London housing association investigated for governance non-compliance

The regulator notifies that a provider’s grading is under review when its compliant grade (G1 or G2 for governance, V1 or V2 for viability) is being investigated in relation to an issue that may result in a downgrade to a non-compliant grade (G3 or G4 for governance, V3 or V4 for viability).

Sandra Skeete, chief executive at Octavia, said that the housing association “welcomes the opportunity to address the concerns raised” and is “fully committed to taking the necessary steps to continue to ensure strong and effective governance”.

She said: “While we are disappointed with this decision, we welcome the opportunity to address the concerns raised and will offer our full and transparent co-operation throughout the investigation.

“We are fully committed to taking the necessary steps to continue to ensure strong and effective governance that enables us to deliver on our strategic goals and ensure that we continue to provide quality services to our residents.”

Two other providers are currently on the RSH’s gradings under review list. Christian Action (Enfield) Housing Association was placed on the list in March and East End Homes in October.

In its financial results to March 2022, Octavia reported that its overall surplus rose from £1.3m in 2020-21 to £1.7m in 2021-22, after net interest charges of £8.4m and gain on investment in 2021-22 of £700,000.

Last month, the association revealed that it was set to receive £1.5m from the second wave of the Social Housing Decarbonisation Fund to improve the energy efficiency of 122 homes.