Charities urged to be ‘more aware’ of supported housing risks

On conflicts of interest, the commission said it had seen cases where trustees of supported housing charities are in receipt of personal benefits.

“Such conflicts need to be managed properly and cautiously,” the commission said. “In instances where the commission has evidence of trustees receiving unauthorised benefits from a charity, it takes action.”

The supported housing sector, which offers accommodation to vulnerable people, has been under the spotlight for some time. Last year, a report from the Levelling Up, Housing and Communities Committee said the exempt-accommodation system – a sub-sector of supported housing – was a “complete mess”.

And earlier this month, a report by the Public Accounts Committee said the supported housing sector was “riddled with long-standing challenges”, and government action to tackle it had fallen “woefully short”.

A number of lease-based providers of supported housing has also been found non-compliant by the Regulator of Social Housing in the last few years.

In its update, the Charity Commission said trustees must fully understand the “contractual agreement for properties, ensuring they have the appropriate resources, knowledge and skills to fully understand and manage the risks”.

The commission also warned charities to have “sufficient standards and procedures in place to meet the needs of beneficiaries and legal obligations with any growth in provision of accommodation”.

The commission has published a series of guides on the supported housing sector, covering areas such as dealing with conflicts of interest.

It concluded: “Alongside understanding, and following, the above guidance, trustees need to assess the risks associated with the lease-based model to their charity, taking appropriate advice where necessary.

“Fulfilling these duties will help trustees ensure that their charity can thrive, delivering positive outcomes for its beneficiaries.”