First TMO to apply for stock transfer under new regs

Patmos Area Community Conservation Association applied to Lambeth Council for a stock transfer last Friday, under new regulations forcing councils to co-opeate with tenant groups wishing to take ownership of their estates.

But it has emerged PACCA has been under supervision from the town hall since December, after the borough commissioned Pricewaterhouse Coopers to investigate the TMO’s finances due to concerns about its performance. The group had been planning to apply for transfer for months.

Aside from exceptional circumstances, Lambeth has no power to refuse the transfer but a council spokesperson confirmed it will not go ahead while the supervision order is in place.

The TMO – which manages 286 homes in the borough – has said it will challenge the council’s decision in the High Court. It is also planning legal action for defamation because of allegations in a council document.

The review is the first the council has ordered under regulations covering five TMOs in the borough. PACCA strongly denies any wrongdoing.

The supervision order will see Lambeth take over PACCA’s management duties for six months.

A spokesperson for PACCA said: ‘In response to this hostile act by Lambeth Council, PACCA’s management board has been left no option but to request an injunction [challenging the supervision order].’

A council spokesperson said: ‘The council closely monitors the performance of tenant management organisations, and when potential problems arise we act quickly to investigate and take appropriate action.’

Under regulations in force since December, tenant groups can apply for stock transfer. Bushbury Hill Estate Management Board in Wolverhampton was the first to have its proposal accepted. Friday Hill TMO in Waltham Forest, east London, is also on the verge of applying.