Why we are engaging with Caledonia Housing Association Ltd (Caledonia)
We are engaging with Caledonia about its development plans, organisational change and because it is a systemically important landlord.
Caledonia has one registered subsidiary Cordale Housing Association Ltd.
We refer to a small number of RSLs as systemically important because of their stock size, turnover or level of debt or because of their significance within their area of operation. We need to maintain a comprehensive understanding of how their business models operate, and how they manage the risks they face and the impact these may have. So we seek some additional assurance each year through our engagement plans. Given Caledonia’s size, turnover and level of debt we consider it to be systemically important.
Caledonia’s registered subsidiary Bellsmyre Housing Association (Bellsmyre) transferred engagements to Caledonia in November 2020 following a successful ballot of tenants. On 6 September 2021 Bellsmyre was removed from the Register of Social Landlords. Caledonia continues to progress delivery of the commitments it made to transferring tenants and service users.
On 1 April 2022 Faifley Housing Association Ltd (Faifley) transferred its homes to Caledonia. Caledonia will now support Faifley as it progresses removal from the SHR Register of Social Landlords.
Caledonia has plans to grow through a considerable programme of new homes for social rent, and will receive significant public subsidy to help achieve this.
What Caledonia must do
Caledonia must:
- provide copies of its Board and audit committee minutes as they become available;
- by 30 September 2022 send us an update on progress with the delivery of the commitments Caledonia made to Bellsmyre’s tenants and service users;
- provide quarterly updates on progress with the integration of Faifley into Caledonia and with the delivery of the commitments Caledonia has made to Faifley’s tenants and service users;
- send us by 30 June 2022:
- its approved business plan and report to the governing body about the plan; and
- its updated risk register;
- send us an update on its development programme by 31 October 2022. This will include details of the scale and tenure mix, timescales for delivery and any material delays or changes to the programme;
- tell us if there are any material adverse changes to its development plans which might affect its financial position or reputation, in line with our notifiable events guidance; and
- provide the information we require to progress the de-registration of Faifley. This includes Faifley’s final audited financial statements and auditors report.
What we will do
We will:
- review the minutes of the Board and audit committee meetings and liaise as necessary;
- engage as necessary on the delivery of the commitments to Bellsmyre’s tenants and service users;
- engage as necessary on the integration of Faifley into Caledonia and on the delivery of the commitments Caledonia has made to Faifley’s tenants and service users;
- meet with Caledonia’s senior staff to discuss the business plan and any risks to the organisation;
- review the development update and liaise as necessary;
- consider the de-registration application for Faifley; and
- update our published engagement plan in light of any material change to our planned engagement with Caledonia.
Regulatory returns
Caledonia 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.