Tuntum Housing Association, a black and minority ethnic association operating across the East Midlands,has had its governance rating upgraded from a non-compliant ‘G3’ to ‘G2’.
The 1,300-home landlord had its governance rating downgraded to ‘G3’ in July 2014 by the Homes and Communities Agency (HCA). This was due to the regulator’s concerns about Tuntum’s approach to a scheme to buy and renovate 129 flats in a tower block. It found significant weaknesses in Tuntum’s growth strategy, financial planning, identification of risk, board scrutiny and challenge.
The HCA said Tuntum responded to the July 2014 downgrade by strengthening its board and reviewing its governance arrangements. It said Tuntum “developed a more integrated and effective approach to its business planning and its growth, risk and financial strategies”.
The ‘G2’ rating means Tuntum complies but still needs to improve some of its governance arrangements. Tuntum remains at ‘V2’ for financial viability, which means it complies but needs to manage material risks.