Industry News


Large Yorkshire landlord handed governance downgrade


correctly implementing rule changes within its group structure. Yorkshire-based Incommunities Group was


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downgraded from ‘G1’ to ‘G2’, meaning it is still compliant for governance, but there are weaknesses in its risk management. The housing association had self reported


itself to the regulator saying that it had not implemented rule changes correctly, for two of its subsidiaries, in April 2018, according to the regulatory judgement. The error was not discovered until May 2020, by


which time the group had refinanced and issued a bond, meaning the subsidiaries made incorrect certifications about their rules to lenders. Decisions


22,000-home landlord had its governance rating downgraded by the Regulator of Social Housing after owning up to not


made between April 2018 and May 2020 had to be re-ratified by Incommunities and the affected subsidiaries “including in respect of its funding arrangements”. The regulator says Incommunities’ internal


controls did not ensure that the new rules were implemented correctly or identify that it had not registered them with the Financial Conduct Authority. The HA has since worked with funders and lawyers to rectify the situation, although for a while they were reliant on the goodwill of their funders. The group has now “commenced work to


strengthen its internal control framework and is keeping the regulator informed of its progress”, the judgement said. Incommunities’ financial viability rating remains unchanged at ‘V1’ following an in-depth assessment


The housing association had self reported itself to the regulator saying that it had not implemented rule changes correctly, for two of its subsidiaries, in April 2018, according to the regulatory judgement.


that found it has an adequately funded business plan, has sufficient security in place and is forecast to meet its financial covenants.


Two associations regain their governance compliance ratings


A Liverpool based social landlord has regained its compliance rating from the regulator two years after being down-graded over widespread health and safety failings. The Livv Housing Group, formerly known


as Knowsley Housing Trust, was found to be non-compliant in August 2018 but in October this year it was regraded on governance from ‘G3’ to ‘G2’. Two years ago the regulator also found


significant weaknesses in the effectiveness of board oversight and scrutiny, as well as ineffective risk management and internal controls. Following a restructure Livv was found to


have strengthened governance arrangements with a fresh board and executive team, which enabled more effective scrutiny and risk reporting.


It has also implemented a fresh risk management framework, which included new policies and procedures relating to statutory health and safety compliance. Meanwhile down the M5, GreenSquare


Group which manages 12,000 homes in Gloucestershire, Oxfordshire and Wiltshire, had its governance rating upgraded to ‘G1’. It was previously downgraded in June 2019 after breaching the regulator’s standard for fire safety. The regulator found GreenSquare has


enhanced the skills mix of its board and improved the quality of reporting, leading to improved oversight of health and safety compliance. The HA also implemented recommendations from an independent


Following a restructure Livv was found to have strengthened governance arrangements with a fresh board and executive team, which enabled more effective scrutiny and risk reporting.


review of governance and communicated material issues with the regulator in a proactive and timely way.


NHF calls on sector to adopt its tenant engagement charter


The National Housing Federation is asking all English housing associations to adopt its new resident engagement charter and make themselves more accountable to their tenants.


Together with Tenants, was an initiative set up


in response to the Grenfell Tower fire in 2017. It is the centrepiece of a four-point plan aimed at ensuring HA boards are properly accountable. The four steps are:


• a new requirement in the NHF’s code of governance for board accountability (a new version of the code is due to be published in November);


• the new Together with Tenants charter, which lists six pledges for housing associations in a bid to ensure residents have a more consistent experience of dealing with their landlord;


22 | HMM December/January 2021 | www.housingmmonline.co.uk


• reporting publicly and to residents about progress against the charter; and


• a requirement to pass information to the Regulator of Social Housing where necessary.


Since the Together with Tenants programme was launched in draft form in early 2019, 130 housing associations have become early adopters. They say their experience is that this led to clearer, more collaborative decision-making. The NHF has promised to support landlords and


tenants to share what is and what is not working under the scheme.


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