Feasibility and Development Stage

Feasibility and Development is likely to be the longest stage in the development of a TMO.  During this stage, the developing TMO will work to prepare a feasibility study that confirms that a form of TMO would work for the defined dwellings.  It will develop a framework, including an outline Management Agreement, which allows the TMO to manage housing services, if supported by a majority of tenants, through a ballot held at the end of the stage.

During this period the group will concentrate on developing their skills to manage a TMO through capacity building and training.  The group’s ability to manage will be independently assessed through the Approved Assessor service which will have allocated an Approved Assessor to the group before the start of the Feasibility and Development stage.

The ballot at the end of the Feasibility and Development stage should take place no more than fifteen months from the landlord's acceptance of the Right to Manage Notice.  If at any point during Feasibility and Development, it is anticipated that the stage will take longer than fifteen months, the group and the landlord can agree an extension.  The Housing Coropration must be informed as this is likely to impact upon the grant awarded.  

Further detailed guidance on what activities must be carried out within this stage and guidance on ballot arrangements can be found in Local Choice, Local Control and Residents Choice. A toolkit - the AdaPT Toolset - is available to help developing TMOs to work with the Modular Management Agreement.  The toolset is available from the National Federation of TMOs website www.nftmo.com

Funding available

The Tenant Empowerment Programme will fund 75%* of the costs of the application.  The remaining 25% of the funding is to be funded by the landlord from whom the group will need to claim the contribution direct. 

There are no cost ceilings for this stage.  Therefore, the application must be based on actual costs.  The application can only be made once the Approved Assessor has completed the initial assessment of the group.  The grant will be based on the training and development plan agreed by the Assessor.  Therefore, it is expected that a significant proportion of the grant applied for will relate to the training and development for the TMO.  Proposals will be assessed carefully to ensure that value for money will be achieved.  

* Funding is always dependent upon budget availability.

Who can apply for Feasibility and Development grant?

Feasibility and Development grant is available for developing TMOs who have exercised the Statutory Right to Manage by serving a Right to Manage Notice on their local authority, or if pursuing the Voluntary route have a Statement of Intent from their landlord. 

Applications for Feasibility and Development will only be accepted if the developing TMO has had its initial Approved Assessor assessment.

Funding is available for developing TMOs working with a Lead Advisor.  If the Lead Advisor is eligible to receive TEP funding, the Corporation will pay TEP grant direct to the Lead Advisor appointed by the developing TMO.   If the developing TMO is incorporated (that is, it is registered as a Company Limited by Guarantee or an Industrial and Provident Society), the Housing Corporation will pay TEP grant direct to the developing TMO, who will then pay the costs of advice and training.  Grant will not be paid to unincorporated groups. 

Outcome of Feasibility and Development

At the end of this stage, the group will have further developed their capacity to manage through training and development activities, will have shown that they have kept residents informed and given them opportunities to be involved, and their capacity will have been independently assessed through the Approved Assessor service, demonstrating to their landlord that they are competent to manage the services.  The group will work with their landlord to put an ‘offer’ to all tenants on the proposals. The landlord will then carry out a ballot to assess the wider community’s support for the offer.  If the ballot is successful, the group move closer to becoming a fully operational TMO.

If the ballot is unsuccessful, the group must reflect and may consider non-statutory alternatives.

Key Output of Feasibility and Development

The key outputs of the Feasibility and Development stage are a competency report from the Approved Assessor, a development report, an ‘offer’ document and a ballot.