Two more RSLs supervised as regulator flexes its muscles

Unity and shaftesbury housing associations have been put under Housing Corporation supervision, making a total of three such interventions in just seven days.

Unity was put under supervision on Tuesday, Shaftesbury on 17 October, following the Places for People Group which was put under supervision last Wednesday (HT 17 October, page 7).

The interventions reverse a three-year trend for the corporation's regulation division, headed by assistant chief executive Bob Dinwiddy (see "Supervision over the past three years", right) – until now, the number of supervisions has gradually decreased since 2000.

In each case, the corporation has concerns about corporate governance. It is also concerned about Shaftesbury's "strategic and operational framework".

The corporation has made three appointments to the board of Unity, which manages 990 homes. They are: Cym D'Souza,chief executive of Arawak Walton Housing Association; Tony Jervis, director at regeneration consultant DBA Management and Sally Craven, a board member from Endeavour Housing Association, Stockton-on-Tees.

Ali Akbor, chief executive of Unity, said: "We are very disappointed that the commission has decided to put Unity into supervision status. While Unity has much to be proud of, we nonetheless acknowledge the issues raised by the corporation."

The corporation gave Unity two "amber" ratings in its latest assessment, in August 2003. Governance and management were picked out as the major areas of concern. The appointment of Akbor in January 1999 was widely seen as a last-ditch attempt to turn round the struggling association's management problems.

The corporation has appointed three people to Shaftesbury's board: West Kent Housing Association chief executive Barbara Thorndick, London & Quadrant board member Rod Morton and Anchor Trust deputy chief executive Bruce Moore.

Charles Clayton, chief executive of the 7200-home landlord, said: "It's a complex group and it has grown over the last few years and because of that it was in need of clarification.

"In service delivery terms, there were concerns that in the housing operations subsidiary we were not reaching an acceptable standard.

"We agree with that and we started a change programme in June."

Housing Corporation chief executive Norman Perry has warned BME housing associations that they should not "spread themselves too thinly".

At the Federation of Black Housing Organisations' annual conference on 17 October, he said the corporation was "neutral" on whether such RSLs should remain independent or join a group.

"Our basic concern is that all associations should be viable, well governed and managed," he said.