Thursday 14 November 2019

CAUTIONARY TALE ALERT BY FORMER HOUSING BOSS


Riverside
takeover: a
warning to all

A stinging attack has been launched against the housing organisation behind the fat -cat salary row at Workington.

Mr Adrian Waite a former Workington housing boss warns of the dangers of a new agreement for tenants in the town  which is planned by  Riverside Housing Association of Liverpool,  a giant  organisation which owns 56,000 homes nationwide.

Housing organisations and tenants in other parts of the country should take note, says Mr Waite  head of  Appleby-based  AWICS, a management consultancy and training company.

The warning comes a year after Riverside took over the much smaller Impact Housing Association which is based in Workington and has 2,770  homes. Mr Waite was chairman of Impact for four years prior to the takeover which he criticised  at the time.

Now he has renewed his attack.

He writes in his blog:

“ Riverside and Impact have now decided  to make a ‘transfer of engagements’. This would mean that all Impact’s operations, including their housing stock, would move to Riverside and they would become the landlord.

“Impact was always more than `just a housing association’ and provided a wide range of other services including a community centre at Salterbeck in Workington; foyers in Kendal, Penrith and Whitehaven; a furniture service; and a domestic violence service.

“This approach is not consistent with Riverside’s business model so I also raised concerns about whether these services would continue to be provided. The response from Riverside’s representatives was rather vague. I would not be surprised if we see some services closed.

“You may be thinking that I am just having a moan.

” However, I think that this may be a cautionary tale for other housing associations and their tenants and that the Regulator of Social Housing should consider taking a different approach to regulation to ensure greater transparency and accountability especially when providers are downgraded or when mergers or takeovers are being considered.”

Mr Waite recalls that he was a member of the board of Impact  from 2009 to 2015 and was Chair from 2011 to 2015.   

He goes on:

“Throughout that time, Impact maintained a  top rating with the Regulator. However, in 2017, Impact was downgraded to a non-compliant and the Board proposed a ‘merger’ with the Riverside Group that could more accurately be described as a ‘takeover’.

“As a shareholding member of Impact, I was shocked at the way the board behaved, mainly because of:
  • Their mismanagement of Impact that led to the downgrade.
  • Their decision to bring forward the 2017 AGM to before the Regulator announced the downgrade so that they could tell members that Impact’s finances were ‘strong and stable’ contrary to the conclusions of the Regulator.
  • The agreement that they reached with Riverside failed to protect Impact’s values, services or tenants; and was supported by misleading information. It was also made without enough engagement with shareholding members or tenants.

“AT the Impact AGM in 2017  members were told the finances were 'strong and stable'. The following week the Regulator downgraded the association's rating for financial viability from the top  rating to a non-compliant  rating.

“I opposed the ‘takeover’ at the 2018 AGM, but it was approved.

“Interestingly enough, only a year after the ‘takeover’, everyone who was a member of the board of Impact prior to the downgrading has been replaced. Impact also has a new finance director.

“Both Riverside and the Impact board made great play at the time of the ‘takeover’ about how Impact would continue to act independently within the Riverside Group.

“Tenants were even told in writing that their landlord would not change. In view of Riverside’s highly centralised business model, I questioned this at the time.

“I asked whether Riverside planned to do with Impact what they had previously done with the Carlisle Housing Association – namely wind them up and integrate their homes and operations into the parent housing association.

 “I was assured by representatives of Riverside at the highest level that this would not happen.

“However, Riverside and Impact have now decided – only a year after the ‘takeover’ - to make a ‘transfer of engagements’. This would mean that all Impact’s operations, including their housing stock, would move to Riverside and they would become the landlord.”

What does Impact say?

In a letter to tenants earlier this month Impact said:

“As you will recall, Impact became a subsidiary of The Riverside Group in August 2018 following consultation with you and a positive vote from our shareholders.

“Joining Riverside has brought exciting changes to our operations across Cumbria. The move has enabled us to begin work on a multi-million pound programme to improve existing homes and to build new ones.

“As explained during our consultation with you in 2018, the plan was for Impact to initially become a subsidiary of Riverside with a view to explore further integration options towards the end of 2020.
“However, our financial position is not strong enough for us to continue as a stand alone subsidiary with the ability to deliver the commitments that both Impact and Riverside made during the consultation in 2018.
“We need to take action now to ensure that services and commitments to customers are not disrupted and to protect our staff.

 “The Impact Board has looked at a number of options and has agreed a proposal to begin integration into Riverside sooner than planned through a ‘transfer of engagements’. 
“This would mean that all our operations, including our housing stock, would move to Riverside and they would become your landlord.

"We believe this is the best option for you, our staff and the wider community. It would mean that:You can continue to live in the same home with services provided locally by the teams you already know.•
“Your tenancy / lease agreement will stay the same only the name of your landlord will change to The Riverside Group Limited. Your rights whether you are a tenant, shared owner or a leaseholder will be protected.
“Riverside will continueto deliver the pledges it made when Impact joined the Group, including the £25million programme to improve homes across Cumbria.
“We would keep the Impact Housing name as a separate brand within the Riverside Group. The current Impact Board will becomea sub-committee to the Riverside Group Board and will continue to act in the best interests of Impact customers.
“Rents are set to go up in April 2020 and this will happen right across the social housing sector. This means that your rent would still increase if you remained with Impact. A transfer to Riverside will have no effect on how much you pay for your home (see the enclosed question and answer document for more information).

“We are proposing that the Transfer of Engagements happens on or before 31 March 2020. Our shareholders will vote on the Board’s proposal in early 2020. We have informed the Government’s Regulator of Social Housing and they support our plans”.

 Last week there was much criticism of Riverside after the housing press  revealed that  Ms Carol Matthews, Chief Executive Officer  has won a  20 per cent mouth-watering salary  rise to £234, 563.
A spokesman for Carlisle Tenants` and Residents` Federation which publishes this blog said: 

No one is better qualified than Mr Waite to criticise Riverside and its authoritarian ways.“He is a respected professional housing and local government consultant and additionally  had several years of experience working on the Impact governing board. .
“Many of his criticisms  have also been levelled  by the Federation during the years of campaigning against Riverside`s bossiness and gross inefficiency in Carlisle since it took over the city council houses in 2002. Riverside is accountable to no-one but itself
“His warning of the dangers ahead should not be ignored.”

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