Arms Length Management Organisation
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Arms Length Management Organisation (ALMO) is a UK not-for-profit company set up by a local authority to manage and improve all or part of its housing stock.
A Tenant Management Organisation (TMO) is broadly the same as an ALMO, except that the board is made up of tenants, whereas an ALMO's board is usually made up of about one third tenants, one third local authority nominees and one third independent members. In addition, a TMO is set up by tenants rather than the local authority and it is not normally owned by the council, like an ALMO.
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[edit] Ownership
The company is owned by the local authority and operates under the terms of a management agreement between the authority and the ALMO. An ALMO is managed by an (often unpaid) board of directors which includes tenants, local authority nominees and independent members.
[edit] Establishment
Establishment of an ALMO will separate the day to day housing management role of the landlord from the wider strategic housing role of the local authority. However, the local authority retains ownership of the housing and tenants remain secure tenants of the local authority. Ministers will not give consent to the establishment of an ALMO without clear evidence that the council has consulted its tenants and leaseholders and can demonstrate a balance of support from them for the ALMO proposal.
[edit] Initiatives
Through the ALMO Programme, the Department for Communities and Local Government (DCLG) offers additional resources towards the cost of achieving the Decent Homes target to councils who set up ALMOs that are assessed as 2* (good) or 3* (excellent) on inspection by the Housing Inspectorate (which is part of the Audit Commission).
Since ALMOs are non-profit organisations which can receive extra funding from the government, depending on performance, cost cuts are inevitable which have been recently reflected in changes for their employees. The conditions and pay for their staff is much lower than in the private sector this has lead to a high level of staff turnover. They also have yet to achieve significant improvements in housing conditions for their members and the effectiveness and efficiency of this type of management structure in the social housing sector is still unproven.
[edit] Tax Status
There is some uncertainty over the tax status of an ALMO, since it will not benefit from the same tax exemptions as a local authority. KPMG have agreed with HM Revenue & Customs that provided ALMOs meet certain conditions, they will view activities between the ALMO and the local authority as a non-trading activity, and so any profit arising will not be taxable.
[edit] List of housing ALMO/TMOs
- Ashfield Homes Ltd
- Berneslai Homes
- Belle Isle Tenant Management Organisation
- Blyth Valley Housing Ltd
- Bolton at Home
- Brent Housing Partnership
- Carrick Housing Ltd
- Cheltenham Borough Homes
- CityWest Homes
- Colchester Borough Homes
- Derby Homes Ltd
- First Choice Homes Oldham
- Hillingdon Homes
- Homes for Islington
- Hounslow Homes
- Kensington & Chelsea TMO
- Kirklees Neighbourhood Housing
- Leeds West Homes
- Leeds East Homes
- Leeds North East Homes
- Leeds North West Homes
- Leeds South East Homes
- Leeds South Homes
- New Prospect
- Rochdale Boroughwide Housing
- South Acton TMO
- Tristar Homes Ltd
- Waltham Forest ALMO; Ascham Homes
- Wigan & Leigh Housing
- Your Homes Newcastle
