Dorset-based Twynham Housing Association broke procedural rules on claiming grant money, its chair has admitted
The Housing Corporation stepped in last week to place three appointees on the board of the voluntary transfer association.

Twynham chair Irene Rawson said there was no misappropriation of funds or misdemeanour by any individual. "It is purely a procedural matter," she said.

The problem at the association arose from confusion over purchase and repair grants, when the wrong type of claims were submitted.

In some cases the association could have claimed even more than it did.

The Housing Corporation said "governance and the management and control of development activities" were behind its decision to put Twynham under supervision.

Twynham has been forced to put plans for a group structure on hold as a result of the supervision. It had hoped to form a private subsidiary to build homes for sale.

The corporation has frozen this year's £600,000 development grant and asked Twynham not to bid for more in the current round.

The board includes three tenants and two Christchurch councillors.