A housing association placed under Housing Corporation supervision this week has announced it is looking for a larger association to take it on.
The corporation said this week it had placed West Hampstead housing association under supervision "because of serious concerns about the RSL’s governance, financial management and financial position".

The corporation has also confirmed that it will not be releasing any further funding to the association. A spokeswoman said that the decision only affected new capital allocations for this year which amount to £5.9m for mixed funded rent and £2.9m for temporary social housing.

West Hampstead said it was now looking for a partnership in a large association group structure. In a statement, the association said the move was "in recognition of the risks and increased challenges facing smaller associations".

The association’s Roger Barcroft said: "We believe that the association will be best able to expand its important temporary accommodation and urban regeneration work as part of a larger group."

Chief executive Anna Bowman told Housing Today: "Our board took the decision to seek a partnership through the association of a group structure. There is a timetable in place but it is too early to give any details about the effect such a move would have on services and staff."

However she confirmed that one employee from the development department had been made redundant and a number of departmental frozen as a result of the problems.

Bowman said the housing benefit crisis was partly to blame for the association’s problems.

More than 90 per cent of the association’s tenants are in receipt of housing benefit and in some cases it has taken up to six months for benefit to be released.

In total West Hampstead is owed £3.5m in late benefits.

The corporation has made three statutory appointments to West Hampstead’s board. They are: Willem Buttinger a business consultant, Brian Milward, group finance director at the Horizon Group and Jakki Moxham, chief executive at Springboard housing association.

West Hampstead has appointed HACAS Chapman Hendy to assist in the selection of a partner association.

West Hampstead is the latest in a string of associations to be placed under corporation supervision (Housing Today, 9 November).