Decision

Withdrawn Enforcement Notice: St Andrews Community Housing Association Ltd (15 February 2023)

Updated 8 September 2023

This decision was withdrawn on 12 September 2023

St Andrews Community Housing Association Ltd was de-registered on 7 September 2023.

Applies to England

Withdrawn on 8 September 2023: St Andrews Community Housing Association Ltd was de-registered on 7 September 2023

ENFORCEMENT NOTICE

Section 219 HOUSING AND REGENERATION ACT 2008 (“the Act”)

Introduction

A registered provider is responsible for ensuring that it manages itself effectively, achieves the standards set by the regulator, and engages positively with the regulator’s regulatory framework. Where a failure against a standard or other problem has been identified, the regulator expects a registered provider to respond in a prompt and effective manner. It may be necessary for the regulator to step in and exercise its powers under section 219 of the Act when a provider fails to do so.

Sections 219 to 225 of the Act allow the regulator to require a registered provider to take specified action to resolve a specified failure or other problem by issue of an enforcement notice. The regulator has published guidance on its use of this power which can be found here.

The Regulatory Standards that registered providers of social housing are required to meet can be found here together with our approach to regulating the standards.

Grounds for issuing this enforcement notice

On 19 December 2018 a Regulatory Notice was published^{[footnote 1]} concluding St Andrews Community Housing Association Ltd (St Andrews) was non-compliant with the Governance and Financial Viability Standard (the Standard). Following engagement with St Andrews, the regulator has assessed actions taken by St Andrews to address the issues raised in the regulatory notice and continues to lack assurance that St Andrews complies with the Standard in that it is unable to:

• ensure effective governance arrangements that deliver its aims and objectives and intended outcomes for tenants and potential tenants in an effective, transparent and accountable manner;
• manage its affairs with an appropriate degree of skill, independence, diligence, effectiveness, prudence and foresight; and
• ensure that the arrangements it has entered into do not inappropriately advance the interests of third parties or are arrangements that the regulator could reasonably assume were for such purposes.

Further, the regulator lacks assurance that St Andrews:

• manages its resources effectively to ensure its viability is maintained while ensuring that social housing assets are not put at undue risk;
• assesses, manages and addresses risks to ensure its long-term viability, including ensuring social assets are protected before taking on new liabilities, and ensuring it understands and manages the likely impact on current and future business and regulatory compliance.

In considering whether to serve an enforcement notice, the regulator has considered section 218 of the Act and concluded this is a serious and recurrent case of non-compliance where St Andrews has failed to address the breach of the Regulatory Standards in a prompt and effective manner. The regulator has also taken account of the regulator’s fundamental objectives under the Act and considers the issuing of an enforcement notice appropriate and proportionate in circumstances where in the judgement of the regulator, St Andrews has been unwilling and / or unable to address its failures to meet the Regulatory Standards.

The regulator issues this enforcement notice to St Andrews by virtue of its powers under sections 219 to 225 of the Act. Specifically, the grounds for issuing an enforcement notice are under section 220 of the Act:

• Case 1 – that St Andrews has failed to meet the requirements of the Standard applicable to it under section 194 of the Act.

Direction

The regulator directs that St Andrews take the following actions:

1. To a scope agreed with the regulator, St Andrews must commission an independent appraisal (the Appraisal), to be carried out by a party with relevant skills and expertise, of options to address its continued non-compliance with the Standard.

2. St Andrews must ensure the Appraisal includes (but is not limited to) a review of the following options:

   a. Renegotiation and / or exit from the arrangements St Andrews has entered into (including but not limited to Declarations of Trust and Management agreements) over its social housing assets; and

   b. Voluntary de-registration as a social housing provider or winding down (followed by de-registration).

3. Based on the outcome of the Appraisal, St Andrews shall develop an action plan and timetable to ensure compliance with the Regulatory Standards for the regulator’s consideration.

4. St Andrews must provide the following to the regulator:

   a. the draft written scope of the commission of the Appraisal and list of proposed parties to carry out the Appraisal no later than 21 days from the date of this Notice;

   b. the completed Appraisal report no later than two months from the date the regulator approves scope of the Appraisal; and

   c. the board approved action plan based on recommendations arising from the Appraisal, timescales for implementation and minutes of board discussions relating to the Appraisal outcome no later than one month from the completion of the Appraisal.

5. St Andrews is required to engage with the regulator before entering any transactions to acquire further social housing assets, as soon as reasonably practicable, while a non-compliant regulatory notice remains in place.

The Regulator of Social Housing expectations

The regulator expects St Andrews to co-operate fully with the regulator and to co-ordinate its communications strategy on all matters relating to enforcement actions with the regulator, and to give the regulator the opportunity to comment on the content and timing of any news releases or other public statements.

Further Information

• In coming to the decision set out in this Notice, the regulator has taken into account all relevant matters and representations referred to in the regulatory framework and Annex 1 of the regulator’s ‘Guidance on the regulator’s approach to intervention, enforcement and use of powers‘ with particular reference to ‘Guidance note 9’.

• Please note that a registered provider that is given an enforcement notice may appeal against it to the High Court.

• The regulator may withdraw the enforcement notice at any time by giving notice to the registered provider.

• Should St Andrews fail to comply with this enforcement notice, the regulator may consider exercising other regulatory or enforcement powers.

• The regulator may choose to publicise the serving of this enforcement notice.

• Any information or correspondence pertaining to this enforcement notice should be sent to the regulator, addressed to:

  Harold Brown

  Senior Assistant Director, Investigation and Enforcement

  Regulator of Social Housing

  Level 1A – City Tower

  Piccadilly Plaza

  Manchester M1 4BT

Signed on behalf of the regulator

Harold Brown Senior Assistant Director, Investigation and Enforcement

Date of enforcement notice: 10 February 2023

1. Regulatory Notice: St Andrews Community Housing Association Ltd (19 December 2018) - GOV.UK (www.gov.uk) ↩