Dáil Éireann Debate, Wednesday - 8 February 2017
154. Deputy Barry Cowen asked the Minister for Housing, Planning, Community and Local Government if he has had any meetings with private or third party investors that have proposals to invest in social or affordable housing; the date of the meetings; and the details of the proposals discussed. [6171/17]
View answer155. Deputy Barry Cowen asked the Minister for Housing, Planning, Community and Local Government if he has had any meetings with private investors that have proposals to become involved as third party investors in the mortgage to rent scheme or an alternative variant of this scheme; the date of the meetings; and the details of the proposals discussed. [6172/17]
View answer168. Deputy Barry Cowen asked the Minister for Housing, Planning, Community and Local Government if he has met with financial institutions or other third parties to discuss proposals for long term leasing arrangements between local authorities and financial institutions as a means of providing social or affordable housing; and the names of the institutions he has met, the date of the meetings and type of the proposals under discussion. [6277/17]
View answerI propose to take Questions Nos. 154, 155 and 168 together.
The Rebuilding Ireland Action Plan on Housing and Homelessness acknowledges the role of private sector funding in addressing the significant housing need that currently exists in Ireland. Since taking up office as Minister for Housing, Planning, Community and Local Government, I have been open to ideas and proposals from private sector bodies to assist the delivery of social housing and affordable private housing. I have met with a range of organisations, including representative bodies, private companies and Approved Housing Bodies (AHBs).
On 14 June 2016, I met with Irish Residential Properties REIT plc where the matters of housing and building regulations were addressed. On 23 June 2016, I attended a meeting of Property Industry Ireland, an organisation representing the property industry, during which interest was expressed by participants in private investment in social housing provision. Meetings were held involving WK Nowlan Property Ltd. on 7 September 2016 and 25 January 2017, which I attended, where proposals to improve the delivery of affordable housing were raised. On 22 September and 6 October 2016, I attended meetings involving the Construction Industry Federation where housing development issues were addressed. On 29 September 2016, I attended a meeting with Atelier Capital LLP, a private body interested in investing in student accommodation provision. On the same date I participated at an event hosted by the Cork Chapter of the Irish League of Credit Unions at which the potential for credit union investment in social housing was addressed. On 19 October 2016 I met with a representative of the European Investment Bank, during which the potential for investment in social housing was discussed.
A number of private equity firms have expressed an interest in purchasing mortgage debt portfolios from commercial banks with a view to exploring the potential for them to access the Mortgage to Rent Scheme model for the borrowers in occupation of the mortgaged property. They are seeking an alternative arrangement that would see the mortgaged property staying in the funding firm’s ownership and the property itself leased back to the local authority in circumstances where the borrower is eligible for Mortgage to Rent and the borrower would therefore remain in their own home. In this regard, Minister of State English met with Beacon Social Housing on 1 July and 21 September 2016, Kohlberg Kravis Roberts (KKR) on 21 September 2016, Bartra Capital on 1 December 2016 and the Arizun Group on 15 December 2016.
Currently, the mortgage to rent scheme relies on Approved Housing Bodies (AHBs) purchasing from lenders properties that have been voluntarily surrendered by eligible borrowers. One of the outcomes of the Review of the Mortgage to Rent Scheme is that in order to test the operability of alternative funding models for the scheme, the Housing Agency will work with a number of financial entities who have come forward with an interest in working with the MTR scheme to progress a minimum of 200 units based on alternative lease arrangements. The objective is to explore what is available within the current market and to determine if this alternative model will benefit a greater number of households.
I routinely meet with Approved Housing Bodies in the course of my work, where issues relating to investment by the voluntary housing sector in social housing are raised. In the development of Rebuilding Ireland, and subsequently, I have been actively engaged with stakeholder bodies, including those involved in the delivery and financing of social housing.
The Social Housing Current Expenditure Programme provides a means whereby properties can be built or bought by AHBs with the combined use of State and private funding, and, leased by AHBs and Local Authorities from private providers, for the provision of social housing. This scheme is underpinned by a lease and other legal agreements. These provide that rental payments are made by the State over an agreed long-term time period, typically 20 years. In return the housing unit is made available for social housing.
Changes are now being proposed to this scheme in order to facilitate larger institutional private investors to become involved in the financing of social housing. The National Development Finance Agency (NDFA) is acting as financial advisor to my Department in this work and is undertaking market engagement in the development of the scheme. Work on the scheme is well advanced, with details expected to be announced in the coming months.
