Assessment

A regulatory assessment occurs when:

a provider seeks registration under the NRSCH
a scheduled compliance assessment is due
a provider, at the last assessment, was assessed as having performance areas of moderate or high risks that warrant closer monitoring
the Registrar receives new information from the provider, other individual or agency that indicates performance areas of moderate or high risks that warrant closer monitoring.

A risk-based approach to assessment and regulation will be an overarching principle that will be used by the Primary Registrar in all assessments. The regulatory assessment and evidence requirement is dependent on the provider’s Tier level taking into account the risk associated with the scale and scope of its community housing operation.

For more information visit the Categories of registration (Tiers) page.

The community housing provider must identify the piece of evidence relied upon to demonstrate their capacity to comply with the National Regulatory Code. At compliance providers must submit core documents and evidence in response to previous recommendations, and again must identify where that evidence sits in relation to the National Regulatory Code. This will ensure all relevant evidence submitted by the community housing provider is taken into account during the assessment. It will also ensure that the provider demonstrates an understanding of the requirements of the Regulatory Code.

The Registrar will decide whether an evidence source is relevant and is used in an assessment. If the evidence submitted by a community housing provider is insufficient to demonstrate performance the Registrar may request additional evidence from the provider.

Types of assessments

Registration assessment

This assessment occurs when a provider applies for registration under the NRSCH. Initially, the assessment will focus around the eligibility requirements and tier level assessment. Then it will look at whether a provider has the capacity to comply with performance outcomes in the National Regulatory Code.

In normal circumstances, the registration application process will be completed in three months but this can be influence by many factors including the preparedness of a provider to be registered under the NRSCH.

Once a registration assessment has been completed a decision will be made about the overall capacity of a provider to comply with the National Regulatory Code. Table 2 shows the possible final determinations for a registration assessment.

In reaching the final determination the Registrar will assess the result against each National Regulatory Code performance outcome individually and reach the final determination based on the overall assessment of the provider’s capacity.

For further information in relation to the assessment of performance outcomes see Section 8 – Performance outcome results.

Table: Possible final determinations for registration assessments

Registration assessment	Definition
Capacity to comply – no recommendation	At the time of the assessment the evidence submitted is sufficient to give assurance the provider will be compliant at its first scheduled assessment
Capacity to comply – with recommendations	The provider has demonstrated evidence that gives assurance that it will reach compliance but that further action on the part of the provider will be necessary to ensure this. The action required is however: Relatively minor and the issue can be resolved in a short period The deadlines for the provider reaching compliance are reasonable and likely to be met- i.e. evidence of progress has been seen Its overall impact on financial viability and service to residents is relatively insignificant The concerns have been accepted by the provider and can be completed by the provider i.e. they have the resources, track record.
Capacity to comply - not demonstrated	A significant failing has been identified and/ or the senior management/ governing body have not accepted, recognised or demonstrated they are able to resolve the problem.

Registration assessment

Definition

Capacity to comply – no recommendation

At the time of the assessment the evidence submitted is sufficient to give assurance the provider will be compliant at its first scheduled assessment

Capacity to comply – with recommendations

The provider has demonstrated evidence that gives assurance that it will reach compliance but that further action on the part of the provider will be necessary to ensure this. The action required is however:

Relatively minor and the issue can be resolved in a short period
The deadlines for the provider reaching compliance are reasonable and likely to be met- i.e. evidence of progress has been seen
Its overall impact on financial viability and service to residents is relatively insignificant

The concerns have been accepted by the provider and can be completed by the provider i.e. they have the resources, track record.

Capacity to comply - not demonstrated

A significant failing has been identified and/ or the senior management/ governing body have not accepted, recognised or demonstrated they are able to resolve the problem.

Upon registration, community housing providers will be advised of the provisional scheduled date of the standard compliance assessment.

Standard compliance assessment

All registered community housing providers must complete a Compliance Return on a regular basis, and submit it to their Primary Registrar for assessment. This assessment seeks to ensure ongoing compliance with the National Regulatory Code and constitutes the minimum level of oversight that will be applied.

The frequency of assessment will depend on the provider’s Tier:

tier 1 and tier 2 providers must complete a Compliance Return every year
tier 3 providers must complete a Compliance Return every two years.

Timeframes for completing an assessment are indicative and will be influenced by many factors including the information submitted by providers and the necessity for carrying out site visits.

A draft determination will generally be provided within 8 weeks (minimum) of receipt of the completed compliance return. The draft determination report will be issued to the provider for comment before the final compliance report is issued.

Table 3: Possible final determinations for compliance assessments

Compliance assessment	Definition
Compliant	At the time of the assessment the evidence submitted is sufficient to give assurance the provider is compliant.
Non-compliant	A significant failing has been identified and/ or the senior management/ governing body have not accepted, recognised or demonstrated they are able to resolve the problem.

Targeted compliance assessment

As an outcome of a registration assessment or standard compliance assessment, registered community housing providers may be required to undertake a targeted compliance assessment. A targeted compliance assessment may be sought where a recommendation is required to be addressed sooner than the next standard compliance. A targeted compliance assessment is a planned engagement with the provider and the date for it will be identified in the compliance assessment report. It is commonly a compliance check of one or more performance outcomes or performance requirements.

Triggered compliance assessment

A triggered compliance assessment is conducted following an event or the occurrence of a particular circumstance (such as a serious complaint, a provider notification and/or a meaningful change of circumstances within an organisation). In common with a targeted assessment, a triggered compliance assessment will consider only those performance outcomes impacted by the event or circumstances. A triggered compliance assessment may include an investigation.

Performance outcome determination

The National Regulatory Code sets out the performance requirements with which registered housing providers must comply in providing community housing under the National Law.

The evidence submitted by community housing providers is assessed against each performance outcome. The possible results of the assessment of the performance outcome are represented in the table below.

Table 4: Performance outcome determination

Performance outcome	Definition
Compliant	The provider has submitted sufficient evidence to demonstrate on going compliance with the performance outcome, or in the case of registration, capacity to comply.
Compliant with recommendations	The provider has submitted evidence to demonstrate a minimum level of compliance with a performance outcome but needs to take further action to reach complete compliance. The action required is: relatively minor and the issue can be resolved in a short period the deadlines for the provider reaching compliance are reasonable and likely to be met i.e. evidence of progress has been seen it's overall impact on financial viability and services to residents is relatively insignificant has been accepted by the provider and can be completed by the provider i.e. they have the resources, track record, expertise.
Non-compliant	The provider has not submitted sufficient evidence for the purposes of registration or to demonstrate on going compliance with a performance outcome.

Performance outcome

Definition

Compliant

The provider has submitted sufficient evidence to demonstrate on going compliance with the performance outcome, or in the case of registration, capacity to comply.

Compliant with recommendations

The provider has submitted evidence to demonstrate a minimum level of compliance with a performance outcome but needs to take further action to reach complete compliance. The action required is:

relatively minor and the issue can be resolved in a short period
the deadlines for the provider reaching compliance are reasonable and likely to be met i.e. evidence of progress has been seen
it's overall impact on financial viability and services to residents is relatively insignificant
has been accepted by the provider and can be completed by the provider i.e. they have the resources, track record, expertise.

Non-compliant

The provider has not submitted sufficient evidence for the purposes of registration or to demonstrate on going compliance with a performance outcome.

Assessment recommendations

Findings of compliant with recommendations will be accompanied by recommendations that indicate the action the provider needs to take to reach full compliance within a specified timeframe. Significant recommendations will be followed up before the next scheduled assessment through regulatory engagement or a targeted compliance assessment. Providers will be advised of the timeframe for responding to recommendations.

Assessment observations

Observations may relate to achieving best practice or be indicators of potential areas of improvement or issues of concern that may not strictly relate to the assessment of compliance. Observations can also be made where the provider may be compliant but could need to take action to maintain compliance in the future. Assessment observations will be identified as improvement opportunities and will be included in the provider draft and final determination report. Observations relating to improvement opportunities may not require regulatory engagement prior to the next scheduled assessment.

Additional evidence

Evidence from other sources

In order to make a compliance assessment on registration and on an ongoing basis, a Registrar, on occasion, may use information from sources other than what was submitted by the provider. The sources may include:

The National Registrar
the Registrar’s record of complaints and notifications under the National Law
the relevant housing agency
other government agencies (this may include information about the provider’s funding terms or compliance with a policy or contract, or housing related service delivery)
other regulatory authorities (this may include information about regulatory engagement with the provider)
the public record (this may include information about the provider’s body corporate status, court or tribunal decisions or media).

A Registrar will obtain information from other sources only in accordance with the exercise of its function under the National Law.

Lines of enquiry and supplementary evidence

Lines of enquiry may supplement an assessment when needed. If the evidence submitted is not sufficient the regulator may seek further clarification through lines of enquiry and/or request supplementary evidence to reach a decision about compliance. The scope of this activity will be consistent with the performance outcome(s) and of a type that is best suited to gathering the evidence with the minimum burden to the provider. It could range from a more in-depth review of documents already held or a site visit that includes meeting with the governing body and/ or inspection of records, multiple interviews and phone calls.

Onsite compliance visit

An onsite compliance visit may be scheduled to collect further evidence that demonstrates compliance with the National Regulatory Code. Registered community housing providers will be contacted prior to on-site visits to arrange a suitable time and to determine the specifics of the visits.

Further information

Internal reviews and external appeals

In undertaking their work, Registrars and their delegates will exercise discretion and make decisions. Good public administration requires the proper use of discretionary powers that affect the rights and interests of individuals and organisations. Accepted good practice allows for the review of decisions of public officials.

While some decisions trigger a specific right to external review under the National Law and jurisdiction-specific Acts, Registrars will also provide an option of internal review on all administrative decisions.

For more information visit the Internal Reviews and external appeals page.

Last updated:

15 Jul 2022