Ujima is unable to repay its debts, and its creditors have taken steps to call in the receivers.
In response to this the organisation approached the Housing Corporation, which regulates the sector. This has placed a 28-day moratorium on proceedings to ensure Ujima's tenants are protected.
The corporation is proposing that Ujima's assets be transferred to London & Quadrant Housing Trust. This would result in the closure of Ujima, but would give security to its tenants.
The Housing Corporation placed Ujima under supervision last year, after concerns were raised about the running of the group. Ujima's group chief executive, Keith Kerr, and chief financial officer, George Avwunu, were subsequently suspended.
Rob Wilson, the Conservative MP for Reading East, where Ujima also has properties, said: "We need to know a great deal more about what the directors were doing and what control they were exerting on the business."
