Christian Action Housing Association Slapped with Financial Downgrade
The Regulator of Social Housing has hit Christian Action (Enfield) Housing Association with a damaging downgrade, slashing its financial viability rating to V3.
Financial Worries Deepen After Governance Failings
In a fresh regulatory judgement published today, the watchdog confirmed Christian Action is now non-compliant with key financial viability standards. This follows a December 2022 report that exposed serious governance failings, including poor financial monitoring and sloppy board reporting.
The regulator’s ongoing review reveals the housing association’s financial health remains fragile. It’s struggling to deliver its financial plans and faces material risks with little resilience. This has forced the regulator to downgrade the financial viability rating from V2 to a worrying V3.
Christian Action Struggles to Prove Financial Strength
The housing association can’t show it has a solid financial plan or that it effectively manages its performance. It has failed to reassure the regulator it can handle adverse financial scenarios, highlighting ongoing weaknesses.
New Board Members and Advisors Try to Steer the Ship
In response, Christian Action is shaking things up. The group has appointed three new co-opted board members and brought in external advisors to craft an improvement plan aimed at fixing its financial and governance troubles.
Harold Brown, RSH Senior Assistant Director for Investigations and Enforcement, warned: “Our investigation reveals significant challenges caused by Christian Action’s weak financial profile, which has left it unable to demonstrate the necessary capacity to adequately deal with its financial risks. We will continue to monitor the provider closely as it works to address these issues and return to compliance.”
