Established 2005 Registered Charity No. 1110656

Scottish Charity Register No. SC043760

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Arlington House landlords under investigation

May 23 2009
The Housing Corporation is to investigate the accounts of the Novas Scarman Group The Housing Corporation, the government regulatory body for registered social landlords, is to investigate the accounts of the out-going landlords of Arlington House, the London hostel. Last month, The Pavement reported that Novas Scarman Group was to hand over the tenancy of Camden's famous homeless hostel to the One Housing Group in the midst of a £22m refurbishment plan. The reasons for the statutory inquiry into Novas Scarman's business affairs are unclear, and at the time of going to press, Novas Scarman had made no comment. The plans to hand over the tenancy to another housing association have raised eyebrows in the sector. The company has insisted it is not in financial difficulty, despite reporting an operating deficit of £277,000 last year. It has not released its latest figures, which were due on 30th September, 2008. Novas Scarman Group said Arlington House would be transferred at "nil cost", with a further £11million "gifted" to the new owners on condition they finish the property's enormous overhaul, which would reduce bed space from 390 to just 130. The refurbishment is not expected to be completed until November next year, 11 months later than first outlined in the charity's 2006-07 audit report. According to a local newspaper, the Camden New Journal, Novas Scarman Group has been criticised for not having sufficient experience to complete building projects on this scale, and the charity has sold off much of its property portfolio since 2005, switching its focus from providing accommodation for rough sleepers or ex-offenders to outreach services. The change of emphasis has seen Novas Scarman invest several million pounds into an arts complex in Liverpool, two London art galleries and Rough Sleepers, a fashion boutique in Chalk Farm, London, which subsequently closed. The Pavement readers have contacted us with their concerns about the future of the building, but Novas Scarman said new owners would continue to work with the charity to provide support for those in temporary accommodation.
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