Decision

Regulatory Notice: Trinity Housing Association Limited (12 October 2020)

Updated 12 October 2020

Applies to England

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This publication is available at https://www.gov.uk/government/publications/regulatory-judgement-trinity-housing-association-limited/regulatory-notice-trinity-housing-association-limited-12-october-2020

RSH Regulatory Notice

  • Provider: Trinity Housing Association Limited (Trinity)
  • Regulatory code: 4645
  • Publication date: 12 October 2020
  • Governance grade: G3
  • Viability grade: V3
  • Reason for publication: Economic Standards
  • Regulatory route: Reactive Engagement

Other providers included in the judgement

None

Regulatory Finding

The regulator has concluded that:

a) Trinity is not compliant with the Rent Standard. It maintains that the majority of its stock is excepted from the requirements of the Rent Standard on the basis that it provides either Specialist Supported Housing (SSH) or Temporary Supported Housing (TSH). However, it has been unable to provide adequate assurance that the accommodation it provides meets the government’s definition of SSH or TSH.

b) Prior to the introduction of the Rent Standard, between 1 April 2016 and 31 March 2020, Trinity was required to comply with the legislative requirements of the Welfare Reform and Work Act 2016 (WRWA). Trinity claimed an exception under the terms of the Act but it has been unable to demonstrate that it met the exception criteria during this period.

The Regulator’s Findings

The regulator has concluded that it lacks assurance that Trinity is compliant with the Rent Standard and that previously it complied with the legislative requirements of the WRWA.

Following a period of engagement with the regulator, Trinity’s board has concluded that, as a result of historic inadequate processes, data and policies, it cannot evidence the basis upon which it has applied the SSH or TSH exception to a large proportion of its stock. It is therefore unable to confirm that it is meeting the Rent Standard and the associated rent-setting guidance.

It is a serious matter if an exception from rent requirements is inappropriately applied. Rents and service charges for a large proportion of Trinity’s tenants may have been, and may continue to be, overcharged. As some of the cost of these rents has been met through Housing Benefit and Universal Credit, there may also be implications for the public purse.

Trinity’s board has agreed an action plan to fully review its property portfolio against the SSH and TSH criteria and market rental rate as a matter of urgency. It has committed to act upon the outcomes of this review. The regulator will continue to engage with Trinity to ensure it addresses these matters and comes back into a position of compliance.

About the provider

Trinity is a not-for-profit registered provider and company limited by guarantee.

Trinity provides supported housing and works with care providers to deliver accommodation and support for vulnerable adults. Its 2019 Statistical Data Return (SDR) reported it had 1,527 social housing units, but its latest business plan states that it now has about 950 units. Trinity’s current business plan is predicated upon its main income source (rent) being ‘excepted’ from the requirements of the Rent Standard on the basis that most of its stock meets either the Specialised Supported Housing (SSH) or Temporary Social Housing (TSH) criteria.[footnote 2]

About our Regulatory Notices

Regulatory notices are issued in response to an event of regulatory importance (for example, a finding of a breach of the Rent Standard or of a consumer standard that has or may cause serious harm) that, in accordance with its obligation to be transparent, the regulator wishes to make public. More detail about Regulatory notices is set out in ‘Regulating the Standards.’

Key to Grades

Governance:

  • G1 (Compliant): The provider meets our governance requirements
  • G2 (Compliant): The provider meets our governance requirements but needs to improve some aspects of its governance arrangements to support continued compliance
  • G3 (Non-compliant): 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 (Non-compliant): 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:

  • V1 (Compliant): The provider meets our viability requirements and has the financial capacity to deal with a wide range of adverse scenarios.
  • V2 (Compliant): 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.
  • V3 (Non-compliant): 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 (Non-compliant): 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.

  1. The UK Government’s definition of SSH and TSH is set out in the Ministry of Housing, Communities and Local Government (Feb 2019) ‘Policy Statement on Rents for Social Housing’, at paragraph 5.5 for SSH and paragraph 5.10 for TSH. ↩

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