Mergers between troubled associations and partners in other regions could betray guarantees to tenants, housing experts warned this week
They pointed to Cornish-based Kerrier Homes Trust, put under supervision last week by the Housing Corporation, saying the case highlighted the importance of delivering local control to large scale transfer tenants as promised pre-ballot, even when associations fail.

Last week KHT announced that it was seeking a “strategic alliance” with Exeter-based Devon and Cornwall Housing Association.

The Housing Corporation has made three statutory appointments to Kerrier’s board due to “serious concerns” over its governance and operations (Housing Today, 10 January).”

Ian Birchmore, KHT company secretary, told Housing Today that the governance problems were “commercially confidential”.

But he added Kerrier was “fully confident” of addressing challenges such as rent restructuring.

The landlord has been under almost continual observation since it was set up in 1998.

Current chief executive Stuart Dry was seconded temporarily to KHT by the corporation following the death of first chief executive Neil Dutton in 1999. He has now been formally appointed.

Chartered Institute of Housing policy analyst Mark Lupton said there were potential policy implications for future transfers.

“It’s vital for all concerned that promises made at transfer are kept,” he said. “Given that it was the first local housing company, it’s particularly important that local stakeholders’ control and involvement is not impaired.”

Chief executive of the Tenants Participation Advisory Service, Phil Morgan, said TPAS had raised tenants’ concerns over group structures and mergers with both the corporation and the DTLR.

“We have concerns that the promises made to tenants are honoured. It’s important to make sure the problems don’t happen in the first place, and that tenants have a role in their organisations,” said Morgan.

But Birchmore said that KHT’s commitment to meeting local need lay behind its exploration of work with DCHA.

“They are the second largest social landlord in the district. We have also been approached by two other RSLs with a view to possible joint arrangements and will evaluate these options,” he said.

Colin Shaw, chief executive of Devon and Cornwall Housing Association, said DCHA was an ideal partner. Its low rent policy meant it had averted the rent restructuring problems facing some other associations working in Cornwall, he explained.

Source

Housing Today