The Regulator of Social Housing (RSH) has launched an independent statutory inquiry into London landlord Ash-Shahada Housing Association Limited (ASHA).
RSH can hold an inquiry if it suspects a landlord’s affairs may have been mismanaged, or if the landlord has failed to meet a regulatory standard. It can also do so where there is a risk of failure if neither the regulator nor the landlord takes action.
RSH chief executive Jonathan Walters said: “A statutory inquiry is a serious regulatory tool that we only use very rarely. This reflects the severity of our concerns with ASHA and its longstanding failure to put things right. We will use the independent findings to inform our next steps.”
ASHA is a Community Benefit Society and is designated as a not-for-profit provider. It provides social housing in London and supported exempt accommodation in Birmingham. RSH has notified ASHA and relevant stakeholders of the inquiry.
The inquirer is independent of RSH, but the regulator has specified the matters on which it must report. It must make findings on whether:
- There are, or have been, any actual, potential or perceived conflicts of interest within ASHA’s executive team or board
- The board and executive have the skills, independence and effectiveness needed to manage ASHA’s affairs
- ASHA, its officers, employees or agents have entered into arrangements or transactions, made payments, or conferred other benefits to advance the interests of third parties
- ASHA’s social housing assets have been used in a way that may be inconsistent with applicable policies, procedures, regulatory requirements or the law
- Any officer, employee or agent has contributed to mismanagement or a failure to comply with a standard, and, if so, who they are
- Any of these matters, or others uncovered during the inquiry, individually or collectively amount to mismanagement or a failure to meet applicable standards
The scope may be amended or extended if necessary, RSH said.
Certain enforcement powers are available to RSH only after an inquiry has begun and specific conditions are met. The regulator will consider the findings, decide whether further action is appropriate and publish the outcome once the inquiry concludes.
A spokesperson on behalf of ASHA’s board, said: “We are extremely disappointed and surprised by [the] announcement and do not recognise the picture it paints of ASHA. We have made real changes to how ASHA is run, including our decision to step away from supported exempt accommodation in Birmingham, and we have taken independent advice at every stage.
“This has included commissioning independent investigations to ensure we meet governance and regulatory requirements. At all material times we have sought independent and legal advice to support our decisions. We will cooperate fully with the inquirer and are confident the evidence will show the progress we have made and that decisions are supported by independent and legal advice received. Our priority remains the tenants who rely on us. We are now assessing our options and engaging with legal advice.”
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