Council Bids To Relaunch HRA To Tackle Homelessness

An East of England council is set to become the latest to reopen its Housing Revenue Account (HRA) as part of its plans to build hundreds of new homes and tackle its homelessness problem. Peterborough City Council is asking its cabinet members to approve the proposal after a 56% jump in people declaring themselves homeless in the past year. It comes after the government last year announced a move to lift the HRA cap that was introduced in 2012. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/council-bids-to-relaunch-hra-to-tackle-homelessness-63269?utm_source=Housing60&utm_medium=email&utm_content=article_link&utm_campaign=H60

Closing ALMOs Produces Mixed Results For Housing Services

The number of ALMOs has halved over the past decade, with a number of high-profile closures in the past two years. Local authorities often cite efficiency savings and performance improvements as reasons for taking the service back in house, but Inside Housing’s research suggests the picture is mixed. While some authorities saw improvements in areas such as tenant satisfaction, Housing Revenue Account (HRA) finances and re-let times for empty homes after shutting down their ALMOs, others have seen declines in performance. Read more on Inside Housing.

https://www.insidehousing.co.uk/insight/insight/almo-closures-how-are-they-affecting-services-60071

HRA Rulebook Reviewed As Councils Raid Budgets

The government is to re-write its rulebook on council housing finance after an Inside Housing investigation uncovered evidence of widespread raids on maintenance budgets. The analysis of 115 council landlords’ financials unearthed an armoury of tactics employed by authorities to shore up other cash-strapped council services with rents and welfare benefits from housing revenue accounts, which are supposed to be ring-fenced. A spokesperson for the CLG said it was ‘absolutely clear that the ring-fenced HRA is not to be used to supplement the general fund’. Ministers had ‘powers to direct a council to return money to the HRA if evidence of its abuse merits it,’ she added. In the past weeks, officials have revived a major review of the 19-year-old housing finance rulebook which defines legitimate charges on the HRA, Inside Housing understands. Read more on Inside Housing.

Councils’ £35m Raid on Rents

Government launches investigation as three councils transfer housing revenue account cash into their general funds.  The government has launched an investigation into a spate of multi-million pound cash transfers in which councils have raided their rent accounts to prop up their ailing general funds. At least three authorities called urgent meetings last month to sign off shifting sums totalling £34.5 million out of their housing revenue accounts. Councillors in Manchester, Oxford and Dover rubber-stamped the transfers on the recommendation of officers and following advice from consultancy Capita.  Read more on Inside Housing.

Councils' Raids on Tenant Rent Accounts

Councils are drawing millions of pounds from their tenants’ rent account to fund support services for the government’s controversial welfare cuts and prop up their falling budgets.  The social tenant rent raid is revealed by LGC research into 13 councils’ housing revenue account business plans for 2013-14.  These show authorities across England are switching the cost of buildings and services such as libraries, community centres and street lighting from their general funds to the HRA. Almost £5m of these so-called ‘savings’ have been made by just five councils found to be carrying out such transfers. In the most significant shift, Portsmouth City Council predicts it will save £2.1m from its general fund over the next three years by shifting costs linked to libraries, youth clubs, a community centre and car parks to the HRA.  Read more on the Local Government Chronicle website.

Council to Use HRA Funds to Limit Bedroom Tax

A council has got permission from the housing minister to use money from rental income to set up a £420,000 fund to support tenants affected by welfare cuts.  Swindon is planning to use money from its housing revenue account to set up an ‘emergency fund’ for tenants hit by the ‘bedroom tax’ social housing under-occupation penalty.  Normally HRA funds can only be spent on housing, so the council has had to get housing minister Mark Prisk to approve the proposal.  Read more on Inside Housing.