What are the aims and objectives of Pre-Feasibility grant?

In order to access RTM grant to set up a TMO, the Corporation would normally expect a tenants’ group to undertake an Options Study to consider the full range of tenant management options.  However, in some cases the local authority and tenants’ group will be in a position to move directly into the RTM process without undertaking an Options Study.  In these circumstances RTM Pre-Feasibility grant will be available to council tenants in England working with an  agency to carry out a Pre-feasibility Study.  The main aim of RTM Pre-Feasibility grant is to help the TMO serve a RTM Notice on the local authority.

If an Options Study has previously been carried out, it will not usually be necessary for a Pre-feasibility Study to be undertaken.  RTM funding is available for either an Options Study or a Pre-Feasibility Study. 

It is anticipated that an Pre-Feasibility Study will generally take around 3-6 months to complete.

Ceiling costs

The total costs for the Pre-Feasibility Study should not exceed £4,620 for 25 dwellings, plus £9 per additional eligible dwelling.

RTM grant will provide 100% of the costs involved in an application for Pre-Feasibility grant.

Who can claim Pre-Feasibility Study grant?

RTM Pre-Feasibility Study grant is made available to enable a tenants’ group to  work with an agency to carry out a Pre-Feasibility Study and serve a RTM Notice on the local authority.  The Corporation will pay the grant to the agency invited by the tenants’ group to carry out the work involved in the Study.

The Corporation recommends that tenant groups interview up to three agencies prior to making a decision as to which agency it will work with to carry out the Pre-Feasibility Study.

Guidelines for Pre-Feasibility Study

The tenants’ group will work with the agency:

• to prepare for the service of the RTM Notice; and
• to prepare for the Feasibility Study.

The proposal for the Pre-Feasibility Study should include a work programme, agreed between the tenants and the local authority, which may include training to enable tenants to understand the issues involved in tenant management and make informed choices.  The work programme will identify key activities, which might typically include:

Month 1:  Meetings with management committee and the local authority; agreeing, printing and delivering the first newsletter; reviewing the Action Plan; carrying out a membership drive.
Month 2: carrying out two study visits; meeting with management committee; preparing and delivering flyers to the estate; carrying out public test of opinion of RTM carrying out consultation with the estate regarding RTM; serving RTM notice; completing quarterly report.
Month 3: meeting with management committee; preparing, printing and delivering final newsletter; meeting with local authority to discuss RTM process; completing final report.

Outcome of the Pre-Feasibility Study

The outcome of a Pre-Feasibility Study will be an established tenants’ group with a consititution complying with the RTM Regulations and which has served a RTM Notice on the local authority.

Further information on making an application for Pre-feasibility Study Grant and claiming Pre-feasibility Study grant is available in the sections Pre-feasibility grant: grant application and Pre-Feasibility Study Grant: Grant Claim section.