Potential Conversion to a Community Benefit Society
Our residents are at the heart of Cross Keys Homes and we really value what you think, which is why we want to know your feedback about a change we are proposing to make to the way that we operate.
We are considering converting Cross Keys Homes Limited from a charitable company into a charitable community benefit society (CBS). We have already written to you to explain what the effect of this would be (you should receive this with your issue of Keylines, week commencing Monday 12 June).
A CBS is a special type of not-for-profit organisation registered with the Financial Conduct Authority, and specifically formed to benefit the community. CBS’s used to be known as "industrial and provident societies". Most housing associations are already Community Benefit Societies because of the nature of the work they carry out.
These proposals will not have any impact on your tenancy or your rights as a tenant or resident. The conversion is purely to reduce unnecessary administrative costs.
You can read a full copy of the tenants consultation letter, which will explain in more detail what a community benefit society is, as well as download the frequently asked questions. We have also set out responses to some frequently asked questions below, and we would like to hear from you with any views that you have in relation to these proposals.
Frequently asked questions:
If you have any questions, please see the frequently asked questions below.
Why am I being asked about this proposed change?
We have a duty to consult you on certain matters and give you or your representatives the opportunity to make your views known, which will then be considered before we take a final decision.
CKH is aiming to convert to a charitable community benefit society, but this will only go ahead after we have your views and the Board has considered these and all other issues.
We will notify you that this change has happened in the December issue of Keylines and on this webpage.
What is the main advantage of the proposals?
The conversion would mean that CKH would avoid facing a more complicated regulatory regime and avoid the administrative burden that would come with remaining a charitable company. Converting to a community benefit society would allow CKH to be in a comparable position to other housing associations. It would also mean that resources, which would otherwise have been spent on the extra administration, can be reinvested into the organisation and increase value for money.
Will my rent and service charges be affected?
Rent and service charges will continue to be reviewed each year in the same way as they are now.
Will it affect repairs and maintenance to my property?
Your repairs will continue to be carried out in the same way as they are now.
Will I lose the ‘Right to Buy’ my property?
Only certain tenants have the right to buy their home. All tenants who have that right currently will continue to have that right. The Government is also working on proposals to extend the Right to Buy to housing associations, but these are currently unclear.
Will the security of my tenancy change in any way?
You will not be affected – the terms of your current tenancy agreements will remain the same, CKH will still be your landlord but will be described as a community benefit society rather than a company.
I live in a shared ownership property – how will this affect me?
You will not be affected – the terms of your shared ownership lease and your statutory rights will remain the same, CKH will still be your landlord but will be described as a community benefit society rather than a company.
I am a leaseholder – how will this affect me?
You will not be affected – the terms of your lease and your statutory rights will remain the same, CKH will still be your landlord but will be described as a community benefit society rather than a company.
Will there be any changes to staffing and management as a result of this change?
No, you will still deal with the same staff on a day to day basis. Our management team will remain unchanged.
How will CKH be governed?
There will therefore be no change to how CKH is governed as a result of this change and it will not make any change to the way we can make any changes to our governance arrangements we wish to make going forward.
Who monitors the activity of CKH?
CKH is regulated by the Homes and Communities Agency (“HCA”) and will continue to be regulated by the HCA after the conversion.
Although CKH will no longer be a registered charity with the Charity Commission, it will continue to be a charity and will be regulated by HMRC in this respect.
If your question has not yet been answered, the easiest way to contact us is by using our online form below, or:
Write to: Melissa Speechley – Governance Manager
Text: 07795 605871*
Phone: 01733 385004 - Mon-Fri 9am-5pm (excluding bank holidays)
*Texts will be charged at your network's standard rate
Your responses must be received by 31 July 2017.
We will be considering your feedback and feedback from other stakeholders, including local authorities in the areas where we work and our funders, to agree any changes. We expect to be making our decisions in relation to this proposal around 18 September 2017 and if we went ahead with the conversion, this would be likely to take place in the autumn of 2017.
As previously outlined in the tenants consultation letter, we would continue to be regulated by the HCA and the Charity Commission would need to approve any changes before we would be able to go ahead.
We will share the result of this consultation and the agreed changes with you in Keylines and on this website.