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A Northern Irish housing association has agreed a £28m stock transfer and investment programme with a troubled housing charity.
Choice Housing, which owns around 10,000 homes across the region, has approved a plan to take on up to 429 units currently owned by Victoria Housing Estates (VHE).
In 2015, VHE was hit by a scandal following an investigation by the Charity Commission for Northern Ireland, prompted by concerns from HM Revenue and Customs (HMRC).
It found that more than £13m in loans had been given by the charity to companies in which one of the trustees had an interest, according to a report published in December 2018.
HMRC also issued VHE with a £2.8m tax bill after concluding that its former trustees had not used the charity’s assets solely for charitable purposes.
Long-term underinvestment means VHE’s homes do not meet the Decent Homes Standard, while a new management team appointed in 2016 has not been able to find a way for the organisation to finance the upgrades required.
The plan agreed between Choice and VHE’s boards will see the former carry out a significant refurbishment programme to bring the stock up to scratch.
It follows a consultation with VHE residents announced in January.
The transfer is expected to complete in October, while Choice aims to complete all the refurbishment works within three years.
Tenants who do not wish to change landlord will be given the chance to buy their homes.
The deal has been developed with input from the Charity Commission for Northern Ireland.
“This investment programme is welcome news for VHE’s tenants who have long been campaigning for upgrades to their homes,” said Michael McDonnell, chief executive of Choice.
“I would also like to pay tribute to the team at VHE who worked hard to facilitate this engagement and ensure that tenants availed [themselves] of a range of independent advice and support throughout the process.”
Dawn Purvis, chief executive of VHE, said: “Following an assessment of our 429 properties in late 2016 it was found that significant investment was required to bring these homes up to a required standard that unfortunately we were not a position to manage.
“This new investment programme, facilitated by Choice Housing, will ensure that all current VHE tenants will see significant investment in their homes as well as long-term secure tenancy agreements for those who take up that option.
“I was pleased to see the level of engagement from tenants throughout the consultation process, especially given ongoing challenges to the process as a result of COVID-19.”
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