Approved Housing Bodies (AHBs) are playing an increasingly important role in the provision of social housing functions in the State.
The Housing (Regulation of Approved Housing Bodies) Bill 2019 (the Bill), which was published on 26 July, seeks to establish an independent regulator to provide governance to the sector and to safeguard the functions of AHBs.
What is the main purpose of the Bill?
The Bill establishes an independent Approved Housing Bodies Regulatory Authority (the Regulator) which will be responsible for several functions, including:
- Registration of AHBs with the Regulator
- Ensuring adherence to standards
- Monitoring and assessing compliance with standards
- Investigation of breaches in standards
- Cancellation of registration of AHBs in certain instances
- The ability to obtain Court Orders to protect the assets of AHBs
What do the new registration requirements mean for existing AHBs?
Where an AHB existed immediately before the coming into effect of the Bill, they will be deemed registered automatically. However, crucially they do still have to go through the registration application process to regularise their status.
Is there an eligibility criterion?
Yes, AHBs must fulfil certain criteria if they are to be eligible for registration, namely:
- Corporate status as:
- a company that is either a company limited by guarantee or a designated activity company with at least 5 directors
- a registered society
- a friendly society
- a registered charitable trust which has at least 5 trustees
- Constitution of the AHB (which includes the trust deed or society rules) must:
- have as one of its primary objects the provision or management of dwellings for the purpose of alleviating housing shortages
- contain provisions prohibiting the distribution of profits to its members, directors or other persons
- require that all property be applied to further its primary objects, save for operating costs
What is the application process?
Applications for registration must be in writing and accompanied by a fee to be determined by the Regulator. In addition, documentation must be provided including:
- constitution, trust deed or rules of the AHB;
- audited accounts for the most recent financial year;
- tax clearance certificate;
- the number of dwellings owned or managed by the AHB and if they are leased, the duration of the lease;
- details of the qualifications and experience of the AHB's directors or trustees.
What should AHB's do now?
In preparation for the coming into effect of the Bill, existing AHBs should take steps to collate the information needed to confirm their registration. The timeframe for application provided for by the Bill is determined by the number of managed dwellings held by the AHB and is outlined in the following table:
| Managed Dwellings | Timeframe (from date the provision is effective) |
|---|---|
| 300 or more | Within 12 months |
| 50 to 299 | Within 2 years |
| Less than 50 | Within 3 years |
While the timeframe may be extended by the Regulator in certain circumstances, AHBs should apply to be retained on the register in a timely manner once the Bill comes into effect.
Is the Bill welcome?
Given the reliance by the State on AHBs in the fight against homelessness, the increased state funding being provided to AHBs, and the fact that there are in excess of 500 AHBs across the country it was only a matter of time before increased regulation was imposed on the sector. Having said that, most AHBs are also registered charities and already have certain reporting obligations under charities legislation. Additionally, most AHBs already adhere to a Charter of Commitments under the Voluntary Regulation Code which is guided by proportionality to promote governance, financial standards and performance management and while the Code is voluntary in nature, funding eligibility is largely guided by adherence to the Code. The Bill has just been published and it is likely that amendments will be made as it progresses through the Oireachtas. However as it stands, the Bill relates to regulation only and is unlikely to have any impact on the delivery of social housing units. It is imperative to ensure that any regulation will go to actually improve the sector, and that this is not just a box-ticking exercise.
For more information please contact Fidelma McManus, Caoimhe Banks, Aisling O'Neill or your usual Beauchamps contact.
