§ Mr. Austin MitchellTo ask the Deputy Prime Minister what conditions must be fulfilled before a council may apply to transfer management of its housing stock to an arm's length management organisation; and whether the council is required to demonstrate that it is performing to the Government's satisfaction. [172283]
§ Keith HillA local authority requires the approval of the Secretary of State, my right hon. Friend the Deputy Prime Minister under section 27 of the Housing Act 1985 to enter into an agreement for its housing stock to be managed by an Arm's Length Management Organisation (ALMO). The criteria for approval are set out in "Guidance on Arms Length Management of local authority housing" issued by the Office of the Deputy Prime Minister in March 2003. The performance of the local authority is not a relevant criterion, though the performance of the ALMO must be rated at least 2* (good) by the Housing Inspectorate to qualify for additional funding.