Under regulations, credit unions can invest in regulated funds that make loans for up to 25 years to Tier 3 Approved Housing Bodies (AHBs). These regulations create the opportunity for two community focused sectors to cooperate in addressing the current national housing shortage.

The Housing Agency Regulation Office sets out that the Tier 3 AHBs continue to forecast considerable growth. Estimated demand to meet current and growing demographics is more than €2.5 billion per year over the next ten 10 years.

The charts below from the Housing Agency Regulation Office’s Annual Report & Sectoral Analysis, show the projected growth in housing units and the increase in the use of private funding such as the type to be provided by the proposed CU AHB Fund.

Donal Coghlan is a director of Multaque Funds ICAV which was registered in 2020 with the Central Bank as an Irish Collective Asset-management Vehicle (“ICAV”). The ICAV will operate as an umbrella type fund with the CU AHB Fund a sub-fund specifically set up to enable credit unions invest in Tier 3 AHBs as prescribed by regulations.

If you would like to gain further insight into this new investment class for credit unions, please make contact with Donal at donal@cuservices.ie or use the Book an Appointment page to book a meeting with Donal.