Housing bodies may need to amalgamate

Social housing bodies, also known as approved housing bodies, are becoming central to solving Mayo’s housing needs but even as the sector has greater access to financial support than ever an increasing level of regulation will mean many will have to merge.

That’s the view of Kevin Ryan, collaboration manager of the Irish Council for Social Housing (ICSH), which has members in the Ballyhaunis area and across the county. He said AHBs are now delivering 40% of social housing in Mayo under the Housing for All plan.

“Housing associations (also known as AHBs) have traditionally had a strong presence in Mayo and have a presence in many local parishes, particularly in the area of providing accommodation for the elderly. In recent years, there has been more of a focus on growth and many of our members have worked with Mayo County Council to deliver greater numbers of housing,” he said.

There are “well-established” financing channels for social housing bodies, including the Government’s Capital Assistance Scheme, which many housing associations have used in Mayo to deliver housing for the elderly as well as the more recent Capital Advance Leasing Facility (CALF), which is more focused on general needs housing. Ryan says this scheme, in particular, has allowed approved housing bodies to grow quite quickly in recent years in aiding local authorities to meet their targets under the Government’s Housing for All plan.

A director of a social housing scheme in East Mayo explained that Mayo County Council planning staff have become much more proactive in dealing with AHBs, adding: “Everything has changed now. The need is there.” 

The local director said 75% of his development’s tenants are taken from the lists operated by the council and Safe Home Ireland. 

“We have a waiting list and no vacant house... we would like to build more houses.” 

The director, who requested anonymity to prevent any fall-out in dealings with the council, explained that his and many other housing associations were formed in the Celtic Tiger years with government grant aid, but after the financial crash “very little happened in the voluntary housing sector as all funding dried up".

“There is great talk at present about the need to construct more social houses and it seems that funding will be made available to voluntary housing associations and approved housing bodies that can demonstrate housing need in their area.” 

Even as the Government embraces AHBs as a solution to the housing crisis, there has also been an increase in regulation of the sector which could force smaller housing bodies to amalgamate. 

“There is a belief in certain quarters that smaller housing associations and approved housing bodies are going to struggle going forward and that they should merge or be taken over,” explained the locally-based voluntary housing body director.

The ICSH wrote to members last September to encourage amalgamation of smaller voluntary housing organisations so that “they are confident in dealing with current and future challenges in areas such as regulation, board renewal and housing management”. The ICSH added: “For many, this will involve remaining as an independent AHB but for some, this may involve exploring options to transfer their homes to another AHB.”

An AHB Collaboration Programme, run by the ICSH, funds group service and other initiatives “leading to the re-organisation and rationalisation of the AHB sector.” In particular, “takeover proposals and group service arrangements will be prioritised for funding,” noted the letter.

Kevin Ryan said many AHBs are facing the twin challenges of an increasing amount of regulation as well as board renewal issues, with fewer people in some communities volunteering as board members. 

“Strong and healthy boards are the key to smaller AHBs as they provide the strategic direction and control functions in terms of management,” he said. 

Other factors such as audit costs and insurance can make it very difficult for very small bodies to continue to operate.

The perceived loss of autonomy might be offputting for some housing bodies. Yet their independence is in any case limited by government funding rules. The local AHB who spoke for this article explained that a housing association that has received state funding can only allocate 25% of its housing units at its own discretion. 

“Given that applications for state funds have to go through local authorities, the council has the right to insist that 75% of all units are filled by persons who make it onto the local housing list operated by the council.” 

Safe Home Ireland, meanwhile, can recommend suitable tenants from the lists of Irish emigrants wishing to return home, he added.

Mr Ryan wants smaller AHBs to consider which is best for them - “to stay independent, maybe renew their board and do their best to comply with increased regulation or to join with other smaller AHBs in the area to form a services company to support AHBs". 

Even with the opening of the Government funding spigots for the sector, the rise in building costs has put pressure on the viability of certain housing schemes, according to Mr Ryan. 

“The availability of building contractors and skilled labour is another issue leading to delays, particularly what are known as the wet trades such as block laying and plasterers, and there hasn’t been a substantial move towards modular build which would reduce the pressure on these trades.” 

Costs and building labour shortages are also having an impact on regeneration of existing social housing properties, he added. 

“Often these can be tricky projects which take a lot of work and imagination to deliver but can be so valuable to a local community by reducing the amount of dereliction in a town or village. In some cases, the refurbishment cost compared to a new build on a greenfield site means it’s difficult to justify progressing these projects.” 

Often associated with group homes and sheltered living, AHBs are diversifying their property portfolios to serve wider social housing needs with the properties coming available in towns increasingly flushed off their retail space. 

“With an increased focus on regeneration and refurb, there is certainly now a much greater diversity in the properties that AHBs manage,” said Mr Ryan. “Particularly in town centres we are seeing conversions from what were commercial premises into residential and this has the advantage of being generally well situated close to town centres. There is a need for one and two-bedroom units, in particular, so many of these conversions can also serve this need which is a positive, we’re still not building enough smaller units such as those that people can rightsize to, which would free up other housing.”