Why we are engaging with Oak Tree Housing Association Ltd (Oak Tree)
We are engaging with Oak Tree about its financial management.
Oak Tree experienced difficulties with a new build development following the liquidation of the original contractor in 2022/23. It has now told us that it will not proceed with this development and that it will have to repay the grant received to the Scottish Government. We will engage with Oak Tree to get assurance about how it will manage this in relation to the wider impacts on the organisation and in particular its lending facilities.
What Oak Tree must do
Oak Tree must keep us updated on the progress with repaying the grant to the Scottish Government and the impact of this.
What we will do
We will:
- review the updates on progress with repaying the grant and engage as necessary; and
- update our published engagement plan in the light of any material change to our planned engagement with Oak Tree.
Regulatory Returns
Oak Tree must provide us with the following annual regulatory returns and alerts 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.