The definition of Housing Association is in the Housing Associations Act 1985.
“housing association” means a society, body of trustees or company—
(a)which is established for the purpose of, or amongst whose objects or powers are included those of, providing, constructing, improving or managing, or facilitating or encouraging the construction or improvement of, housing accommodation, and
(b) which does not trade for profit or whose constitution or rules prohibit the issue of capital with interest or dividend exceeding such rate as may be prescribed by the Treasury, whether with or without differentiation as between share and loan capital
I would be very suspicious of this so called housing association, particularly given the request to pay HB direct to one of the Directors personal accounts.
I have seen loads of sham arrangements over the years and this looks like one of them.
Every council should instigate a borough wide licensing scheme as far as I am concerned
