A HOUSING association has been placed under supervision for poor management and below average performance.

The Isle of Wight Housing Association (IOWHA) came in for sharp criticism by the government watchdog, the Housing Corporation during its annual assessment.

It has breached the Regulatory Code for viability along with the way in which it is governed.

The corporation also criticised the housing association for poor performance and not developing enough future stock.

The association is in talks with Southern Housing Group about a proposed merger that would help IOWHA -- this is due to come into effect in September.

A Housing Corporation report said it would keep the IOWHA under supervision until the merger goes through.

The IOWHA owns and manages 316 general needs properties, 215 sheltered and supported housing units.

It also provides assistance to more than 100 vulnerable tenants in various types of accommodation across the Island.

A lot of the problems stem from difficulties with a proposed development known as Oakfield, in Ryde.

Decisions regarding the site purchase, management and development project led to concerns about the association's financial viability.

A review in 2003 found the board had not displayed sufficient accountability or control of the development.