Framework for regulation inspection Presentation to TRAG

2. Framework for regulation & inspection Presentation to TRAG November 2006 First of all like to thank TRAG for your responses to the Risk & Proportionality framework; and for your response and helpful discussion about the regulatory code of governance. I’m just going to do an overview of the changes that are being put in place following the consultations we’ve run earlier this year. First of all like to thank TRAG for your responses to the Risk & Proportionality framework; and for your response and helpful discussion about the regulatory code of governance. I’m just going to do an overview of the changes that are being put in place following the consultations we’ve run earlier this year.

3. Background/overview of changes Legal framework Ministerial expectations Changes to performance standards Regulatory expectations for Registered Social Landlords Putting the changes into practice I’ll cover briefly the legal framework for regulation and inspection; what ministerial expectations are for how we carry out these responsibilities A quick run through the changes to the performance standards A little bit about the regulatory code of governance – because I know that you had a lengthy discussion about this at a previous meeting Finally – I’ll touch on what happens next.I’ll cover briefly the legal framework for regulation and inspection; what ministerial expectations are for how we carry out these responsibilities A quick run through the changes to the performance standards A little bit about the regulatory code of governance – because I know that you had a lengthy discussion about this at a previous meeting Finally – I’ll touch on what happens next.

4. Legal framework Housing (Scotland) Act 2001 (Chapter 3) Scottish Ministers’ powers and duties for the regulation and inspection of social landlords; and Requirement to publish a code of practice on how they exercise these functions Powers and duties are for Scottish ministers not Communities Scotland Ministers must publish a code of practice on how they intend to carry out their functions The Regulatory Code of Practice for Communities Scotland has been revised and published. Powers and duties are for Scottish ministers not Communities Scotland Ministers must publish a code of practice on how they intend to carry out their functions The Regulatory Code of Practice for Communities Scotland has been revised and published.

5. Code of Practice for Communities Scotland First published November 2001 Set out how Communities Scotland should regulate and inspect Published following extensive consultation with landlords, representative bodies and other interested groups The Regulatory Code of Practice for CS shapes our approach to regulating and inspecting social landlords. The Regulatory Code of Practice for CS shapes our approach to regulating and inspecting social landlords.

6. Code of practice (cont’d) Changes informed by consultation issued March 2006 Consultation proposals influenced by Better Regulation Task Force recommendations Concerns about the costs to both regulated and the regulator; Concerns that the inspection process diverts resources away from service delivery.

7. Code of practice (cont’d) Changes informed by consultation issued March 2006 Consultation proposals influenced by Better Regulation Task Force recommendations Concerns about the costs to both the regulator and to organsisations; Concerns that inspection has a negative effect on service delivery.

8. Consultation proposals & responses Whether or not we should retain grades One stage appeal or review process Introduce regulatory assessments for RSLs Continue with baseline inspections of new RSLs and local authorities

9. Code of practice - key principles Tenants will benefit from a framework that promotes quality, continuous improvement and equality of opportunity Establishes; the Regulation Board the participation framework a requirement to publish national performance standards.

10. Ministerial expectations Communities Scotland must publish and operate a regulation and inspection framework that: Takes account of regulatory risk; Promotes service improvements and holds social landlords to account; Reflects Ministerial expectations in key policy areas; Minimises regulatory burdens wherever possible; and Makes best use of regulatory resources.

11. Ministerial expectations Communities Scotland must; be transparent about its regulatory assessments and use a range of flexible and proportionate regulatory responses; publish details of its inspection processes; and promote its role as lead regulator for the RSL sector

12. Performance standards Agreed and published jointly with SFHA and COSLA; Review considered each of the standards to ensure they remained relevant and current; Consultation on changes over the summer; Consulted on amendments to eight of the twenty guiding standards and thirteen of the twenty three activity standards.

13. Changes to performance standards Service delivery and communication GS3.5 – Openness and Confidentiality We are open about what we do and publish information about our activities. We provide information that people ask for, unless there are justifiable reasons for withholding it. RSL governance and financial management GS4.1 – 4.3, wording changed to fit with principles set out in new regulatory code of governance

14. Changes (cont’d) AS1.6 Rents – rents “which are affordable to households on low incomes” AS2.3 Lifetime maintenance “we know the condition of our houses, how far they comply with the Scottish Housing Quality Standard (SHQS) and the nature and extent of any failures. We have deliverable and affordable plans for their lifetime maintenance and improvement and can achieve the SHQS by 2015.”

15. Changes (cont’d) Property development AS 3.3 Physical quality We build and develop homes to meet high standards and in an environmentally responsible way.

16. Changes (cont’d) Homelessness AS4.1 Strategy We have published, and are following, an effective homelessness strategy for preventing and alleviating homelessness in our area that responds to current policy and legislative requirements. We monitor and review its implementation. We consult and collaborate across our own organisation and with other organisations in planning and delivering the strategy.

17. Changes (cont’d) AS 4.8 Quality of accommodation When we arrange temporary or permanent accommodation, we treat homeless people fairly and appropriately in terms of tenancy provisions, quality of housing and location. We provide temporary accommodation when needed and maximise the availability of suitable permanent accommodation for homeless people.

18. Regulatory Code of Governance for RSLs Based on the Langlands Principles Linked to performance standards – Independence and accountability Leadership and capability Ethical standards and clear values

19. Q8 – Focus over the next few years? Priorities we set out: efficiencies the Scottish Housing Quality Standard rent levels and structures homelessness risk management procuring new houses equalities

20. Q9 – Changes to the information we collect? Streamline information wherever possible Publish APSR sooner – useful for business and strategic planning Standardise information across regulators

21. Q10 – Do you agree we should be notified about significant events? RSLs Agree – 64% Disagree – 6% No response – 8% Want clearer explanation – 19% As onerous as Schedule 7 – 2%

22. Q11 – Abolish part 1, Schedule 7 & replace with a code of conduct? 66% of RSLs support this proposal 13% of RSLs & TRAG want to retain SFHA/CIH – no consensus and wants to discuss further with CS

23. Q12 – Lead regulator 79% of RSLs and 8% of local authorities agree with this proposal; Support from the SFHA, TRAG and CIH ALACHO/SHBVN – wider review of inspectorates in Scotland . .

24. Conclusions Agreement that we should Move away from a programme of inspecting organisations once every five years; Move to a one-stage appeal process; Be notified about significant events; Explore options to deal with the statutory restrictions on RSLs (Schedule 7) ; Take a lead role in relation to other regulators.

25. Conclusions (cont’d) Areas of concern not grading services will make it more difficult for tenants and service users to compare a landlord’s performance; the potential for limited regulatory engagement with good performing RSLs that are involved in activities that bring a higher exposure to risk, such as those that are geared for development work; the abolition of Part 1 of Schedule 7 of the Housing (Scotland) Act 2001 would remove important safeguards which could have a negative effect on the reputation of the sector; local authorities will not benefit in the short term from the shift to a risk-based and proportionate approach to inspection; ensuring we retain the involvement of service users in inspection – identified by many respondents as a strength of the current framework

26. What next? Late September – publish consultation report 1st November – publish key documents: revised Regulatory Code of Practice Revised Performance Standards Regulatory Code of Governance Mid January 2007 – publish operational info: Guide to Regulation & Inspection Revised guide to inspection Guidance on appeals and notifiable events Revised MoU with the Accounts Commission March 2007 – produce 30 regulatory statements

27. How will we involve tenants Continue to develop the tenant assessor role – broaden out to include involvement in the inspection of homelessness services Identify risk triggers linked to service user views for our regulatory statements Work with TRAG to ensure a tenant perspective in developing policies.

28. Moving forward Ministerial target to produce 30 regulatory assessments by end March 2007 Reviewing the guide to inspection – including self-assessment questions Considering how we assess and how we grade

29. Moving forward Publish a guide to regulation and inspection Publish guidance on notifiable events and information on our review process Develop our role as lead regulator for the RSL sector Review the information we collect on RSLs

30. Timescales Publish new and revised guidance and information in early 2007 Produce regulatory assessments – inform the RSL inspection programme for 07/08 Continue with baseline inspections of local authorities and new RSLs