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The Regulator of Social Housing (RSH) has published Regulatory Notices (RNs) for Concept Housing Association CIC and Ash-Shahada Housing Association.

Ash-Shahada owned and managed 200 units of social housing and 3,143 units of non-social housing at 31 March 2021.  As Ash-Shahada owns less than 1,000 homes it does not currently have a published Regulatory Judgement (RJ).

The RSH has found Ash-Shahada to be non-compliant with its Governance and Financial Viability Standard.  Ash-Shahada has grown rapidly since 2018 following its diversification and expansion into the provision of supported housing in Birmingham.

Key aspects of the RSH’s findings are:

  • inadequate risk management processes and internal controls
  • the Board has failed to manage its affairs with an appropriate degree of skill, independence, diligence, effectiveness, prudence and foresight and
  • the Board has failed to ensure that any arrangements it has entered into do not inappropriately advance the interests of third parties.

Concept owned and managed 104 units of social housing and 5,360 units of non-social housing at 31 March 2021 with properties in Birmingham, Bradford and other areas,.  As Concept also owns less than 1,000 homes it does not currently have a published RJ.

The RSH has found Concept to be non-compliant with its Governance and Financial Viability Standard.  Concept has also grown rapidly in recent times and the RN states that its ”governance framework has failed to develop at the same pace as its growth and is inadequate for an organisation of its current size”.

Key aspects of the RSH’s findings are:

  • Gaps in the skills and experience of the Board
  • An absence of key information supplied to the Board
  • A lack of assurance that the risks of the lease-based model are being appropriately managed and mitigated
  • Poor performance in quarterly property inspections and audits of the support provision, demonstrating that inadequate due diligence was undertaken before leases were agreed
  • The absence of a business plan which is based on appropriate and reasonable assumptions
  • A lack of assurance that there are effective systems in place in relation to payments to third parties and
  • A lack of assurance that the arrangements entered into by Concept are not inappropriately advancing the interests of third parties.

All of the RJs, RNs and GUR listings published by the RSH can be viewed on the RSH’s website here.