Upcoming Events :
Housing Seminar: Partnerships with the Public Sector – Avoiding the pitfalls
Thu 31 May 2012
Minerva House, 5 Montague Close, London, SE1 9BB
CIH: Housing associations risk being placed under government control
Wed 16 Mar 2011
Housing associations could lose their status as not-for-profit organisations if they fail to use their balance sheet capacity, experts have warned.
According to the Chartered Institute of Housing (CIH), there is a real risk of the government taking control of these bodies if it becomes necessary, Inside Housing reports.
As a result, it does not believe housing associations have any excuse for failing to use their capacity to fund new property developments.
Sarah Webb, chief executive of the CIH, also suggested that the groups may alternatively be placed in the hands of a private sector organisation.
However, she acknowledged that she personally does not believe this is likely to happen, as authorities could find it "too difficult to achieve" this objective when "there are other things happening".
James Duncan, funds partner at Winckworth Sherwood, said: "A number of new investment products being developed specifically for housing associations to utilise their positive balance sheet position to attract institutional investment to finance new developments will help cash strapped housing association to maintain their independence.
"Winckworth Sherwood is advising in respect of a number of new schemes to attract institutional investment to housing association led projects for the development of affordable housing schemes throughout England."
This comes after the Charity Commission advised charitable housing associations that they will not compromise their status by providing an Affordable Rents product for tenants.
However, it said they must ensure they still satisfy their requirement to demonstrate a public benefit if they adopt this approach.
