Judgement issued on Inclusion Housing CIC – The Regulator of Social Housing has issued a regulatory judgment in respect of Inclusion, one of the 15 housing associations working with Civitas. Inclusion has been issued with a G3 grading in terms of Governance and a V3 grading in terms of Financial Viability. These are the same gradings that have been issued in respect of all other recent regulatory judgments for similar housing associations. Inclusion has indicated that it is working to improve the position.
As at 31 December 2018, Inclusion represented 7.5% of the Civitas NAV and 5.3% of the Civitas gross asset value (as if the fund had achieved its target level of borrowings of 35% of gross asset value).
As at 15 February 2019, Inclusion remains fully up to date with all lease payments due to Civitas and this is expected to continue to be the case in the future.
The regulator has been undertaking a general review of housing associations engaged in the provision of property services for vulnerable people since May 2018.
Inclusion provides accommodation for vulnerable adults with complex learning and physical disabilities. It was established in 2007 as registered Community Interest Company, and later became registered as a registered provider in 2011.
Civitas says that it will issue a further announcement if and when the regulator makes any further comment.
[QD comment: These announcements are often accompanied by scare mongering from some commentators. In our view, the key statement here is that Inclusion is up to date with paying its rent and Civitas has no reason to believe that this won’t be the case in the future. Given the importance of the task being undertaken by Inclusion and the other housing associations providing supported living accommodation, we think it is good news that the regulator is taking a tough line. The regulator’s announcements are always a little short on specific detail, which is unhelpful, but past actions that have been taken to address these issues include beefing up boards of directors, improving record keeping and getting tougher on local authorities that are behind with their rent.]
Inclusion is also an important partner for Triple Point Social Housing REIT. In its statement on the news, Triple Point says its manager “is satisfied that Inclusion continues to be a well-run business with a strong and experienced management team.” and points out that “the judgment notes that Inclusion is currently able to meet its commitments as and when they fall due“.
CSH : Judgement issued on Inclusion Housing CIC