Code of governance
Code of Governance for Community-Led Housing Organisations (2021)
This page provides a plain-English summary of the Code of Governance for Community-Led Housing Organisations (2021), published by the Confederation of Co-operative Housing (CCH).
It is intended to help members, committee/board members, and residents understand the core principles of good governance without needing to read the full technical document.
- This summary does not replace the full Code. Organisations adopting the Code should always refer to the original document for formal compliance.
What is the Code of Governance?
The Code of Governance sets out a framework for running a community-led housing organisation well. It applies to a wide range of organisations, including the Argyle Street Housing Co-operative
Community-led housing organisations vary greatly in size and structure, but they are united by community accountability, democratic control, and local decision-making.
Who is responsible for governance?
Governance is the responsibility of the organisation’s Governing Body. Depending on the organisation, this may be:
- A Management Committee
- A Board
- The full membership meeting in General Meetings (for very small organisations)
The Governing Body leads and controls the organisation on behalf of the community and its members.
Good governance – what does it mean?
Good governance is about:
- Having a clear purpose (mission, vision and values)
- Putting the right structures and policies in place
- Making sure the organisation is financially viable
- Understanding and managing risks
- Being accountable to members, residents and the wider community
Good governance supports both strong values and effective day-to-day operation.
Comply or Explain
Organisations that adopt the Code are expected to:
- Review their governance annually against the Code
- Publish a statement of compliance in their annual report/accounts
- Clearly explain where they do not comply and why
- Set out plans to achieve compliance where appropriate
This approach recognises that not all organisations are the same, while still promoting transparency and improvement.
The Five Principles of Governance
The Code is built around five core principles.
1. Clarity of Purpose and Values
The organisation should:
- Have a clear mission, vision and values
- Make these publicly available
- Regularly review progress towards them
- Ensure they match the organisation’s legal objects
Equality, diversity and inclusion
The organisation commits to:
- Fairness and equality of opportunity
- Actively opposing discrimination
- Welcoming diversity
- Setting objectives and reviewing progress
- Reporting publicly on performance
Ethics and integrity
The organisation should:
- Act with honesty, openness and integrity
- Have clear codes of conduct
- Be transparent in decision-making
- Manage conflicts of interest properly
- Ensure decisions are taken in the best interests of the organisation and community
2. Community Accountability
Community-led housing organisations exist to serve a defined community, which may be:
- A geographical area, or
- A specific group of people
Membership
The organisation should:
- Clearly define who can be a member
- Encourage active membership
- Understand who its community is
- Aim for membership that reflects the diversity of that community
Accountability and engagement
The organisation should:
- Be accountable to its members and community
- Provide clear information about decisions and performance
- Encourage community involvement in decision-making
- Support members to take on governance roles
- Maintain regular two-way communication
Other stakeholders
The organisation should also be accountable to:
- Residents who are not members
- Partner landlords
- Regulators (if a Registered Provider)
- The Charity Commission (if a charity)
3. Effective Leadership and Control
The Governing Body should:
- Lead and control the organisation strategically
- Delegate day-to-day operations appropriately
- Have clear terms of reference
- Set strategy, budgets and business plans
- Ensure legal and regulatory compliance
- Oversee risk management
- Safeguard the organisation’s assets and reputation
Governing Body composition
Where there is a committee or board, the organisation should:
- Have clear rules about size and appointment
- Ensure members understand their responsibilities
- Use fair and transparent election or recruitment processes
- Maintain a balance of skills, experience and diversity
- Regularly refresh membership
Conduct and decision-making
Governing Body members should:
- Act collectively and responsibly
- Avoid conflicts of interest
- Declare interests openly
- Base decisions on good information
- Receive induction, training and support
- Have their performance reviewed annually
4. Effective and Clear Delivery
The Governing Body decides how the organisation operates day to day, whether through:
- Volunteers
- Paid staff
- External service providers
- Lease or management arrangements
The organisation should:
- Clearly document roles and responsibilities
- Set limits on delegated authority
- Appraise performance regularly
- Be transparent about pay and fees
- Have appropriate HR arrangements if staff are employed
Legal and regulatory responsibilities
The Governing Body remains responsible for ensuring:
- Compliance with the law
- Health and safety
- Data protection
- Safeguarding (where relevant)
- Equality and diversity obligations
Professional advice should be sought where needed.
5. Strong Systems of Control and Audit
The organisation should:
- Have clear financial controls and standing orders
- Receive regular financial and management reports
- Maintain appropriate relationships with external auditors
- Review auditor appointments periodically
Risk management
The Governing Body should:
- Understand the organisation’s risks
- Set a clear risk appetite
- Put controls in place to manage risk
- Review risks regularly
- Maintain business continuity plans
Whistleblowing
Appropriate whistleblowing policies should be in place to allow concerns to be raised safely.
In summary
The Code of Governance is about:
- Clarity – knowing why the organisation exists
- Accountability – to members and the community
- Leadership – effective, ethical and informed
- Delivery – clear roles and responsibilities
- Control – strong finances, risk management and transparency
Together, these principles support strong, democratic and sustainable community-led housing organisations.
References
- Confederation of Co-operative Housing (2021). Code of Governance for Community-Led Housing Organisations.
