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Oldham Council has agreed to convert its arm’s-length management organisation into a housing association to secure its financial future.
The council will transfer the ownership its 12,000 homes from First Choice Homes to the new social landlord, under proposals agreed by the town hall’s cabinet this week.
The move would represent the first time an authority has converted a successful ALMO into a housing association. First Choice Homes has been rated as having a good service which has promising prospects for improvement by government watchdog, the Audit Commission.
A review of Oldham’s housing service revealed that some ALMOs had received three times the £5,500 First Choice had received per property to carry out its refurbishment programme.
The transfer would have to be supported by tenants in a ballot.
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