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The Scottish Housing Regulator (SHR) has ended its appointment of a statutory manager at Fairfield Housing Co-operative, almost 18 months after the fixer was first installed due to allegations of “serious misconduct” within the housing association.
In a revised engagement plan for the 550-home Perthshire-based housing association, the SHR said it took the decision to end the appointment of a statutory manager following a “shared services arrangement” between Fairfield and Kingdom Housing Association being put in place.
Under the arrangement, which came into force on 1 May, Kingdom will provide chief executive services, governance and organisational support, financial and payroll services, and a strategic asset management service to Fairfield.
The SHR took the unusual step of appointing a statutory manager to take control of Fairfield in December 2018, after an investigation revealed issues including the “inappropriate receipt of payments and benefits” and “systematic failures of governance”.
Fairfield was also found to have “poor procurement practices” and had failed “to manage conflicts of interest and to uphold the standards of conduct expected of registered social landlords”.
In addition to appointing a statutory manager, the Scottish regulator also installed seven members to Fairfield’s governing body.
The seven appointed members of the association’s management committee will remain in place until September, when the regulator will review its strategy.
Fairfield must now work to deliver the remaining actions from its improvement plan, which includes a review of its constitutional options and may involve a potential long-term partnership with Kingdom, the SHR said.
Helen Shaw, assistant director of regulation at the SHR, said: “Fairfield has worked co-operatively with us to deliver significant improvements in its governance and financial management.
“The co-operative has also set up a collaborative working agreement with Kingdom Housing Association to ensure it has the support it needs to comply with regulatory standards.
“We’ve continued our appointments of the seven members to its governing body to ensure it has the support it needs to provide effective leadership and strategic direction and ensure it sustains the improvements it has made.”
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