ALMOs are initially inspected a minimum of six months after they become established.
ALMOs that receive 0 or 1 star ratings in their initial inspections do not qualify for ALMO funding. If the service was very close to 2 stars, it may be possible for the Housing Inspectorate to re-inspect after six months. If not, a later date will be needed and an ALMO may lose its place on the programme because it needs to reach 2 stars within two years of being granted s.27 consent (ministerial approval to delegate housing management functions under s.27 of Housing Act 1985). It could only then go ahead if it achieved a place on a subsequent ALMO programme.
If an ALMO receives a rating of 'good' (2 star) or 'excellent' (3 star) its funding allocation for the first two years of its works programme is confirmed. However, it will still be re-inspected between two and a half and three and a half years after publication of the initial inspection report.
These re-inspections will focus on the quality of service delivery and governance arrangements to provide assurances for ODPM, the local authority, the ALMO, tenants and the public generally that the required level of service provision is maintained.
If re-inspection reveals that an ALMO's performance has dipped below the 2 star standard, the ALMO will be put under review. The ALMO and its partner local authority will be expected to demonstrate how they will return the service to its previous standard within a period to be agreed with the Audit Commission, but not exceeding twelve months. The need for and timing of a further re-inspection will also be considered at that time.
If performance does not improve within the twelve months, ODPM will review the ALMO's position on the ALMO programme. Each case will be treated on its own merits, with options ranging from continued funding with supervision and support, to suspension of future tranches of funding. Suspension of funding will be a last resort, and will only happen where the support measures have not had a satisfactory impact on performance.
The full cost of re-inspections must be met by the ALMO and/or its local authority partner.