Statement on inspection of Helm Housing Association

Statement from the Social Development Minister Nelson McCausland to the Northern Ireland Assembly on the inspection of Helm Housing Association

On 23 March 2011 my predecessor informed the Assembly that because of the initial findings of my Department’s inspection, Helm Housing Association was suspended from the Social Housing Development programme and was not permitted to undertake any further development of new stock.

I can now inform you that the work of the Inspection Team has been concluded and their final report is due to be published on the Department’s web site this afternoon.

The report highlights a number of significant failures of control and breaches of compliance across all business areas, which were subject to the inspection, indicating significant and substantial failings by the Senior Management Team of the Association and a failure of the Board to effect  an adequate challenge function to the decision making process within the Association.  This statement is qualified by the Inspection Team’s awareness that, on occasions, the Board had either not been fully briefed by the Senior Management Team or had been mis-informed by them.  Some of the main issues identified were:

Because of the nature of the issues, especially within Property Development which accounts for the provision of new housing stock, the Inspection Team carried out a detailed examination of a significant number of development schemes to determine if Housing Association Grant had been improperly claimed.

The outcome of this work confirmed the extent of the non-compliance with procedures, however, it also established that with the exception of four schemes, the Grant was used for the purpose for which it was intended, namely to provide social housing within NI.

The amount of Grant which falls to be recovered is £669k, of which £142k has already been recouped.  Discussions are ongoing about the recovery of the balance.

In this regard I would like to acknowledge the response of the Board of Helm Housing to these findings.  The Board has acted with openness and integrity throughout the inspection and subsequent discussions and has demonstrated a keenness to address all the issues raised.  The Board has appointed a new Interim Chief Executive, with a proven track record of dealing with ailing Associations across Great Britain and recruited three new Board members, with plans in place to make further changes in Board personnel over the coming months.  A significant number of changes have already been effected in the Senior Management Team, and an Action Plan to address all the issues is being developed.

My primary concern in achieving a long term solution for the problems we have encountered in Helm is that the security of tenure and the quality of service being provided to Helm tenants is safeguarded.  I am pleased with the response to date of the Helm Board in making progress towards these objectives, they have already taken and are planning to take further actions to ensure the effective delivery of services to tenants and my Department will be scrutinising closely the response to the serious issues identified in this report.

I also want to say something about the wider Housing Association movement.  Clearly it is important that I established whether the issues identified in Helm were also present elsewhere.  To that end the Inspection Team conducted a series of targeted inspections of seven Associations that received the most Housing Association Grant over the last three years.  

I am pleased to report that six of the seven Associations inspected have received a Satisfactory or better assurance rating, with the seventh receiving a qualified Limited assurance rating.  From this work I am content that the significant control issues identified within Helm are limited to that Association.

My Department has also increased the staffing levels within the Governance & Inspection Team to increase the level of monitoring of Associations throughout the year to ensure that the lessons learned from the Helm inspection are promulgated across the Housing movement.

Moving forward I can assure you that robust governance of the Housing Association movement is something that I and my Department take very seriously and we will not hesitate to take action where it is required.  Helm Housing is one of seven Associations currently suspended from the Social Housing Development Programme.

I have also asked my officials to consider what further actions might be taken to improve the regulatory regime.

Let me conclude by saying that the provision of affordable, well managed social housing is one of my key priorities.  I firmly believe the Housing Association movement has in the past and will in the future, have a central role to play in the delivery of this priority.

There is much good work in the sector carried out by dedicated and competent staff, delivering services for over 33,000 households.  My vision is for a sector that strives for continuous improvement and has the highest standards of governance, accountability and delivery and I will work with the sector to see that vision delivered.  I view the Inspection process as an important mechanism to help achieve this, both as an accountability tool and a driver for improvement.