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.
In prepared remarks to the Oireachtas housing committee, the chairman of Circle Voluntary Housing Association, John O’Connor, said the charity, like many organisations in the State’s housing sector, experienced “significant” growth in recent years.
However, he said, it was “clear that our governance, financial oversight and organisational capacity did not keep pace in some critical areas”.
He said financial pressures had developed over time and were exacerbated by challenges associated with a small number of large projects.
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Circle is one of 425 approved housing bodies, meaning it is sanctioned to provide social rented housing. The organisation, which receives annual funding of about €10.5 million from the Government and local authorities, was recently found by the sector’s regulator, the Approved Housing Body Regulatory Authority, to be “non-compliant” with Department of Housing standards.
Circle, whose cash and cash equivalents totalled nearly €2 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 €363 million at the end of 2025. O’Connor noted tenant services have continued to meet required standards.
The regulatory authority’s chief executive, Fergal O’Leary, said in a written statement to the committee that Circle remains subject to a regulatory process. He said the authority’s assessment of Circle found “significant noncompliance” but that the organisation had in place a credible programme capable of addressing the issues.
He said Circle has been engaging constructively with the regulator, which is “closely monitoring” implementation of the plan.
O’Connor, of Circle, said in his written remarks that the organisation takes the issues identified by the regulator seriously and is “committed to addressing them fully”.
He said the regulator’s assessment represented a “turning point” and provided an “important and timely intervention” by highlighting issues requiring attention and providing a clear framework for improvement.
Taking a “more prudent approach” to ensuring long-term sustainability, he said, the organisation has suspended development construction activity and is moving to a “more controlled delivery model” focused on acquiring new-build projects. The organisation has also secured refinancing arrangements that have improved liquidity and provided greater financial stability.
The charity’s corporate risk register is now under review, while there is also enhanced governance oversight.
These changes are “necessary” and reflect Circle’s determination to stabilise the organisation, he said.
Circle representatives are due to appear before members of the committee for questioning on Tuesday.
