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Regulator places three exempt accommodation providers under investigation
Three exempt accommodation providers have been placed under investigation by the Regulator of Social Housing (RSH).
Ash-Shahada Housing Association, 3CHA and Concept Housing Association have today been added to the English sector regulator’s ‘gradings under review’ (GUR) list.
The RSH said it is probing issues “which may impact on the providers’ compliance with the governance and financial viability standard”.
No further details of the investigations have been disclosed.
All three providers had fewer than 1,000 homes at the time of the last Statistical Data Return and so do not have existing published regulatory judgements.
Inside Housing understands that they form part of the “exempt accommodation” sub-sector of supported housing providers.
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Exempt accommodation refers to a category of supported housing where landlords are required to provide only loosely defined “care, support or supervision” to residents but can still charge significantly higher rents than for mainstream social housing, paid by housing benefit.
Providers may enter short-term lease agreements with private landlords or property owners to obtain accommodation and sign deals with third-party managing agents to carry out support and management services.
Several exempt accommodation providers, particularly based in Birmingham, have been declared non-compliant by the RSH in the past 18 months.
Ash-Shahada’s website claims it was the UK’s first Muslim-led housing association when established in 1989.
It is based in south London, but its website notes that its plans for growth are “focussed around supported accommodation, especially in the Midlands”, with 3,232 units “through various providers”.
Milton Keynes-based 3CHA made a surplus of £230,400 off a £8.1m turnover for the year to July 2019, according to its accounts.
Concept Housing Association, which changed its name from Proffitts – Investing in Communities in 2019, is based in Birmingham.
It website states: “We exceed regulatory levels of risk assessment and mitigation to provide protection for our landlords, support providers and our residents, leaving nothing to chance.”
The GUR list includes social housing providers under investigation by the RSH over issues that could result in them being ruled non-compliant.
Lease-based providers Hilldale Housing Association and Pivotal Housing Association were both added to the list earlier this month, while Salvation Army Housing Association and Brent Community Housing are also currently subject to investigations.
David Fensome, chief executive of Concept, said: “Concept Housing Association is disappointed to have its grading placed under review by the regulator.
“We will work positively with the regulator over the next few weeks and hope that we will be able to satisfy the regulator that we are compliant with regulatory standards.
“Whilst we understand the regulator’s reasons for the decision and the need for continued improvement, it does not affect our day to day activities at this moment in time.”
A spokesperson for 3CHA said: “We acknowledge the RSH decision and are committed to addressing their concerns.
“We look forward to working in partnership with the regulator and meeting regulatory requirements as soon as possible.”
Ash-Shahada has been contacted for comment.
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