A housing association that owns thousands of properties in West London is non-compliant with the governance element of the Regulator of Social Housing's economic standards, an investigation by the regulator has concluded.
The regulator downgraded Shepherds Bush Housing Association's governance grade due to a number of concerns involving poor financial risk assessments, fire safety reporting, and Decent Homes Standard compliance.
The investigation was first launched after the regulator placed the housing association on the 'gradings under review list' in December 2021. It found that Shepherds Bush had been unable to provide assurance that its governance arrangements had been effective.
In particular, the regulator found weaknesses in its risk management, internal control frameworks, and business plan reporting, which meant it failed to identify the potential crystallisation of financial risks in sufficient time.
The regulator also identified concerns about fire safety reporting and compliance with the Decent Homes Standard and found that data quality is an ongoing issue at the housing association.
There have also been a number of incidences where its communication and provision of information to the regulator fell below the required standard, the regulator said.
In response to the findings, the housing association has accelerated several actions to improve its governance and put in place a ‘Governance Assurance Plan’ that includes an overarching governance review, improvements to the financial governance and controls and several data reviews.
Harold Brown, RSH's Senior Assistant Director, Investigations and Enforcement, said the housing association "failed to manage its affairs appropriately in relation to risk management, fire safety and the decency of its tenants' homes".
Mr Brown added: "We remind all social housing landlords that they have a responsibility to notify us promptly about potential breaches of our standards. We will continue to monitor Shepherds Bush Housing Association as it improves its
The regulator noted that Shepherds Bush Housing Association remains compliant with the financial viability element of the economic standards.
Shepherds Bush Housing Association has been approached for a comment.