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Former chair of non-compliant housing association resigned over ‘conflict of interest’
The former chair of a non-compliant housing association resigned over a “conflict of interest”, Inside Housing can reveal.
Cristina Pashmi, who was previously chair of Trinity Housing Association, resigned from the board in October last year, one month after the Regulator of Social Housing opened its investigation into the association.
This was due to a “conflict of interest” with her position at care provider Rehability, Ms Pashmi told Inside Housing.
Ms Pashmi confirmed that this conflict was clearly and legally declared to both Trinity and Rehability when she took the role.
She said: “It was harder and harder for me to manage the conflict, not between Trinity but the conflict within Rehability, when I would go to meetings with [local authority care] commissioners.”
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Trinity is one of four housing associations with links to private equity funds and real estate investment trusts (REITs) to have been declared non-compliant by the Regulator of Social Housing.
The English regulator said it was “potentially putting its tenants at risk” and has “ceded control to third parties”.
Ms Pashmi was chair of Trinity’s board for a brief period of less than two months in 2017 and was then an ordinary board member from 30 January last year until 5 October last year, according to Companies House. At the same time, she was estates director of care provider Rehability, which has an ongoing relationship with Trinity.
Rehability also shares an office with the aggregator Blackstone Capital Partners (BCP), which finds specialist supported housing and arranges lease deals between housing associations and investment funds for a fee.
BCP has helped arrange transactions for Trinity and has been involved in at least one deal with the REIT Civitas, according to Companies House. It is not possible to tell from public records deals it has been involved in with other parties. It is also involved in some care provision.
Ms Pashmi joined the board of BCP on 23 January 2019, shortly before taking up the position of managing director of Rehability. However, she left this role very quickly after accepting it, deciding instead to focus on her role at Rehability.
A spokesperson for the American private equity giant Blackstone confirmed that despite its name, BCP has nothing to do with Blackstone.
Anthony Arcari, current chair of Trinity’s board, told Inside Housing: “We have an ongoing contractual relationship with BCP as one of our care providers but have no influence on any of their governance arrangements and I would further emphasise that neither BCP or any of its related subsidiaries have any connection to, or influence with, the governance arrangements of Trinity Housing.
“Our last recruitment of board members during August/September 2018 was successfully achieved with the assistance and support of [consultancy] Altair.”
Inside Housing has contacted Rehability and BCP for comment.
Update at 3.30pm on Friday 22 March:
This story was updated to make it clear that Ms Pashmi declared her conflict of interest to Rehability and Trinity, and that she left her role at BCP shortly after being appointed.
