Why we are engaging with Calvay Housing Association Ltd (Calvay)
We are engaging with Calvay about its governance and stock quality.
In December 2022 we changed Calvay’s regulatory status to working towards compliance as our assessment was that Calvay did not comply with regulatory requirements including the Standards of Governance and Financial Management (the Standards), specifically Standards 1 and 6.
In February 2023 Calvay commissioned an independent review of its compliance with the Standards. The review concluded in June 2023 and found non-compliance with Standards one, three, four, five and six. Calvay developed a governance action plan to address the areas of non-compliance, which it has now completed and Calvay have provided us with assurance that it is now compliant with the Standards.
Calvay has recruited additional members to increase the capacity of the governing body, including the use of fixed term appointments, and has created a succession plan to ensure the ongoing viability of the governing body. We are engaging with Calvay to seek assurance on the delivery of its succession plan.
Calvay identified failure in the render to some of its homes which will require substantial work and investment to resolve. Calvay has carried out a programme of interim repairs to address any immediate risks to tenant and resident safety. Calvay has commenced works to install cavity fill and external wall insulation to improve the quality of its homes in the longer term, which are expected to complete in July 2025. We are engaging with Calvay to seek assurance that the identified defects are addressed.
What Calvay must do
Calvay must:
- send us six monthly updates on progress with its succession plan for the governing body; and
- send us quarterly updates on its programme of improvements to address the failing render in its homes.
What we will do
We will:
- review progress with the succession plan for the governing body and engage as necessary;
- review the updates on its programme of improvements to address the failing render in its homes and engage as necessary; and
- update our published engagement plan in the light of any material change to our planned engagement with Calvay.
Regulatory returns
Calvay 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.