The Regulator of Social Housing has published an enforcement notice for Auckland Home Solutions CIC (Auckland) and made three statutory appointments to its board.
Auckland, a lease-based provider of specialised supported housing, has failed to assure the regulator that it is managing its affairs appropriately, with the necessary skills and expertise. As a result the regulator has appointed three new board members to improve Auckland’s capacity and capability, and to help address its failures.
The new appointments are:
· Paul Fiddaman (Chief Executive, Karbon Homes)
· Heather Ashton (Executive Director of Business Change and Improvement,Thirteen Group)
· Steve Hallowell (Director of Treasury and Investor Relations, Home Group)
The regulator is also using its powers to make Auckland commission an independent review and develop a clear action plan and timetable to return to compliance with the regulatory standards. This must include measures to improve board effectiveness, business planning, and management of risks to ensure the provider’s long-term viability. Auckland is also required to engage with the regulator before acquiring any new homes.
The regulator concluded in August 2021 that Auckland had breached the governance and financial viability standard and did not meet the rent standard. Since then the regulator has engaged intensively with Auckland to address its persistent non-compliance, but it has been unable or unwilling to do so.
The regulator continues to lack assurance that Auckland has effective governance arrangements in place, an appropriate business planning, risk and control framework, or that it is complying with the rent standard. Auckland has also not demonstrated that it is appropriately managing actual or potential conflicts of interest. In addition, Auckland has failed to submit its statutory accounts to the regulator and they are now more than six months overdue. As a result, the regulator is now taking statutory action.
Harold Brown, Senior Assistant Director for Investigation and Enforcement, said:
“Auckland has breached our standards across a range of areas, and we have serious concerns about its governance, business planning, and approach to setting rents. Auckland has persistently failed to address these issues, so we are now taking enforcement action to make it improve.
“This sends a message to social landlords that, when they cannot or will not return to compliance with our standards, we will use our powers if necessary to make them put things right.”
