If true (no reason to doubt it isnt) then that is the wrong decision no what matter what colour your rosette is. If I remember right - at the time the council (in Cardiff) where I worked, wanted to move away from the ownership / management / mortgage and pass it over to some other housing association type organisation. Never saw the logic - as properties still got built - but had better management. (used to work in the housing dept at CCC) - it would have gone bust if a private company due to amount of dead wood it had.