Why should AHB’s adopt the VRC?
Today, associations interact with a diverse range of stakeholders to ensure the provision of high quality social housing suitable for a range of different groups of people, including the elderly, people with disabilities, persons who were formerly homeless and those on low incomes.
In recent years the Government’s housing policy has placed approved housing bodies, AHBs, at the heart of social housing provision, broadening and deepening the role of Associations. This has placed greater scrutiny on AHB’s to demonstrate that they are following best practice, both in service quality and delivery, and also in areas such as procurement where public money is being used.
With the reduction in government funding for the sector, AHB’s are increasingly reliant on sourcing innovative financing mechanisms that includes interactions with private financial institutions, a relatively new stakeholder in the sector. As part of the expanded role played by the sector in housing provision, and to ensure that AHB’s are providing the best possible services to those they serve, proper governance structures are seen as a key element to ensuring investment security and long-term sector sustainability.
However, even for Associations who may have no short to medium term development plans, signing up to the VRC can benefit them by:
- Encouraging higher standards in service delivery
- Providing reassurance to tenants, investors and potential investors
- Encouraging long-term strategic planning
- Formalising the requirements for a performance management system (see case study on HAPM)
The VRC will also help an AHB by establishing structures (where they do not already exist) and policies in areas such as:
- Board selection and re-election
- Conflict of Interest
- Tenant relationships and conflict resolution
- Internal management
- External Stakeholders
- Access to finance
These robust structures will be increasingly important as the voluntary housing sector continues to grow and provide an increasing proportion of Ireland’s social housing stock.
Compliance and Future Development
It has been stated (in the foreword to the Code and in Circular: Housing 5/2014 ) that funding under the Capital Assistance Scheme (CAS) and Capital Advance Leasing Facility (CALF) will be dependent on compliance with the code.
This means that for any association that has plans to develop new units in the future, compliance with the VRC is expected to be a mandatory requirement for all funding applications.