Why we are engaging with Abronhhill Housing Association Ltd (Abronhill)
We are engaging with Abronhill about its financial management and stock quality.
Abronhill is updating its stock condition survey and is considering what further investment is required in the medium term. We are engaging with Abronhill to get assurance that the impact of its investment plans have been reflected in its long term financial projections.
Abronhill is one of the weakest performing landlords for the Scottish Housing Quality Standard. We have been engaging with Abronhill about its planned maintenance and energy efficiency plans to bring its stock up to the required standards. It produced a new asset management strategy in 2023/24 which it is now implementing.
What Abronhill must do
Abronhill must:
- send us by 30 June 2025:
- its approved business plan and updated risk register;
- 30 year financial projections consisting of statement of comprehensive income, statement of financial position and statement of cash flows complete with assumptions and explanatory narrative;
- a comparison of projected financial loan covenants against current covenant requirements;
- financial sensitivity analysis which considers the key risks, the mitigation strategies for these risks and a comparison of the resultant covenant calculations with the actual covenant requirements;
- report to the Board in respect of the approved 30 year projections, sensitivity analysis and covenant compliance; and
- evidence of how it demonstrates affordability for its tenants.
- send us quarterly reports on its progress in implementing its asset management strategy.
What we will do
We will:
- review the business plan and financial information;
- meet with Abronhill’s senior staff to discuss its business plan, financial information and any risks to the organisation;
- monitor its progress in implementing its asset management strategy and engage as necessary; and
- update our published engagement plan in the light of any material change to our planned engagement with Abronhill.
Regulatory Returns
Abronhill must provide us with the following annual regulatory returns and alert us to notifiable events as appropriate:
- Annual Assurance Statement;
- audited financial statements and external auditor’s management letter;
- loan portfolio return;
- five year financial projections; and
- Annual Return on the Charter.
It should also notify us of any material changes to its Annual Assurance Statement, and any tenant and resident safety matter which has been reported to or is being investigated by the Health and Safety Executive or reports from regulatory or statutory authorities or insurance providers, relating to safety concerns.