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Regulator of Social Housing publishes non-compliant Regulatory Judgement for Christian Action (Enfield) Housing Association

The Regulator of Social Housing (RSH) has published a non-compliant Regulatory Judgement (RJ) for Christian Action (Enfield) Housing Association Limited (CAE).  CAE owns and manages around 1,600 properties primarily in the north London boroughs of Enfield and Waltham Forest, but also in Haringey and Barnet.  The RSH had placed CAE on its Gradings Under Review (GUR) list in May 2022, as it was investigating matters which may have impacted on CAE’s compliance with the Governance and Financial Viability Standard.

The RSH has subsequently concluded that:

  • it lacks assurance that CAE has a robust and prudent business planning, risk and control framework and
  • the Board of CAE has not been managing its affairs with an appropriate degree of skill, diligence, prudence and foresight.

CAE’s Board failed to identify the potential crystallisation of a serious risk in time to effectively manage it and consequently it came within weeks of a potential loan covenant breach.  In addition, CAE’s communications with the RSH about its covenant compliance issues did not meet the RSH’s expectations.

CAE’s V2 rating reflects relatively low operating margins, which mean that it will need to retain reasonable business planning assumptions and effective cost controls to maintain financial viability.

All of the RJs, Regulatory Notices and GUR listings published by the RSH can be viewed on the RSH’s website here.