Dáil Éireann Debate, Friday - 7 September 2018
1374. Deputy Eoin Ó Broin asked the Minister for Housing, Planning and Local Government the status of work with the credit unions and the approved housing bodies on the establishment of a special purpose vehicle to facilitate the delivery of social housing. [36299/18]
View answer1422. Deputy Darragh O'Brien asked the Minister for Housing, Planning and Local Government when the special purpose vehicle research project for the investment of credit union funds in social housing will be completed; and if he will make a statement on the matter. [36881/18]
View answer1428. Deputy Joan Burton asked the Minister for Housing, Planning and Local Government the progress being made in establishing a financial vehicle for credit unions to invest in social housing, as promised under Rebuilding Ireland; if his attention has been drawn to the fact that credit unions will only be permitted to invest in such a financial vehicle that is regulated by the Central Bank; if his officials have consulted with the Central Bank on this; if the funding vehicle will be regulated by the Central Bank; and if he will make a statement on the matter. [36959/18]
View answerI propose to take Questions Nos. 1374, 1422 and 1428 together.
Work has been ongoing between the Irish Council for Social Housing (ICSH), a number of larger Tier 3 AHBs and their financial advisers on the development of a vehicle for delivering private financing for AHBs providing social housing in line with commitments under the Rebuilding Ireland Action Plan for Housing and Homelessness. This project involved a number of phases, including engagement with a range of financial institutions. Part of this also involved the AHBs examining models that will facilitate private financing with regard to the recent reclassification of Tier 3 AHBs. It is anticipated this work will be completed shortly.
Following engagement with the credit union sector on proposals for credit unions to provide funding for the provision of social housing, the Central Bank undertook a review of the investment framework for credit unions in 2017. On foot of this review, revised Regulations commenced on 1 March 2018. The revised Regulations included the addition of investment in “regulated investment vehicles where the underlying investments of the regulated investment vehicle are investments in Tier 3 Approved Housing Bodies” as a permitted investment class for credit unions. As such, since March 2018, credit unions are permitted to provide funding, through a regulated investment vehicle, to Tier 3 AHBs for the provision of social housing. In respect of the development of specific SPVs by the credit unions to enable them to make investments in the sector, it is a matter for the credit unions themselves to make the necessary arrangements.
