Housing provider for the vulnerable rebuked in probe

THE city’s biggest provider of controversial supported housing has been deemed ‘non compliant’ in a ruling by the Regulator of Social Housing.

The Regulator found that Reliance Social Housing CIC, designated as a not-for-profit provider, was funnelling much of the millions in public money it received in enhanced housing benefits to private companies “and failed to ensure that any arrangements do not inappropriately advance the interests of third parties”.

The company houses an estimated 7,800 tenants, most deemed highly vulnerable, in properties around the city.

They often include people with mental health issues, drug and alcohol addictions, people fleeing domestic violence, refugees and those struggling and at risk of rough sleeping.

The firm hooks up with independent agents who then run the properties, find and place tenants and provide support for them – and take most of the benefits as a result, as well as charging tenants extra on top.

But Reliance has failed to satisfy the regulator that it has the financial and governance systems in place to meet basic compliance standards.

The regulator stepped in after a flurry of serious concerns were raised about the way Reliance properties were operating, including from MPs, councillors and community groups.

Local neighbourhood groups and tenants living inside properties overseen by Reliance have complained about crime, safeguarding issues, violence and a lack of suitable support, which in turn blights communities.

The Regulator will now decide what other action it can take.

In its ruling, the regulator has concluded that Reliance is noncompliant with the Governance and Financial Viability Standard as it has “failed to ensure that it has effective governance arrangements in place that deliver its aims, objectives and intended outcomes for tenants in an effective, transparent and accountable manner.”

The firm has also failed to demonstrate that it has an “appropriate, robust and prudent risk and control framework” in place.

It has also not been able to demonstrate it is managing its affairs with an appropriate degree of skill, independence, diligence, effectiveness, prudence and foresight.

The Regulator has ruled the firm “failed to ensure that any arrangements in enters into do not inappropriately advance the interests of third parties, or are arrangements which the regulator could reasonably assume were for such purposes.”

There are “insufficient controls” and risk management in place to ensure tenants are properly supported, they found.

Public money pumped into the firm ends up with third party managing agents – mostly profit making private firms – and there is a “weak contracting environment” and insufficient oversight of these payments.

Labour MPs Shabana Mahmood, Jack Dromey and Preet Gill and Birmingham City Council’s cabinet lead on homelessness, Sharon Thompson, have been at the forefront of a citywide campaign for tougher regulations and enforcement against lax providers.

This week Tory group leader Cllr Robert Alden urged the council and all charity and referral agencies to stop placing tenants in Reliancemanaged properties.

He said: “We are pleased to hear Reliance have been found noncompliant, whilst this confirms the sad reality of thousands of Brummies’ situation, this will hopefully mean the residents and the communities around these properties will see some improvement.”

He also urged the council to make plans to step in, take over and return affected properties to family housing.

Reliance Social Housing CIC was unavailable for comment.