More than half the not-for-profit housing bodies that underwent regulatory assessment were “non-compliant” with sectoral rules, said housing supervisors in a new report calling for improvements in the way many groups are run.
The 2024 annual report from the Approved Housing Bodies Regulatory Authority set out the need for action in the areas of governance and risk, finance, property and asset management and tenant management.
The authority oversees hundreds of not-for-profit approved housing bodies (AHBs) that receive public funds to provide affordable housing to tenants.
The sector spans 438 registered AHBs, which manage 68,000 homes with €1.95 billion in annual rent and close to €10 billion in assets. The best-known AHB is the Peter McVerry Trust, which hit a deep financial crisis in 2023 that necessitated a €15 million State rescue to avert collapse.
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Despite the prevalence of noncompliance, authority chief executive Fergal O’Leary said there was a “big distinction” between housing bodies working towards compliance and the “intensive monitoring” under way at the McVerry Trust after investigations into its affairs.
“None of these AHBs are in an investigation,” he said when asked whether there was any reason for public concern about the findings of noncompliance.
The authority’s annual report sets out the findings of 33 statutory assessments of AHBs in 2024, groups that collectively control some 43 per cent of all dwellings in the sector. However, such groups were not named in the report.
None of the 33 achieved a fully “compliant” outcome, but 15 were deemed “compliant with improvements”, which means they met regulatory standards but were issued with recommendations to make improvements in some areas.
Another 13 housing bodies, comprising 40 per cent of those assessed, were found to be “non-compliant working towards compliance”. Such bodies did not meet regulatory standards and faced a full reassessment of their operations within 12 months.
The remaining five AHBs, comprising 15 per cent of the assessed bodies, were given an assessment of “noncompliance statutory action required”. They were required by law to submit a plan setting out a path to full compliance.
“Many AHBs, particularly smaller organisations, would benefit from more structured approaches to identifying and managing organisational risks,” said Mr O’Leary.
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“For growing AHBs, financial risk management and stress testing should continue to be enhanced to underpin growth and resilience,” he added.
In a separate report last year, inspectors sent into the McVerry Trust by the authority found serious lapses in governance, financial management, internal controls and the handling of conflicts of interest.
Mr O’Leary told the Dáil public accounts committee last week that progress made by the trust towards compliance was “slower” than required. “If material noncompliance persists, further escalation, including cancellation of registration, remains possible,” he told the committee.
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Replying to questions, he acknowledged recent advances by the trust but called for more progress. “This can’t go on forever, so we’re looking for that progress to be accelerated in the next couple of months,” he said.
He recognised assurances from the new trust board and noted discussions about future structures.
“The organisation has been struggling with its current structure to be compliant ... But they’re also looking strategically at where they’re going,” he said.
