Dáil Éireann Debate, Tuesday - 8 April 2014
358. Deputy Bernard J. Durkan asked the Minister for the Environment, Community and Local Government the extent to which provision can be made to revive the local authority house building programme without impacting negatively on the Government’s balance sheet; if the launch of a specific bond will be considered in this context; and if he will make a statement on the matter. [16795/14]
View answer359. Deputy Bernard J. Durkan asked the Minister for the Environment, Community and Local Government the extent to which the economic impact of a vastly diminished public housing stock which he inherited has been noted by his Department with a view to putting in place the necessary corrective measures without interfering with the integrity of the Government’s balance sheet; and if he will make a statement on the matter. [16796/14]
View answerI propose to take Questions Nos. 358 and 359 together.
I am determined to ensure that my Department's 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. The financial parameters within which we continue to operate will not facilitate a return to large-scale capital funded construction programmes. Earlier this year, I signalled a return to modest levels of new social housing construction with an announcement of 1,000 new housing starts over the 2014-2015 period. Notwithstanding this, the Government acknowledges the need to respond more quickly and on a larger scale to social housing support needs through a variety of mechanisms. To maximise the social gain from constrained resources, the social housing leasing initiative and the Rental Accommodation Scheme each play their part and I am fully committed to capturing social gain from private developments. Alongside expanding the role of the Approved Housing Bodies (AHBs) in terms of acquisition and construction, other mechanisms will include options to purchase within the leasing model and build to lease. In 2014, funding for housing, at over €587 million, is effectively maintained at 2013 levels. This includes a €50 million capital stimulus to support construction and related programmes, primarily in the housing area, including €30 million to recommence a State house building programme; €10 million for an unfinished housing estate resolution project; and €10 million for housing adaptation grants. I expect the final output across all social housing programmes for 2014 to be in the region of 5,000 new housing units.
Last month I announced the approval of some 56 social housing construction projects with an overall value of some €68 million under the Local Authority housing construction programme for 2014-2015. This new construction programme will deliver 449 new units of accommodation for people on the housing waiting list. Projects were selected for approval on the basis of the proposals submitted to my Department by the local authorities, the relative priority afforded to each of these projects and the overall level of housing need locally. On Budget Day 2014, I announced details of a new measure with funding of €15 million which will be invested in bringing some 400 vacant and boarded-up local authority houses back into productive use. My Department is currently assessing the proposals recently received from local authorities under this programme and I will announce details of the funding allocations as soon as possible. I also intend to announce details shortly of the allocations to local authorities under my Department's Capital Assistance Scheme for the construction and acquisition of housing for persons with specific categories of need over the 2014-2015 period. Some €35 million is being set aside for this programme which is intended to deliver in the region of 230 new homes.
My Department, the Housing Agency and NAMA continue to work together with housing authorities and AHBs towards bringing suitable NAMA units into social use and to ensure continued delivery of housing units for social purposes. AHBs will also play a key role in the delivery of social housing, particularly having regard to their capacity to attract external financial investment. It continues to be my objective to maximise the delivery of social housing using all of the resources available, including potentially social housing bonds and social impact bonds.
