with the inflation plus 0.5 per cent rent increase caps.

As much as £20m could be made available.

BME associations could face hardship from restrictions on rent increases as they have traditionally charged higher rents and used larger properties than mainstream RSLs.

The issue was understood to have caused tension between DTLR officials and housing minister Lord Falconer, who was said to be keen on the fund.

One source said: "The DTLR is worried that if it creates a fund just for BMEs then they will have to do it for mainstream RSLs."

The news echoes the National Housing Federation's recommendations for helping BMEs reform their rents, made in response to DTLR consultation.

These included a capital injection fund of at least £7m to pay off historic debt and enable rent to be focused on service delivery or stock improvements. An Approved Development Programme fund dedicated to the provision of larger units and measures to improve access to cheaper loan funding were also suggested.

Owen Thompson, Croydon People's Housing Association's managing director, warned at last year's Federation of Black Housing Organisation's conference that it was important to recognise BME communities were not homogenous and were concentrated in specific areas.

He also criticised the system for failing to take regional differences into account (Housing Today, 29 November).

A DTLR spokesman confirmed that there would be an announcement on the issue in the "next few weeks".

Source

Housing Today