AN ORGANISATION that manages council housing appears likely to close after months of speculation over its future.

Redbridge Homes, whose former CEO Sharon Standell was sacked from her post in June, will close in July 2012 subject to a formal consultation of tenants and cabinet approval - saving nearly £400,000 a year, which will be reinvested into council housing or housing services according to tenants' priorities.

The Arms Length Management Organisation (ALMO) was set up in April 2007 to manage council housing, such as the Orchard estate in Woodford Green, under the then Labour government’s legislation which bids for repair funds had to be made through ALMOs.

They then had to secure a two-star inspection rating for their properties to access additional funds from the Government’s Decent Homes programme.

It is now to be dissolved because the Coalition government has abandoned this bidding structure, giving councils more direct control over and making them more accountable for their housing.

But board members were not involved in the decision-making process and expressed astonishment at the news.

Cllr Paul Canal, a Conservative board member, said: “I was surprised to learn about it in a press release [from the council] and I look forward to learning the rationale behind this decision to bring services back in-house.”

Redbridge Homes is currently considering cuts to jobs and services, including reductions in cleaning services and its resident engagement team but has secured £23 million funding for home improvements since its inauguration.

The council also considered maintaining the current service as it is while looking for any savings that could be made, sharing services with another local authority or ALMO, or moving all housing services under Redbridge Homes.

Cllr Robin Turbefield, cabinet member for housing, said, “While we believe tenants and leaseholders are receiving a good service, we have a responsibility to make sure all of our services are as efficient as possible and are constantly looking at ways to improve services.

“I would like to reassure tenants and leaseholders that this consultation process will not affect the day to day running of Redbridge Homes.”

The cabinet will receive a report recommending the closure in September and, if approved, consultation of tenants will begin immediately. A report on the consultation will go before them in January 2012, making a final recommendation.

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