Mr. Fergal O'Leary:

I thank the committee for the invitation to attend. We welcome the opportunity to discuss AHBRA's role and our ongoing work in relation to the Peter McVerry Trust. I should note at the outset that AHBRA has a number of ongoing regulatory processes that limit what we can say in certain areas, but we will share as much information as we possibly can.

Serious concerns about the trust emerged in July 2023. We began a statutory investigation in October of that year, carried out by inspectors appointed under the housing Act 2019. In December 2024, we published their report. The investigation focused on the trust's control systems and decision-making between January 2022 and August 2023. It was directed at organisational practices, not at the conduct of any individual.

The inspectors found serious and systemic failings in governance, financial management, internal controls and the handling of conflicts of interest. The internal checks and balances were not working. There was poor cash flow management, limited board challenge, weak financial reporting and a lack of understanding of its liabilities. These weaknesses directly contributed to the trust's liquidity crisis and the need for exceptional State funding. The C and AG report and this committee's earlier discussions highlighted that capital funding had been used to cover day-to-day costs and that significant liabilities had built up. Our inspectors confirmed that weak internal controls and poor financial oversight allowed this to happen.

To protect tenants and to bring the organisation into compliance as quickly as possible, we began a monitoring process to oversee the completion of clear, time-bound remedial actions. In February of this year, Crowe Ireland was appointed as independent experts to support this process. In July, to drive progress, we issued a determination of non-compliance requiring high-priority reforms across governance, finance, property and tenancy management. This included the publication of the 2023 accounts, completion of the asset and liability register, and implementation of new rent collection policies. In September, AHBRA issued a statutory direction to underpin ongoing regulatory oversight, reinforce existing co-operation at board level and require prompt notification of significant events.

The trust has co-operated and progress has been made, particularly in recent months. The 2023 accounts are now complete, additional senior capacity has been added and new stronger financial controls are in place. Overall, however, progress has been slower than required and AHBRA continues to monitor as the trust now strategically reviews its organisational model and ensures its systems and staffing match the organisation's scale. If material non-compliance persists, further escalation, including cancellation of registration, remains possible.

The weaknesses identified in the trust occurred before AHBRA's regulatory framework and data systems were fully operational. Since then, we have developed a comprehensive risk-based regulatory model. Through monitoring, formal assessments, notifiable event reporting and strengthened collaboration with other regulators, funders and local authorities, we now have far better visibility across the sector and can intervene much earlier when issues arise.

An aligned approach between all oversight bodies is critical both to the sector as a whole and in responding to the issues in the trust. We continue to work closely with the Department of housing, the Dublin Region Homeless Executive and the Charities Regulator. This joined-up approach across oversight bodies helps identify and manage risks early, protecting tenants and public investment.

AHBRA is the independent regulator for approved housing bodies established under the Housing (Regulation of Approved Housing Bodies) Act 2019. Our role is to protect tenants, safeguard public investment and ensure that AHBs are well-governed, financially sound and delivering quality homes.

At the end of 2024, there were 438 registered AHBs managing nearly 68,000 homes with a combined income of €1.95 billion, €9.8 billion in assets and €8.6 billion in liabilities. The nine largest AHBs, including the trust, manage about 73% of all homes. Around a third of AHBs in the sector plan to expand in the next three years. As the sector grows in scale and complexity, our oversight is deepening to match.

In conclusion, the issues at the Peter McVerry Trust were serious and regrettable, diverting attention from the organisation's vital work with vulnerable people. They do, however, underline the need for strong governance, sound financial management and the importance of ensuring that the organisation's social mission is matched by the capacity and capability required to deliver it. The AHB sector remains a vital part of Ireland's housing system. Our role is to set standards, provide independent oversight and to intervene, where necessary, to protect tenants and public investment. That remains our focus.

I thank the Chair and members. I am happy to take any questions they may have.