Don't Gamble with Our Homes

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TMO Law - the Flaws

The legislation that covers Tenant Management Organisations (TMOs) is deeply flawed and this is one of the systemic problems that stops them reaching their full potential and makes mismanagement more likely.

The Act that covers TMOs is the Industrial and Provident Societies Act 1965 (IPSA 65). It is supposed to be a simpler, non-bureaucratic form of Private Limited Company with non-profit and co-operative intentions.

It might do for running a small organic grocers, but is completely inappropriate when we are dealing with millions of pounds, hundreds or even thousands of peoples' homes, and the complexity of housing management.

The regulators of the IPSA 65 are the FSA - the Financial Services Agency - and they sent the NoTMO campaign a letter outlining that they would not act in any dispute and that the complainant would have to use the TMOs own rules, or seek some other solution like the courts. Thanks a lot...

If, like the Unwin and Friary TMO, you are in breach of the law, there is no penalty. This seems wrong to us, what's the point of a toothless law?

Disputes

If you are a council tenant or leaseholder there are numerous options if you become involved in a dispute. There are layers of management, official grievance procedures, arbitration, local councillors and MPs to intervene, and finally the local government ombudsman, so you do not have to take the financially dangerous step of involving the courts.

With TMOs, there basically aren't any of those options. Worse still, if you are in a property in an area controlled by a TMO, but not a TMO shareholder you have fewer rights than a shareholder. In the 21st Century this seems completely wrong.

In practice, it appears that the Local Authority - the Council - is very reluctant to act against a TMO which is going wrong. Perhaps this is because the TMO Board Members are "elected" and seen as having democratic legitimacy, or the Council officials don't want to have a failure reducing their career prospects...for whatever reason, TMOs which have committed grave breaches of conduct are let off, or given a meaningless reprimand then allowed to carry on.

Vote No to the TMO

As the ballot nears we need more volunteers to join our campaign to ensure our homes are safe for the future. Or please donate - we are using our own money, they have lots of taxpayers (our) cash.

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Vote No to the TMO