Tenant-Led Housing Association Downgraded

An association with a tenant majority board has been downgraded due to the cost effectiveness of some of its current activities, the latest set of judgements published by the English regulator has revealed. Watmos Community Homes, which was formed by a transfer of eight tenant management organisations (TMOs) from Walsall Council in 2003, has had its governance rating downgraded from G1 to G2. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/news/tenant-led-housing-association-downgraded-in-latest-regulatory-judgements-70254

Regulator Downgrades HA Hit By Criminal Fraud Worth Nearly £1m

A housing association that fell victim to criminal fraud has been downgraded for governance by the Regulator of Social Housing (RSH) after suffering a “significant financial loss”.  Red Kite Community Housing has said that the loss, which it attributed to human error, is believed by current assessments to have totalled £932,691.48. It said “all indications” were that criminals had been able to launch the fraudulent attack in August because of “a breach of an external source’s computer systems”. In its regulatory judgement, published today, the RSH downgraded the provider to G2, from G1, citing a “basic failure in [Red Kite’s] system of internal controls”. Read more on the RSH website.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/861113/Red_Kite_Community_Housing_Limited_RJ_29.01.20.pdf

Housing Association Downgraded Over Funding

A Nottingham-based housing association has today had its governance and viability ratings downgraded by the English social housing regulator over its funding arrangements. Tuntum Housing Association, one of England’s largest black and minority ethnic social landlords, had its governance rating downgraded from a G2 to a G3 today – meaning it no longer complies with the Homes and Communities Agency’s standards. Its viability rating was dropped one notch to V2, meaning it still complies but needs to improve. The 1,300-home had been placed on the regulators’ ‘watch list’ of organisations at risk of a downgrade since June. Read more on Inside Housing.

Landlord on HCA Watch List after £2.3m Grant Cut Off

One of England’s largest black and minority ethnic housing associations has been placed on the regulator’s ‘watch list’ after a £2.3 million grant allocation was withdrawn.  Tuntum Housing Association, which owns around 1,300 homes, is now the sole English landlord on the list of organisations at risk of being downgraded to a non-compliant ‘G3’ rating for governance. It currently has a ‘G2’ rating, meaning it complies but needs to improve.  It is understood the regulator became concerned after the withdrawal of grant funding by the investment arm of the HCA.  Tuntum had been allocated £2.3 million through the £100 million Empty Homes fund. However, it asked for a further £500,000 to deliver the scheme. The HCA subsequently withdrew the entire allocation because it was not convinced the scheme would be completed before the March 2015 deadline. Read more on Inside Housing.

HCA Overhaul to Improve Regulation

The social housing regulator is to appoint seven new senior members of staff and overhaul its structure in a bid to boost its effectiveness.  The move follows concerns by regulation committee members last year that it does not have the ‘resources to function effectively’. It comes as regulatory concerns were cited by ratings agency Moody’s as the reason for downgrading most of the sector.  Read more on Inside Housing.