‘Feasibility and development’ is likely to be the longest stage in the development of a tenant management organisation (TMO). During this stage, your developing TMO will develop their knowledge and ideas of how to deliver housing management services for the homes set out in the study. Your TMO will develop a business plan that will allow it to negotiate an outline management agreement with your landlord. You must hold a ballot at the end of this stage that shows your plans have the support of a majority of tenants.
During this time your group will develop their skills to manage a TMO through targeted training. The Approved Assessor Service will allocate an approved assessor to the group to independently assess your group’s ability to manage.
The ballot at the end of this stage should take place no more than 15 months after the landlord accepts the right-to-manage notice. If at any point during the feasibility and development stage you expect that stage to take longer than 15 months, your group and the landlord can agree an extension. You must tell us if you do this, as this is likely to affect the grant we award you.
You can find more details on what activities your group must carry out during this stage, and advice on ballot arrangements in the booklets ‘Local Choice, Local Control’ and ‘Residents Choice’. There is a ‘knowledge map’ you can use to help your TMOs to work with the modular management agreement on the National Federation of TMOs website at www.nftmo.com (the modular management agreement is a template for the formal agreement you will sign with your landlord).
Funding
The Tenant Empowerment Programme will fund 75% (depending on whether the budget is available) of the cost of the application. Your group can claim the remaining 25% direct from your landlord.
There is no fixed amount of funding for this stage, so your application must be based on actual costs. Your group can only apply after the approved assessor has completed their initial assessment. We will base the grant on the training and development plan that you will have agreed with the assessor. We expect that your TMO will spend a significant proportion of the grant on training and development. We will assess proposals carefully to make sure that they offer value for money for the public purse.
Download the feasibility and development stage application form.
Who can apply for feasibility and development grant?
A feasibility and development grant is for developing TMOs who have given a right to manage notice to their local authority or, if the TMO has used the voluntary option, have a ‘statement of intent’ from their landlord.
We can only accept your TMO’s application for a feasibility and development grant if it has had an initial approved assessor assessment.
We can provide funding if your TMO is working with a lead advisor. If the lead advisor is eligible for Tenant Empowerment Programme (TEP) funding, we will pay the grant direct to them. If your TMO is incorporated (it is registered as a ‘Company Limited by Guarantee’ or an ‘Industrial and Provident Society’), we will pay the TEP grant direct to your TMO, which will use it to pay the costs of advice and training. We cannot pay grant direct to unincorporated groups.
Outcome of feasibility and development
At the end of this stage, your group will have:
- developed its ability to manage through training and development activities
- kept residents informed of the group’s progress
- given residents opportunities to be involved in the group’s activities, and
- been independently assessed through the Approved Assessor Service to find out whether you are able to manage your services.
If the assessment is successful, your group will work with your landlord to put an ‘offer’ to all tenants. The landlord will then carry out a ballot to see if the wider community supports your offer. If the ballot is successful, your group will move closer to becoming a fully operational TMO.
If the ballot is unsuccessful, your group may consider using another option.
Main output of feasibility and development
By the end of the feasibility and development stage your group, if successful, will have:
- been successfully assessed as able to take on the management of the housing services which are part of the ‘Modular Management Agreement’
- produced an ‘offer’ document setting out your management proposals for tenants to vote on; and
- held a ballot to show your plans have the support of a majority of tenants.