Issue - meetings

The Board considered a report of the Operational Director, Legal and Democratic Services, on the revision of the Halton Housing Trust governance arrangements.

The Board was advised that at its meeting on 21 January 2014, the Environment and Urban Renewal Policy and Performance Board (EUR PPB) had considered proposals from Halton Housing Trust (HHT) to revise its governance arrangements.

It was noted that the Board of HHT had commissioned a review of governance and had considered  that changes were necessary in order to fully comply with the requirements of the Homes and Communities Agency and the National Federation Code of Governance.

The EUR PPB had made a recommendation to Executive Board, as set out in the report.

RESOLVED: That the Board

1)    note the Legal Advice and Guidance circulated by HHT;

2)    agree a reduction to the HHT Board from the current 12 Member Board to a Board of 9 Board Members;

3)    agree that the Council shall have 3 nominees on the revised 9 Member HHT Board; and

4)    agree should HHT determine to reduce the HHT Board to less than 9, the Council shall at all times retain 3 nominees on any revised HHT Board.

            The Board received a presentation from Nick Atkin, Chief Executive of Halton Housing Trust (HHT) and Ingrid Fife Chair of HHT Board, which outlined proposed revised governance arrangements. Members were advised that a governance review was commissioned by the Board in January 2013. The review considered that changes to the existing governance arrangements were necessary in order to be fully compliant with the requirements of the Homes and Communities Agency and the National Housing Federation Code of Governance.

            Members noted evidence of other Housing Associations who had not managed their governance arrangements and consequently had been downgraded in their regulatory ratings and direction intervention in the running of their business. The Board also considered the impact of downgrading on an Association and the future challenges faced by HHT. 

            Under the proposals:

·         the number of members on the Trust Board would be reduced;

·         the term of office of Board members would be limited to 3 years and a maximum of 9 years; and

·         the Trust’s Skills Matrix would form the basis for appointment to the Board.

Arising from the discussion the Board:

·         acknowledge the continued success of HHT, recognised the future difficulties faced, but also expressed disappointment at the proposals;

·         queried who decided if potential Board members met the skills criteria and how would this be done?

·         expressed concern that in the proposed governance arrangements no Board positions were ringfenced as in the current arrangements;

·         enquired on the comparability of the list of Authorities listed in the report as recent regulatory judgements.

In response the Board was advised that Halton Borough Council had a 33% share in HHT and in accordance with HHT legal advice, the Board could not have more than a third of Council Members. They were also advised that the skills matrix would be adopted by HHT to appoint Board members during the selection process.

            RESOLVED: That

1.    a copy of HHT legal advice on Board membership be circulated to members of the Policy and Performance Board;

2.    the proposed changes to the governance arrangements be recommended to the Executive Board for approval subject to the Council having a 33% representation on the HHT Board which is representative of the Council’s share in HHT; and

3.    the Council retain three places on the HHT Board if the numbers of members on the Board is reduced to nine.