A housing association has hit back at claims a ballot to transfer to another landlord is skewed in favour of a yes vote.
The Glasgow Times reported this week on Reidvale Housing Association in Dennistoun looking to transfer to Places for People.
MSPs have raised concerns about the process and feel it has been designed to ensure tenants approve the transfer.
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Paul Sweeney, Labour MSP, raised the issue at the Scottish Parliament and said the transfer would take 900 homes worth around £100m, in a desirable area out of local control and to a large English-based provider.
But the association has refuted the claims and said the move is out of necessity with the alternative being tenants burdened with a year-on-year 10% rent rise to meet investment needs.
Sweeney told Holyrood’s housing committee he had observed several breaches in the process.
Fellow Glasgow MSPs Ivan McKee (SNP) and Annie Wells (Conservative) also signed a letter raising concerns.
Eddie Marley, Reidvale Chair, has outlined the landlord’s position over the proposed transfer.
He said: “We opted to ask tenants to consider an alternative landlord after it was found that we would have to look at a rent-rise of 10% for 8 years due to financial challenges. This may be more if costs continue to rise”
He said the legal process has been “rigorously followed” at all times and “extensively consulted with tenants and the wider community at each stage”.
The chair said the landlord’s finances are not strong enough to secure the level of investment needed.
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He added: “Mr Sweeney has claimed Reidvale’s finances would allow them to freeze rents and produce an accelerated stock improvement plan in line with that put forward in the transfer proposal by Places for People Scotland.
“However, the tenants own adviser TIS, carried out an independent assessment and concluded that Reidvale’s finances are not viable on a standalone basis as it is unlikely that funding would be secured to fund the improvement package.”
He said the MSP has rejected invitations to meet the association.
Mr Marley added: “Mr Sweeney has so far rejected three separate invitations to meet with the Management Committee directly to be briefed on the reality of the RHA financial challenges or to discuss any other concerns he may have.
“If his many interventions result in the transfer being rejected, he will need to answer to the tenants, community and staff of this association.”
The MSP said keeping the association under community control was a ‘red line” for him.
Paul Sweeney, MSP, said, “After it was made abundantly clear in letters sent by Places for People and Reidvale Housing Association that they were only willing to meet to discuss the single option of a transfer to Places for People and not how to keep Reidvale community-controlled, I declined to meet, as this is a fundamental red line for me as a co-operative parliamentarian.”
He repeated his concern over procedural breaches, which the association refutes.
Sweeney added: “I have acted on behalf of concerned tenants and members of Reidvale Housing Association and sought to give voice to their serious and legitimate concerns.”
The MSP said he held a public meeting where tenants raised concerns.
He added: “I have also attended meetings of Dennistoun Community Council, where the Interim Director and Transfer Consultant admitted under questioning from tenants that Reidvale was still viable as a stand alone organisation.
“It is disappointing that the Management Committee has such little confidence in Reidvale and thinks that the community-controlled housing association of 48 years standing, and with almost 900 mortgage-free tenements in Dennistoun, is unviable."
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