Housing associations to be given second set of funding traffic lights

The only difference is that the red, amber and green will refer not to the now familiar performance assessment by the corporation, but to their status in the eyes of the “construction client charter”.

This is an assessment – administered by construction watchdog Constructing Excellence – that all associations have to pass if they wish to receive social housing grant from the quango.

The introduction of the traffic light system follows complaints from associations that have gained construction client charter status that the previous system was prone to delays and that the “consistency and realism” of the standards applied by assessors was an area for concern.

In a letter to housing associations dated 8 October from Peter Cunningham, director of Constructing Excellence, and seen by Housing Today, development teams are told that the new system will begin immediately and that they will be given an amber warning light if they are in danger of breaking the conditions of the charter.

To date no associations have had their charter status revoked, but concerns have been expressed by RSLs that if they put a foot wrong they could lose it in as little as two weeks.

The introduction of the traffic lights form part of a series of changes proposed by Constructing Excellence.

Andrew Drury, director at consultancy HATC, said: “These changes are good news for associations. It had been an antagonistic process and was ill-fitting with the more collaborative approach that is being encouraged in other areas.”

These include extending the period of the charter from one to two years; setting up a new housing association user group to cover feedback; and introducing a new standards and quality panel to oversee the changes.

Actions that could jeopardise an association’s client charter status include: failing to submit an adequate annual improvement plan or not meeting guidelines over partnering with suppliers.