Rochdale Boroughwide Housing reported to regulator over controversial proposed rule changes

Rochdale Boroughwide Housing (RBH) has been reported to the Regulator of Social Housing over controversial rule changes which will remove powers from tenants and employees.

Rochdale MP Tony Lloyd and councillor Daniel Meredith, who is responsible for housing and regeneration in the borough, signed a letter addressed to the Regulator citing concerns over what the changes would mean for the housing association's future as a mutual co-operative.

The letter claims the rule changes would place vital decisions over RBH’s corporate strategy, board member adoptions, and housing stock in the hands of the board, removing responsibility from tenants and employees who make up the Representative Body.

An RBH update on 9 October added a further change that tenants should not be excluded from being members of the society if their homes are in future owned by another landlord but managed by the housing association.

This was added following proposals that ownership of the College Bank premises could be transferred from RBH to L&G Affordable Homes.

The rules on decision making were voted through at a members’ meeting yesterday (2 November), receiving the required two-thirds majority to pass.

The change follows increasing tensions between Rochdale Council and RBH over the move, which the housing association says is part of its “lessons learnt” review after the death of Awaab Ishak, the toddler who died due to a condition linked to mould and damp in his home on the Freehold estate.

Since the tragedy, RBH has been looking at ways it can make improvements to its housing stock and the way it is governed.

RBH chief executive Amanda Newton met with Rochdale council leader Neil Emmott, Councillor Meredith, and Conservative group leader Councillor John Taylor last week to discuss the changes and raise concerns.

 

 

The changes “removes key decisions from tenants, employees, and partners” according to the letter shared by Councillor Meredith.

“We all believe that this goes against the mutual co-operative of RBH.”

The letter continues: “Any mutual co-operative should involve all in the decision making process and not just used for scrutiny of the board.

“We are raising these concerns because we have been informed by RBH that the rule changes are based on advice provided by the Social Housing Regulator.

“We all believe the advice provided does not reflect a mutual co-operative.”

RBH says that every member had an invitation to attend the special meeting at 1pm yesterday over the outcome of the rule changes.

Amanda Newton, RBH chief executive, said: “In December 2022, the Regulator for Social Housing downgraded RBH’s governance to a non-compliant G3 grade. This required us to work in agreement with the regulator to address a number of issues to improve our position.

“As part of this process, we asked members to strengthen the ability of the Representative Body to influence the organisation and enhance the accountability of our board.

“As a mutual society, the final decision on any proposed changes to the RBH rules is made by our customer and employee members alone. All members were invited to the meeting and to participate in the vote – we are very grateful to all those who took part.

“Members of the Society voted in favour of the changes by the required two-thirds majority. We’ve put in place more ways for customers to get involved and have a say in how we’re run and how we deliver services. We have a new plan for engaging customers from across all areas which includes things like customer voice forums, which give people a chance to tell us what’s going on in their community.

“We also have a new Customer Service Committee that is part of our board and will soon have three customer members sitting on it who will have a direct voice in the boardroom.

“Fundamentally we are a mutual society that is owned by its members and whilst members have approved some changes to the rules to enable us to be compliant with the regulatory framework, we are focused on bringing our mutuality to life in new ways that have never been achieved before. This includes a role for our Representative Body in scrutiny and bringing the board, the Representative Body and the executive working together to develop
and oversee the delivery of strategy.

“We are keen to continue to work together with elected members for the benefit of customers, employees, and the wider community in Rochdale.”

Declan Carey, Local Democracy Reporter