Islington Housing PFI 
Questions and Answers
	
Q	Does the Council have the funding necessary to deal with the backlog of disrepair in Islington’s street properties, to refurbish and maintain street properties and to improve council tenants homes in street properties?
	
A	Whilst the Council has received resources for its ALMO the high costs of repairs for many of its street properties would involve funds above those normally allocated by Government to ALMOs.  The Council has however secured resources to support the PFI scheme to regenerate their homes.
	
Q	Can the Council obtain the necessary level of funding from the Government to deal with the backlog of disrepair in Islington’s street properties, to refurbish and maintain street properties and to improve council tenants homes in street properties other than through PFI?
	
A	No.  There is no other source of funding from the Government of the level necessary to resolve the problems of disrepair of street properties and secure their future ongoing maintenance, including bringing and keeping street property homes up to the Government’s new Decent Homes standards.
	
Q	Will the Council be able to borrow the money directly in the future to deal with the backlog of disrepair in Islington’s street properties, to refurbish and maintain street properties and to improve council tenants homes in street properties and not have to undertake a PFI scheme?
	
A	No.  Not under any existing proposals.  There are proposals by the Government for councils to be allowed to borrow money directly for investment in council housing through ALMOs (Arms Length Management Organisations).  However the Government’s proposals are qualified, limited and would not enable Islington Council to obtain the amount of money necessary to deal with the backlog of disrepair in Islington’s street properties and to refurbish and maintain street properties.
	
Q	Why does the Council need PFI?  Isn’t the ALMO supposed to be bringing us more money for repairs?
	
A	Islington Council estimates the backlog of major repairs to its Council housing to add up to more than £400m.  Street properties are generally in the poorest condition and need proportionately more money spent on them than estate properties.  The Council estimates that it can only afford to pay for about half of its repairs backlog over the next 30 years.  PFI brings additional funds into the Council’s housing stock that would not otherwise happen.

The establishment of Homes For Islington, the ALMO (Arms Length Management Organisation), will also bring greater investment into Council stock.  But the PFI scheme is actually due to deliver more money per property than the ALMO.  Given the greater degree of disrepair in street properties, this makes it a better deal for residents.  The Council considers that PFI provides the best option.  It provides additional investment, value for money, and Council housing stays Council housing.
	
Q	Will council tenants keep the Right To Buy and Right To Manage (start a TMO) under PFI?
	
A	Yes.  Council housing remains council housing and council tenants remain council tenants under a PFI scheme.  There is no change in the status or rights of council tenants including Right To Buy and the Right To Manage (to start a TMO – Tenant Management Organisation).
	
Q	What will PFI do for council tenants and leaseholders in street properties that cannot be achieved by the Council alone or through a TMO (Tenant Management Organisation) outside PFI?
	
A	The Council secures substantial additional funding from the Government and substantial funding through PFI to secure the long-term investment necessary to deal with backlog of disrepair and to refurbish street properties and to improve tenants council homes in street properties to set standards, including the Government’s new Decent Homes standards.  The additional Government funding and funding through PFI for street properties is not available to the Council or a TMO outside PFI.  Neither the Council nor a TMO on their own can secure the long-term investment and funding needed for the future maintenance and refurbishment of street properties.
	
Q	Is PFI the best means of refurbishing and maintaining Islington’s street properties and improving council tenants street property homes?
	
A	Yes.  It is the Council’s view that PFI is the best and indeed the only available practical and constructive proposal to secure the investment necessary to deal with the backlog of disrepair in Islington’s street properties, to refurbish and maintain street properties and to improve council tenants homes in street properties.  PFI will secure the long-term future of Islington’s street properties for the benefit of present and future council tenants and for the benefit of all Islington’s residents.
	
Q	Who will monitor the contractor and make sure the PFI contractor delivers?

A	Homes For Islington has established a PFI Contract Management Team that will have the role of monitoring the contractor’s performance.  This Team will ensure that properties and council dwellings are maintained to the set standards and that services to tenants and leaseholders are delivered to set standards.  They will monitor the contractor’s performance across all services including tenant and leaseholder complaints.

Professional property surveyors will also advise Homes For Islington as to whether or not properties and dwellings are meeting the physical standards of repair, refurbishment and improvement set out in the contract.  Homes For Islington and the Contractor will also have a proper and effective dispute resolution procedure to avoid them getting ‘locked into’ adversarial positions which helps no one.

There will also be a PFI Contract Forum involving tenants and leaseholders, with Homes For Islington and the Contractor.  The Contract Forum will be a means of bringing tenants and leaseholders together with Homes For Islington and the Contractor to ensure open reporting and monitoring of the Contractor’s performance, providing accountability of both the Contractor and the Council to residents and be a way of ensuring that there is an effective communication between tenants, leaseholders, the Contractor and the Council.
	
Q	Will tenants end up paying a higher rent under PFI?

A	No, tenants will not pay a higher rent because of PFI.

The Council will continue to set the rents for tenants who occupy housing managed by the PFI Contractor.  Rents will be set in the same way as for other council tenants.  The Council is not permitted by Government to set rents differently for PFI affected council tenants.
	
Q	Why does the PFI contract have to be for so long?

A	A long-term contract enables the PFI Contractor to borrow the money needed to repair, refurbish and improve street properties and council dwellings and allows the Council to make affordable payments to the Contractor for its investment and services over the contract term.

A long-term contract should enable the Council and the Contractor to develop a good working relationship that should be reflected in better services to tenants and leaseholders.
	
Q	What are the criteria for properties and dwellings being in the PFI scheme?

A	The Council’s two proposed housing PFI schemes are street property schemes.  All the properties are street properties which were built prior to 1919 and are up to 200 years old; were largely built as individual houses with most, though not all, having been converted into flats and all converted properties contain at least one rented council flat.

The Council is focusing on street properties for PFI investment because street properties are generally in the poorest condition and need proportionally more money spent on them than estate properties.
	
Q	Who decides what repairs get done – the Council or the PFI Contractor?

A	The Contractor will be required to meet the requirements of the Council, which will be specified in the contract.  These requirements will be detailed in the contract and will be agreed by the contractor.  The Contractor will deliver individual repairs in accordance with the Council’s contractual requirements and standards.
	
Q	What does the Contractor get out of PFI?

A	The Contractor will get a guaranteed income over the life of the contract, subject to meeting the Council’s performance standards.  The Contractor will not have to become involved in re-tendering every three or five years.  Such a guaranteed long-term income stream provides financial security to a contractor and makes PFI attractive to the private sector.