Welsh Government Housing Regulation

Transcription

1 Welsh Government Housing Regulation Consultation Document Date of issue: 13/01/2017 Responses by: 24/02/2017

2 Overview Welsh Government Housing Regulation has worked collaboratively with key stakeholders, including tenants, funders, Registered Social Landlords (RSLs) and Community Housing Cymru, to develop and co produce a revised and improved approach to delivery of housing regulation. An important element of the revised approach is the development of a new set of performance standards to replace the current delivery outcomes. The proposed performance standards have been developed in consultation with the sector and have been shared with relevant stakeholders. As a final stage, the Welsh Ministers are now required to formally consult on the proposed performance standards. The Regulatory Board for Wales has endorsed the approach and it has been welcomed by stakeholders. How to respond Please respond by 24/02/2017. Responses can be submitted by to ian.walters@wales.gsi.gov.uk or in writing to Ian Walters at the contact address below. Further information and related documents Contact details Large print, Braille and alternative language versions of this document are available on request. For further information, please contact: Name: Ian Walters, Senior Regulation Strategy Address: Merthyr Tydfil Office Rhydycar CF48 1UZ Manager ian.walters@wales.gsi.gov.uk telephone: Data protection How the views and information you give us will be used Any response you send us will be seen in full by Welsh Government staff dealing with the issues which this consultation is about. It may also be seen by other Welsh Government staff to help them plan future consultations. The Welsh Government intends to publish a summary of the responses to this document. We may also publish responses in full. Normally, the name and address (or part of the address) of the person or organisation who sent the response are published with the response. This helps to show that the consultation was carried out properly. If you 1

3 do not want your name or address published, please tell us this in writing when you send your response. We will then blank them out. Names or addresses we blank out might still get published later, though we do not think this would happen very often. The Freedom of Information Act 2000 and the Environmental Information Regulations 2004 allow the public to ask to see information held by many public bodies, including the Welsh Government. This includes information which has not been published. However, the law also allows us to withhold information in some circumstances. If anyone asks to see information we have withheld, we will have to decide whether to release it or not. If someone has asked for their name and address not to be published, that is an important fact we would take into account. However, there might sometimes be important reasons why we would have to reveal someone s name and address, even though they have asked for them not to be published. We would get in touch with the person and ask their views before we finally decided to reveal the information. The Welsh Government is consulting with the Regulatory Advisory Group (RAG) members as representatives of social landlords, tenants and local housing authorities in order to comply with the statutory requirement to consult under section 33C of the Housing Act Members of RAG are representatives from: Registered Social Landlords Community Housing Cymru Council of Mortgage Lenders Tenants Participation Advisory Service Cymru Welsh Tenants Welsh Local Government Association Regulatory Board for Wales Tenant Advisory Panel Chartered Institute of Housing Cymru Shelter Cymru Chief Executives Forum Finance Forum Regulation Network 2

4 Foreword On 1 st December 2016, at the Community Housing Cymru Annual Conference, I announced a number of commitments to housing in Wales including an additional 30m for this year s social housing grant programme. I also assured all stakeholders, including tenants and lenders, that I recognise the implications of reclassification of Registered Social Landlords (RSLs) as public sector organisations by the ONS and that regulatory reform required to address this issue will not result in an unregulated free-for-all RSL sector. I announced the launch of a new Regulatory Judgement Framework that will ensure our opinions on the governance and financial viability of RSLs will be far clearer in future. The new framework has been developed in partnership with the sector and this consultation is an opportunity to comment on proposed performance standards and guidance before they are finalised and we move to a revised Regulatory Framework. The proposed Performance Standards will be incorporated into a revised Regulatory Framework, including the guidance and Regulatory Judgement Framework. I want to hear your views on the proposed suite of performance standards which RSLs will need to comply with and deliver. Subject to this consultation, the Performance Standards and guidance will be formally issued by the Welsh Government under sections 33A and 33B of the Housing Act 1996 (the 1996 Act). The Welsh Ministers have powers under Part 1 of the Housing Act 1996 to regulate Registered Social Landlords in relation to the provision of housing and matters relating to governance and financial management. Carl Sargeant AM Cabinet Secretary for Communities and Children 3

5 Evolving Regulation of Social Housing in Wales In seeking views on the new Performance Standards, it is important to understand the revised approach to regulation and how the proposed Performance Standards evolved. Current Regulatory Framework and Performance Standards The Welsh Ministers have powers under the 1996 Act to regulate RSLs in Wales. Under section 33A(1) of the 1996 Act, the Welsh Ministers may set standards of performance to be met by RSLs in connection with their functions relating to the provision of housing and matters relating to their governance and financial management. Under section 33B(1) of the 1996 Act, the Welsh Ministers may issue guidance that relates to a matter addressed by a standard, and amplifies the standard. Section 33C of the 1996 Act requires the Welsh Ministers to consult various representative bodies before setting section 33A standards or issuing section 33B guidance. The Regulatory Framework for Housing Associations Registered in Wales 2011 (the 2011 Regulatory Framework) sets standards of performance, known as delivery outcomes, under section 33A of the 1996 Act and gives guidance under section 33B (see paragraphs 4.3 to 4.7 and Appendix 3). A link to the existing Framework is below: Why does the Framework need to change? RSLs were reclassified by the Office for National Statistics to the public non-financial corporations sub-sector for the purpose of national accounts and other ONS economic statistics in September The Welsh Government is intending to introduce regulatory reform to reduce government controls on RSLs with the intention of reversing this classification. In order to preserve regulatory accountability and mitigate the impacts of any proposed reduction of government controls, the Housing Regulation team has developed and agreed with the sector and key stakeholders, including tenants and funders, a new Regulatory Judgement Framework which replaces some formal regulatory powers with a revised transparent system of regulatory oversight. Building on the Current Approach to Regulation The new approach is an evolution of the current risk based approach to regulation set out in the 2011 Regulatory Framework. It will continue to ensure that Wales has well run, financially robust RSLs providing high quality, and improving, landlord services to their tenants. Key elements of the risk based approach remain in place Tenants remain at the heart of regulation with the new approach providing improved accountability and transparency to tenants and other stakeholders The underpinning principles of the 2011 Regulatory Framework proportionality, transparency and openness, consistency and promotion of learning and development - are unchanged The approach to regulation will continue to be founded on co-regulation 4

6 A Focus on Continuous Improvement and Strategic Risks The revised approach provides a focus on continuous improvement and a clear regulatory judgement. There is a new requirement for RSLs to provide an annual statement of compliance with the performance standards set by Welsh Government. The revised performance standards included in this consultation document are designed to complement the new Regulatory Judgement Framework. Regulatory focus will be on strategic risks and business viability issues as RSLs continue to respond to a changing and increasingly complex operating environment. There will be increased focus on good governance, specifically on how the Board is assured that its primary responsibility of ensuring the effective running of the RSL is fully and properly discharged. Clear Judgements through Published Co-regulation Status Judgements The Regulator will make a judgement of each RSL s capacity to improve in accordance with the new Regulatory Judgement Framework. This judgement will be reflected in an annual published co-regulation status for both governance (including service quality) and financial viability. The assessment of the organisation s capacity to improve will be based on a series of judgement factors which evidence the ability to effectively manage and improve the business. The judgment factors are therefore closely aligned with the way effective RSLs actually run their business. The existing delivery outcomes have therefore been revised to become the proposed new set of Performance Standards and associated guidance in this consultation document, designed to support the new approach to regulation. Performance Standards The proposed Performance Standards and guidance (where required) are set out in the table below: 5

7 Performance Standard Effective Board and executive management with a clear and ambitious vision for the Registered Social Landlord Effective and appropriate tenant involvement and high quality and improving services Comprehensive assessment of the business impacts of current and emerging risks, including new business and development opportunities, with robust risk management arrangements Clearly evidenced self evaluation and statement of compliance A track record of achieving positive outcomes, responding appropriately to new challenges and performance issues Delivering value for money in all areas of the business Compliance with regulatory and statutory requirements and guidance Guidance Sets a clear vision and values for the organisation which deliver and progress the core purpose of the business Governance arrangements establish and maintain clear roles, responsibilities and accountabilities for the board, chair and chief executive and ensure appropriate probity arrangements are in place Complies with governing documents including adopting, and complying with, an appropriate code of governance Adheres to all relevant law and all regulatory requirements Demonstrates how tenants are effectively involved in strategic decision making and shaping services in ways appropriate for tenants and the organisation Demonstrates how the board assures itself of current service performance, including tenant satisfaction, and drives continuous improvement Ensures that all homes meet required standards of design and quality Meets all applicable statutory requirements providing for the health and safety of the occupants in the home Safeguards taxpayers interests and the reputation of the sector and protects social housing assets Assessment of capacity to take on new business and development opportunities is robust Carries out detailed and robust stress testing of financial plans against a range of scenarios, identifying appropriate mitigation strategies Before taking on any new liabilities, ensures obligations are fully understood and demonstrates consideration of how the likely impact on current and future business and regulatory compliance will be managed Demonstrates how the board assures itself of current performance and drives continuous improvement Demonstrates how lettings make the best use of available housing, compatible with the core purpose of the Registered Social Landlord Demonstrates a strategic approach to and delivery of value for money across the business Communicates in a timely manner with the regulator on material issues that relate to noncompliance 6

8 A financial plan which delivers and supports the business plan and effective monitoring of financial performance Ensures that the organisation is financially sound Effective systems and controls are in place to monitor and accurately report delivery of the Registered Social Landlords plans Monitors, reports on and complies with all covenants Effective management of treasury operations ensuring sufficient liquidity at all times A clear understanding of liabilities and asset performance Ensures sufficient funding is available to deliver the business plan Ensures financial forecasts are based on appropriate and reasonable assumptions Maintains a thorough, accurate and up to date record of assets and liabilities including all liabilities which have recourse to social housing assets Data on the financial and social performance of assets is accurate and used to inform investment decisions Ensures data on the condition of their assets is up to date and is able to demonstrate consideration of the short and long term costs of maintenance, repair and renewal Ensures that publicly funded homes meet the standards set out in the Welsh Housing Quality Standard 7

9 Consultation Questions Name Organisation Tel: Address Question 1 Do you agree with the proposed Performance Standards and guidance as set out in the table above? Question 2 Are there any other Performance Standards you would like to see included? Please list and explain the reasons to support your response. Question 3 - We would like to know your views on the effects that the proposed Performance Standards would have on the Welsh language, specifically on i) opportunities for people to use Welsh and ii) on treating the Welsh language no less favourably than English. What effects do you think there would be? How could positive effects be increased, or negative effects be mitigated? 8

10 Question 4 - Please also explain how you believe the proposed Performance Standards could be formulated or changed so as to have i) positive effects or increased positive effects on opportunities for people to use the Welsh language and on treating the Welsh language no less favourably than the English language, and ii) no adverse effects on opportunities for people to use the Welsh language and on treating the Welsh language no less favourably than the English language. Question 5 - We have asked a number of specific questions. If you have any related issues which we have not specifically addressed, please use this space to report them: Responses to consultations are likely to be made public, on the internet or in a report. If you would prefer your response to remain anonymous, please Indicate. YES/NO 9