Dáil Éireann Debate, Thursday - 11 October 2018
208. Deputy Patrick O'Donovan asked the Minister for Housing, Planning and Local Government the plans in place to allow voluntary housing associations to draw down capital towards the construction of community voluntary houses; his plans to make further allocations available under the capital assistance scheme; and if he will make a statement on the matter. [41594/18]
View answerThere is a range of funding and delivery mechanisms available for Approved Housing Bodies (AHBs) to deliver social housing supports in partnership with the local authorities. This includes the Capital Assistance Scheme, the Capital Advance Leasing Facility (CALF), the AHB Mortgage-to-Rent Scheme and the Social Housing Current Expenditure Programme. The funding under these programmes is provided directly to local authorities, who in turn, advance the funding to AHBs, as appropriate.
Funding is available under the Capital Assistance Scheme for the provision of housing by AHBs for the elderly, homeless and people with disabilities. Details of the scheme and of how to apply for funding are available from the local authorities, who are responsible for its administration and for inviting AHBs to submit proposals for the provision of housing. The scheme operates on an 'open call' basis, so AHBs can make proposals to local authorities at any time.
The CALF scheme is available to AHBs as a low interest loan provided by local authorities, and recouped by my Department. This allows AHBs access to early working capital (up to 30% of the relevant costs) for the purchase, construction or refurbishment of units which will then be made available for social housing purposes under the Social Housing Current Expenditure Programme. Low interest rate borrowings are available to AHBs from the Housing Finance Agency and other private finance streams to support the financing of the balance. The AHB effectively uses the CALF approval for the capital injection of up to 30% and the ongoing commitment of lease income under the Payment and Availability Agreement to leverage the balance of finance required. Once an AHB has secured the property and signed the Payment and Availability Agreement with the local authority, they use the lease income to service the borrowings. Properties made available under the CALF scheme are used to accommodate households from the local authority waiting list. Leased properties are allocated to tenants, in accordance with the relevant local authority's allocation scheme.
