Merger is gateway to success

12th August 2008
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The merging of two wellestablished organisations can be a recipe for disaster; on the other hand, the newly-formed Gateway Housing Association, created when Bethnal Green and Victoria Park Housing Association joined forces with the black and minority ethnic (BME) landlord Labo, seems to have all of the ingredients for success

Labo was formed in London in the mid 1980s and had a housing stock of 400 homes. BGVPHA started life as Bethnal Green Housing Association in 1926 and its first scheme at Queen Margaret Flats, which is still owned and managed by Gateway today, opened in 1929. Before the merger BGVPHA had four times as many properties as Labo.

Gateway Housing Association was formed in April 2008 and manages over 2,800 homes including supported housing, shared ownership and leasehold properties.

It has some properties in parts of Newham and Hackney but Gateway primarily covers Tower Hamlets in London’s East End, a traditionally working class area, which was created in 1963 from the amalgamation of the Metropolitan boroughs of Stepney, Poplar and Bethnal Green.

The area suffered badly during World War Two, taking the worst of the Blitz. However many of the housing estates still standing in Tower Hamlets today are as a result of London County Council’s post-war slum clearance and rebuilding scheme.

It is against this backdrop that Gateway Housing Association is working to improve the standards of housing and the quality of life for the residents of its communities.

Gateway Housing Association’s property services director, Chris Edwards says that the merging of Labo and BGVPHA is a natural progression, and although on the surface they may have appeared to be very different, they always had a lot in common.

For several years previously BGVPHA had been Labo’s development agent and had developed quite a few properties for the smaller organisation.

The two had also traditionally worked alongside each other in Tower Hamlets and a large number of BGVPHA residents were from BME groups served by Labo.

Members of both boards were known to each other and both BGVPHA and Labo were also members of the North River Alliance, which is a group of nine housing associations who have agreed to work together to obtain funding for over 1,000 new affordable homes over four years in North and East London.

“There was a growing affinity between the two organisations and some of the properties are side by side in the same street, it made enormous sense to merge”, says Edwards.

He said that the shared outlook for the local community and the common ground between the two organisations was evident as soon as discussions began about the merger.

It would have been very easy for Labo, as the smallest organisation by far, to have been swallowed up by the much larger BGVPHA but the merger was exceptionally smooth and residents have so far been impressed with the service that they have received.

“There were no adverse affects, I think most residents were just concerned to know if their services would stay the same” says Edwards. “The common ground was that we shared a commitment to serve the needs of the diverse ethnic population. Labo was a BME organisation and BGVPHA was not but we were reaching out to the same community.”

Edwards points out that in order to be successful, a housing association needs to recognise the needs of the community that it serves and tailor its services to meet those needs and to “make the cloth fit”. He says: “It is courses for horses and you cannot say one size fits all. It is about what is appropriate in terms of the mix and ethos of the area.”

Edwards said that the merger has brought a host of benefits for residents, including consistency to housing management practice and a centrally located office, which houses all staff except for on site staff such as gas engineers and refuge staff.

The building, in Mile End Road, also offers disabled access and a wheelchair-accessible meeting room, to fulfil all of the residents’ needs. Its location puts it within easy reach of residents of both of the original organisations.

“Most residents are only within two or three miles of the office and it makes sense to have one office for everybody” says Edwards. “I have seen more residents in reception since we have merged than before and I think that is significant, even taking account of the increase in stock.”

Another benefit of the new building is longer opening hours. This gives people more time to report any problems that they may be having.

Now that the merger is complete and staff are settled into the new offices Gateway is working towards delivering its Decent Homes programme.

“We intend to implement our Decent Homes programme by 2010 and to ensure that all of the properties offer a good standard of accommodation”, says Edwards.

Homes are being fitted with new kitchens and bathrooms and in some cases new windows have been installed. A major boiler replacement programme is also underway.

But, of course, building stronger communities is about so much more than renovating homes and Gateway is keen to get involved in the wider community as well as implementing an external improvement programme.

The housing association is keen to support projects involving local people and Gateway welcomes small grant applications from community groups, who would perhaps, otherwise be under the radar.

“Residents’ associations or individuals can apply for whatever they have got a need for, as long as it benefits the local community. Our Residents’ Forum looks at each application and decides whether a grant should be given”, says Edwards.

Gateway recognises that there is a huge shortage of skilled workers within the construction industry and training is high on its agenda.

“It is a developing area” says Edwards. “People often say ‘we can only provide one trainee role so we won’t bother’, but one is better than none, and once you have one trainee and you have made the start, it can lead onto further training opportunities.”

A gas engineer, who works on Gateway properties, has already been taken on as an apprentice and the housing association itself employs a number of trainees, one of who is currently working towards a surveying qualification within the Property Services team.

And of course at the heart of any community is its residents and Gateway offers several levels of resident involvement.

“We have got a commitment to resident involvement at all levels” says Edwards. “And we are driving towards further board participation in the future.” Indeed, Gateway is moving towards setting up a Residents’ Panel, which will sit within the governance structure and have a real input into the strategic operations of the association.

Resident groups include the Residents’ Forum, a group which meets regularly with Gateway staff to discuss issues that matter to residents. They also give feedback on the maintenance and major repairs programmes and administer the Community Chest grant.

“We have had some interesting comments and input from residents about some of the proposals that we have put forward. The Residents’ Forum has become very dynamic and the involved residents are having a real say in what goes on here. They are currently organising a Residents’ Conference - although supported by our staff all the ideas have come from
them.” says Edwards.

It is clear that Gateway is already growing into a force to be reckoned with thanks to its clear plan for the future and dedicated staff, but the housing association has no grand designs to take over the area.

“We want to be regionally relevant” says Edwards. “We are not too big that the aspiration gets lost and not too small that we become a sole trader aspiration - there is a happy medium here.

“There is a passion for providing an excellent service. I am not saying we have arrived, but I do think the aspirations are genuine, and that the majority of staff share them.”

Gateway continues to consolidate the merger, taking the best of what was Labo and BGVPHA to build a stronger housing association that will better represent the people of this diverse and ever-changing London borough.