A large social housing provider has admitted to falling down on governance and financial oversight when experiencing cash flow pressures, but said it was and continues to be solvent.<\/p>\n
In prepared remarks to the Oireachtas housing committee<\/a>, the chairman of Circle Voluntary Housing Association, John O\u2019Connor, said the charity, like many organisations in the State\u2019s housing sector, experienced \u201csignificant\u201d growth in recent years. <\/p>\n However, he said, it was \u201cclear that our governance, financial oversight and organisational capacity did not keep pace in some critical areas\u201d.<\/p>\n He said financial pressures had developed over time and were exacerbated by challenges associated with a small number of large projects.<\/p>\n Circle <\/a>is one of 425 approved housing bodies, meaning it is sanctioned to provide social rented housing. The organisation, which receives annual funding of about \u20ac10.5 million from the Government and local authorities, was recently found by the sector\u2019s regulator, the Approved Housing Body Regulatory Authority, to be \u201cnon-compliant\u201d<\/a> with Department of Housing standards.<\/p>\n Circle<\/a>, whose cash and cash equivalents totalled nearly \u20ac2 million at the end of 2025, owns or manages more than 2,600 homes in 16 local authority areas. It provides housing for almost 5,400 people and had net debt of \u20ac363 million at the end of 2025. O\u2019Connor noted tenant services have continued to meet required standards.<\/p>\n The regulatory authority\u2019s chief executive, Fergal O\u2019Leary, said in a written statement to the committee that Circle remains subject to a regulatory process. He said the authority\u2019s assessment of Circle found \u201csignificant noncompliance\u201d <\/a>but that the organisation had in place a credible programme capable of addressing the issues. <\/p>\n He said Circle has been engaging constructively with the regulator, which is \u201cclosely monitoring\u201d implementation of the plan.<\/p>\n O\u2019Connor, of Circle, said in his written remarks that the organisation takes the issues identified by the regulator seriously and is \u201ccommitted to addressing them fully\u201d. <\/p>\n He said the regulator\u2019s assessment represented a \u201cturning point\u201d and provided an \u201cimportant and timely intervention\u201d by highlighting issues requiring attention and providing a clear framework for improvement. <\/p>\n Taking a \u201cmore prudent approach\u201d to ensuring long-term sustainability, he said, the organisation has suspended development construction activity and is moving to a \u201cmore controlled delivery model\u201d focused on acquiring new-build projects. The organisation has also secured refinancing arrangements that have improved liquidity and provided greater financial stability. <\/p>\n