The loan will cover set-up costs and pay the first year of the chief executive's salary for the new organisation, called Circle Voluntary Housing Association.
Circle Voluntary will not be part of Circle 33 because Irish law does not allow housing associations to be part of foreign companies or group structures. However, it can seek advice from the group's staff until it hires its own executive team.
David Williams, chief executive of Circle 33's Old Ford Housing Association, helped to set up the new association. He said Circle Voluntary would provide expertise on planning gain. The policy has recently been introduced in Ireland.
Williams said: "It was a developer in Ireland who got in touch with the group. Developers were nervous because it was the first time they had to work with housing associations in this way and they wanted to talk to an association here who had done it."
The association was set up after talks with councils, other developers and the local trade body, the Irish Council for Social Housing.
Williams said Circle Voluntary plans to have 1000 units within five years. The association would provide general needs housing and shared ownership but also bring UK methods of estate regeneration and stock transfer to Ireland "if it's welcome".
He added that Circle 33's motives were "purely philanthropic" and the loan terms were "favourable". Circle 33 plans to recoup the money over the next year. The move comes 10 years after St Pancras & Humanist Housing Association set up Cluid, now one of the republic's biggest housing associations.
Donal McManus, executive director of the Irish Council for Social Housing, said UK-based associations needed to bring a new dimension or land if they were to set up in Ireland.
However, he added: "It's probably the worst time to set up a housing association now because of how the economic situation in Ireland has changed over the last 18 months so resources will be more constrained."
Source
Housing Today
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