The Welsh Government is being urged to carry out a public consultation over the Tai Cantref merger.
The board of the Teifi Valley-based association has recently resolved to seek a merger, following a number of governance issues in recent months.
Ceredigion AM Elin Jones has issued warning on housing association crisis.
Before any merger is decided on between Tai Cantref and another housing association she wants the needs of the people understood.
She wants the Welsh Government to step in to ensure that the needs of tenants and the long-term future of social housing in Ceredigion are fully considered.
Following meetings with many constituents, the local AM has been critical of a lack of engagement – with tenants and the wider public.
Elin Jones said: “Having spoken to a number of interested people, it’s clear that the latest decision by the Board to seek a merger partner has caught all by surprise – tenants, staff and the wider community.
“There’s a real lack of engagement on possible solutions for Tai Cantref’s difficulties. Indeed, there is nowhere near enough community information or clear understanding of what those issues may be.
“Tai Cantref has a longstanding history in Ceredigion and beyond. The vast majority of its stock is based in Ceredigion. It has strong community credentials and is a fully bilingual housing association. Any takeover by a housing association from outside the area risks the integrity and continuity of Tai Cantref’s work. Social housing needs local control, not a takeover by a large company from elsewhere."
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