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When a housing scheme is found to have failed its residents, the consequences can be dire indeed. One north London housing trust found itself with serious legal liabilities after a woman in her mid-seventies complained about the trust closing her sheltered housing scheme, a registered care home, and the story of the case holds some important lessons for other housing providers.

The woman said the trust had failed to consult with residents before closing the home; failed to find her suitable alternative accommodation before terminating her licence agreement; and failed to obtain permission before moving her belongings – which it then failed to look after properly.

The ombudsman found serious maladministration.

Lack of consultation
The investigation revealed that senior managers and staff from the trust had met with the residents and their relatives to inform them that the place was to be closed. However, that happened after the decision had been made, and therefore there had been no meaningful consultation as such.

What they did went against regulatory and good practice guidance to social landlords; it certainly breached the terms of the complainant's licence agreement and was possibly against legal requirements.

Deteriorating health
The investigation also exposed an even graver failing by the trust in the way it handled the woman's own situation.

While options for rehousing her were being considered, her health deteriorated and she was admitted to hospital. About 10 days later, the care home manager wrote to her giving notice to terminate her licence. Following legal advice, a new notice to quit was sent to her on the ground that she had failed to accept suitable alternative accommodation.

The ombudsman found the licence termination was conducted improperly; the investigation showed that there was no evidence that the alternative accommodation the complainant had been offered and rejected had been appropriate.

The trust compounded the situation even further by its care of the woman's belongings.

The trust had met with residents of the care home and their relatives to tell them the place was to be closed – but not until after the decision had been made

Lost belongings
While she was in hospital, the woman's daughter approached the care home to enquire what would happen to her mother's belongings. She was given assurances that they would be safe and asked to collect them before the scheme closed a month later, which she did not do.

The care home closed and the complainant's belongings were put in plastic bags and later removed to the trust's offices. When the daughter gained access to the bags, she discovered some belongings were missing. A dispute ensued and eventually the trust acknowledged that it had made a mistake in dealing with the goods and offered a sum in compensation.

Its errors in this regard were very serious, bearing in mind the potential liability landlords have in respect of the doctrine of bailment when they take over control of residents' belongings. The property removed from this woman's home was all she had.

Serious failings
The ombudsman determined that the trust did not consult with residents or other interested parties about plans to close the care home; it just informed them about a decision already made. That was a serious failing on its part. The trust did not offer the complainant suitable alternative accommodation before terminating her licence agreement. That too was a serious failing, the ombudsman found.

However, in relation to the woman's belongings, the ombudsman determined that the complainant's representatives must bear some responsibility for not making arrangements to collect her belongings before the scheme closed. Even so, the trust clearly failed properly to look after her property after it closed the care home.

The ombudsman recommended the trust review and improve a number of policies and procedures which the investigation found were inadequate.

He also ordered the trust to pay the woman £2000 compensation to account for its failure to consult about the closure of the scheme and for not securing suitable alternative accommodation for her.