ALMOs – the best local partners

Tom Bremner

Managing Director

A bit about BHP • Decent Homes achieved 2006, three star ALMO

• 12,500 council homes, 350 owned homes, 150 staff, simple structure (MD, FD, OD, DD)

• 10 year £80m ‘optimised’ management agreement;

• Co-locate with Brent council new model of local civic delivery in award-winning centre

A bit about Brent

• Budget cut in half between 2010 and 2017

• Flexible, transient, unequal demographics

• Diverse, housing crisis, large PRS

• Social housing enclaves

A bit about Brent

• Budget cut in half between 2010 and 2017

• Flexible, transient, unequal demographics

• Diverse, housing crisis, large PRS

• Social housing enclaves

Partnership

• Shifted from arms length to arm in arm – but never forgetting that the council is BHP’s sole shareholder…

• …nor that we have an independent-minded Board of directors

• Aspirational management agreement

– deliver the best outcomes for residents and support the

Council in meeting its objectives

– open up a range of opportunities that deliver mutual

gain for BHP, the Council, and the communities of Brent.

• New council with new manifesto

In practice

• Big change – new board, new chair, new MD, new structure

• Secure future, with much greater emphasis on collaboration

– Procurement – e.g. asset mgt, consultants, new build

– Shared services – e.g. E&D

– Joint clienting – e.g. public realm

• New opportunities – e.g. development and building council/affordable homes; PRS and lettings (35,000 homes, 15,000 landlords); training, employment and education

Delivery Combined asset management and new build delivery

• £150m 10 year contract with Wates Living Space for repairs, PM, and linked to new build framework – PPP model, with vision of every penny spent is an investment in people, places and property.

• Achieved through a robust market testing and tendering with residents and the council involved from the start and throughout.

• Giving back to the Brent community by creating 450 local jobs, 100 apprentices, 60 employment opportunities for unemployed local people, engaging with all 98 Brent schools.

• Saves £1m a year and invests an additional £1m a year into the local community – giving an extra £20m benefit for Brent over the 10 years.

The test of a good friendship… • Some challenges – contracts, leases, reputation and

a fatality

• Not an easy ride

• Transparency and taking it on the chin

• Turning it into a positive “Make a bad ting good”

The ingredients

• Customers are the key

• Passport to successful partnership is in delivery and relationships

• Trusting (but not ‘on trust’), and always evidence-based

• Close but not cosy – lots of levels

• Politically aware….but one step removed

• More than a managing agent

• Strong governance

• A constant dance

What we aren’t

• Off balance sheet (unless a distinct vehicle is created, which has implications)

• Independent – the Council under-writes everything

• Purely commercial

• A direct part of the Council

• Just a managing agent

• On a journey to stock transfer

• Outside the borough

What we are - our USPs • Local and connected

• The Council’s best partner

• Residents in charge

• Accountable and responsive

• Keep the assets

• Vehicle for change, innovation and solutions (without the need to tender)

• Trusted internal adviser