Housing association quashes charity status concerns (From Bucks Free Press)
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Housing association quashes charity status concerns
1:05pm Tuesday 9th October 2012 in News By James Nadal
Wycombe District Council sold homes to Red Kite last year after tenants voted in favour of the transfer
THE housing association which bought Wycombe's 6,700 council homes last year has moved to quash suggestions it has not met its promise to become a charity.
Questions were raised over the status of Red Kite Community Housing at a public meeting last week.
Although it is not listed with the Charities Commission, bosses have assured tenants it does have charitable status, as it pledged to them in its offer when a vote was held last year.
Zosia Katnik, spokesman for Red Kite, explained: “Red Kite is a not-for-profit organisation with charitable rules and is recognised as a charitable company by HM Revenue & Customs, reference number XT31035. Red Kite is not a Registered Charity, which is why it is not registered with the Charities Commission.
"The first audited accounts for Red Kite are in the process of being submitted to the FSA in accordance with legislative requirements and will be made available through their website shortly.”
Red Kite is an Industrial and Provident Society, registered with the Financial Services Authority, as of July 2011.
Miss Katnik said: “Currently, those that are charities are 'exempt' charities. They cannot register with the Charity Commission, but are otherwise subject to charity law. HMRC decides whether they are eligible for tax relief as charities.”
The concerns were raised after research by the Wycombe Labour group.
Red Kite has also clarified its position, regarding company status.
Miss Katnik said: “It is listed on the Companies House register of companies and the FSA Mutuals Public Register websites and has been since its registration in July 2011.”
Dr Linda Derrick, putting the questions to Wycombe District Councillors on October 1, had asked for clarification over whether Red Kite was also in keeping with its stated position as a not for profit organisation.
Miss Katnik said: “Whilst the accounts of an IPS may show a surplus, the important fact is that any surpluses are not distributed to shareholders but must be reinvested in accordance with the charitable objects of the IPS. In the case of Red Kite, this means reinvested in the homes and services that we provide.”
Comments(16)
Wycombewatcher
says...
2:03pm Tue 9 Oct 12
Red Kite, having doubled the service charges for the period 2012/2013 on many of the properties since they took over from Wycombe District Council, are now also sending out bills for the year 2011/2012 asking for further payments of £550.00, because apparently they 'underestimated' the costs involved.
In the last six months, I have had bills that total £1800.00, for a service that is seriously lacking!
tigeran
says...
2:57pm Tue 9 Oct 12
Wycombewatcher wrote:"now also sending out bills for the year 2011/2012 asking for further payments of £550.00, because apparently they 'underestimated' the costs involved"
Cracks starting to show? I can assure you they are!
Red Kite, having doubled the service charges for the period 2012/2013 on many of the properties since they took over from Wycombe District Council, are now also sending out bills for the year 2011/2012 asking for further payments of £550.00, because apparently they 'underestimated' the costs involved.
In the last six months, I have had bills that total £1800.00, for a service that is seriously lacking!
Surely that is their own fault and so they must absorb this because of incompetence? You dont pay for shopping then get a bill a week later from the shop asking for more money because of a mistake in pricing!!!!
DonRockell
says...
2:58pm Tue 9 Oct 12
Just think how must the land these properties sit on is worth and that never falls down through poor repair like the houses they are supposed to maintain. so when the housing is past its usable age or in need of a complete overhaul. who gets to money when the shell that left gets sold off. It wont be the rate payers will it.
Wycombewatcher
says...
3:29pm Tue 9 Oct 12
tigeran wrote:Exactly!
Wycombewatcher wrote: Cracks starting to show? I can assure you they are! Red Kite, having doubled the service charges for the period 2012/2013 on many of the properties since they took over from Wycombe District Council, are now also sending out bills for the year 2011/2012 asking for further payments of £550.00, because apparently they 'underestimated' the costs involved. In the last six months, I have had bills that total £1800.00, for a service that is seriously lacking!"now also sending out bills for the year 2011/2012 asking for further payments of £550.00, because apparently they 'underestimated' the costs involved" Surely that is their own fault and so they must absorb this because of incompetence? You dont pay for shopping then get a bill a week later from the shop asking for more money because of a mistake in pricing!!!!
Not only this, but they also forgot to mention when requesting access to all properties to upgrade the aerial system to digital (which I didn't want/need anyway and informed them of this) that people would then be getting another bill for the ten minutes work involved - but the good news is, apparently this is capped at £250.00!
Phredd
says...
3:46pm Tue 9 Oct 12
If their rules aren't constituted that way then they are telling porkies, and they should not be recognised by HMRC as a charitable company.
miccles
says...
4:08pm Tue 9 Oct 12
DonRockell
says...
6:32pm Tue 9 Oct 12
Are there any ex counselors on the board of Red Kite and if so whats in it for them.
yog
says...
6:55pm Tue 9 Oct 12
miccles wrote:Exactly but unfortunately Labour gave its backing to the Tory scheme and helped sell it to tenants.
This whole deal sounds a complete scam to me, and it looks as though everybody would have been better off if it had stayed with WDC.
Hope those tenants remember that Labour sold them out again.
Wycombewatcher
says...
7:02pm Tue 9 Oct 12
It's the leaseholders who are being charged excess amounts of money!
It would appear that Red Kite have promised a huge amount of improvements for tenants, but the way they are funding it is by charging leaseholders extortionate amounts to cover the costs.
A better service is provided by private leases and at a fraction of the cost.
They are a law unto themselves!
Helen 123
says...
8:32pm Tue 9 Oct 12
Helen 123
says...
8:36pm Tue 9 Oct 12
DonRockell wrote:There are 2 serving councillors and one ex councillor. Look at the website.
Question
Are there any ex counselors on the board of Red Kite and if so whats in it for them.
redkitehousing.org.u
k/ that's what I did. You will also find all the details of the type of organisation and there is even a section for leaseholders which is really useful, I think.
Helen 123
says...
8:36pm Tue 9 Oct 12
DonRockell wrote:There are 2 serving councillors and one ex councillor. Look at the website.
Question
Are there any ex counselors on the board of Red Kite and if so whats in it for them.
redkitehousing.org.u
k/ that's what I did. You will also find all the details of the type of organisation and there is even a section for leaseholders which is really useful, I think.
Helen 123
says...
8:42pm Tue 9 Oct 12
g.org.uk/mediaFiles/
downloads/41691086/0
04___Your_service_ch
arges_explained.pdf
This explains service charges for you I found it very useful.
Wycombewatcher
says...
9:16pm Tue 9 Oct 12
Helen 123 wrote:For the service I received from WDC, the charges were justifiable.
As a leaseholder myself and in receipt of my new charges I can say that the letter I received explaining the increase was quite clear. It seems that WDC have been undercharging us for services and repairs received for years and we will now be paying the correct amount. Red Kite have obviously employed someone now who knows how to do the job properly. Whoever was responsible for calculating the charges previously should be brought to account. As for the charge for the upgrade to the aerial being capped at £250.00 isn't that a good thing. I knew when I bought my flat I would have to pay for this type of thing. Although slightly confusing our leases are explicit. A friend of mine who bought a flat (ex council flat) had her windows replaced five years ago and was never charged!!!!! She didn't mention it either so benefitted not only from not having to pay her property value probably increased. I think we need to accept that Red Kite will be more efficient in claiming back costs that they are entitled to claim back in a much more efficient way than the Council did. As for Linda Derrick isn't this just another example of the Labour Party trying to make mischief. Red Kite made it quite clear what type of business they would be and are. I also believe that they can sell properties if the condition of them is such that it wouldn't be viable to continue with them but all monies that come in to the pot have to be reinvested in the homes and I have to say that many look as though they haven't had any investment for many many years. Not for profit is any easy concept if you look it up as is an IPS. It's not rocket science, any of it. If you have benefitted as a leaseholder under the Council you should thank your lucky stars and appreciate the excess funds you had. Buy a flat privately and service charges are two or three times higher than we pay and the service received isn't any better either.
Since Red Kite took over, the services have been considerably less and quite simpy not justifiable.
And having a cap of £250 is not a good thing, when you are not told there is a charge- at all. Having stated no work was wanted and them insisting on doing it, without stating it would cost, is not acceptable.
I have not benefitted, nor do I have any excess funds, of that I am sure.
masie11
says...
3:41pm Thu 11 Oct 12
Darren Hayday says...
1:32pm Tue 9 Oct 12