Regulatory Judgement from the HCA

Regulatory Judgement from the HCA

The Homes and Communities Agency (HCA) has downgraded Hundred Houses Society’s Governance rating from G1 to G31 and its financial viability rating from V1 to V2.  These assessments were primarily determined following concerns raised about (a) a loan covenant breach and associated internal control systems within the Society, and (b) Hundred Houses Society’s ambitious plans to develop new affordable housing in Cambridgeshire in the current economic climate.

The Society understands the HCA’s concerns around the Board’s control of the situation, and is disappointed that it has not met the requirements of the HCA’s economic standards.  Services for the Society’s 1300 residents are unaffected.

 Chair, Nick Abbey said: ‘We are learning valuable lessons from the investigation of the mistakes made, and have already made some improvements in our control environment.  Our recently strengthened Board is keen to work closely with the HCA over a full review of our governance and control processes. We want to ensure that we work successfully to address the concerns, so that we can provide future assurances to all our stakeholders that the Society has strong governance and remains financially viable.’

https://www.gov.uk/government/organisations/homes-and-communities-agency

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Governance ratings

G1

The provider meets our governance requirements.

G2

The provider meets our governance requirements but needs to improve some aspects of its governance arrangements to support continued compliance.

G3

The provider does not meet our governance requirements. There are issues of serious regulatory concern and in agreement with us the provider is working to improve its position.

G4

The provider does not meet our governance requirements. There are issues of serious regulatory concern and the provider is subject to regulatory intervention or enforcement action.

 

 

Viabilty ratings

V1

The provider meets our viability requirements and has the financial capacity to deal with a wide range of adverse scenarios.

V2

The provider meets our viability requirements. It has the financial capacity to deal with a reasonable range of adverse scenarios but needs to manage material risks to ensure continued compliance.

V3

The provider does not meet our viability requirements. There are issues of serious regulatory concern and, in agreement with us, the provider is working to improve its position.

V4

The provider does not meet our viability requirements. There are issues of serious regulatory concern and the provider is subject to regulatory intervention or enforcement action.