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12 Further Developments and Conclusion / continued12.2 ConclusionRegulation is an integral part of an effective housingsystem and an enabler for investment and new supply.Regulation is important in terms of safeguarding thesignificant investment that has been made by the Statein providing social housing, as well as protecting existingtenants. Good financial health is critical. It is a critical stepin developing the capacity of the sector and buildingconfidence of both public and private funders to investin the sector. This Financial Standard and AssessmentFramework provides specifically for more robustfinancial regulation and narrows the gap betweenthe current regulation position and the shift to astatutory framework in 2016.The pilot with a number of Tier 3 AHBs gives us anopportunity to test the framework before full roll-outand to develop a User Guide, which will assist thesector further in their implementation. The followingappendices are divided into tabulated sectionsaccording to each Tier level and provide furtherdetail of the individual Tier requirements.The Regulation Office looks forward to workingwith the Sector on the continued strengtheningand evolution of the Regulatory Frameworkfor social housing provision in Ireland.We have developed a thorough approach to assessingand monitoring AHBs financial health and viability.The work and support that the sector has put in todeveloping this framework is acknowledged in particularthe contribution of the Financial Capacity group andsub group, the working groups for each of the Tierlevels and the representative bodies, the ICSH andNABCO. We believe the framework will support thesector’s continued growth and strengthen its capacityto manage social housing, while providing assurance totenants, Government and investors that investment isbeing well managed.Regulation of the sector is still relatively new and theevolving framework will be challenging for some AHBsto implement. The phasing in of the requirements overthe three year timeframe will allow time, particularlyfor smaller AHBs to adapt to the new requirements.The Framework has also followed the Code’s principleof proportionality and therefore the requirementsare proportionate to each Tier level. The role of theRegulation Office will be more than just about assessingand evaluating returns. We want to continue to workwith and support the sector in meeting the newregulatory requirements. We are conscious also of themany other competing regulatory requirements thatthe sector has and will focus on trying to achieve anyefficiencies we can in this regard.30Housing Agency Regulation Office