Large North West landlord found non-compliant over ‘lack of independence’ in decision-making

ForHousing is a registered provider of social housing within the wider non-registered ForViva Group. The RP itself has four subsidiaries, including commercial development property company ForLiving. 

ForHousing also has an investment in property services firm Liberty, which offers construction and gas services to clients. 

The current structure was established in 2019, when City West Housing Trust and The Villages Housing Association formed ForHousing. 

In its judgement, the regulator said it had evidence that group decisions have “compromised ForHousing’s independence in its decision-making resulting in poor outcomes”.

The RSH said it had found “legacy decision-making, coupled with insufficient oversight in ForHousing’s governance arrangements and a lack of accountability in the group structure”. 

This had resulted in “a number of ForViva Group executive contracts, incentive schemes and severance arrangements being agreed that were not aligned with its codes of governance and the standards expected of a registered provider”, the RSH added. 

The judgement said that ForHousing does not have “effective governance to deliver its aims, objectives and intended outcomes for tenants in an effective, transparent and accountable manner”.

It added: “The controls and mechanisms in place to manage such risks included ForHousing board members with membership of the other non-social housing boards within the group.

“Although the decision-making did not sit with ForHousing, there were opportunities for the board to identify and manage the risks associated with staff remuneration, including the potential for discretionary payments to be agreed in another part of the group.”

ForHousing retained its V1 rating for viability as the regulator said its financial plans support its strategy. 

Harold Brown, senior assistant director for investigations and enforcement at the RSH, said: “Our investigation has found issues with the way ForHousing is run, including a lack of independence in its decision-making and a lack of accountability in the group structure.

“ForHousing has started to improve its governance arrangements and we will continue to monitor the provider as it works to return to compliance.”

Paul Kennedy, chair of ForHousing’s board, said: “We fully accept and understand the outcome of the regulatory assessment, which has concluded that the group structure and legacy decisions have impacted on some outcomes for ForHousing.

“The current board and executive team remain committed to working with the regulator to learn from the judgement and continue to make improvements, building on positive changes that have already been made.

“The regulator’s assessment of ForHousing’s compliance with financial viability remains at V1. We are financially secure and able to deliver our business plan.

“The change in our governance rating does not impact on our ability to provide quality services. We will continue to work in partnership to positively impact the lives of social housing tenants.”

ForHousing is currently without a permanent chief executive after Colette McKune stepped down last September after three years in charge.

Mike Parkin, ForHousing’s chief operating officer, is acting as interim chief executive.