Previous regulatory judgement: Railway Housing Association and Benefit Fund (31 August 2022)
Updated 29 November 2023
Applies to England
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This publication is available at https://www.gov.uk/government/publications/regulatory-judgement-railway-housing-association-and-benefit-fund/current-regulatory-judgement-railway-housing-association-and-benefit-fund-31-august-2022
RSH Narrative Regulatory Judgement
- Provider: Railway Housing Association and Benefit Fund
- Regulatory code: A1855
- Publication date: 31 August 2022
- Governance grade: G1
- Viability grade: V2
- Reason for publication: Viability regrade
- Regulatory route: In Depth Assessment
This regulatory judgement regrades Railway Housing Association and Benefit Fund’s financial viability from V1 to V2 and confirms its existing G1 grade for governance.
Based on evidence gained from an In Depth Assessment (IDA), the regulator has assurance that Railway Housing Association and Benefit Fund (RHA) complies with the financial viability element of the Governance and Financial Viability Standard. RHA’s financial plans are consistent with, and support, its financial strategy. There is an adequately funded business plan in place, sufficient security and ongoing compliance with financial covenants is forecasted.
RHA is increasing investment in its existing homes, including a programme of spending on energy efficiency improvements. This investment substantially reduces headroom on RHA’s tightest interest cover covenant and means it can only absorb a limited amount of stresses. As a result of this, the provider has material risks that it needs to manage to ensure continued compliance.
The regulator’s assessment of RHA’s compliance with the governance element of the Governance and Financial Viability Standard remains unchanged. Based on evidence gained from the IDA, the regulator has assurance that RHA’s governance arrangements enable it to adequately control the organisation and to continue meeting its objectives.
Other providers included in the judgement
None
About the provider
Origins
RHA is a unincorporated charitable trust with a corporate charitable trustee, and is registered with the RSH and Charity Commission. Its principal activity is the provision of housing for older people.
Registered Entities
RHA is the only registered entity.
Unregistered Entities
There are no unregistered entities.
Geographic Spread and Scale
RHA owns and manages around 1,600 homes in the North East of England.
Staffing and Turnover
For the year ended 31 March 2021, RHA reported a turnover of £7.5m and employed 29 full-time equivalent staff.
Development
RHA plans to deliver 42 units in 2022/23, with assumed development of 25 units per annum to 2024/25 and 30 units per annum thereafter.
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. |
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.