31 January 2003
Its inspectors found Westminster's City West Homes had a three-star service with excellent prospects for improvement.
Hounslow council's Hounslow Homes was judged to give a two-star service with promising improvement prospects.
Arm's-length management was established in 2000.
With the system, councils retain ownership, but a separate body – in which council representatives are in a minority – carries out management.
The government has offered £460m during 2002/04 to get the system off the ground.
PFjan2003