In the murky world of public private partnerships, the Arms Length Management Organisation (ALMO) is emerging as a shining light A report by the Audit Commission last month hailed ALMOs as "an exciting new option" for councils. "ALMOs are not only about decent homes," says chairman James Strachan, "they are a new way of working. Well-managed ALMOs can be a catalyst for improved services and better tenant involvement." And yet, when the government launched its grand plan to bring all of Britain's four million council homes up to the decent homes standard (DHS) at the turn of the millennium, it did not envisage ALMOs playing a significant role. The intention was for most local authorities to use either large-scale voluntary transfers (LSVTs) or the private finance initiative (PFI). But the former have proved unpopular because the council signs away ownership of the housing to a democratically unaccountable housing association, and in a number of high profile cases, notably Birmingham, tenants have voted against the transfer. PFI meanwhile, has proved a difficult model to adapt to the social housing market, with half of the eight original pathfinders still not closed.
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