A high-profile charity supporting young people is at risk due to poor financial management, it has emerged.

Forest Young Men’s Christian Association of East London Limited, widely known as Forest YMCA, based in Forest Road, Walthamstow, has been forced to take out a short term loan and is dependent on an arranged overdraft to function, the government regulator has revealed.

Homes and Communities Agency (HCA) today issued a regulatory notice on the charity.

It comes just months after Timothy Pain stepped down as chief executive of the charity.

He was described as the “driving force” behind a recent rebrand and led the myPad project, which housed young people in modified shipping containers.

Mr Pain also oversaw a £4million refurbishment of the charity’s headquarters.

Last month the Forest YMCA notified the HCA of its financial problems.

Title restrictions have been discovered on land which was earmarked for new container homes and the project is at risk of failure.

So-called “Unanticipated liabilities” relating to the capital development project were also discovered.

The charity has also had to take out an additional short-term loan to cover the liabilities.

In a report released today, the HCA said the charity’s “approach to risk” has caused concern.

The HCA said it is not satisfied with assurances given, but does not believe full enforcement action is proportionate at this stage.

Forest YMCA will now be closely monitored until necessary improvements are made.