Housing Corporation announces the outcome of a statutory inquiry into Black Roof Community Housing Association

Housing Corporation News Release

Housing Corporation announces the outcome of a statutory inquiry into Black Roof Community Housing Association

2nd October 2006  Media Contact: Naomi Evans 0207 393 2118             Ref: 98/06

The Housing Corporation has announced that it intends to direct Black Roof Community Housing Association (BRCHA) to transfer its land to another registered social landlord in accordance with paragraph 27 of Schedule 1 to the Housing Act 1996. (The Act).

The Corporation also intends to make an order removing three members of the Board of BRCHA in accordance with the provisions of paragraph 24 (2) (a) of Schedule 1 to the Act.

The transfer and removals follow consideration by the Corporation’s Board of the final report of the statutory inquiry into the affairs of BRCHA at its meeting on 26 September 2006.

The inquiry, which was carried out by James Tickell and Elizabeth Wilson, investigated matters relating to the governance, management and viability of BRCHA and reported in May 2006.

The Corporation’s Board had previously considered the matter at meetings in June 2006 and July 2006.

The Corporation’s Board had considered written and oral representations by BRCHA and by three BRCHA Board members in a personal capacity.

The Corporation’s Board concluded that there had been mismanagement in the affairs of BRCHA, and was satisfied that the Board of BRCHA was collectively responsible for that mismanagement.

In addition, the Corporation’s Board was satisfied that Rizwan Alibhai (Secretary) Fekade Habte (Ex-Chair) and Korsima Lindsay (Treasurer) also appear to have been individually and personally responsible for the mismanagement.

The Corporation’s Board has not yet decided whether or not the final report should be published, and if so, in what form, but will consider this matter again in the future.

Ends.

Notes to editors:

• The Housing Corporation is the Government agency responsible for investing in new affordable homes and regulating nearly 2,000 housing associations across England.   Its biggest ever investment programme of £3.9 billion for 2006-08 will fund 84,000 homes;  49,000 of these will be for affordable rent, and 35,000 will be for affordable sale through the Government's new HomeBuy initiative, helping people to get a foot on the property ladder.