Why we are engaging with Ore Valley Housing Association (Ore Valley)
We are engaging with Ore Valley about its governance and financial management.
In April 2026 Ore Valley notified us of ongoing human resources issues in the organisation. Our engagement with Ore Valley on these issues highlighted a number of weaknesses in Ore Valley’s governance including areas of potential material non-compliance with regulatory requirements including the Standards of Governance and Financial Management (the Standards), potential breaches of the code of conduct, and the management of ongoing conflicts of interest. Ore Valley was also not able to provide us with appropriate assurances that it was fully complying with its constitutional requirements.
We sought assurance from Ore Valley about its willingness and capacity to address these weaknesses. Ore Valley provided us with its outline plan to address various staffing and governance weaknesses but our assessment was that the plan did not sufficiently address the extent of the governance weaknesses and, in particular, did not provide us with assurance about the capacity of Ore Valley to satisfactorily address all of the challenges it faces and to do so within a reasonable timescale.
We discussed our concerns with Ore Valley’s governing body and asked it to carry out a full, independent review of its governance and its compliance with the Standards. Ore Valley has since commissioned and provided us with a copy of an Internal Audit review of its governance. However, this review did not provide an assessment of Ore Valley’s compliance with the Standards.
Ore Valley has also established an internal HR and Governance Sub-committee which will oversee the delivery of the necessary improvements needed across the organisation, including governance, human resources management and wider communication issues. Ore Valley has not however provided us with sufficient assurance about its capacity to identify and deliver the necessary improvements.
Our assessment is therefore is that Ore Valley does not comply with all the Standards of Governance and Financial Management.
In reaching this decision, we have considered the seriousness and significance of the governance and organisational weaknesses facing Ore Valley, including concerns relating to board oversight, decision-making, the management of staff grievances/investigations, and the handling of potential conflicts of interest. We are also not assured that Ore Valley has been fully complying with its constitutional requirements. In particular, it is our assessment that Ore Valley is non-compliant with:
Regulatory Standard 1 – that the governing body leads and directs the RSL to achieve good outcomes for its tenants and other service users. The concerns identified lead us to question about whether the governing body has exercised effective leadership and oversight in relation to the issues that have arisen.
Regulatory Standard 4 – that the governing body bases its decisions on good quality information and advice and identifies and mitigates risks to the organisation’s purpose. The matters identified indicate serious weaknesses in governance oversight and assurance arrangements and raise particular concerns regarding the effectiveness of risk identification, management and decision-making.
Regulatory Standard 5 – that the RSL conducts its affairs with honesty and integrity. The concerns regarding governance processes and the management of potential conflicts of interest mean that we require further assurance that the association's affairs have been, and continue to be, conducted in accordance with the requirements of this Standard.
We have also been engaging with Ore Valley to get assurance about its level of gearing and debt exposure and how it is managing its relationships with its subsidiaries. We require Ore Valley to provide us with its current business plan as part of this engagement.
Our current assessment is that Ore Valley is non-compliant and is working towards compliance with the Standards. Below we set out the information that Ore Valley must provide in order to assure us that it can achieve compliance.
What Ore Valley must do
Ore Valley must:
- by 30 November 2026, commission an independent, full review of its compliance with regulatory requirements including the Regulatory Standards of Governance and Financial Management;
- prior to commissioning this review, send us the proposed brief for this review of compliance,
- send us a copy of the independent review of compliance when it has been completed with the findings and recommendations and the steps Ore Valley plans to take to address any issues arising from the review;
- by the end of October 2026 provide us with assurance that it complies with its constitutional arrangements including assurance around its decisionmaking processes over the financial years 2025/26 and 2026/27;
- by the end of October 2026 provide us with information about the steps it will take to strengthen the governing body to ensure that it has the appropriate skills and expertise to identify and deliver the necessary improvements in its governance within a reasonable timescale
- by 31 October 2026 send us its approved business plan and updated risk register.
What we will do
We will:
- review the proposed brief and outputs of the independent review of compliance with regulatory requirements including the Regulatory Standards of Governance and Financial Management and Ore Valley’s plans to address the material weaknesses in its governance and engage as necessary;
- review the information Ore Valley provides regarding its compliance with its constitutional arrangements and engage as necessary;
- review Ore Valley’s plans to strengthen its governance and return to compliance with regulatory requirements including the Standards of Governance and Financial Management and review our regulatory engagement with Ore Valley in light of this;
- review the business plan and financial information Ore Valley has provided to us and engage as necessary;
- meet with Ore Valley’s senior staff to discuss the business plan, financial information and any risks to the organisation; and
- update our published engagement plan in the light of any other material change to our planned engagement with Ore Valley.
Regulatory Returns
Ore Valley must provide us with the following annual regulatory returns and alert us to notifiable events as appropriate:
- Annual Assurance Statement;
- audited financial statements and external auditor’s management letter;
- loan portfolio return;
- five year financial projections; and
- 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.