The Housing Corporation met with representatives of the board of ARHAG Housing Association to advise that an inquiry into the affairs of the Association had been activated.
The Corporation appointed Nicholas Bohm (a solicitor) and Andrew Durant (a partner at BDO Stoy Hayward) to conduct the inquiry. A number of aspects of the business of ARHAG HA are to be investigated, and, at the inquiry's end, reported back to the Corporation's Board.
ARHAG, a Black and Minority Ethnic (BME) housing association, was founded in 1978 to house and support refugees and migrants. It owns and manages some 600 homes in 13 London boroughs.
Circular R2 - 40/98, published in December 1998, introduced the 'Consolidated Report and Auditor's Opinion on application of annual revenue and capital funding' (CRAO). The CRAO was introduced to reduce the number of returns for which associations needed to secure the opinion of the external auditor. Circular R2 - 40/98 required that an association complete the Consolidated Report and that their external auditor certify the Consolidated Auditor's opinion.
Since the Circular was published there have been many changes to the funding of housing associations and a number of funding types referred to in the CRAO no longer exist. For some funding types, the Corporation now obtains the assurance it needs by means other than the CRAO.
The Housing Corporation is now formally removing the requirement for associations to complete and submit the CRAO with immediate effect.
New model house and flat leases for Shared Ownership properties are now published on the Housing Corporation website, where they can be freely downloaded. The leases will also be published as Annexes in the SALE chapter in the January 2006 version of the Capital Funding Guide.
The key changes include:
A cover sheet to incorporate the Land Registry prescribed clauses requirements has been drafted and is awaiting the approval of the Land Registry. This will be included and published in the Capital Funding Guide once approval is received.
There are non-standard restrictions in both the house and flat leases, which the Corporation have requested the Land Registry make standard. Until it receives confirmation that the restrictions have been approved, as standard restrictions, associations will need to ensure that buyers' conveyancers take the proper steps to apply to register the restrictions, at the same time as the lease. The Housing Corporation will issue further advice as appropriate.
The Housing Corporation's requirement is that the new model leases should be used for all grant funded schemes where marketing has not commenced yet and/or where the RSL has not as yet formally instructed their conveyancing solicitor. Any variation to this is to be cleared with the Policy Team in the Investment Division at Maple House.
The model lease is a recommended format; the Corporation recognises that it needs to be developed and amended to make it fit a particular scheme. However, the inclusion of all the fundamental clauses in the leases, including the new Right of First Refusal/Pre-emption, remains a grant funding condition.
Model Shared Ownership leases for key workers have also been revised and are available from Zone Agents for immediate use.
Significant changes to these leases include:
Versions of the above leases and details of the revisions will be included and published in the January 2006 publication of the Capital Funding Guide.
From 1 April 2006, Homebuy is to be replaced by Open Market Homebuy, which will be offered by approved Zone Agents. In respect of current Homebuy applications, RSLs may set a time limit of up to six months for contracts to be exchanged.
Applicants assessed as eligible and agreed from or on 1 January 2006 will be required to exchange contracts by 31 March 2006. If this is not possible, the applications will be transferred to a Zone Agent and treated as an application for Open Market Homebuy.
Circular 06/05: Leasehold Schemes for the Elderly - Management Charge Limits 2006/2007 advises housing associations of management charge limits for 2006/07 in leasehold schemes for the elderly, and in other retirement leasehold schemes where the management charge limit applies.
Circular 07/05: Compliance with Mortgage Sales Guidance outlines the Housing Corporation's expectations of how housing associations will comply with Mortgage Sales Guidance (published by ODPM) and how compliance with this Circular and the guidance will be assessed.
Nottingham-based Family First, which provides a housing and support scheme for young mothers and owns nearly 400 general needs homes, announced it will join the new group structure formed by ASRA HA and Leicester HA. The new Group will deliver services to more than 11,000 homes.
Kelsey HA announced it is to join the Dominion Housing Group. The move will also see the key worker homes specialist Optimum Housing join the Group, which will then manage over 14,000 homes across the south of England.
Merger discussions developed between Adullam Homes and Christian Alliance HA, which could lead to a new association with 1,300 homes in management.
Housing 21 and Hanover Housing Group ended their merger discussions, although the proposal may be re-visited in the future. A merger would have led to the sector's largest specialist housing group structure.
Brunel & Family HA became a subsidiary of Yorkshire Housing Group, following ratification of the move by the Housing Corporation. Brunel & Family has been under Corporation supervision since September 2004. The move adds a further 2,500 homes to the 14,500 already managed by the Group.
Arms-length management organisation Golden Gates Housing signed a four-year contract with the builders' merchant Jewson to provide a dedicated store for repairs and maintenance parts.
The Department for Work & Pensions selected Ujima HA's Community Development Unit to market changes to the benefits system to black and ethnic minority people. For example, common benefits are now paid direct to client bank accounts. Ujima will offer advice, information, and support on the new procedures.
The Twice as Nice Project, a furniture-recycling scheme run by Andover-based Testway Housing, reported selling more than 1.5 tonnes of second-hand items in its first two weeks of operation.
