Why we are engaging with Argyll Community Housing Association Ltd (ACHA)
We are engaging with ACHA abouts its financial management, site(s) for Gypsy/Travellers, development plans and because it is a systemically important landlord.
We refer to a small number of RSLs as systemically important because of their stock size, turnover or level of debt or because of their significance within their area of operation. We need to maintain a comprehensive understanding of how their business models operate, and how they manage the risks they face and the impact these may have. So we seek some additional assurance each year through our engagement plans. Given ACHA’s significance in its area of operation we consider it to be systemically important.
ACHA has plans to grow through a programme of new homes for social rent and will receive significant public subsidy to achieve this. ACHA has told us it needs to obtain new private finance during 2026/27 to support its development plans. We will engage with ACHA to get assurance about how it is managing the risks to the organisation including its levels of debt and on-going development plans.
ACHA has told us it does not comply with the Scottish Government’s minimum site standards for its site for Gypsy/Travellers at Bayview. ACHA is unable to say when it will comply with minimum site standards. It is engaging with site residents about this.
During 2025/26, we reviewed and compared the satisfaction data for all Gypsy/Traveller site providers to identify the weakest performing landlords. ACHA’s satisfaction level is amongst the lowest, and we will therefore engage with ACHA about this.
What ACHA must do
ACHA must:
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send us copies of its Board and audit committee minutes as they become available;
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send us by 30 April 2026:
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its approved business plan and updated risk register;
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30 year financial projections comprising a statement of comprehensive income, a statement of financial position and a statement of cash flows complete with assumptions and explanatory narrative;
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a comparison of projected financial loan covenants against current covenant requirements;
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financial sensitivity analysis which considers the key risks, the mitigation strategies for these risks and a comparison of the resultant covenant calculations with the actual covenant requirements;
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report to the Board in respect of the approved 30 year projections, sensitivity analysis and covenant compliance; and
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evidence of how it demonstrates affordability for its tenants.
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send us an update on its development programme by 31 October 2026. This will include its latest report to the governing body/appropriate committee about development and details of the scale and tenure mix, timescales for delivery and any material delays or changes to the programme;
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tell us if there are any material adverse changes to its development plans which might affect its financial position or reputation, in line with our notifiable events guidance;
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tell us when it expects its Gypsy/Traveller site to comply with the minimum site standards as soon as possible;
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send us quarterly reports from the end of April 2026 on its progress in meeting the minimum standards for its Gypsy/Traveller site;
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continue to engage with site residents about progress in meeting the minimum site standards; and
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send us the information we require about the actions it is taking to improve its performance on Gypsy/Traveller satisfaction.
What we will do
We will:
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review the minutes of the Board and audit committee meetings and liaise as necessary;
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observe ACHA’s Board;
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review the business plan, financial and supporting information;
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meet with ACHA’s senior staff and Chair to discuss its business plan, the financial and supporting information and any risks to the organisation;
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review the development update and engage as necessary;
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review the quarterly updates on the progress in meeting the minimum site standards and engage as necessary;
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review the information ACHA provides about its work to improve satisfaction at its Gypsy/Traveller site(s) and engage as necessary; and
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update our published engagement plan in the light of any material changes to our planned engagement with ACHA.
Regulatory Returns
ACHA must provide us with the following annual regulatory returns and alerts us to notifiable events as appropriate:
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Annual Assurance Statement;
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audited financial statements and external auditor’s management letter;
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loan portfolio return;
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five year financial projections; and
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Annual Return on the Charter.
It should also notify us of any material changes to its Annual Assurance Statement, and any tenant and resident safety matter which has been reported to or is being investigated by the Health and Safety Executive or reports from regulatory or statutory authorities or insurance providers, relating to safety concerns.