Housing Minister Demands Transfer of 60 Properties from Charity

Housing Minister James Browne has ordered the Peter McVerry Trust to immediately transfer 60 properties to local authorities as part of the government’s strategy to reclaim €15 million provided to the charity during a financial crisis. Documents obtained by Extra.ie detail the directive, which aims to facilitate the use of these properties for social housing.

In early May, officials from the Department of Housing identified a total of 62 unencumbered properties. This list included 39 homes in Dublin, nine in Limerick, three in both Kildare and Roscommon, two in Cavan and the Fingal area, and one each in Mayo, south Dublin, Tipperary, and Westmeath.

In a letter dated May 29, Minister Browne directed the charity’s chief executive, Niall Mulligan, to commence the transfer process. “I am hereby instructing the Peter McVerry Trust to immediately undertake the transfer of unencumbered properties to the ownership of the relevant local authority in each case, up to the value of €15 million,” he stated. The directive aligns with the government’s commitment to address the housing crisis by enhancing the availability of social housing.

The government’s financial support, agreed upon in November 2023, was intended to address the trust’s cash flow difficulties and debt issues. The €15 million bailout was provided in phases from December 1, 2023, to March 31, 2024, under specific conditions aimed at improving financial management within the charity.

As part of the agreement, officials noted that the Minister reserved the right to recover the bailout’s value through asset transfers or by placing a second charge on existing properties. According to departmental documentation, the trust was obliged to provide detailed information on each property transferred, including agreed valuations with local authorities, which would be recorded in a central database.

The Department of Housing has established an Oversight Group and a Capital Sub-Group to monitor the implementation of the conditions tied to the funding. The Capital Sub-Group has been actively collaborating with the Peter McVerry Trust to identify properties that are unencumbered, meaning they are free from debt, which can be transferred to local councils.

Civil servants recommended that Minister Browne formally instruct the trust to proceed with the property transfers. Following the approval of this recommendation on May 6, the Minister’s instructions were communicated to the trust on May 29. He reiterated the importance of compliance with the conditions set forth in the bailout, particularly Condition 7, which emphasizes the government’s right to recover funds.

The Department of Housing has not disclosed whether any properties have been successfully transferred so far. A spokesperson indicated that the department has engaged extensively with the trust regarding the conditions attached to the funding. “Significant progress has been made by the trust in improving its processes, and regular updates are provided to the department in relation to the ongoing work in this regard,” the spokesperson stated.

Due to the commercial sensitivity of the matter, specific properties cannot be identified. It was also clarified that tenants currently occupying the properties will not be affected by the transfer process and will remain in their homes.

The Peter McVerry Trust, which manages 1,616 housing units across the country, has faced numerous financial challenges in recent years, attributed to overextension as its operations expanded. An investigation by the Charities Regulator, published last November, revealed serious governance issues within the organization, including a lack of adequate financial controls and oversight. The report highlighted that millions of euros in funds were transferred without adequate explanation, raising concerns about adherence to donor intentions regarding restricted funds.

As the Housing Minister pushes for property transfers, the focus remains on ensuring effective management of resources to tackle the ongoing housing crisis in Ireland.