McCarthy, chair of the NHF for the past three years and chief executive of Peabody since 1999, is to move to the Office of the Deputy Prime Minister in October. The post will initially be for five years with an option to extend it for a further three.
He is to be director-general of the sustainable communities delivery unit, overseeing the implementation of the Communities Plan. This new division was set up after a reorganisation of the department by deputy prime minister John Prescott.
Details of his salary have not been confirmed but it is believed to be in the region of £100,000.
The NHF and the Peabody Trust have both started looking for a successor.
The NHF's national council is to meet on 9 October, when it will elect a chair for the year ahead.
Under NHF rules, the chair must be one of the national council's 54 members (see below).
A lead contender for the job is understood to be Deborah Shackleton, chief executive of Liverpool-based Riverside Housing Association. Clare Hepworth, chair of Three Rivers Housing Association, has also expressed an interest.
The Peabody Trust is to advertise for a new chief executive next week. Peabody, the UK's largest developing association, has already hired recruitment consultant Saxon Bampfylde Hever, which recruited McCarthy in 1999.
McCarthy will join the ODPM at the same level as senior director-general Genie Turton, who is in charge of housing, planning and regeneration.
Those reporting directly to McCarthy will be Andrew Wells, director of sustainable communities, and David Lunts, head of urban policy. McCarthy will be responsible for English Partnerships, and responsibility for the Housing Corporation will remain with Turton.
McCarthy said of his new job: "I am going to have to work across government to make sure it doesn't just deliver the housing, but that housing is a part of what will become long-term, sustainable communities.
"As with all jobs like this, there is going to be a bit of enforcement, a lot of encouragement and a lot of influencing and persuading people that if you all push in the same direction, you will win."
Senior professionals in the housing sector welcomed McCarthy's appointment, but also warned that a dynamic new chair would be needed at the NHF.
Electing the next federation chair
The new chair will have to be one of the national council’s 54 members. The council will meet on 9 October, after the NHF’s annual general meeting. Candidates for the role must be proposed and seconded; the winner has to win a simple majority. The length of tenure is one year, although it is convention that a sitting chair is not opposed for re-election if they express an intention to stay on. Richard McCarthy had planned to remain as chair for a further year, which would have extended his chairmanship to four years. McCarthy will now stand down as chair at the end of September.Source
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