Decision

Current regulatory judgement: Framework Housing Association (27 March 2024)

Updated 27 March 2024

Applies to England

RSH Narrative Regulatory Judgement

• Provider: Framework Housing Association
• Regulatory code: LH4184
• Publication date: 27 March 2024
• Governance grade: G1
• Viability grade: V2
• Reason for publication: Changed basis for viability grade
• Regulatory route: In Depth Assessment

Regulatory judgement

This judgement confirms the regulator’s existing assessment of Framework Housing Association’s governance and financial viability (G1/V2) following completion of an In Depth Assessment (IDA).

Based on evidence gained from the IDA, the regulator has assurance that Framework Housing Association (Framework) continues to comply with the financial viability elements of the Governance and Financial Viability Standard, and that its financial plans are consistent with, and support, its financial strategy. Framework has an adequately funded business plan, sufficient security in place and is forecast to continue to meet its financial covenants.

Framework operates with low margins due to its business model. A significant part of Framework’s income comes from support contracts and therefore is subject to uncertainty as well as constraints. There is a need to manage financial resources carefully including through continued efficiencies. Framework’s stress testing demonstrates that it has the financial capacity to deal with a reasonable range of exposures, but it needs to continue to manage the risks associated with the funding of its support activities, including an element of reliance on grants from statutory sources.

The regulator’s assessment of Framework’s compliance with the governance elements of the Governance and Financial Viability Standard remains unchanged. Based on the evidence gained from the IDA, the regulator has assurance that Framework’s governance arrangements enable it to adequately control the organisation and to continue meeting its objectives.

Other providers included in the judgement

None

About the provider

Origins

Framework is a registered charity and a company limited by guarantee. It is a specialist provider delivering a range of community based support services to both its own tenants and other members of the communities in which it operates. The provision of social housing forms an integral part of the overall business. All of Framework’s social housing is supported.

Registered Entities

Framework is the only registered entity.

Unregistered Entities

There are no unregistered entities.

Geographic Spread and Scale

At 31 March 2023, Framework had 1,309 homes. The majority of Framework’s homes are in the East Midlands, with a small number in South Yorkshire.

Staffing and Turnover

Framework employs the full-time equivalent of 1,321 staff. Its turnover for the year ended 31 March 2023 is £55.8m.

Development

Framework plans to develop 200 supported social housing units between 2022/23 and 2027/28.

About our judgements

Key to Grades

Governance:

	Compliant
G1	The provider meets our governance requirements.
G2	The provider meets our governance requirements but needs to improve some aspects of its governance arrangements to support continued compliance.

	Non-compliant
G3	The provider does not meet our governance requirements. There are issues of serious regulatory concern and in agreement with us the provider is working to improve its position.
G4	The provider does not meet our governance requirements. There are issues of serious regulatory concern, and the provider is subject to regulatory intervention or enforcement action.

Viability:

	Compliant
V1	The provider meets our viability requirements and has the financial capacity to deal with a wide range of adverse scenarios.
V2	The provider meets our viability requirements. It has the financial capacity to deal with a reasonable range of adverse scenarios but needs to manage material risks to ensure continued compliance.

	Non-compliant
V3	The provider does not meet our viability requirements. There are issues of serious regulatory concern and, in agreement with us, the provider is working to improve its position.
V4	The provider does not meet our viability requirements. There are issues of serious regulatory concern, and the provider is subject to regulatory intervention or enforcement action.

Note: The use of an asterisk (*) against a grade indicates that the assessment refers to a provider that is designated as being for-profit.

Definitions of Regulatory Routes

In Depth Assessment (IDA): An IDA is a bespoke assessment of a provider’s viability and governance, including its approach to value for money. It involves on-site work and considers in detail a provider’s ability to meet its financial obligations and the effectiveness of its governance structures and processes.

Stability Checks: Based primarily on information supplied through regulatory returns, a Stability Check is an annual review of a provider’s financial position and its latest business plan. The review is focused on determining if there is evidence to indicate a provider’s current judgements merit reconsideration.

Reactive Engagement: Reactive engagement is unplanned work which is triggered by new information or a developing situation which may have implications for a provider’s current regulatory judgement.

Stability Checks and Reactive Engagement: In some cases, we will publish narrative regulatory judgements which combine evidence gained from both Stability Checks and Reactive Engagement.

For further details about these processes, please see Regulating the Standards.