By making the transition, ALMOs would be able to escape the much-maligned Housing Revenue Account (HRA) subsidy system and their debts would no longer be on the public sector borrowing requirement, potentially allowing increased investment.
Ms Taylor said: “It is a relatively small number, but if the subsidy issue is not resolved, there will be more.”
The ALMO programme was set up in 2001 to help councils meet the Decent Homes programme improvement targets. Some ALMOs have moved on to different priorities with Derby Homes and Hounslow Homes the most advanced in terms of planning to build stock.
Derby Homes chair Dennis Rees said he was hopeful that the new Homes & Communities Agency (HCA) would resolve legal issues currently blocking its bid.
Speaking at the HCA’s launch, its chief executive Sir Robert Kerslake endorsed the ALMO model.