Housing associations risk losing their charitable status if they go ahead with implementing the Government's new affordable rent regime. This is the warning issued to the 1,236 charitable housing associations in England and Wales by regulator the Charity Commission.
The Charity Commission is advising each association to seek legal advice on the implications of introducing the regime with regard the affect on its charitable status.
The new affordable rent regime will see new tenants charged up to 80% of market rent. The Charity Commission has advised associations to look at the extent to which homes rented at affordable rates will relieve poverty.
Charitable associations receive benefits such as tax breaks and relief on business rates.
In its response to a Tenant Services Authority consultation on the issue, the Charity Commission advised that 'charitable associations operating in areas of high market rents will need to look at this aspect in detail to see whether the affordable rents can provide a means of relieving poverty,'
The National Housing Federation (NHF) has confirmed that it is to restructure. The changes include the previously proposed redundancies, a reduction in management posts and the closure of the Birmingham office.
However, following a period of consultation with members and staff, the Federation will seek accommodation in the offices of one of its members in Birmingham to provide space for the Birmingham Social Housing Partnership officer, hot desk facilities for use by the NHF and the provision of video conferencing facilities.
Overall, the net reduction in the number of posts at the NHF will be 10 and the changes will save the organisation up to £500,000 annually.
Under the new structure, the NHF will maintain dedicated staff in all of its nine discrete regions and ensure strong support for its regional network.
The local and regional perspective will remain at the heart of the organisation's campaigning, lobbying and influencing work through the creation of three regional assistant director posts - which will be part of the management team of the campaigns and neighbourhoods directorate.
Each of the NHF’s nine regions will be served by a Lead Manager (two in London), who will be responsible for direct engagement with members. There will also be a new post responsible for direct member communications.
In Commercial Services, there will be a new assistant director post - while three head posts will be removed from the structure, as well as posts in business sales and support.
There will be a new business development assistant, a new senior conference organiser and a new business sales and support manager.
In Corporate Services, the head of finance and head of ICT posts are going. Again, these roles will be replaced by a single post, assistant director - finance and business systems.