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Approved Housing Bodies

Dáil Éireann Debate, Tuesday - 28 July 2020

Tuesday, 28 July 2020

Ceisteanna (361)

John Lahart

Ceist:

361. Deputy John Lahart asked the Minister for Housing, Planning and Local Government the number of approved housing bodies which have been placed in engagement in July 2018, July 2019 and July 2020; the average period for which the engagement lasted; if each approved housing body emerged successfully from the process; the typical cause for the voluntary regulator placing an approved housing body in engagement; and if he will make a statement on the matter. [19042/20]

Amharc ar fhreagra

Freagraí scríofa

In advance of the formal establishment of the Approved Housing Bodies Regulatory Authority, as provided for by the Housing (Regulation of the Approved Housing Bodies) Act 2019, the oversight of approved housing bodies (AHBs) is conducted through the Voluntary Regulation Code (the Code), "Building for the Future, A Voluntary Regulation Code for Approved Housing Bodies in Ireland" underpinned by three standards - Financial, Governance and Performance. The Code is overseen by an Interim Regulatory Committee supported by a Regulation Office based in the Housing Agency.

Where the Regulation Office identifies significant issues and risks in relation to an AHB’s governance, financial viability and/or performance management, it enters that organisation into a process of Engagement. AHBs usually enter Engagement for a combination of reasons. The most common causes are governance and financial management/viability matters.

The overall aim of Engagement is to protect AHB assets and to safeguard the interests of tenants, service users and key stakeholders. The Engagement process identifies key changes required by the AHB to bring its performance, governance or financial management to an acceptable level.

The Regulatory Assessment Cycle typically runs from November to May each year, during which AHBs may be deemed to require Engagement. The table below set out the total number of AHBs in Engagement at each of the requested dates.

 No. of AHBs in Engagement at

July 2018

July 2019

July 2020

AHBs

12

13

26

The increase in the number of AHBs in Engagement in 2020 is largely attributable to two factors:

- A number of additional AHBs signed up to Voluntary Regulation Code (VRC) in 2019/20. These AHBs demonstrated significant non-compliance with the Standards.

- An increased focus on AHBs who have less than 5 directors. This forms part of the eligibility criteria for AHBs in the Housing (Regulation of Approved Housing Bodies) Act 2019.

The length of time an AHB remains in Engagement is largely dependent on the organisation itself. Issues affecting the length of time include the willingness and ability of the organisation to effect change, size of the AHB, structural and/or cultural issues and the scale of the matters to be addressed. The average period for which the Engagement lasted is 17 months. 15 AHBs have successfully exited the engagement process. All organisations presently in Engagement are actively working towards compliance with the standards and exiting Engagement.

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