Decision

Current regulatory judgement: Croydon Churches Housing Association Limited (28 February 2024)

Updated 28 February 2024

Applies to England

RSH Narrative Regulatory Judgement

• Provider: Croydon Churches Housing Association Limited
• Regulatory code: LH0495
• Publication date: 28 February 2024
• Governance grade: G1
• Viability grade: V1
• Reason for publication: Governance upgrade
• Regulatory route: Stability Check and Reactive Engagement

Regulatory judgement

This regulatory judgement upgrades our previous published assessment of Croydon Churches Housing Association Limited’s governance from G2 to G1 and confirms its existing V1 grade for financial viability.

Croydon Churches Housing Association Limited (CCHA) complies with the governance elements of the Governance and Financial Viability Standard. In our previous judgement in June 2022, we noted that CCHA needed to make improvements to the board’s oversight of business and financial planning, including stress testing, to ensure adequate scrutiny and oversight of its activities and key risks.

Based on evidence gained from reactive engagement, the regulator has assurance that the CCHA board has developed and improved its collective understanding of financial performance, and its ability to make decisions and challenge the executive on financial matters. Board skills have been strengthened in relation to business and financial planning. Recruitment and succession planning reflect a re-balancing of finance, customer focus and asset management skills on the board.

A review of financial reporting has delivered improvements in the accuracy, consistency and timeliness of information received by the board and regulator. Gaps in the financial assurance framework have been addressed, and there have been improvements to the wider risk management framework. Terms of reference for the board, committees and leadership team have been reviewed to clarify responsibilities in relation to financial planning and stress testing, treasury management, and asset management.

The regulator’s assessment of CCHA’s compliance with the financial viability elements of the Governance and Financial Viability Standard is unchanged. Based on evidence gained from the Stability Check, the regulator has assurance that CCHA’s financial plans are consistent with, and support, its financial strategy. The provider has an adequately funded business plan, sufficient security in place, and is forecast to continue to meet its financial covenants under a wide range of adverse scenarios.

Other providers included in the judgement

None

About the provider

Origins

CCHA is a community benefit society with its principal activities being the development and management of social housing.

Registered Entities

CCHA is the only registered entity.

Unregistered Entities

CCHA has one unregistered subsidiary, CCHA Developments Limited which develops homes for open market sale.

Geographic Spread and Scale

CCHA owns and manages around 1,500 homes that are primarily general needs housing. It also provides older persons housing and affordable rent homes alongside some supported housing and shared ownership homes. It operates in the London boroughs of Croydon, Sutton, Bromley and Merton.

Staffing and Turnover

CCHA reported a turnover of £17m for the year ended 31 March 2023 and employs the full-time equivalent of 44 staff.

Development

CCHA’s strategic aspirations are to develop around 30 homes per year up to 2028, comprising of homes for social rent, London Living rent, affordable home ownership and a number of homes for market sale.

About our judgements

Key to Grades

Governance:

	Compliant
G1	The provider meets our governance requirements.
G2	The provider meets our governance requirements but needs to improve some aspects of its governance arrangements to support continued compliance.

	Non-compliant
G3	The provider does not meet our governance requirements. There are issues of serious regulatory concern and in agreement with us the provider is working to improve its position.
G4	The provider does not meet our governance requirements. There are issues of serious regulatory concern, and the provider is subject to regulatory intervention or enforcement action.

Viability:

	Compliant
V1	The provider meets our viability requirements and has the financial capacity to deal with a wide range of adverse scenarios.
V2	The provider meets our viability requirements. It has the financial capacity to deal with a reasonable range of adverse scenarios but needs to manage material risks to ensure continued compliance.

	Non-compliant
V3	The provider does not meet our viability requirements. There are issues of serious regulatory concern and, in agreement with us, the provider is working to improve its position.
V4	The provider does not meet our viability requirements. There are issues of serious regulatory concern, and the provider is subject to regulatory intervention or enforcement action.

Note: The use of an asterisk (*) against a grade indicates that the assessment refers to a provider that is designated as being for-profit.

Definitions of Regulatory Routes

In Depth Assessment (IDA): An IDA is a bespoke assessment of a provider’s viability and governance, including its approach to value for money. It involves on-site work and considers in detail a provider’s ability to meet its financial obligations and the effectiveness of its governance structures and processes.

Stability Checks: Based primarily on information supplied through regulatory returns, a Stability Check is an annual review of a provider’s financial position and its latest business plan. The review is focused on determining if there is evidence to indicate a provider’s current judgements merit reconsideration.

Reactive Engagement: Reactive engagement is unplanned work which is triggered by new information or a developing situation which may have implications for a provider’s current regulatory judgement.

Stability Checks and Reactive Engagement: In some cases, we will publish narrative regulatory judgements which combine evidence gained from both Stability Checks and Reactive Engagement.

For further details about these processes, please see Regulating the Standards.