Ridgehill bosses told worried tenants that the charges they pay would not be affected by the housing association becoming part of a group, at a public meeting last week.

The association's chief executive and director of housing addressed 120 residents about the organisation's plans for the future at a meeting of Ridgehill Residents Federation.

Ridgehill has been ordered by the Housing Corporation, the national regulator, to become part of a group following allegations of excessive pay-outs to members of staff.

Chief executive Julian Ashby assured those at the meeting that they should not notice any difference to the service when Ridgehill joins with another association.

"They will not be able to make us do anything different to what we already planning in terms of rents and lease charges," he said.

Ridgehill's bond with its parent organisation would allow it to borrow extra money, which would enable it to spend more on improving its housing stock.

Mr Ashby said it was intended that the agreement with the parent association would allow Ridgehill to retain control over its services and the money it spends on its properties. The parent could only seize control from Ridgehill's board in special circumstances, such as if its standard of service dropped dramatically or if it started over-spending.

Director of housing Lily Smith said the parent organisation would benefit from joining with Ridgehill because it would be able to make use of its services.

She claimed Ridgehill would keep its own waiting list and denied fears raised by some tenants that the parent association would be able to put people on its list into Ridgehill homes.

But Martin Heywood, a borough councillor and Ridgehill tenant, said: "I don't think the meeting reassured anybody it confirmed my belief that Ridgehill is in trouble."

He was concerned that, to strike a deal to become a subsidiary of another association, Ridgehill would be forced to give that association some control over its expenditure.

So far ten housing associations in Hertfordshire have expressed their interest in a partnership with Ridgehill, and the chosen organisation is likely to be announced in September.

Meanwhile, Mr Ashby confirmed that the Housing Corporation had asked Ridgehill to present a detailed report on the payments made to departing members of staff in recent years.

The corporation was concerned about payments, totalling around £2.5million, which were made to employees who left Ridgehill within the past five years.