Yesterday, 13,700 homes in Rochdale were transferred into a brand new form of mutual ownership.
Rochdale Boroughwide Housing is owned by its tenants and employees. It will have a board of directors including two executive directors and six non-executives selected for their skills and experience. It will have a democratic body mainly comprising elected tenants and employees. And it is borrowing £120m from the banks.
The first big novelty is the democratic or representative body. This will help to shape the strategy and policy framework and work with the board on developing the business plan. Tenants and employees are permanently embedded in the process of planning the future, monitoring the present and learning from the past. Working with others appointed to the representative body by the council and other statutory, voluntary and community bodies, it is a forum for absorbing a range of views and interests, and working out what is best for this community.
The second big novelty is combining tenant and employee ownership. People ask us – don't they have conflicting interests? Over 90% of employees live in Rochdale so there is a really strong commitment to place. The way RBH delivers services to 13,700 homes has a major impact on the prosperity of our neighbourhoods and the success of the borough as a whole. Tenants and employees 'get it' straight away – their priorities are fundamentally the same – thriving neighbourhoods and a strong business delivering excellent services to communities. As soon as tenants and employees sit together in a room to work out solutions and approaches there is a clear sense that they are stronger together; and they are making good decisions.
Anyone who has been through a housing stock transfer or set up a spin out business from the public sector will tell you it is not a simple process. Blazing a trail with a brand new model means more scrutiny from regulators and funders and the need to develop new governance arrangements. However, Rochdale is the proud home of the Co-op Pioneers and from talking to tenants on their doorstep in the run up to a transfer ballot, and from the comments from our first members it is clear there is an immediate connection with a pioneering and democratic approach; taking strong principles and developing them to meet present day challenges. Tenants and employees know the neighbourhoods we work in and understand the issues. Tapping in to this local knowledge and experience means we are starting to better tailor approaches to what is needed.
But what's in it for members?
As a housing charity there can be no financial dividend for members. And as our first members have started to get together to develop a membership package it is not financial rewards or incentives that are top of their list. Discussion has focussed on the key areas of voice, information and representation and how these translate into day to day activities, member engagement, and influence. Over 400 have joined RBH as members already, even before the transfer took place and before any major recruitment drive. They want to be involved.
Over 100 employees have already been involved directly in volunteer groups to help shape the mutual RBH – housing officers, enforcement officers, electricians, sheltered wardens, accountants and surveyors, working to develop a new organisation structure, progressing the legal and regulatory work or looking at how we use the mutual to maximise positive impact on energy and sustainability or support employment and training opportunities.
An elected tenant and employee Constitutional Commission has grappled with detailed legal and governance issues to produce our new constitution - and worked through a huge amount of detail and questions from funders and from the council. The Commission has worked collaboratively to meet these challenges and make key decisions about the future shape of the organisation and to lock mutual principles into the heart of our new governance structures.
But these successes don't begin to describe the tangible sense of pride, strength and determination that emanate from these meetings, the shared commitment of tenants and employees to delivering the very best for the new RBH. As Commission member Andrew Johnson commented, "if you are a member of something you care about it more than if you are not".
This is just the starting point for mutual decision making and involvement and provides a powerful and inspiring example of how tenants and employees will work together to meet the challenges ahead. First is delivering on key promises made to tenants, including physical home and neighbourhood improvements as well as ambitious plans to use the mutual model as a way of supporting older people in local communities and assisting tenants and their families into training and employment.
From our work so far we know there is untapped potential for our employees and communities to support each other. The mutual is driving new ways to look at how we improve services to our neighbourhoods. Joint tenant and employee working have generated an energy and enthusiasm for building on the best ideas out there and developing what works best for Rochdale
The engagement we have seen as we have been through the transfer process shows the difference that is made when changes are shaped by those who understand how they impact in different ways, not just the usual technical experts, but the new ideas, fresh thinking and experiences of those who will be part of the changes. We are confident that placing tenants and employees at the heart of the new RBH will drive forward ideas, improvements and practical suggestions and will bring a new energy and commitment to help RBH best serve our communities.
In these challenging times, at RBH we are very excited about the future.
Cliff Mills is a consultant at Mutuo
Claire Tostevin is head of new business & regeneration at Rochdale Boroughwide Housing
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