Statutory action was taken in March after the Association identified that its governing body did not meet its own constitutional requirements and sought support from the Regulator to address the issues.

A revised regulation plan published on Thursday highlighted the progress that Molendinar Park has made in dealing with the “serious governance failure” that led to the initial intervention.

The regulation plan states that Molendinar Park “now has a properly constituted governing body and has commissioned an independent review of its governance and financial management”.

It adds: “We have therefore decided to end our statutory appointments to the governing body. We will continue to engage with Molendinar Park on the outcomes from the independent review. Molendinar Park has co-opted four members onto the governing body to help it take forward this review and it will address any issues that are identified to ensure it meets the Regulatory Standards of Governance and Financial Management.”

The Regulator said it will now have medium engagement with the Association.

Christine MacLeod, director of regulation (governance and performance), said: “Molendinar Park acted appropriately by reporting its governance failure to us when it became known and has worked openly with us to rectify this problem. We will continue to engage with Molendinar Park as it carries out an independent review of its compliance with our Regulatory Standards of Governance and Financial Management.”

A spokesperson from Molendinar Park Housing Association told Scottish Housing News: “The Management Committee of Molendinar Park Housing Association is pleased that the SHR has ended its statutory appointments at this time. We were very pleased to welcome new members to the committee at our recent AGM and are grateful for the support that we have received from the appointees.

“The committee has identified a programme of priorities and actions for the coming months and we look forward to making sustained progress, whilst continuing to deliver excellent services to tenants and service users. We very much appreciate the support that our communities have demonstrated for the association over the last months.”