Dáil Éireann Debate, Monday - 11 September 2017
169. Deputy Joan Burton asked the Minister for Finance the funding that has been made available through the Ireland Strategic Investment Fund for social and affordable housing provision; if he has satisfied himself with the rates of interest being charged to borrowers through the fund; if he is reviewing the operation of the mechanisms through which credit is accessed from the fund; and if he will make a statement on the matter. [38044/17]
View answerThe NTMA has informed me that in line with its statutory mandate, the Ireland Strategic Investment Fund (ISIF) is examining opportunities for investments that have the potential to support increased supply of housing. These include near-term pipeline housing projects in the build-to-rent sector and student accommodation along with investments in housing–related enabling infrastructure.
To date the Fund has committed more than €360 million across investments in Activate Capital, Ardstone Residential Partnership and Bancroft. Additionally the fund has invested a further €150 million in more general property investments. In the area of social and affordable housing the fund has invested in the DAD Property Fund Ltd who recently purchased 131 apartments in the New Bancroft Hall apartment block in Tallaght. The operation of the apartment block will comprise an element of social and affordable housing, alongside the open-market rental component.
The interest rate charged to borrowers must meet the risk–adjusted commercial return requirement of ISIF’s “double bottom line” mandate. Therefore, the interest rate applied to any individual debt financing arrangement relates to the level of risk and other investment factors in the underlying proposal.
The Fund is continuing to examine the feasibility of an ‘off-balance’ sheet mechanism to facilitate investment in social housing, while also considering any initiatives which cumulatively can make a contribution to increased housing output.
