The Regulator, which is engaging with Calvay about its governance and stock quality, received information in March 2022 that led it to put Calvay’s regulatory status under review, particularly in regards to Regulatory Standard 1 which reads that: “The governing body leads and directs the RSL to achieve good outcomes for its tenants and other service users”.

Calvay commissioned an independent investigation to address these concerns and then completed an organisational structure review and an independently supported committee skills appraisal of management committee members.

The appraisal identified failures in compliance with regulatory standards including lack of effective oversight by the management committee, significant gaps in the skills and knowledge of management committee members including its understanding of its role as an employer, weaknesses in the management committee’s handling of its relationship with the senior officer and potential breaches of the Code of Conduct by management committee members.

In December 2022, SHR changed Calvay’s regulatory status to working towards compliance. It assessed that Calvay did not comply with Regulatory Standards 1 and 6 and that we had serious concerns about its compliance with Regulatory Standards 4 and 5.

In February 2023, Calvay commissioned an independent review of its compliance with Regulatory Standards and requirements. The review concluded in June 2023 and found non-compliance with Regulatory Standards 1,3,4,5 and 6.

The findings include a lack of formal policies and procedures and management committee oversight in relation to tenant and resident safety, an absence of analysis of financially sustainable rent increases in advance of consulting with tenants, weaknesses in risk management arrangements, gaps in the skills and experience of the management committee and weaknesses in succession planning arrangements for the management committee.

In an updated engagement plan for Calvay, the Regulator said Calvay has developed a governance action plan to address the findings and is taking action to increase the capacity of the management committee by co-opting two individuals and is currently taking forward further recruitment. Calvay has commissioned additional HR advice to support the management committee in its role as an employer.

Calvay has also identified a failure in the render to some of its homes which will require “substantial work and investment” to resolve, the report added.

“Calvay is taking forward plans to make immediate repairs to address any risks to tenant and resident safety and is developing proposals to rectify the issues in the longer term. We are engaging with Calvay to seek assurance the identified defects are addressed,” it said.

Nick Dangerfield, director of Calvay Housing Association, said: “A recent review by the regulatory body identified that Calvay Housing Association is making strong progress across its engagement strategy.

“We are currently 12 months into our 18-month plan of action, which will see our organisation become fully compliant across all metrics. We are working cooperatively with the Scottish Housing Regulator and we are confident that we will achieve an upgraded status in 2024.

“We have already made significant progress this past year.”

Mr Dangerfield added: “There will be no impact on our residents or the quality of services we provide to hundreds of people across the east end of Glasgow during this process.”