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Rochdale’s Mutual Housing Transfer – a new form of community ownership

Rochdale’s Mutual Housing Transfer – a new form of community ownership. Gareth Swarbrick, Chief Executive, RBH 14 July 2012. A Reminder. 13,700 homes on 50+ estates Arms Length Management (ALMO) since 2002 Employing c600 people – predominantly local

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Rochdale’s Mutual Housing Transfer – a new form of community ownership

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  1. Rochdale’s Mutual Housing Transfer – a new form of community ownership Gareth Swarbrick, Chief Executive, RBH 14 July 2012

  2. A Reminder 13,700 homes on 50+ estates Arms Length Management (ALMO) since 2002 Employing c600 people – predominantly local High tenant and employee satisfaction rates Not just focused on “bricks and mortar” core services Commission set up in 2009 to look at future options Commission recommended stock transfer to new mutual in December 2010

  3. The new mutual RBH – the starting-point People • The community served by RBH • Those who work for RBH

  4. Rochdale people – what do they need? • Secure and decent home to live in • Access to warmth and essential services • A safe environment • Ability to look after their own health and well-being • Opportunity to learn and be trained • Jobs and work • Tenants need these things, so do many staff, 85% of whom live locally

  5. Rochdale people – willing to take more responsibility • Tenants • 81% satisfied with service but only 58% satisfied with opportunities to participate in decision-making • Employees - 86% satisfied with RBH as employer but other survey results show a desire to take more responsibility

  6. The vision Co-ownership - tenants and employees as members Culture change Co-production - shared priorities - working together

  7. The significance of the new model • First model to bring together tenants and employees as members • Moves away from traditional stock transfer ownership model – no Council stake from 2013 onwards • Moves away from traditional stock transfer governance model • Detailed rules developed together by elected tenants and employees • Have drawn on learning from other sectors - health, leisure, co-operative retail societies, etc.

  8. The governancemodel Members (tenants and employees) Partner organisations Representative Body Board of Directors (Executive and non-executive)

  9. Democratic arrangements • Tenant and employee membership • Separate constituencies • Open and voluntary membership • Representative Body • 15 tenants, elected by tenants • 3 tenant management organisation representatives • 8 employees, elected by employees • 4 Council representatives (initially 2) • 3 representatives of stakeholder organisations • Representative Body appoints Non Executive Directors to the Board

  10. Board of directors • 6 non-executive directors (of which one = chair) • To fit skills and experience criteria • Appointed/removed by Representative Body • Until 2017: Council appoints/removes 2 non-executive directors, to fit same criteria • 2 executive directors, appointed/removed by non-executive directors

  11. Rationale for this approach • Membership – a direct means of engaging tenants and staff proactively in influencing RBH, basis of ownership • Representative Body designed as a forum in which key voices can be heard: tenants, staff, Council • Main role: to set policy framework within which Board of Directors operates, develop future plans, links to members • Recognises widening role – financial inclusion, energy, ageing population, training and employment, young people • Board members (incl. Executives) directly accountable to Representative Body and Members • Framework to support new/different way of working – a new culture based on collaboration

  12. Current position December 2011 - tenants voted in favour of transfer – 76% vote Yes Transfer completed - 26 March 2012 Stage 1 rules - provision to open up membership Stage 2 Mutual rules - developed by tenants and employees – part of transfer agreement Nearly 2,300 members to date Contested elections to Representative Body have taken place Full mutualisation by 26 June 2013

  13. Reflectionson Rochdale The co-operative/mutual approach resonates with Rochdale people Membership “feels” different to people than tenant involvement Both tenants and employees need “a voice” in governance Membership builds this into the fabric of the organisation Tenants and employees share much of the same agenda and can work together co-operatively We have developed lots of momentum – we need to build on this The next 12 months are critical

  14. Reflectionsin general The housing market has fundamentally changed – what will the housing market of the next 25 years look like? Rental will play a much bigger role – what will be the role of co-ops and mutuals in this? Elderly care and social care – a need for increased mutual support There needs a more mature and constructive debate about the role of co-ops and mutuals Co-ops and mutuals create a different kind of ownership – more progressive than traditional capital ownership Co-ops and mutuals create a community of ownership – with tenants and employees as actors rather than passive observers

  15. Questions and discussionFor further information, contact:gareth.swarbrick@rbh.org.uk

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