The Regulator of Social Housing (RSH) has published a Regulatory Notice for RCVDA Community Housing CIC, a supported housing provider based in Redcar, North Yorkshire. The RSH had placed RCVDA on its Gradings Under Review (GUR) list in June 2022.
The RSH has concluded that RCVDA:
- is not compliant with the Governance and Financial Viability Standard
- has inadequate business planning, risk and control frameworks commensurate for its activities and
- failed to adequately manage a development project for which it received funding from Homes England.
As a result of its failure to manage the development project adequately, RCVDA became unable to meet its contractual development obligations as and when they fell due, and RCVDA entered the RSH’s intensive engagement and insolvency processes and a 28-day moratorium was triggered. Subsequently RCVDA’s Board agreed to transfer its assets and liabilities to Home Group Limited, ensuring that once the transfer is complete, the social housing assets and tenants will remain in the sector and insolvency will be averted. Consequently the RSH decided to cancel the moratorium and not to make formal proposals under section 145 of the Housing and Regeneration Act 2008 or to seek to apply for an Housing Administration Order.
All of the RJs, RNs and GUR listings published by the RSH can be viewed on the RSH’s website here.