A housing regulator is to consult with tenants of a north-east social landlord after serious failures were identified in how the organisation was run.
The Scottish Housing Regulator will propose that tenants of Kincardine Housing Co-operative transfer to another registered social landlord.
It comes after a period of statutory intervention by the regulator when independent investigations identified serious failures in how the landlord was governed.
The investigations also found “urgent risks” to the delivery of services to tenants and concerns about the ability of the management committee to function effectively. Kincardine Housing Co-operative – run by Grampian Housing Association – owns and runs 72 affordable homes in Portlethen, Stonehaven and Fordoun.
The regulator imposed a statutory manager in November.
A report published on Wednesday said: “Kincardine’s governing body has not been able to provide us with assurance that it has the skills, experience or capacity to address the serious governance weaknesses identified in both investigations.”
The regulator said it will make appointments to the Co-operative’s management committee as it does not have the number of members it requires under its rules to function.
Christine Macleod, director of regulation, governance and performance for the Scottish Housing Regulator, said: “We’re consulting with Kincardine’s tenants about a proposed transfer of their homes to another RSL.
“We will make sure tenants get independent expert advice about what a potential transfer to another well-run social landlord will mean for them.
“Our board will then take account of tenants’ views before making a final decision about whether or not to direct a transfer.”