Housing association to be wound up
A housing association in Northern Ireland is to be wound up after a report found serious failings in its financial management.
Dungannon and District Housing Association, which owns 400 homes across Northern Ireland, was the subject of an inspection by the Department of Social Development in October 2007.
It found ‘serious shortcomings’ in the areas of corporate governance, property management and property development.
In June 2010, a follow-up inspection found ‘serious long term failure’ by the organisation to ‘conduct its affairs in a proper manner’.
The inspection found that DDHA could not increase its rent levels because it did not have sufficient financial flexibility.
This meant it would not be able to generate enough revenue to pay maintenance costs and also keep up loan repayments.
Tenants have been informed of the decision. The properties will transfer to Clanmil Housing Association.
A spokesperson from the DSD said: ‘The Department for Social Development has a regulatory role over registered housing associations, which have access to public funding.
‘Inspections of associations carried out by DSD review four key areas, finance, property development, property management and corporate governance and housing management.
‘Where an association fails to meet set standards, the department will apply sanctions and recommend actions for improvement of standards, including mergers where necessary, in order to safeguard services to tenants and protect the public purse.’
