A West Midlands-based housing association says it will ‘comply fully’ after an enforcement notice was slapped on it by a regulator.
Concept Housing Association CIC is based in Oldbury and provides 6,425 short term social homes in Birmingham, Bradford, Telford and London through arrangements with landlords.
Morriam Jan, interim chief executive of Concept said it takes “seriously our responsibilities for strong governance, robust financial controls, regulatory compliance and, above all, the health, safety and wellbeing of our tenants.”
The Regulator of Social Housing launched enforcement action on Concept last week.
In its announcement the RSH said it followed a “sustained period in which Concept has failed to address serious failings in the way it is run.”
The regulator added that Concept’s “approach to business planning is weak and the way it manages risk is inadequate.
“Social landlords must act in the best interests of tenants – not those of external organisations. But Concept cannot demonstrate that its arrangements with external organisations are appropriate.
“Concept has not managed its affairs effectively. RSH does not have confidence in Concept’s long-term viability or its ability to protect tenants’ homes from undue risk, with a significant financial deterioration in recent months. Its financial statements remain overdue to RSH by over a year.”
This week Concept says it has “reviewed carefully the RSH’s concerns, have taken them on board, and will take steps to address the concerns noted.”
Morriam Jan added: “Concept intends to comply fully with the enforcement notice and will work openly and constructively with the RSH to do so.
“As required, we intend to commission independent expert reviews of our board and executive capacity, our rent-setting arrangements and our health and safety compliance, together with an independent appraisal of the options for a credible route back to full compliance.
“We will act on the findings of those reviews and keep the RSH fully informed of our progress.”
The statement adds that issues have arisen during an exceptionally difficult period for the organisation.
It has seen ‘significant changes’ in leadership and board, in addition to various legal challenges.
“Throughout this time, the board and staff have worked hard to stabilise the organisation, strengthen our controls and protect our homes and services. This work is not reflected in full in the Enforcement Notice.
“We do not offer this as an excuse. However, we believe it is important that our tenants and partners understand the context, and we remain committed to building on the steps already taken.”
Concept also says that it steps are not being taken to wind down or close it following some media reports.
“This is factually incorrect, and we assure tenants and partners that we are not in the process of being wound down.”
The RSH has told Concept to commission a third-party insolvency expert to develop a wind-down plan, which would outline the steps that Concept would need to take to protect tenants in the event of further deterioration of its financial position.
Concept says this is on a precautionary scenario planning basis, but no such wind down is currently in effect.
“This relates to the preparation of a contingency plan for the purposes of ensuring that tenants and partners are safeguarded at all times,” the Concept CEO said.
“Our priority is, and will remain, our tenants.
“Day-to-day services continue as normal, and we will keep providing the best possible service while we make the improvements required.
“We will keep tenants, partners and the wider community updated as required, and we are determined to rebuild the confidence that has been placed in us.”
By David Tooley | Local Democracy Reporting Service
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