Total Resident Management Our version of Johann Cruyff’s Total Football ‘Our team is ready to take part in decision making’ ( Cruyff in the golden age of Ajax)

Self financing The Government has devolved financial control and responsibility to those local authorities that have kept their housing stock Southwark Council has further devolved financial control and responsibility to the JMB

Control over our own destiny Next stage in the JMB’s development No longer an annual argument with Southwark about funding Ability to plan major repairs and improvement programmes Leaseholders can plan their major work payments

Relationship with Southwark Council Partnership: Southwark remain the landlords JMB is 2.7% of Southwark’s stock Relationship based on trust: built over many years Vote of confidence in the JMB’s governance, major works project management and financial controls Not a stock transfer: no interest payments, facilitation or lawyers’ fees

Parallel Process Same track for Southwark and the JMB First years are very difficult and then life gets better: income increases, but debt repayments remain constant Southwark has a high non decency rate (40%) Inside Housing: Southwark has highest outstanding debt of any authority

Income Rents: £5.5m. Southwark will continue to decide on rent levels Leasehold service charges for day to day: £450,000 Leaseholder contribution to major work costs

Expenditure Unpaid debt on 2.7% of Southwark stock: £1.9m per year Contribution to Southwark’s central costs: £1.1m per year JMB’s Operating costs: £2m per year JMB’s major works and improvements

Income Issues What will future rent levels be? Convergence with H.A.’s rents What will be the effect of the recession/ benefit changes? Particularly the direct payment of housing benefit to tenants Will fixed term tenancies be imposed and what will the effect on void levels be? What effect will right to buy sales have?

Current level of disrepair: decent homes back log, known disrepair, life cycle replacement, health and safety works JMB has undertaken its own stock condition survey Residents’ aspirations over the next 30 years: security and landscaping How to cost the works? Base on recent contracts What will the building industry inflation rate be over the next 30 years? Major Works Costs

Central Costs Makes explicit the cost of central services to 1,500 JMB residents: Housing options: £40,000 Tenant Management Organisation Support: £26,000 Financial services: £33,000 Parking control: £37,500 Pest control: £32,700 Press office: £10,700

30 year financial projection

Issues How reliable can a 30 year financial projection be? Sustainability of the JMB over 30 years: succession planning How could the JMB respond to a catastrophic event?

Issues JMB: balance of cost/ benefit for leaseholders Southwark: will the JMB get too rich? Break clause Southwark: how does T.R.M. effect the rest of the H.R.A./ major works programme?

Cabinet Decision Soft change 2012/13 Contractual change 2013/14 (subject to the Secretary of State’s approval)