Dáil Éireann Debate, Tuesday - 28 May 2013
461. Deputy Thomas P. Broughan asked the Minister for the Environment, Community and Local Government his plans to resume the social housing programme in 2013; if he will refer specifically to the role that will be played by the voluntary housing and co-operative housing sector in reducing the lengthy housing list in the coming months; and if he will make a statement on the matter. [25129/13]
View answerThe Government’s housing policy statement, published in June 2011, clearly identifies that the priority for Government will be to meet the most acute needs of households applying for social housing support. I am determined to ensure that the social housing programme optimises the delivery of social housing and the return for the resources invested. To achieve this, it is essential that we tailor the use of available Exchequer supports to prevailing conditions and explore the full range of solutions to address housing needs.
In terms of addressing the demand for social housing, the financial parameters within which we will be operating for the coming years rule out a return to large capital funded construction programmes. The Government is committed to responding more quickly and on a larger scale to social housing support needs through a variety of mechanisms, including through increased provision of social housing. In July 2012 I announced details of a three-year funding programme of €100 million to deliver some 800 new units of voluntary and local authority owned social housing. I am monitoring expenditure under my Department’s housing programme for 2013, together with the level of contractual commitments extending into 2014, with a view to a decision later this year on approving some limited new construction and house purchases over the period to end 2014.
Delivery of social housing will be significantly facilitated through more flexible funding models such as the Rental Accommodation Scheme and leasing but the Government is also committed to developing other funding mechanisms that will increase the supply of permanent new social housing. Such mechanisms will include options to purchase, build to lease and the sourcing of loan finance by approved housing bodies for construction and acquisition. There is also obvious potential, across a range of housing programmes, for the Government’s objective of sourcing and providing suitable residential units for use as social housing to be aligned with the commercial objectives of the National Asset Management Agency (NAMA). My Department and the Housing Agency are engaged with NAMA to ensure delivery of housing units for social purposes.
The housing policy statement identifies approved housing bodies (AHBs) as key partners in the delivery of social housing. This recognises both the constrained funding levels available for local authority construction programmes and the capacity and track-record of the voluntary and cooperative housing sector.
The move from capital funded programmes of construction and acquisition by approved housing bodies to more revenue funded options presents challenges for AHBs and will take some time to be fully agreed and implemented. As such, I intend to develop a regulatory framework for the sector that will provide support and assurance both to the sector itself and to its external partners as it takes on the expanded role envisaged for it in the policy statement and to underline its status as a viable and attractive investment opportunity for financial institutions.
This framework is being developed in consultation with the sector and it will:
- assist approved housing bodies to develop key governance and management structures to facilitate an expanded remit;
- provide independent scrutiny and validation of such bodies' competences; and
- place sustainable housing management policies and practices at the heart of a coordinated approach to the development of the sector.
An important step in this regard will be the publication in the coming weeks of a voluntary code for the regulation of AHBs. This code will be a first step towards a statutory regulatory framework that will protect the very significant State investment in the sector over the last two decades and will provide assistance to those working in the sector to meet the challenges ahead. It will serve as a learning opportunity for the sector and for my Department as we develop this longer-term statutory framework to best support the enhanced role of AHBs.
