The Regulator of Social Housing has published judgements raising serious concerns about Aves Housing and YMCA Thames Gateway as part of its latest batch of regulatory outcomes.
Following an investigation, the regulator found that Aves Housing is not meeting the Governance and Financial Viability Standard or the Rent Standard. Aves claims to provide supported social housing in London, leasing homes and providing tenant services alongside a third party that owns many of them.
The judgement follows a First Tier Tribunal decision on benefit appeals and action by eight London boroughs to stop almost all payments. According to the regulator, the tribunal found Aves made substantial profits for a third party that had control over its operations, overcharged for services, and that tenants either did not need support or were not provided with support as claimed.
RSH said Aves failed to self-refer after the tribunal judgement and found fundamental failings in the way the organisation is run. It said it had concerns that Aves had given up control of its business and was not operating as a genuine not-for-profit.
The regulator also said Aves had not shown that its board had enough skill, capacity and independence, or that it could manage material financial risks. It said the provider relied on housing benefit and higher rent levels as its main income, which had reduced significantly after local authority action.
RSH has also published a judgement on YMCA Thames Gateway after an investigation. It said YMCA TG does not have an up-to-date understanding of the condition of tenants’ homes, cannot show that it meets all legal health and safety requirements, and cannot demonstrate an effective repairs service. The regulator also said risk management failings had led to a significant deterioration in liquidity and failure to ensure covenant compliance.