The Regulator of Social Housing reports that Empower Housing Association has been placed on its gradings under review list.

Another two organisations, Concept and Ash-Shahada Housing Association, were branded as non-compliant, forcing the local MP to make a statement.

The regulator is currently investigating matters which may impact on Empower’s compliance with the Governance and Financial Viability Standard.

Empower HA “specialise in providing housing for adults with disabilities enabling them to live within their community independently.”

The housing association provides homes from Scotland down to Devon.

At the time of the last Statistical Data Return, the provider had fewer than 1,000 homes and therefore does not have a current published regulatory grading in accordance with established procedures.

The Regulator has also issued two non-compliant gradings.

RSH say Ash-Shahada Housing Association (ASHA) is “non-compliant with the governance elements of the Governance and Financial Viability Standard”.

The judgement adds: “It has failed to ensure that it has effective governance arrangements in place that deliver its aims, objectives and intended outcomes for tenants in an effective, transparent and accountable manner.

“ASHA has failed to demonstrate that it has an appropriate, robust and prudent risk and control framework in place.

“ASHA has not been able to demonstrate that it is managing its affairs with an appropriate degree of skill, independence, diligence, effectiveness, prudence and foresight.”

In a longer report, the Regulator takes issue with various elements of the lease-based model that it operates. You can read that full judgement here.

Concept Housing Association CIC (Concept) is another provider that has been deemed non-compliant.

Concept’s fallen down on the “governance and financial viability elements of the Governance and Financial Viability Standard.”

The judgement adds: “It has failed to ensure that it has effective governance arrangements in place that deliver its aims, objectives and intended outcomes for tenants in an effective, transparent and accountable manner.

“Concept has failed to demonstrate that it has an appropriate, robust and prudent business planning and risk and control framework in place. Concept has also not been able to demonstrate that it is managing its affairs with an appropriate degree of skill, independence, diligence, effectiveness, prudence and foresight.

“Concept has been unable to demonstrate how it can ensure its viability is maintained due the lack of a current business plan.”

In a similar story, the Regulator is not impressed with the lease-based model and in particular, the quarterly inspections which were branded as “poor”.

The full judgement on Concept can be found here.

The reports on Concept and Ash-Shahada Housing Association have forced Shabana Mahmood, Labour MP for Birmingham Ladywood, to make a statement on the issue.

He said: “The Regulator’s report into two of the largest providers of Exempt Accommodation in Ladywood makes for harrowing reading – it is shocking, appalling and deeply worrying. The people using Exempt Accommodation are some of the most vulnerable in our communities, and in desperate need of additional support in the housing they are provided.

“This report shows how appallingly they have been let down. Amongst the litany of failures identified in the report lurks an open secret – that this type of behaviour from providers is endemic, and that this report is barely the tip of the iceberg .

“I have written to the Housing Secretary again today. It is imperative that he gets a grip of the situation.

“For too long the Government has shrugged off calls for reform – from me and others – insisting there is nothing fundamentally wrong with the Exempt Accommodation sector. This report gives us a glimpse of the truth, and the Government must act – and act now.”