Michael Moynihan
Question:69. Deputy Michael Moynihan asked the Minister for Finance his proposals to enable credit unions fund social housing; and if he will make a statement on the matter. [44858/21]
View answerTuesday, 21 September 2021
Questions (69)
Written answers
I am pleased to share with the Deputy that two credit union backed funds have received approval from the Central Bank. Credit unions will be able to invest in these regulated funds, which will subsequently lend to Approved Housing Bodies (AHBs). This will provide an additional funding channel for AHBs who will have a large role to play in the recently announced Housing for All Action Plan.
Following a review of the investment framework for credit unions in 2017, the Central Bank introduced amending investment regulations for credit unions. Since 1 March 2018, credit unions have been permitted to invest in regulated investment vehicles where the underlying investments are investments in Tier 3 Approved Housing Bodies (AHBs) for the provision of social housing. The regulations require that investments by credit unions in Tier 3 AHBs must be made through a regulated investment vehicle. The maximum permitted investment amount per credit union is 50% of a credit union's regulatory reserves where a credit union has total assets of at least €100 million and 25% of a credit unions regulatory reserves for all other credit unions. These limits may facilitate a combined sector investment in Tier 3 AHBs of €911 million.
It should be noted that the Department of Housing, Planning, Community and Local Government is the department with primary responsibility for the formulation and implementation of policy, and for the preparation of legislation, in relation to housing.