Rosalind Carroll Head of Regulation

Transcription

1 Rosalind Carroll Head of Regulation One Year On The Regulation of Approved Housing Bodies in Ireland 2014 Annual Report and Sectoral Analysis and The Evolving Regulatory Framework The Financial Standard and Assessment Framework for AHBs

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3 Today! Overview of Regulation of AHBs One year on - What we now know about the Sector The Financial Standard and Assessment Framework 3

4 The Regulation Office Regulation Office established as interim Regulator for Approved Housing Bodies (AHBs) in The Regulation Office is part of the Housing Agency, but reports to an interim Regulatory Committee appointed by the Minister Regulation of the sector is based on a Voluntary Regulation Code launched in July

5 Objectives and Principles Our mission is to protect social housing assets and ensure quality services to tenants by regulating well governed, wellmanaged and financially viable AHBs 5

6 Impact of Regulation on Housing Focus of Social Housing Strategy 2020 new Supply and Reform 35,000 new homes to be delivered by LAs and AHBs Emphasis on private finance, off balance sheet and new investment by AHBs Regulation essential to underpinning this enhanced role 6 Reform : Protect existing assets and tenants

7 Voluntary Nature of Regulation?? While sign-up to the Code is voluntary Funding from the DECLG will be prioritised to those signed up to and compliant with the Code Mandatory for all new AHBs Sign-up and expected to comply or explain 7

8 One year on? Insert at a glance infographic 8

9 1 st Assessment of the sector AHBs assessed based on the 2013 Annual Return 16 AHBs removed from the Public Listing due to non-submission of their Annual Return 10 of these AHBs have since submitted and been reinstated this gives us a return rate of 96% Assessment focus: Governance, Financial Viability and Performance Management Results were positive Each AHBs got an assessment report with key recommendations

10 10 What we now know about the sector Stock

11 11 Establishment of the Sector

12 12 What we now know about the sector Governance

13 13 What we now know about the sector Governance

14 What we now know about the sector Performance Management 14

15 15 What we now know about the sector Financial

16 16 What we now know about the sector Financial - Tier 3 Data

17 17 What have we learnt

18 Financial Standard and Assessment Framework Now part of the Regulation Code Sets Financial Viability Standard for the sector & approach to monitoring and assessing financial Health of AHBs Purpose: Protects assets & build confidence of lenders Underpinned by principles: Transparency, accountability, proportionality 18

19 Financial Standard - Objectives Early warning signs of emerging risks Financial and governance disciplines support AHBs manage Monitor key financial ratios Aggregated data 2015 Pilot 9 Tier 3 AHBs confirmed 19

20 Financial Standard Key Requirements Key requirements (proportionate) Annual financial return Business plans with 30 year projections A sinking fund related to stock condition surveys Notifiable events Assess and monitor short and long-term viability 20 - Short- term: Audited accounts, AFR, Cash from operations and sources of income, liquidity, reliance on overdraft - Long-term: Business plans, profitability, level of debt to equity, sinking fund and stock condition

21 21 Implementation Timeline

22 Financial Standard - Pilot Circle Voluntary Housing Association Clanmil Housing Association (Ireland) Ltd Cluid Housing Association Focus Ireland Hail Housing Association for Integrated Living Nabco National Association of Building Cooperatives Oaklee Housing Trust Respond! Housing Association Tuath Housing 22

23 Conclusion Start of a regulatory journey, legislation critical next step Once Size does not fit all Regulation essential to underpin expanding role of sector and delivering new supply, but also to ensuring existing tenants are protected 23 Sector in a good position, has achieved a lot over the last 30 years, our ambition is to help achieve even more

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25 Thank-you! Rosalind Carroll Tel: