Housing group is on the road to recovery
Progress for under-fire association
05.02.2018 A watchdog is to reduce its involvement with a crisis-hit Paisley housing association, it has emerged.
The Scottish Housing Regulator (SHR) was forced to step in to help run the Ferguslie Park Housing Association (FPHA) after serious weaknesses were uncovered in the financial management of the organisation.
In February 2016, the SHR was forced to appoint an independent manager and three board members after “significant and immediate risks to the interests of tenants” were found.
The appointments were extended in March and August last year, to help get FPHA, which owns 803 homes, back on track.
It has now been announced that the regulator is satisfied that progress has been made to shore up the governance of the association, leading to a reduction in its overall involvement.
A regulation plan stated: “We are satisfied that our appointed manager has concluded the remit we set to support the organisation to comply with Regulatory Standards.
“It is now for the governing body to demonstrate that it is capable of sustaining and building on these improvements.
“We have therefore decided to end the appointment of the manager at the end of January, and reduce the number of statutory appointments to the governing body from three to two at the end of March.”
The news has been welcomed by chair of the FPHA, Shona McIntyre, who is convinced the organisation is now moving in the right direction.
She said: “The statutory manager and board appointees have been a great assistance to the board in reviewing and rebuilding their governance and financial management support systems.
“Our financial position has always been strong, but now the board is in full control of decision making.
“Tenants can be reassured that the risk to their interests, which led to intervention, have been managed and resolved.
“The conclusion of the manager’s task, and the reduction in appointees, is evidence that we have sorted those old weaknesses — we just need to prove now that we have firmly established the rejuvenated FPHA.
“We are really looking forward to doing that with our new management board and a new chief executive, during what we hope will be the final few months of intervention.”
The intervention will be kept under review.