RBH proposes to remove powers from tenant body in bid to become compliant

Kevin Brady, chair of RBH, said: “One of the things that we found as part of our lessons-learnt review was that our governance framework was too complicated.

“As a result, we want to make some changes to make sure that RBH can deliver great homes and great services in the future.

“These changes will make RBH a stronger organisation and will ensure that our tenants and employees remain at the heart of our mutual society.”

RBH was created in 2002 after the Labour government launched its Decent Homes Programme and Rochdale Council opted to set up an arm’s-length management organisation (ALMO). 

Ten years later it changed from an ALMO to a mutual housing association, a body supposedly owned by its residents.

The representative body appoints RBH’s board members and works with the board to develop its corporate strategy and policy framework.

However, RBH is now proposing to remove those powers, to become compliant again.

According to the proposals, the representative body will have an additional function, which is “to ensure the work of the society is focused on the needs of tenants”.

This would involve both tenant and employee members of the representative body undertaking three scrutiny reviews of RBH’s services each year.

The outcome of those reviews will be reported to the board and to the newly formed tenant services committee.

The representative body will then be able to monitor whether changes have been implemented to improve services to tenants.

If the proposals go ahead, approval of the corporate strategy and actively monitoring its performance will transfer to the board.

The body will also no longer appoint board members or approve remuneration of the board and executive team.

According to RBH: “Our representative body will still play a critical role in helping develop corporate strategy, as well as RBH’s vision and its values.

“[It] will also still have a role at the interview table for new board members and the chair of the board.”

Another proposal would mean that tenants whose homes may in future be owned by another landlord, but managed by RBH, can remain members of the mutual.

“This change will ensure that tenants in College Bank are able to remain members of RBH if the proposal to transfer ownership of the blocks to L&G Affordable Homes is delivered,” the housing association said.

RBH said the proposals “will be a big step in helping us meet the expectations of our regulator” and provide assurance “that we are fit to move from a non-compliant governance rating G3 to a compliant grading”.

It said: “A return to a compliant grading will positively impact RBH’s ability to raise funding at favourable rates and deliver on our commitments to tenants.

“Being non-compliant for governance means we are seen as higher risk to potential lenders and so it costs RBH more to borrow if we are non-compliant.

“A return to a compliant grading will allow RBH to access government funds to develop new homes, which it cannot do now because of its non-compliant governance grading.”

After a consultation, RBH plans to hold a meeting on 2 November where members will vote on whether to approve the changes.

Amanda Newton, chief executive of RBH, said: “We’re proposing to strengthen our governance arrangements so that we can meet the expectations of both our customers and the Regulator of Social Housing.

“Customers and customer engagement will continue to be at the core of all our work.

“The proposed changes will strengthen the role of our representative body, who will have powers to scrutinise the services we deliver and hold the RBH board to account for the delivery of excellent services.

“This is a key part of RBH being able to evidence that we are compliant with our regulator’s expectations.

“Representatives will also continue to play a key role in the appointment of non-executive directors and in the development of our strategic direction.

“The changes will bring to life our mutual model and make sure that we continue to listen to and work with all our members, customers and employees.”

She said RBH had already increased the number of ways its tenants could get involved.

“We’ve launched four new tenant voice forums and monthly drop-ins across the borough.

“We’re also currently recruiting three new customer members to join our customer services committee, which is made up of customers and board members and is part of our formal governance structure,” Ms Newton added.