The Homes and Communities Agency's (HCA) new forensic assessments involve 'intense' scrutiny of audit trails and governance documents, it has been revealed.
Under the HCA's updated regulatory framework, which was published on 1 April, associations owning more than 1,000 homes will undergo intensive assessments depending on the results of their stress testing submission to the HCA.
L&Q and St Vincent's, based in Manchester, are currently involved in an HCA pilot scheme to test the new approach. Tower Hamlets Community and Cross Keys are due to be visited as a second round of pilots are undertaken in the next few months.
Charlie Norman, St Vincent's chief executive, said the HCA met with the association's board and chief officers in early March.
She said, "It's really asking searching questions and looking at audit trails and decision making in governance documents.
"It's much more meaningful than what we used to go through, which was more ticking boxes. It's more intense, but for a shorter period and better quality of information."
Ms Norman said the process was 'not too onerous' and that collating the information gathered on one file was a good reference for the future in speaking to lenders.
She added, "I would advise having all your documentation lined up in terms of the things that are in the current regulatory framework, such as business plan stress testing, assets and liabilities and areas of greatest exposure like development and supported housing that might be affected by public sector funding cuts."
David Montague, L&Q group chief executive, said the assessment was 'at times grueling' but said the organisation was in better shape as a result.
"In my view other housing associations should embrace the process," he added. "But before you go in, make sure you know how decisions are made, where your key documents are filed and can demonstrate that your social housing assets are not at risk."
Alistair McIntosh, chief executive of the Housing Quality Network, said, "I think it's been pulled together by a bureaucratic genius. The HCA remains thinly resourced but it's having an incredible impact."
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