DETAILED APPLICATION
FORM FOR REGISTRATION
AS A PROVIDER OF SOCIAL
HOUSING
April 2015
1.
About this form
1.1
This form is issued by the Homes and Communities Agency (HCA) in its capacity as regulator of
social housing (the regulator) and should be completed by applicants wishing to become providers of
social housing registered under the Housing and Regeneration Act 2008 (the act).
1.2
The form should be read in conjunction with ‘Guidance on applying for registration as a provider of
social housing’ (the registration guidance), published from time to time by the regulator. Applicants
should refer to the registration guidance for information on registration and the registration process.
1.3.
Guidance on completing the application is included within this form.
1.4.
This form may only be submitted when the regulator has confirmed that the applicant has successfully
completed the preliminary application process to establish that it is an English Body which is, or
intends to become, a provider of social housing in England. The two stage process is designed to
ensure that applicants that do not meet condition one of the eligibility conditions in the act do not
waste time putting together a detailed application. However, the applicant is asked to re-confirm the
information provided at the preliminary application stage, or set out any changes to it. This is because
the regulator must be sure there has been no change since that stage which might affect the
continued eligibility of the applicant for registration.
1.5.
This form should be completed in full.
1.6.
Throughout this document references to an applicant’s 'board' should, where an applicant does not
have a board, be taken to include an equivalent management body as appropriate.
1.7.
The applicant should note that the HCA as a public authority is subject to the provisions of the
Freedom of Information Act 2000 and the Environmental Information Regulations 2004. The regulator
may also (section 109 of the act) share information with a public authority if the regulator thinks the
disclosure is necessary for a purposed connected with its functions or the functions or for a purpose
connected with the authority’s functions.
1.8.
As a public authority the HCA is also subject to the Public Sector Equality Duty which requires public
bodies to have due regard to the need to eliminate discrimination, advance equality of opportunity and
foster good relations between different people when carrying out their activities. There is a section on
equalities within this application form.
1.9.
This form asks for the consent of the applicant for the regulator to share relevant information with
other parts of the HCA. It also allows other parts of the HCA to share relevant information about the
applicant with the regulator. This sharing of information will only take place when it is appropriate to
do so. The applicant’s consent may be withdrawn at any stage.
1.10.
Definitions of terms used within this form are, unless otherwise indicated, taken from the act or other
cited legislation, all of which can be found on www.legislation.gov.uk.
1.11.
Any enquiries should be directed to the Regulatory Referrals and Enquiries team on 0300 1234 500 or
email mail@homesandcommunities.gov.uk.
1.12. The regulator’s preference is for electronic applications at all stages. These should be submitted to
registrations@hca.gsi.gov.uk. If it is not possible to submit electronically, applications should be
posted to:
1
Referrals and Regulatory Enquiries Team
Homes and Communities Agency
1st Floor
Lateral House
8 City Walk
Leeds
LS11 9AT
2
Name of applicant ……………………………………………………………………………………
Declaration and consent
We apply on behalf of the above applicant, for registration under section 116 of the Housing and
Regeneration Act 2008 (the act) and hereby:
i)
certify that there has been no change in the information provided by the applicant at the preliminary
application stage OR confirm that the detail of any changes to the information provided by the applicant
at the preliminary information stage have been included within this application [delete as appropriate]
ii)
confirm that the applicant has considered the regulator’s registration criteria established under section
112(3) of the act and believes that it will be able to meet them and to comply with the regulatory
standards set by the regulator under Sections 193 and 194 of the act
iii) undertake to submit to the regulator any necessary documentation and information to demonstrate that
the applicant is eligible for registration and can meet the requirements set out in the regulator’s
registration criteria
iv) certify that to the best of my/our (delete as necessary) knowledge and belief, the information given in this
form is correct and has been seen and approved by any governing body of the applicant
v)
confirm that we understand and accept that any recorded information regarding this application held by
the regulator, including any information provided in this application form and supporting documents, or
which is provided to the regulator during the application process, may be disclosed by the regulator
where this is in keeping with its obligations as a public authority under the Freedom of Information Act
2000 and/or the Environmental Information Regulations 2004
vi) consent to the sharing of relevant information within the HCA concerning the applicant for registration
vii) agree to receiving electronic communications from the HCA
Signed by
…………………….………………………………………………….…………………
Date
…………………………………………………………………………………………..
Name
…………………………………………………………………………………………..
Position
…………………………………………………………………………………………..
The application forms should be signed by someone who has the authority, in accordance with the applicant's
constitution, to sign on behalf of the applicant.
Applicants should note that, at its discretion, the regulator will not register an applicant with a name that is
similar to the name of an existing or previous registered provider if it believes that the use of this name may
cause confusion. It will also, at its discretion, not register an applicant with a name that it considers
inappropriate or misleading.
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Changes to information provided at the preliminary application stage
This section only needs to be completed when there have been changes to the information the applicant
provided at the preliminary application stage, including contact information. Applicants should set out below
the details of any changes and provide amended answers (with accompanying evidence, where relevant) to
the relevant questions contained in the Preliminary Application Form.
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2
Notes on the completion of this form
2.1
This form requires information that the applicant is not likely to have provided previously. The
information requested is intended to enable the regulator to assess whether the applicant complies
with the registration criteria. If the applicant has answered all the questions but thinks there is
additional information that would aid the regulator’s assessment, then that information should be
provided.
2.2
The regulator’s primary regulatory principle is co-regulation. Mindful of its duty to minimise
interference and its fundamental objective of supporting the provision of social housing, the regulator
is clear that board members are responsible for ensuring that they manage provider’s businesses
effectively and that their organisations are meeting applicable regulatory standards. The onus is on
the applicant to demonstrate its compliance with the registration criteria to the regulator. Further
information on the regulator’s approach is set out in ‘Regulating the Standards’, available on its
website.
2.3
If an applicant is registered, the regulator is required by the act to designate it as non-profit or profitmaking on its register. Further information is available on this in the Registration Guidance. If the
applicant wishes to be designated on the register as non-profit it should note that the regulatory
standards apply to the entirety of the business that it carries out and not just to its provision of social
housing. If the applicant wishes to be designated on the register as profit-making, the standards apply
only insofar as they relate to the applicant’s provision of social housing. Where non-social housing
activity is carried out by a profit-making applicant, the regulator will expect to understand the nature of
that activity, the risks it may pose to the social housing assets and how these risks are managed.
2.4
Applicants that are charities (including charities registered with the FCA) will find it helpful to refer to
the Charity Commission website https://www.gov.uk/government/organisations/charity-commission as
this contains much relevant guidance. The regulator will expect applicants that are charities to
demonstrate an understanding of the requirements inherent in their charitable status when it is
assessing compliance with the registration criteria.
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Registration Criteria
The registration criteria established by the regulator are linked to the regulatory standards that
registered providers have to meet. These standards have been established by the regulator under
Sections 193 and 194 of the act and are set out in the regulatory framework which is available on the
regulator’s website.
2.5
The registration criteria are that:

an applicant must meet the Governance and Financial Viability Standard at the point of
registration and demonstrate it can sustain its financial viability on an on-going basis

an applicant must have in place management arrangements that enable it to demonstrate the
capacity to meet the other regulatory standards

an applicant that is a registered or non-registrable charity must within its constitution:


a)
have as an object the provision of social housing (which can be worded as social housing
in the form of almshouse accommodation or as charitable social housing)
b
if it is a subsidiary, must state as much and name the parent body (in such a way that the
parent cannot be changed without seeking the regulator’s consent)
c)
if it is not a subsidiary, state that it has no power to become one without seeking the
regulator’s consent
a non-profit applicant which is not a registered or non-registrable charity must within its
constitution:
a) have as an object the provision of social housing
b) embed non-profit status
c) if it is a subsidiary, state as much and name the parent body (in such a way that the parent
cannot be changed without seeking the regulator’s consent)
d) if it is not a subsidiary, state provisions that it has no power to become one without
seeking the regulator’s consent
an applicant which is a Charitable Incorporated Organisation (CIO) must have (in addition to
the requirements above for applicants that are registered charities) within its constitution
requirements that:
 changes to its objects, to provisions for the non-distribution of assets to a member or
members or to provisions enabling the CIO to become, or cease to be, a subsidiary of
another body, shall only be effective if the consent of the regulator is obtained
 in the case of wrongful payments made by the CIO to one or more of its members, the
CIO shall take all reasonable steps to recover the sum(s) wrongfully paid out
 where steps are taken preliminary to winding up or a voluntary arrangement in relation to
the CIO, it shall notify the regulator of the fact
 changes to the provisions required by the regulator may only be made if the regulator has
consented to the change
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3
Guidance notes on the completion of the application form
General points
3.1
The application form is separated into six parts. Answering each fully should provide the regulator
with the information it needs to assess whether the applicant is meeting the registration criteria in
relation to the Governance and Financial Viability Standard. However, the applicant should include
any additional information it feels is relevant to the regulator’s assessment if it has not already been
provided in response to the questions.
3.2
The first part contains some general questions; the second contains questions on equalities; the
third is about the applicant’s governance arrangements (including its arrangements with third parties)
and its management of risk and the fourth part is about its financial viability and financial
governance. There may be overlaps in the information sought depending on how the applicant
structures its business plan and control arrangements. Given this, the applicant may cross refer to
information already provided and does not have to provide the same information more than once.
3.2
A fifth part of the application form contains questions that are only relevant to applicants in particular
circumstances. Applicants who do not fall into any of these categories should mark these questions
‘N/A’.
3.3
Finally the application form also includes an annex on constitutional questions which must be
completed by the applicant if it wishes to be designated as a non-profit provider on the register.
3.4
The applicant must demonstrate how it meets the Governance and Financial Viability Standard at
the point of registration and, in relation to financial viability, will do so on an on-going basis. The
applicant should note that the regulator has issued a code of practice (the Code) under section 195
of the act that amplifies the requirements in the Governance and Financial Viability Standard. The
Code is designed to help registered providers understand what the regulator is looking for when
seeking assurance on compliance with the standard by explaining and elaborating on the content,
with illustrative examples where necessary. In considering whether standards have been met, the
regulator will have regard to the Code so it provides relevant information for applicants.
3.5
The regulator would expect an application to include:

a business plan setting out the applicant’s objectives and how it intends to deliver those

financial forecasts of income and expenditure, balance sheet and cash flow for at least the
next five years

a narrative that confirms the rationale for the base assumptions used in the financial forecasts

the applicant’s assessment of the key risks to the delivery of the financial plan and how it
intends to manage those risks

stress testing to show the impact of a range of adverse changes in the key assumptions made
in the financial forecasts

(if available) the previous two years’ financial statements and most recent management
accounts

evidence that the assumptions made about levels of, and increases in, income are based on
compliance with the Rent Standard

where a rent higher than the social rent is charged and reliance is placed on the social housing
being treated as exempt accommodation for housing benefit purposes, evidence that housing
benefit will be paid to the applicant at the rate it has assumed in its financial plan
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3.6
3.7

where financial viability is dependent upon receipt of loan finance, evidence that the funds will
be available for drawdown at the time that they are required and on terms consistent with the
financial plan and risk assessment

where grant funding has been offered, evidence that the applicant will meet any conditions or
requirements which apply as a result of receiving financial assistance from the HCA or GLA

copies of the applicant’s governing documents, for example rules, articles
The regulator needs to understand the risks to the applicant’s social housing assets. It expects the
applicants to show:

it understands what these risks are

the circumstances in which the risks might materialise

how combinations of risks may impact

how risks are mitigated and

how the applicant’s board has assurance on risk management.
The applicant may find it useful to refer to the Sector Risk Profile published on the regulator’s website.
Approach to assessing compliance
3.8
In assessing compliance with the registration criteria, the regulator recognises that each applicant will
be at different stages in its development and it will take a proportionate approach within this context to
assessing compliance. Where an applicant is an existing business that already provides social
housing but has been operating to date without being registered, the regulator will expect to see a
track record of successful operation, a clear understanding of the risks to which the business is
exposed and relevant mitigating strategies, an understanding of how becoming a regulated entity
might impact on the business, and that relevant policies are in place.
3.9
An applicant applying for registration as an intending provider may not always have a track record of
operation upon which to base its application, and may not have governance arrangements and
financial systems developed to the same level as an applicant which is already a landlord of social
housing. However, the regulator expects that, although not a landlord at registration, the applicant will
have appropriate governance and financial arrangements in place so that, in the absence of a track
record, it can demonstrate from its current way of working (including its decision-making in respect of
the application for registration) that it will be compliant with the Governance and Financial Viability
Standard from the point of registration onwards.
3.10
Where the applicant is an existing business that is beginning to provide social housing for the first time
the regulator will expect the applicant to show that it understands the requirements that are specific to
the provision of social housing and demonstrate that it has the skills to manage these.
Code of governance
3.11
The applicant should give details of the code of governance that it has adopted, including the reasons
for its choice. The applicant should submit a self-assessment of compliance with the code, explaining
where there are any areas of non-compliance. If the non-compliance is because the applicant does
not think a particular aspect of the code is relevant to their organisation, it should explain why this is
the case. If the applicant does not comply with the code but has plans in place to secure compliance,
it should explain those plans. The regulator will consider the materiality of any non-compliance and
the applicant’s explanation and determine whether this amounts to non-compliance with the standard.
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3.12
As part of its assessment, the regulator will consider whether the code of governance adopted by the
applicant is appropriate. A code of governance is likely to be appropriate if it meets the requirements
and expectations of the standard and reflects the nature of the applicant. The regulator would expect
an appropriate code to establish and maintain clear roles, responsibilities and accountabilities for the
applicant’s board, chair and chief executive and to ensure that appropriate probity arrangements,
effective risk management and internal controls are in place.
3.13
The applicant is free to choose a code which reflects the conduct of its business provided it meets the
assurances expected by the regulator. Codes most commonly used within the sector include:

Code of Governance: Promoting Board Excellence for Housing Associations (National Housing
Federation)

The UK Corporate Governance Code

Good Governance: A Code for the Voluntary and Community Sector

Corporate Governance and Principles for Unlisted Companies in the UK (IoD and EcoDa)
Requirements for specific types of applicants
3.14
If the applicant wishes to be designated as non-profit on the register it should complete annex 2 to this
application form.
3.15
If the applicant has an unregistered parent, the applicant should set out how it will comply with the
specific requirements in the Governance and Financial Viability Standard. This should include the
mechanisms that the applicant proposes to put in place to meet the outcomes specified in paragraph
3.3 of the standard.
3.16
If the applicant wishes to be designated as non-profit on the register and is the parent of a group that
includes other non-profit registered providers it should set out how it will meet the requirements in
paragraph 3.1 of the Governance and Financial Viability Standard.
3.17
If the applicant wishes to be designated as profit-making on the register it should set out how it will
meet the requirements of paragraphs 3.4 and 3.5 of the Governance and Financial Viability Standard.
This includes having the social housing in a separate legal entity and limiting the amount of non-social
housing activity undertaken in that entity. The applicant should ensure that its business plan provided
reflects the separation of social housing activity and should set out how the non-social housing will be
managed to ensure that it does not place social housing assets, activities relating to the provision of
social housing or the applicant’s own financial viability at undue risk.
3.18
If the applicant has relations with third parties it should note the requirements of paragraph 2.6 of the
Governance and Financial Viability Standard. The applicant should pay particular attention to any
arrangements that could be construed by the regulator as advancing the interests of third parties. The
regulator will expect the applicant to set out what measures it has taken or will take to demonstrate it
is meeting the requirements of the standard. The regulator will also expect to see the applicant’s
governing documents addressing any actual or perceived conflict of interest.
3.19
The regulator is particularly concerned about arrangements that may enable value to be extracted
from a non-profit provider such as those it may put in place with associated individuals or companies.
Where the potential for extraction of value exists arrangements will be scrutinised closely and the nonprofit status of the applicant may be questioned. Such extraction of value may not necessarily
9
threaten the viability of the applicant but may call into question its non-profit nature. This can have an
impact on the reputation of the sector and the regulator will consider the arrangements in this context.
3.20
If the applicant is charitable it should note that the regulator’s expectation is that it is unlikely that a
charitable applicant will be a subsidiary of a non-charitable organisation. However, if this is the case,
the applicant should set out what assurance the board has that the applicant’s charitable status and
objectives cannot be threatened by any action of the parent.
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Part One – General questions
General questions
1.
How does the applicant consider that it
should be designated on the register? Tick
only one box.
Non-profit
Profit-making
NB Applicants that tick the non-profit box
must complete Annex 2.
2.
The applicant should provide evidence, for
example board minutes, that its board has
considered the regulatory framework
requirements, and the role of the regulator
and set out how it has assured itself that it
can comply with the regulatory
requirements.
3.
Please outline how the applicant will monitor
its compliance with the regulatory standards
and how the board will gain assurance of
that compliance.
4.
If the applicant is a charity and its parent is
not charitable, how does the board have
assurance that its charitable status is
maintained and not compromised by the
parent?
5.
Has the applicant appointed a corporate
trustee? If so, who?
Guidance notes
Definitions of not-profit and profit-making are set out in section 115 of the act. The applicant can find further
information in section 5 of the registration guidance.
If the applicant wishes to be registered as non-profit it must complete annex 2 of this application form.
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Part 2 - Equalities
As a public authority, the regulator has a specific duty to have due regard to equality issues, when
exercising its regulatory functions (including the processing of this application for registration). These
obligations are set out in s149(1) of the Equality Act 2010. This is called our public sector equality duty.
The questions below are asked in this context.
Applicants must comply with the Equality Act 2010 whether or not they are registered providers of social
housing. Although the regulator appreciates that not all restrictions are unlawful, the current equality
legislation specifically requires that any restriction of services, based on a protected characteristic, must be
justified on the basis set out in the Equality Act 2010.
The protected characteristics for the purposes of the regulator’s public sector equality duty are:








Disability
Age
Race
Gender reassignment
Religion or belief
Gender
Sexual orientation
Pregnancy & Maternity
The service that the regulator regulates is the provision of social housing by registered providers.
As a result, when reviewing registration applications the regulator asks applicants to confirm whether they
have any, or intend to have any restrictions in place regarding persons sharing a relevant protected
characteristic. Where the regulator establishes that such restrictions are in place, or due to be put in place,
it is likely to ask providers for specific assurance how they have satisfied themselves that they are acting
lawfully under the current equalities legislation. This is relevant to the regulator’s public sector equality
duty and the requirement in the Governance and Financial Viability Standard that registered providers
must comply with all relevant law.
REQUIREMENT FOR A DECLARATION
6.
Does the applicant require, or intend to require any declaration to be made in order for persons to:


become members of its organisation
obtain access to your services or charitable benefits
Explanatory note and guidance

This question relates to any declaration that is a condition or requirement for membership, or for
the public to access to the applicant’s services or the charitable benefits that it provides. This does
not include declarations that are employment requirements.
YES
Go to next question
NO
Go to question 10
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7.
Who does this declaration apply to? (Please tick all the apply)
Members
Go to next question
Persons using
services or
accessing benefits
Go to next question
8.
Is the requirement for this declaration set out in the applicant’s governing document?
YES
Please provide references below, then go to question 9
Please indicate where in the governing document this appears (Please provide relevant page number(s)
and the article(s)/rule(s) reference).
Page No(s)
Article/Rule
reference(s)
NO
Go to next question
9.
Please summarise the nature of the declaration below
Answer
RESTRICTIONS ON ACCESS TO SERVICES OR PROVISION OF CHARITABLE BENEFITS
10.
Does the applicant restrict, or intend to restrict access to services or the provision of charitable
benefits to the public to particular groups of people?
YES
Go to next question
NO
Go to question 15
11. Please provide details of the types of services or charitable benefits provided to the public.
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12.
Please indicate those categories which fall within the scope of the restriction which the applicant
imposes on access to services or the provision of charitable benefits to the public.
YES
Please see below and tick all that apply, then go to next
question
Disability
Religion or belief
Age
Race
Pregnancy and
Maternity
Sexual Orientation
Gender
Gender
reassignment
NO
13.
Go to question 14
Is this restriction of access to services or the provision of charitable benefits set out in the
applicant’s governing document?
YES
Please provide references below, then go to next question
Please indicate where in the governing document this appears (Please provide relevant page number(s)
and the article(s)/rule(s) reference).
Page No(s)
Article/Rule
reference(s)
NO
Go to next question
14.
Please summarise the restriction of access to services or the provision of charitable benefits below.
Answer
14
RESTRICTIONS ON MEMBERSHIP OF PROVIDER ORGANISATION
Only answer questions 15 to 18 if the applicant has a membership structure.
For example: a charity with a membership structure, such as YMCA.
15.
Does the applicant restrict, or intend to restrict, membership of its organisation to any particular
groups of people?
YES
Go to next question
NO
Go to Part 3
16.
Does the membership restriction relate to any of the groups listed below?








Disability
Age
Race
Gender reassignment
Religion or belief
Gender
Sexual orientation
Pregnancy & Maternity
YES
Please see below and tick all that apply, then go to next
question.
Disability
Religion or belief
Age
Race
Pregnancy and
Maternity
Sexual Orientation
Gender
Gender
reassignment
NO
17.
Go to question 18
Is this membership restriction set out in the applicant’s governing document?
YES
Please provide references below, then go to next question
Please indicate where in the governing document this appears (Please provide relevant page number(s)
and the article(s)/rule(s) reference).
Page No(s)
Article/Rule
reference(s)
NO
Go to next question
15
18.
Please summarise the nature of the membership restriction below.
Answer
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Registration Criterion
An applicant must meet the Governance and Financial Viability Standard at the point of registration
and demonstrate it can sustain its financial viability on an on-going basis.
1
Required outcomes of the Governance and Financial Viability Standard
1.1
Governance
Registered providers shall ensure effective governance arrangements that deliver their aims,
objectives and intended outcomes for tenants and potential tenants in an effective, transparent and
accountable manner. Governance arrangements shall ensure registered providers:






1.2
adhere to all relevant law
comply with their governing documents and all regulatory requirements
are accountable to tenants, the regulator and relevant stakeholders
safeguard taxpayers’ interests and the reputation of the sector
have an effective risk management and internal controls assurance framework
protect social housing assets
Financial viability
Registered providers shall manage their resources effectively to ensure their viability is maintained
while ensuring that social housing assets are not put at undue risk.
2
Specific expectations applicable to all registered providers
2.1
Registered providers shall adopt and comply with an appropriate code of governance. Governance
arrangements should establish and maintain clear roles, responsibilities and accountabilities for the
board, chair and chief executive and ensure appropriate probity arrangements are in place. Areas
of non-compliance with their chosen code of governance should be explained. Registered
providers should assess the effectiveness of their governance arrangements at least once a year.
2.2
Registered providers shall ensure that they manage their affairs with an appropriate degree of skill,
independence, diligence, effectiveness, prudence and foresight.
2.3
Registered providers shall communicate in a timely manner with the regulator on material issues
that relate to non-compliance or potential non-compliance with the standards.
2.4
Registered providers shall ensure that they have an appropriate, robust and prudent business
planning, risk and control framework.
2.4.1
The framework shall ensure:
(a)
there is access to sufficient liquidity at all times
(b)
financial forecasts are based on appropriate and reasonable assumptions
(c)
effective systems are in place to monitor and accurately report delivery of the registered
provider's plans
(d)
the financial and other implications of risks to the delivery of plans are considered
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(e)
registered providers monitor, report on and comply with their funders' covenants
2.4.2 The framework shall be approved by the registered provider's board1 and its effectiveness in
achieving the required outcomes shall be reviewed at least once a year.
2.5
In addition to the above registered providers shall assess, manage and where appropriate address
risks to ensure the long term viability of the registered provider, including ensuring that social
housing assets are protected. Registered providers shall do so by:
(a)
maintaining a thorough, accurate and up to date record of their assets and liabilities and
particularly those liabilities that may have recourse to social housing assets
(b)
carrying out detailed and robust stress testing against identified risks and combinations of
risks across a range of scenarios and putting appropriate mitigation strategies in place as a
result
(c)
2.6
before taking on new liabilities, ensuring that they understand and manage the likely impact
on current and future business and regulatory compliance
Registered providers shall ensure that any arrangements they enter into do not inappropriately
advance the interests of third parties, or are arrangements which the regulator could reasonably
assume were for such purposes.
2.7
Registered providers shall communicate with the regulator in an accurate and timely manner. This
includes returns to the regulator, including an annual report on any losses from fraudulent activity,
in a form determined by the regulator.
2.8
Registered providers shall assess their compliance with the Governance and Financial Viability
Standard at least once a year. Registered providers' boards shall certify in their annual accounts
their compliance with this Governance and Financial Viability Standard.
3
Specific expectations applicable to specific categories of registered provider
Registered group parents
3.1
Registered providers which are parent companies shall, as appropriate, support or assist those of
their subsidiaries that are registered providers with a view to ensuring compliance with regulatory
requirements.
Registered providers with unregistered parents
3.2
Registered providers with parent companies who are not registered providers shall ensure that they
do not enter into agreements to support the activity of the parent or another group member that
may have a material negative impact on the social housing assets of the registered provider.
3.3
To enable compliance with the regulator’s standards or other regulatory requirements, registered
providers with parent companies that are not registered providers shall have in place effective
mechanisms to ensure that:
1
(a)
such parent companies will give any appropriate support or assistance as necessary to the
registered provider
(b)
such registered providers have the ability to require the support or assistance of the parent
Where a registered provider does not have a board, it should be taken to include an equivalent management body as appropriate.
18
company concerned
(c)
the registered provider’s ability to meet the regulator’s standards and other regulatory
requirements is not and cannot be prejudiced by the activities or influence of the parent
company or another part of the group
Profit-making registered providers
3.4
Profit-making registered providers shall ensure that they undertake their social housing activities in
an entity which is legally and operationally separated from any other activities they may undertake,
except as set out below.
3.5
Profit-making registered providers should ensure that activities they undertake which do not relate
to the provision of social housing:
(a)
form only a very small part of the activities they undertake
(b)
are not such as to mean that registered providers place social housing assets, activities
relating to the provision of social housing or their own financial viability at undue risk
19
Part 3 - Governance and management of risk
In order to assess compliance with the standard the regulator needs to understand how the applicant is
managed, how it manages risk and how the board has assurance of these.
19. The applicant should provide information
about its board and executive structure and
the relative roles and responsibilities of these
parties (including profiles of board and
executive members).
20. How have the roles, responsibilities and
accountabilities for the applicant’s board,
chair and chief executive been established
(including how they are reflected in the
applicant’s governing documents)?
21. The applicant should briefly describe its
governance arrangements and how the
board will gain assurance that these remain
appropriate.
22. The applicant should explain how its board
has reviewed the skills it has available to it
and why it considers these are adequate.
23. The applicant should outline what probity
arrangements have been established
(including how they are reflected in the
governing documents) and why its board has
considered these are appropriate. The
applicant should consider the requirements
of section 122 of the act in responding to this.
24. Does the applicant trade with, or procure
services from, an organisation in which
shareholders or directors of the applicant
have an interest? Does it plan to do so?
25. Does the applicant have any loans from
shareholders or directors? Does it plan to do
so?
26. Has the applicant leased or bought property
from its shareholders or directors? Does it
plan to do so?
27. The applicant should outline the basis on
20
which it entered into any of the arrangements
above and how its board is satisfied that
these arrangements are appropriate.
28. If the applicant has not entered into any such
arrangements but plans to do so, it should
outline the basis on which it will enter into
any of the arrangements above and how its
board would be satisfied that these
arrangements were appropriate.
29. The applicants should outline how it
manages conflicts of interest, particularly in
respect of any links to third parties as above,
including how this is reflected in its governing
document.
30. Which code of governance has been
adopted by the applicant and why does its
board consider this to be appropriate?
31. How has the applicant’s compliance with its
adopted code of governance been
assessed? (Please provide a copy of the
assessment). Please explain any areas of
non-compliance and why the applicant’s
board is satisfied non-compliance is
appropriate.
Where actions are planned to address any
identified non-compliance with the code of
governance, the applicant should explain
the non-compliance, what action is planned
and the timescale for implementation.
32. Describe how the applicant identifies,
monitors and manages risk.
33. What does the applicant consider to be the
greatest risks to the delivery of its business
plans? Why are these considered to be the
greatest risks? What actions has the
applicant taken (or will it take) to mitigate
these risks? This is usually captured by a
risk register.
34. How will the applicant’s board gain
21
assurance that risks are correctly identified,
monitored and mitigated?
35. Please provide an example of a liability that
the applicant has taken or will take on. How
did or will its board have assurance that the
risks of this liability had been/will be
effectively assessed, any potential impact
on the applicant’s ability to deliver its
business plan considered and any
necessary measures put in place?
36. If the applicant plans to contract out
services (for example maintenance
services) that it will rely on to comply with
the standards, it should set out what those
services are and how its board has
assurance that the third party will not
jeopardise its ability to meet these
standards.
22
Part 4 Financial viability and financial governance
Financial viability
The applicant must demonstrate its financial viability at the point of registration, and on an on-going basis.
The applicant’s financial forecasts will be the main document that provides assurance of this.
37 The applicant should provide its details of its
financial forecasts for at least the next 5
years. This should include an Income and
Expenditure/Profit and Loss Account, Cash
Flow Forecast and Balance Sheet Forecast.
In order to complete the financial forecasts the applicant will have made a number of assumptions relating
to the different income and expenditure categories. The regulator needs to understand what these
assumptions are and establish how the applicant’s board has assurance that the assumptions are made on
a reasonable basis.
38. The applicant should provide details of the
assumptions made in completing the
financial forecasts.
39. How has the applicant’s board gained
assurance that the assumptions have been
made on an appropriate and reasonable
basis? Applicants should provide the
supporting documentation that has allowed
the board to conclude on this.
There will be risks that the assumptions made in the financial forecasts are not delivered to plan e.g. an
expenditure item such as repairs is higher than expected. The regulator needs to gain assurance that the
applicant has identified and considered these risks.
40. The applicant should provide the
document(s), approved by the board, that
identifies the risks that could impact the
applicant’s financial forecasts, and the steps
it takes (or will take) to monitor and minimise
the chances of the risk occurring. Usually this
would be captured in a risk register.
41. The applicant should explain how its board
monitors and gains assurance that the
controls the applicant has identified to
minimise the risks occurring are in place and
operating as intended. Copies of supporting
documents that allowed the applicant’s board
23
to gain assurance that these are operating as
intended should be provided.
The standard requires that the applicant carries out detailed and robust stress testing against identified
risks and combinations of risks across a range of scenarios and puts appropriate mitigation strategies in
place as a result. This builds on the section above, and identifies what can go wrong, what can the
applicant cope with financially if things did go wrong, and what would the board do if things did go wrong.
42. The applicant should provide details of the
stress testing that it has undertaken on the
risks it faces. In response to the stress
testing what strategies does the applicant
have in place to deal with the scenarios
identified?
43. What are the risks, or combination of risks,
that would need to materialise to make the
applicant unviable?
The Standard requires that the applicant must have access to sufficient liquidity i.e. cash, at all times. The
regulator will review the applicant’s cash flow forecast submitted as part of the application. The applicant
should provide evidence to demonstrate that the key categories of cash income e.g. rents, loan income,
grants are firm (ie will be available for drawdown at the time that they are required) and in place prior to
registration.
44. How has the applicant’s board gained
assurance that the applicant will have
sufficient liquidity at all times?
45. The applicant should provide the supporting
evidence that has allowed its board to gain
assurance that the key categories of cash
income will be forthcoming.
Registered providers are required to maintain a thorough, accurate and up to date record of their assets
and liabilities and particularly those liabilities that may have recourse to social housing assets.
46. The applicant should set out how its board
has used and proposes to use the record of
assets and liabilities in relation to its
management of risk.
47. How has the applicant’s board assured itself
that any links to other organisations do not put
the social housing assets at undue risk?
48. How has the applicant’s board gained
24
assurance that the list of assets and liabilities
is up to date and accurate?
Financial Governance
Registered providers are required to ensure that they have an appropriate, robust and prudent business
planning, risk and control framework that underpins the financial forecasts produced. The regulator would
expect this to include appropriate policies and procedures to manage the applicant’s operations,
appropriate methods and systems to monitor its financial performance, appropriate controls to ensure that
all funds are used as intended, and that the board gains assurance that policies, procedures and controls
are operating as intended.
49. The applicant should identify the key policies
and procedures that are in place which set
out the rules for financial transactions e.g.
Financial Procedures and provide a copy of
these in support of the application.
50. The applicant should set out how its board
monitors the applicant’s financial
performance. In support of this copies of the
following should be provided:

The most recent document taken to
board reporting the applicant’s financial
performance

The document at the last financial year
end reporting financial performance
against budget
51. How does the applicant’s board gain
assurance that the monitoring systems in
place are effective? Applicants should
provide the evidence that has allowed its
board to conclude that it has satisfactory
assurance.
52. How has the applicant’s board gained
assurance that the controls the applicant has
in place to ensure all funds are spent
appropriately are operating as intended?
Guidance notes
The regulator expects that its review of the applicant’s business plan will provide it with an understanding of:

the applicant’s strategic objectives and how it plans to meet these objectives

the key risks facing the applicant and how it will address them
25

current levels of performance (where relevant) and

the financial forecasts
The financial forecasts should reflect the applicant's strategies, demonstrate sufficient financing for the
immediate future, and have been tested against changes to key assumptions. In particular, the regulator will
need to be satisfied that the funding on which the applicant is relying will be forthcoming at the time when it is
required and that the applicant can meet the terms on which it is provided. The regulator will not register an
applicant until it is satisfied that the relevant funding is in place.
Where financial viability is dependent upon receipt of loan finance, the applicant should provide evidence that
the funds will be available for drawdown at the time that they are required and on terms that are consistent
with the applicant’s financial plan and risk assessment.
Where grant funding has been offered, the applicant should provide evidence that it will be in a position to
meet any conditions or requirements which apply.
If the applicant is developing social housing it should provide a monthly cashflow forecast as the regulator will
need to be satisfied that the applicant is in a position to maintain its viability during a period of heavy demand
on its cash.
The applicant should set out the basis of any assumptions that support its financial forecasts. The regulator
will need to be satisfied that the assumptions that underpin the forecasts are reasonably based.
The regulator will need to understand what risks there are to the applicant’s business plan and how it is
addressing these. It is particularly important that the applicant demonstrates that it has considered
combinations of risks that might crystallise and how these would impact on its business plan.
26
Part 5: Specific expectations applicable to categories of registered provider
Registered group parents
Registered providers that are parent companies shall, as appropriate, support or assist those of their
subsidiaries that are registered providers with a view to ensuring compliance with regulatory
requirements.
53. If the applicant has, or intends to have
following registration, subsidiaries that are
registered providers, it should outline the
arrangements in place to provide, as
appropriate, support or assistance to the
subsidiaries with a view to ensuring
compliance with regulatory requirements.
Registered providers with unregistered parents
Registered providers with parent companies who are not registered providers shall ensure that they do
not enter into agreements to support the activity of the parent or another group member that may have a
material negative impact on the social housing assets of the registered provider.
54. Is the applicant a subsidiary of a parent
company which is not a registered
provider? If yes, the applicant should
explain how it fits within the corporate
structure.
55. If the applicant has answered yes to
question 53 it should outline how its board
has assurance that no agreements are in
place to support the activity of the parent or
another group member that may have a
material negative impact on the applicant’s
social housing assets.
56. If the applicant has answered yes to
question 53 it should outline how its board
will have assurance that the applicant will
not enter into any agreements to support
the activity of the parent or another group
member that may have a material negative
impact on the social housing assets of the
applicant.
To enable compliance with the regulator’s standards or other regulatory requirements, registered
providers with parent companies that are not registered providers shall have in place effective
mechanisms to ensure that:

such parent companies will give any appropriate support or assistance as necessary to the registered
provider
27

such registered providers have the ability to require the support or assistance of the parent company
concerned

the registered provider’s ability to meet the regulator’s standards and other regulatory requirements is
not and cannot be prejudiced by the activities or influence of the parent company or another part of
the group
57. If the applicant has a parent company which
is not a registered provider, it should outline
the mechanisms in place to meet the
requirements above.
58. How does the applicant’s board have
assurance that any mechanisms in place to
meet the requirements above are
adequate?
28
Profit-making registered providers only
Profit-making registered providers shall ensure that they undertake their social housing activities in an
entity which is legally and operationally separated from any other activities they may undertake, except as
set out below.
Profit-making registered providers should ensure that activities they undertake which do not relate to the
provision of social housing:

form only a very small part of the activities they undertake

are not such as to mean that registered providers place social housing assets, activities relating to
the provision of social housing or their own financial viability at undue risk
59. If the applicant wishes to be designated on
the register as a profit-making provider and
undertakes activities which do not relate to
the provision of social housing, what are
these activities? How has the applicant
determined that these are non-social
housing activities? The applicant should
outline how its board has assurance that
the requirements above are met.
60. If the applicant wishes to be designated on
the register as as a profit-making provider,
how will its board have assurance that
consideration is given to any new activities
and the impact on compliance with the
above requirements of the standard
assessed?
The applicant should set out what non-social housing activity it carries out and how it has determined that this
is non-social housing activity. The regulator will need to understand how the applicant’s board is satisfied with
the arrangements in place to ensure that any non-social housing activity remains a small part of the
applicant’s business and how any risks arising from that activity are being managed.
29
Part 6 Registration criterion
An applicant must have in place management arrangements that enable it to demonstrate the
capacity to meet the other regulatory standards.
The other regulatory standards referred to above are:

The Value for Money Standard

The Rent Standard

The Tenant Involvement and Empowerment Standard

The Home Standard

The Tenancy Standard

The Neighbourhood and Community Standard
The required outcomes and specific expectations for each of these standards are set out in Annex 1 to
this document.
‘Management arrangements’ refers to the arrangements that the applicant has in place to comply with the
standards above.
An illustrative example of the assurance the applicant should provide is in relation to the Home Standard.
One of the required outcomes of the Home Standard relates to the quality of accommodation. A specific
outcome is that registered providers shall ensure that tenants’ homes meet the standard set out in section
five of the Government’s Decent Homes Guidance and continue to maintain their homes to at least this
standard.
The regulator would require evidence of the arrangements the applicant has in place that allow its board to
gain assurance that the applicant is providing accommodation to the requisite quality i.e. in compliance with
the Decent Homes Guidance, and thus with the Home Standard. The arrangements may include, for
example:






organisational structures
resources
policy framework
management information framework
risk management framework
internal control system
To the extent that the information has not already been provided, the applicant must demonstrate how its
proposed management arrangements enable it to meet the standards other than the Governance and
Financial Viability Standard. The regulator will not assess whether the applicant can meet these standards
but will assess whether, in its opinion, the management arrangements that the applicant has in place appear
likely to deliver compliance with these standards. The applicant should ensure that the information it provides
relates to management arrangements and not to the standards themselves.
The regulator will use the information given in response to these questions to assess the applicant’s
understanding of the requirements of the standards and how it intends to secure compliance with these.
The applicant should note that not all of the standards apply to all types of organisations or all types of social
housing. The regulatory framework page on the website sets out the exclusions that apply.
30
61. The applicant should outline the
management arrangements in place to
meet the Value for Money Standard.
62. The applicant should outline the
management arrangements in place to
meet the Rent Standard.
63. The applicant should outline the
management arrangements in place to
meet the Tenant Involvement and
Empowerment Standard.
64. The applicant should outline the
management arrangements in place to
meet the Home Standard.
65. The applicant should outline the
management arrangements in place to
meet the Tenancy Standard.
66. The applicant should outline the
management arrangements in place to
meet the Neighbourhood and
Community Standard.
31
Annex 1: regulatory standards
Value for Money Standard
1
Required outcomes
1.1
Registered providers shall articulate and deliver a comprehensive and strategic approach to achieving
value for money in meeting their organisation’s objectives. Their boards must maintain a robust
assessment of the performance of all their assets and resources (including for example financial,
social and environmental returns). This will take into account the interests of and commitments to
stakeholders, and be available to them in a way that is transparent and accessible. This means
managing their resources economically, efficiently and effectively to provide quality services and
homes, and planning for and delivering on-going improvements in value for money.
2
Specific expectations
2.1
Registered providers shall:
(a)
(b)
(c)
(d)
2.2
have a robust approach to making decisions on the use of resources to deliver the provider’s
objectives, including an understanding of the trade-offs and opportunity costs of its decisions
understand the return on its assets, and have a strategy for optimising the future returns on
assets – including rigorous appraisal of all potential options for improving value for money
including the potential benefits in alternative delivery models - measured against the
organisation’s purpose and objectives
have performance management and scrutiny functions which are effective at driving and
delivering improved value for money performance
understand the costs and outcomes of delivering specific services and which underlying
factors influence these costs and how they do so.
Registered providers’ boards shall demonstrate to stakeholders how they are meeting this standard.
As part of that process, on an annual basis, they will publish a robust self assessment which sets out
in a way that is transparent and accessible to stakeholders how they are achieving value for money in
delivering their purpose and objectives. The assessment shall:
(a)
(b)
(c)
enable stakeholders to understand the return on assets measured against the organisation’s
objectives
set out the absolute and comparative costs of delivering specific services
evidence the value for money gains that have been and will be made and how these have and
will be realised over time..
32
Rent Standard
1
Required outcome
1.1
Registered providers2 shall charge rents in accordance with the government’s direction to the
regulator of May 2014 and the Rent Standard Guidance.
2
Specific expectations
2.1
Registered providers shall ensure they meet the following requirements, which derive from the
government’s direction to the regulator of May 2014, and the ‘key requirements’ set out in the Rent
Standard Guidance that accompanies this standard.
2.2
Subject to paragraphs 2.3, 2.5 and 2.6, registered providers shall set rents for low cost rental
accommodation with a view to achieving the following:
2.3
(a)
Rents conform with the pattern produced by the rents formula set out in the Rent Guidance3
(‘formula rents’) with a 5% upward tolerance on individual rents (10% for supported housing
and sheltered housing) (‘the limit of the rent flexibility level’), but subject to the maximum rent
levels specified in that Guidance (‘rent caps’)
(b)
Weekly rent for accommodation increases each year by an amount which is no more than
CPI + 1%
(c)
Weekly rent for accommodation which is above the limit of the rent flexibility level increases
each year by an amount which is less than CPI +1%, until it reaches the limit of the rent
flexibility level
(d)
Rent caps increase annually by CPI +1.5%
(e)
Formula rents increase annually by CPI +1%
The requirements of paragraph 2.2 do not apply to accommodation let on Affordable Rent terms.
Subject to paragraph 2.6, where accommodation is let on Affordable Rent terms, registered providers
shall set rents with a view to achieving the following:
(a)
Rent for accommodation (inclusive of service charges) is set at a level which is no more than
80% of the estimated market rent for the accommodation (inclusive of service charges),
based on a valuation in accordance with a method recognised by the Royal Institution of
Chartered Surveyors
(b)
Rent for accommodation increases each year by an amount which is no more than CPI + 1%
(c)
Rent for accommodation is re-set, based on a new valuation, each time the accommodation
is:
(i)
let to a new tenant, or
(ii)
re-let to the same tenant (but where a probationary tenancy comes to an end and
the registered provider re-lets the accommodation to the same tenant the provider is
not required to re-set the rent)
The term “registered providers” refers to private registered providers.
The Rent Guidance means the Guidance on Rents for Social Housing issued by the Government on 23 May 2014 and any other
guidance issued by the Government in relation to that document.
2
3
33
2.4
Affordable Rent terms can only be used in relation to accommodation provided pursuant to a housing
supply delivery agreement entered into between a registered provider and the Homes and
Communities Agency (HCA) or the Greater London Authority (GLA).
2.5
The Rent Standard shall not apply to rental accommodation let by registered providers to a social
housing tenant household during a financial year where the household income was £60,000 or more
in the tax year which ended in the financial year preceding the financial year in which the Rent
Standard will not apply.
2.6
Where the application of the Rent Standard would cause providers to be unable to meet other
standards, particularly in respect of financial viability, including the risk that a reduction in overall
rental income causes them to risk failing to meet existing commitments such as banking or lending
covenants, the regulator may agree to waive specific requirements of the Rent Standard for a period
of time.
2.7
Registered providers shall provide clear information to tenants that explains how their rent and any
service charge are set, and how they are changed, including reference to the CPI benchmark to which
annual changes to rents should be linked (except where rents are controlled under different
legislation).
34
Home Standard
1
Required outcomes
1.1
Quality of accommodation
Registered providers shall:
(a)
(b)
(c)
1.2
ensure that tenants’ homes meet the standard set out in section five of the Government’s
Decent Homes Guidance4 and continue to maintain their homes to at least this standard
meet the standards of design and quality that applied when the home was built, and were
required as a condition of publicly funded financial assistance5, if these standards are higher
than the Decent Homes Standard
in agreeing a local offer, ensure that it is set at a level not less than these standards and have
regard to section six of the Government’s Decent Homes Guidance
Repairs and maintenance
Registered providers shall:
(a)
(b)
provide a cost-effective repairs and maintenance service to homes and communal areas that
responds to the needs of, and offers choices to, tenants, and has the objective of completing
repairs and improvements right first time
meet all applicable statutory requirements that provide for the health and safety of the
occupants in their homes
2
Specific expectations
2.1
Quality of accommodation
2.1.1
Registered providers may agree with the regulator a period of non-compliance with the Decent Homes
Standard, where this is reasonable. Providers shall ensure their tenants are aware of the reasons for
any period of non-compliance, their plan to achieve compliance and then report on progress delivering
this plan.
2.2
Repairs and maintenance
2.2.1
Registered providers shall ensure a prudent, planned approach to repairs and maintenance of homes
and communal areas. This should demonstrate an appropriate balance of planned and responsive
repairs, and value for money. The approach should include: responsive and cyclical repairs, planned
and capital work, work on empty properties, and adaptations.
2.2.2
Registered providers shall co-operate with relevant organisations to provide an adaptations service
that meets tenants’ needs.
‘Decent Homes Guidance’ means A Decent Home: Definition and Guidance for Implementation, published by the Department for
Communities and Local Government in June 2006, and any guidance issued by the department or its successors, in relation to that
document.
4
‘Financial assistance’ is assistance given by the Homes and Communities Agency (HCA) under section 19(3) of the Housing and
Regeneration Act, 2008; and (with effect from 1 April 2012) given by the Greater London Authority (GLA). For the purpose of this
standard, it includes financial assistance provided by predecessor bodies to the HCA.
5
35
Neighbourhood and Community Standard
1
Required outcomes
1.1
Neighbourhood management
Registered providers shall keep the neighbourhood and communal areas associated with the homes
that they own clean and safe. They shall work in partnership with their tenants and other providers
and public bodies where it is effective to do so.
1.2
Local area co-operation
Registered providers shall co-operate with relevant partners to help promote social, environmental
and economic wellbeing in the areas where they own properties.
1.3
Anti-social behaviour
Registered providers shall work in partnership with other agencies to prevent and tackle anti-social
behaviour in the neighbourhoods where they own homes.
2
Specific expectations
2.1
Neighbourhood management
Registered providers shall consult with tenants in developing a published policy for maintaining and
improving the neighbourhoods associated with their homes. This applies where the registered
provider has a responsibility (either exclusively or in part) for the condition of that neighbourhood. The
policy shall include any communal areas associated with the registered provider’s homes.
2.2
Local area co-operation
Registered providers, having taken account of their presence and impact within the areas where they
own properties, shall:
(a)
identify and publish the roles they are able to play within the areas where they have properties
(b)
co-operate with local partnership arrangements and strategic housing functions of local
authorities where they are able to assist them in achieving their objectives
2.3
Anti-social behaviour
2.3.1
Registered providers shall publish a policy on how they work with relevant partners to prevent and
tackle anti-social behaviour (ASB) in areas where they own properties.
2.3.2
In their work to prevent and address ASB, registered providers shall demonstrate:
(a)
that tenants are made aware of their responsibilities and rights in relation to ASB
(b)
strong leadership, commitment and accountability on preventing and tackling ASB that reflects
a shared understanding of responsibilities with other local agencies
(c)
a strong focus exists on preventative measures tailored towards the needs of tenants and their
families
36
(d)
prompt, appropriate and decisive action is taken to deal with ASB before it escalates, which
focuses on resolving the problem having regard to the full range of tools and legal powers
available
(e)
all tenants and residents can easily report ASB, are kept informed about the status of their
case where responsibility rests with the organisation and are appropriately signposted where it
does not
(f)
provision of support to victims and witnesses
37
Tenancy Standard
1
Required outcomes
1.1
Allocations and mutual exchange
1.1.1
Registered providers shall let their homes in a fair, transparent and efficient way. They shall take into
account the housing needs and aspirations of tenants and potential tenants. They shall demonstrate
how their lettings:
(a)
make the best use of available housing
(b)
are compatible with the purpose of the housing
(c)
contribute to local authorities’ strategic housing function and sustainable communities
There should be clear application, decision-making and appeals processes.
1.1.2
Registered providers shall enable their tenants to gain access to opportunities to exchange their
tenancy with that of another tenant, by way of internet-based mutual exchange services.
1.2
Tenure
1.2.1
Registered providers shall offer tenancies or terms of occupation which are compatible with the
purpose of the accommodation, the needs of individual households, the sustainability of the
community, and the efficient use of their housing stock.
1.2.2
They shall meet all applicable statutory and legal requirements in relation to the form and use of
tenancy agreements or terms of occupation.
2
Specific expectations
2.1
Allocation and mutual exchange
2.1.1
Registered providers shall co-operate with local authorities’ strategic housing function, and their duties
to meet identified local housing needs. This includes assistance with local authorities’ homelessness
duties, and through meeting obligations in nominations agreements.
2.1.2
Registered providers shall develop and deliver services to address under-occupation and
overcrowding in their homes, within the resources available to them. These services should be
focused on the needs of their tenants, and will offer choices to them.
2.1.3
Registered providers’ published policies shall include how they have made use of common housing
registers, common allocations policies and local letting policies. Registered providers shall clearly set
out, and be able to give reasons for, the criteria they use for excluding actual and potential tenants
from consideration for allocations, mobility or mutual exchange schemes.
2.1.4
Registered providers shall develop and deliver allocations processes in a way which supports their
effective use by the full range of actual and potential tenants, including those with support needs,
those who do not speak English as a first language and others who have difficulties with written
English.
38
2.1.5
Registered providers shall minimise the time that properties are empty between each letting. When
doing this, they shall take into account the circumstances of the tenants who have been offered the
properties.
2.1.6
Registered providers shall record all lettings and sales as required by the Continuous Recording of
Lettings (CORE) system.
2.1.7
Registered providers shall provide tenants wishing to move with access to clear and relevant advice
about their housing options.
2.1.8
Registered providers shall subscribe to an internet based mutual exchange service (or pay the
subscriptions of individual tenants who wish to exchange), allowing:
2.1.9
(a)
a tenant to register an interest in arranging a mutual exchange through the mutual exchange
service without payment of a fee
(b)
the tenant to enter their current property details and the tenant’s requirements for the mutual
exchange property they hope to obtain
(c)
the tenant to be provided with the property details of those properties where a match occurs
Registered providers shall ensure the provider of the internet based mutual exchange service to which
they subscribe is a signatory to an agreement, such as HomeSwap Direct, under which tenants can
access matches across all (or the greatest practicable number of) internet based mutual exchange
services.
2.1.10 Registered providers shall take reasonable steps to publicise the availability of any mutual exchange
service(s) to which it subscribes to its tenants.
2.1.11 Registered providers shall provide reasonable support in using the service to tenants who do not have
access to the internet.
2.2
Tenure
2.2.1
Registered providers shall publish clear and accessible policies which outline their approach to
tenancy management, including interventions to sustain tenancies and prevent unnecessary evictions,
and tackling tenancy fraud, and set out:
(a)
The type of tenancies they will grant
(b)
Where they grant tenancies for a fixed term, the length of those terms
(c)
The circumstances in which they will grant tenancies of a particular type
(d)
Any exceptional circumstances in which they will grant fixed term tenancies for a term of less
than five years in general needs housing following any probationary period
(e)
The circumstances in which they may or may not grant another tenancy on the expiry of the
fixed term, in the same property or in a different property
(f)
The way in which a tenant or prospective tenant may appeal against or complain about the
length of fixed term tenancy offered and the type of tenancy offered, and against a decision
not to grant another tenancy on the expiry of the fixed term
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(g)
Their policy on taking into account the needs of those households who are vulnerable by
reason of age, disability or illness, and households with children, including through the
provision of tenancies which provide a reasonable degree of stability
(h)
The advice and assistance they will give to tenants on finding alternative accommodation in
the event that they decide not to grant another tenancy
(i)
Their policy on granting discretionary succession rights, taking account of the needs of
vulnerable household members
2.2.2
Registered providers must grant general needs tenants a periodic secure or assured (excluding
periodic assured shorthold) tenancy, or a tenancy for a minimum fixed term of five years, or
exceptionally, a tenancy for a minimum fixed term of no less than two years, in addition to any
probationary tenancy period.
2.2.3
Before a fixed term tenancy ends, registered providers shall provide notice in writing to the tenant
stating either that they propose to grant another tenancy on the expiry of the existing fixed term or that
they propose to end the tenancy.
2.2.4
Where registered providers use probationary tenancies, these shall be for a maximum of 12 months,
or a maximum of 18 months where reasons for extending the probationary period have been given
and where the tenant has the opportunity to request a review.
2.2.5
Where registered providers choose to let homes on fixed term tenancies (including under Affordable
Rent terms), they shall offer reasonable advice and assistance to those tenants where that tenancy
ends.
2.2.6
Registered providers shall make sure that the home continues to be occupied by the tenant they let
the home to in accordance with the requirements of the relevant tenancy agreement, for the duration
of the tenancy, allowing for regulatory requirements about participation in mutual exchange schemes.
2.2.7
Registered providers shall develop and provide services that will support tenants to maintain their
tenancy and prevent unnecessary evictions.
2.2.8
Registered providers shall grant those who were social housing tenants on the day on which section
154 of the Localism Act 2011 comes into force, and have remained social housing tenants since that
date, a tenancy with no less security where they choose to move to another social rented home,
whether with the same or another landlord. (This requirement does not apply where tenants choose to
move to accommodation let on Affordable Rent terms).
2.2.9
Registered providers shall grant tenants who have been moved into alternative accommodation
during any redevelopment or other works a tenancy with no less security of tenure on their return to
settled accommodation.
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Tenant Involvement and Empowerment Standard
1
Required outcomes
1.1
Customer service, choice and complaints
Registered providers shall:
(a) provide choices, information and communication that is appropriate to the diverse needs of their
tenants in the delivery of all standards
(b) have an approach to complaints that is clear, simple and accessible that ensures that complaints
are resolved promptly, politely and fairly
1.2
Involvement and empowerment
Registered providers shall ensure that tenants are given a wide range of opportunities to influence
and be involved in:
(a) the formulation of their landlord’s housing related policies and strategic priorities
(b) the making of decisions about how housing related services are delivered, including the setting of
service standards
(c) the scrutiny of their landlord’s performance and the making of recommendations to their landlord
about how performance might be improved
(d) the management of their homes, where applicable
(e) the management of repair and maintenance services, such as commissioning and undertaking a
range of repair tasks, as agreed with landlords, and the sharing in savings made, and
(f) agreeing local offers for service delivery
1.3
Understanding and responding to the diverse needs of tenants
Registered providers shall:
(a)
(b)
treat all tenants with fairness and respect
demonstrate that they understand the different needs of their tenants, including in relation to
the equality strands and tenants with additional support needs
2
Specific expectations
2.1
Customer service, choice and complaints
2.1.1 Registered providers shall provide tenants with accessible, relevant and timely information about:
(a)
how tenants can access services
(b)
the standards of housing services their tenants can expect
(c)
how they are performing against those standards
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(d)
the service choices available to tenants, including any additional costs that are relevant to
specific choices
(e)
progress of any repairs work
(f)
how tenants can communicate with them and provide feedback
(g)
the responsibilities of the tenant and provider
(h)
arrangements for tenant involvement and scrutiny
2.1.2 Providers shall offer a range of ways for tenants to express a complaint and set out clear service
standards for responding to complaints, including complaints about performance against the
standards, and details of what to do if they are unhappy with the outcome of a complaint. Providers
shall inform tenants how they use complaints to improve their services. Registered providers shall
publish information about complaints each year, including their number and nature, and the outcome
of the complaints. Providers shall accept complaints made by advocates authorised to act on a
tenant’s/tenants’ behalf.
2.2
Involvement and empowerment
2.2.1 Registered providers shall support their tenants to develop and implement opportunities for
involvement and empowerment, including by:
2.2.2
(a)
supporting their tenants to exercise their Right to Manage or otherwise exercise housing
management functions, where appropriate
(b)
supporting the formation and activities of tenant panels or equivalent groups and responding in a
constructive and timely manner to them
(c)
the provision of timely and relevant performance information to support effective scrutiny by
tenants of their landlord’s performance in a form which registered providers seek to agree with
their tenants. Such provision must include the publication of an annual report which should
include information on repair and maintenance budgets, and
(d)
providing support to tenants to build their capacity to be more effectively involved
Registered providers shall consult with tenants on the scope of local offers for service delivery. This
shall include how performance will be monitored, reported to and scrutinised by tenants and
arrangements for reviewing these on a periodic basis.
2.2.3 Registered providers shall consult with tenants, setting out clearly the costs and benefits of relevant
options, if they are proposing to change their landlord or when proposing a significant change in their
management arrangements.
2.2.4 Registered providers shall consult tenants at least once every three years on the best way of involving
tenants in the governance and scrutiny of the organisation’s housing management service.
2.3
Understanding and responding to diverse needs
2.3.1
Registered providers shall demonstrate how they respond to tenants’ needs in the way they provide
services and communicate with tenants.
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Annex 2: to be completed by applicants who have answered “non-profit” at
question 1 of Part 1
Please read all instructions carefully.
Sections 1 and 6 must be completed by all applicants wishing to be designated on the register as
non-profit.
Also complete any other sections that are relevant to the applicant.
The applicant should note that if the provisions of the governing document it submits are unclear it will be
notified and its application will not be considered further until a satisfactory version of its governing document
has been re-submitted.
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Section 1 – ALL (NON-PROFIT) APPLICANTS
A1.
Indicate which articles, rules or clauses in the applicant’s governing document constitute its objects
(e.g. its purposes) and where these can be located.
Explanatory note and guidance
The regulator’s registration criteria require a non-profit applicant to have provisions in its governing
document that set out its objects (purposes).
In addition to indicating the main objects provisions the applicant should indicate any other provisions in its
governing document (such as definitions, interpretations etc) that affect the meaning of terms used in the
main objects.
State where in the governing document the relevant parts can be found (provide the page number(s) and
the relevant article, clause or rule reference(s)).
44
A2.
Is there a reference in the objects to the provision of social housing? (please tick one).
Explanatory note and guidance
The regulator’s registration criteria require a non-profit applicant to have as an object the provision of
social housing (which charitable applicants can describe as the provision of charitable social housing or as
the provision of social housing in the form of almshouses as appropriate).
YES
NO
(placing a tick in this box indicates the applicant does not meet the
registration criteria for a non-profit organisation)
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Section 2 – ALL (NON-PROFIT) APPLICANTS THAT ARE SUBSIDIARIES
Only complete this section if the applicant is a subsidiary of another organisation. The term ‘subsidiary’ is
defined in section 271 of the act.
(If the applicant is not a subsidiary, go to Section 3).
A3.
If the applicant is a subsidiary, indicate where in the applicant’s governing document this subsidiary
status is referenced.
Explanatory note and guidance
The regulator’s registration criteria require a non-profit applicant that is a subsidiary to state this in its
governing document.
State where in the governing document the relevant parts can be found (provide the page number(s) and
the relevant article, clause or rule reference(s)).
46
If the applicant is a subsidiary, indicate where in the applicant’s governing document the parent body
is identified.
A4.
Explanatory note and guidance
The regulator’s registration criteria require a non-profit applicant that is a subsidiary to state this in its
governing document and to name the parent body (in such a way that the parent cannot be changed
without seeking the regulator’s consent).
The term ‘subsidiary’ is defined in section 271 of the act.
The parent should be identified with is registered name and with its:




Company House registration number
FCA society registration number, and/or
Charity Commission registration number, and/or
some other official identifier (such as registered address)
State where in the governing document the relevant parts can be found (provide the page number(s) and
the relevant article, clause or rule reference(s)).
47
A5.
Indicate which articles, rules or clauses in the applicant’s governing document have the effect of
ensuring that the applicant cannot cease to be a subsidiary of the named parent without seeking the
regulator’s consent.
Explanatory note and guidance
The applicant’s governing document must ensure that the parent cannot be removed as a member and
that its power and independence to appoint or remove all or a majority of the board of directors, or hold
more than half of the nominal value of the company's equity share capital (whichever applies) cannot be
amended without the regulator’s prior written consent (the applicant should refer to ‘Guidance for
Constitutional Consents (sections 212 to 214), Restructuring and Dissolution (sections 160 to 165)’).
State where in the governing document the relevant parts can be found (provide the page number(s) and
the relevant article, clause or rule reference(s)).
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Section 3 – ALL (NON-PROFIT) APPLICANTS THAT ARE NOT SUBSIDIARIES
Only complete this section if the applicant is not a subsidiary of another organisation. The term ‘subsidiary’ is
defined in section 271 of the act.
A6.
If the applicant is NOT a subsidiary, confirm this independent status is referenced in the governing
document and indicate which articles, rules or clauses in the applicant’s governing document have
the effect of ensuring that the applicant cannot become a subsidiary without seeking the regulator’s
consent.
Explanatory note and guidance
The regulator’s registration criteria require a non-profit applicant that is a not a subsidiary to indicate this
independent status in its governing document and also include provisions that ensure the applicant has no
power to become a subsidiary without seeking the regulator’s consent (the applicant should refer to
‘Guidance for Constitutional Consents (sections 212 to 214), Restructuring and Dissolution (sections 160
to 165)’).
State where in the governing document the relevant parts can be found (provide the page number(s) and
the relevant article, clause or rule reference(s)).
49
SECTION 4 – CHARITABLE INCORPORATED ORGANISATIONS (CIOs)
Only complete this section if the applicant is a charitable incorporated organisation – CIO – established under
Part 11 Charities Act 2011.
A7.
Indicate where in the applicant’s governing document there are provisions which have the effect of
ensuring that any changes to its objects are ineffective without the prior consent of the regulator.
Explanatory note and guidance
The regulator’s registration criteria require that an applicant that is a CIO must have within its governing
document a requirement that any changes to the objects may only be made if the regulator has first
consented.
State where in the governing document the relevant parts can be found (provide the page number(s) and
the relevant article, clause or rule reference(s)).
A8.
Indicate where in the applicant’s governing document there are provisions which have the effect of
ensuring that, the introduction of any provisions enabling the distribution of assets to members are
ineffective without the prior consent of the regulator.
Explanatory note and guidance
The regulator’s registration criteria require that an applicant that is a CIO must have within its governing
document a requirement that changes enabling the distribution of assets to members may only be made if
the regulator has consented to the change.
State where in the governing document the relevant parts can be found (provide the page number(s) and
the relevant article, clause or rule reference(s)).
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A9.
Indicate where in the applicant’s governing document there are provisions which have the effect of
ensuring that the introduction of any provisions enabling the applicant to become or cease to be a
subsidiary of another body are ineffective without the prior consent of the regulator.
Explanatory note and guidance
The regulator’s registration criteria require that an applicant that is a CIO must have within its governing
document a requirement that changes enabling the applicant to become or cease to be a subsidiary of
another body may only be made if the regulator has consented to the change.
State where in the governing document the relevant parts can be found (provide the page number(s) and
the relevant article, clause or rule reference(s)).
A10. Indicate where in the applicant’s governing document there are provisions which have the effect of
requiring the trustees to notify the regulator if preliminary steps are taken to the winding up of the
applicant or prior to the applicant entering a voluntary arrangement with its creditors.
Explanatory note and guidance
The regulator requires provisions in the CIO’s governing document that ensure the CIO must notify the
regulator if steps are taken preliminary to the winding up or to a voluntary arrangement in relation to the
CIO.
State where in the governing document the relevant parts can be found (provide the page number(s) and
the relevant article, clause or rule reference(s)).
51
A11. Indicate where in the applicant’s governing document there is a provision allowing the trustees to
recover a wrongful gift or payment to a member or connected person as a debt from the recipient.
Explanatory note and guidance
The regulator requires provisions in the CIO’s governing document that ensure that a ‘wrongful gift’ (as
defined by the subsections of 122 the act), is recoverable as a payment in a way that replicates the
statutory provision of section 122(6)(a) of the act.
State where in the governing document the relevant parts can be found (provide the page number(s) and
the relevant article, clause or rule reference(s)).
A12. Indicate where in the applicant’s governing document there are provisions which have the effect of
requiring the prior consent of the regulator for any amendments or removal of the provisions
requirements outlined in questions A7 to A11.
Explanatory note and guidance
The regulator’s registration criteria require that an applicant that is a CIO must have within its governing
document a requirement that changes to the provisions required by the regulator may only be made if the
regulator has consented to the change.
State where in the governing document the relevant parts can be found (provide the page number(s) and
the relevant article, clause or rule reference(s)).
52
Section 5 – NON-CHARITABLE, NON-PROFIT APPLICANTS
Only complete this section if the applicant is a non-charitable, non-profit organisation.
A non-charitable body is a non-profit organisation if it does not trade for profit, has provision or
management of housing as an object, and if all its other objects are connected with or
incidental to the provision of housing.
(section 115 of the act)
A13. Explain how the applicant has embedded its non-profit status and indicate where this appears in the
applicant’s governing document.
Explanatory note and guidance
The registration criteria require non-charitable, non-profit applicants to embed their non-profit status in their
governing document. Embedded provisions enable the regulator to exercise its statutory power to regulate
subsequent amendments that might otherwise affect an applicant’s non-profit status once it is a registered
provider.
Provisions that can be amended without the regulator’s statutory consent are not regarded as embedded
(the applicant should refer to ‘Guidance for Constitutional Consents (sections 212 to 214), Restructuring
and Dissolution (sections 160 to 165)’).
State where in the governing document the relevant parts can be found (provide the page number(s) and
the relevant article, clause or rule reference(s)).
53
A14. Confirm that all the applicant’s other objects are connected with or incidental to the provision of
housing (please tick one).
Explanatory note and guidance
Where an applicant is non-charitable, to be designated as non-profit it must satisfy section 115(6) of the
act by ensuring all its objects are connected with or incidental to the provision of housing.
In determining whether its objects are connected with or incidental to the provision of housing the applicant
should refer to paragraph 5.6 of the Registration Guidance.
YES
NO
(placing a tick in this box indicates the applicant is a profit-making
organisation)
54
Section 6 – ALL (NON-PROFIT) APPLICANTS
A15. Please indicate which articles, rules or clauses in the applicant’s governing document reflect the
applicant’s probity arrangements set out in the applicant’s response to question 23 in Part 3 above.
Explanatory note and guidance
Further to the applicant’s response to question 23 in Part 3 (probity arrangements) above the applicant
must explain how its probity arrangements are reflected in the provisions of its governing document.
For example, provisions dealing with:
 conflicts of interest
 conflicts of loyalty
 wrongful gifts, bonuses and dividends (refer to section 122 of the act)
 any compromise of the applicant’s charitable status, etc
Indicate where in the document they appear.
State where in the governing document the relevant parts can be found (provide the page number(s) and
the relevant article, clause or rule reference(s)).
55
A16. Please indicate which articles, rules or clauses in the applicant’s governing document reflect the
governance arrangements relating to the roles, responsibilities and accountabilities for its board,
chair and chief executive as set out in the applicant’s response to question 20 in Part 3 above.
Explanatory note and guidance
Further to the applicant’s response to question 20 in Part 3 (roles and responsibilities) above the applicant
must explain how its governance arrangements are effectively reflected in the provisions of its governing
document and indicate where in the document they appear.
State where in the governing document the relevant parts can be found (provide the page number(s) and
the relevant article, clause or rule reference(s)).
A17. Indicate where in the applicant’s governing document there is provision for the applicant to take
action against an officer when it is appropriate to do so.
Explanatory note and guidance
The applicant’s governing document must make provision for the removal of any ‘officer’ (within the
meaning of section 270 of the act) who fulfils one or more of the cases specified in section 266 of the act
(see also paragraph 7 of Guidance Note 17).
Provision must also be made enabling the applicant to take any appropriate action against them (in
compliance with the regulator’s expectation under paragraph 6 of Guidance Note 17).
State where in the governing document the relevant parts can be found (provide the page number(s) and
the relevant article, clause or rule reference(s)).
56
A18. Where the applicant’s governing document specifies a minimum number of officers (for example,
board members), please specify the minimum number and indicate where this appears in the
applicant’s governing document.
Explanatory note and guidance
If the applicant’s governing document specifies a minimum number of officers (as defined by section 270
of the act), for example a minimum number of board members, indicate what this is and where it is set out.
Do not complete the boxes below if there is no minimum number given in the governing document.
Minimum number of officers
(if provided for in the governing
document)
State where in the governing document the relevant parts can be found (provide the page number(s) and
the relevant article, clause or rule reference(s)).
57
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mail@homesandcommunities.co.uk
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is committed to providing accessible
information where possible and we will
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58
Publication date: March 2015