SHR Board Meeting Minutes - 30 January 2024

Present

Welcome, Apologies and Declarations

GW welcomed all present, especially the wider Management Team to the Board meeting and workshop, the first in 2024.  Those present noted apologies from Assistant Director Margaret Sharkey and that CS is joining via Teams.  There were no declarations of interest.  

Regulatory Framework Review

MC presented the Regulatory Framework publication package to the Board.  He highlighted that this includes:

• the proposed new Regulatory Framework and related statutory guidance which takes account of the consultation;
• an independent analysis on consultation responses; and
• SHR’s proposed response to the consultation.

MC explained plans to publish this around mid February 2024 giving landlords six weeks to prepare for implementation.  He reported that this should require minimal resources from landlords, but that SHR will have some preparation work tasks.  

MC set out the main changes made in response to the formal consultation which focus on:

• clarity of timescales for annual assurance statements and related guidance on specific assurances sought;
• combining review and appeal guidance;
• minor amendments to Notifiable Events guidance;
• some minor drafting and consistency corrections; and
• clarification on existing regulatory status categories. He highlighted that the majority of respondents supported this approach.

The Board considered the package and discussed:

• stakeholder feedback, noting general messages for stability, set in the context of the level of change and challenge for landlords in the broader operating environment;
• enthusiasm to establish and become involved in a working group to develop ARC indicators;
• accessibility of the Framework Document, noting plans to update the summary version that is produced for tenants and service users. It also noted forthcoming thematic work around British Sign Language;
• independent analysis of responses, noting the overall high levels of support for proposals that echoed SHR’s discussions with stakeholders during the consultation;
• impact of the changes around regulatory status on covenant compliance, noting that the current status of “working towards compliance” is regarded as non-compliant and so any further clarification of the status description should not create new risks for landlords already at that status. It noted that when a landlord changes status SHR emphasises the importance to the RSL of early discussions with lenders about this and that illustrates the importance for landlords complying with regulatory standards.  The Board asked MC to reflect the position on regulatory status more fully in the response paper;
• SHR’s equality impact assessment, noting that everyone has protected characteristics and asked MC to ensure that this is reflected in language used in the assessment;
• Significant Performance Failure reporting, noting that routes include submission by post, email or telephone and that SHR does not have a web form submission for this purpose. It asked IM and RL to explore if this is feasible to develop, noting potential issued around data sensitivity and GDPR;
• references in the analysis report to landlord engagement with people who are homeless, asking MC to check if factored owners and Gypsy/Travellers could also be specifically referenced; and
• under review status, noting that SHR uses this when it has queries around compliance and is seeking evidence. It welcomed that it is working to make earlier decisions when reviewing the regulatory status of RSLs. 

The Board thanked all the staff across SHR who had worked on the review, acknowledging it was a significant piece of work.  The Board approved the Regulatory Framework package for publication subject to the amendments discussed and asked MC to put these in place.  

Action: MC to take account of the points raised by the Board and finalise the Regulatory Framework package for publication in mid-February and implementation from 1 April 2024.

Regulatory Update

HS updated the Board on the Regulation Group’s work.  She highlighted recent publications and updates to local authority engagement plans.  HS set out risks around contractors going into administration and the impact of the Scottish Government’s budget announcements  as well as some governance-related resilience challenges for a small number of landlords.  The Board noted it would receive a full update in February under the quarterly corporate performance report.  HS also highlighted the continued focus on homelessness and the likelihood of further engagement plan updates to reflect the risk of systemic failure in a number of local authorities.  The Board also noted the potential impact on homelessness given the recent Scottish Government budget cuts to the housing supply programme.  .  MC reported that he is participating in an evidence session on homelessness with the Scottish Parliament’s Social Justice and Social Security Committee alongside other witnesses. 

HS updated the Board on next steps for engagement with Reidvale Housing Association following the outcome of the recent Special General Meeting.  HS explained that while tenants had voted to support the proposed transfer to Places for People Scotland, Reidvale did not secure the support from the Association’s members and so it cannot proceed with the transfer that it had proposed.  

HS reported that SHR has asked Reidvale to provide a clear plan by 24 February 2024 setting out the steps it will take to address the serious weaknesses in its governance, financial management and stock quality. She reported that she was  meeting with the Committee that evening to discuss next steps. HS confirmed that Reidvale can ask for more time if it needs this to develop its plans.

The Board noted that that the situation is moving at pace. It also noted that SHR had received correspondence from a number of stakeholders.  The Board welcomed that SHR had offered again to meet the MSPs who have been in contact seeking to discuss Reidvale.

The Board noted the regulatory updates and asked HS to keep it updated on SHR’s regulatory engagement with Reidvale and any continued media interest. 

Actions: HS to keep the Board updated on media interest and engagement with Reidvale Housing Association

Quarter Three Budget Update

SK presented an update on SHR’s budget position to the of December 2023.  He highlighted a forecasted underspend relating to staff cost and a small amount of underspend around training and development.   SK set out the variances for staff costs, accommodation, office costs, legal spend and resources & consultancy budget heading, setting out assumptions.   

The Board considered the update.  It noted that SHR updates Scottish Government about the forecast underspend and completes  a monthly information submission to Sottish Government. It discussed potential spend on accessibility of information, noting procurement obligations.   

The Board thanked SK and noted the budget update.

Workshop

The Board and Management team held a workshop considering the 2024/25 budget planning, strategy development and Board succession planning.  It also welcomed guest speaker: Angus MacLeod Strategic Lead for Public Bodies Reform Scottish Government and discussed public service reform with him. 

AOB

SHR Office

IM updated the Board on SHR’s office. He reported that SHR can continue to occupy George House alongside Transport Scotland until it leaves in September 2024.  He explained the options that SHR is considering and the some of the criteria that it will use to assess these.   The Board noted the updated and welcomed plans to agree next steps with it by the end of March 2024.  

Effectiveness of meetings & papers and DONM

The Board agreed the meeting and workshop went well.  The Board welcomed attendance by the Management Team and encouraged opportunities for further interaction.    

The Board considered and noted the agenda planner. 

The Board will meet on 27 February 2024.