Dáil Éireann Debate, Tuesday - 3 December 2013
256. Deputy Mary Lou McDonald asked the Minister for the Environment, Community and Local Government the potential sources of funding from the European Investment Bank for social housing build, social housing refurbishment and social housing energy efficiency retrofitting or any related schemes; and the applications his Department has made or encouraged local authorities to make to access such funding. [51736/13]
Amharc ar fhreagra257. Deputy Mary Lou McDonald asked the Minister for the Environment, Community and Local Government the discussions that have been held within his Department or between his Department and any local authorities or other related bodies on the subject of local authorities establishing arms-length companies operating as housing associations for the purpose of drawing down funds from the Housing Finance Agency and-or the European Investment Bank to fund social housing projects; his views on this matter; and if his Department intends to carry out any further work on this issue as part of its plan to meet the existing levels of housing need. [51737/13]
Amharc ar fhreagraI propose to take Questions Nos. 256 and 257 together.
In 2011 the Capital Advance Leasing Facility (CALF) was introduced to facilitate the securing of finance by Approved Housing Bodies (AHBs) from sources other than the Exchequer, including from the Housing Finance Agency and private lending institutions. The CALF provides a capital equity injection which assists AHBs in securing private finance. To date over €10 million has been advanced to AHBs using this facility which has supported the provision of 158 social housing units. It is open to AHBs to consider and put forward proposals to meet housing need under the CALF. I am not aware of any case where loan finance has been sourced by AHBs from the European Investment Bank (EIB). It would be a matter for AHBs themselves to approach the EIB with proposals in this regard.
Under the EU Structural and Investment Funds 2014 -2020, financial assistance may be provided by way of grant from the European Regional Development Fund (ERDF) in respect of a number of investment priorities within the thematic objectives set out in the relevant EU Regulation. In accordance with the investment priority of Supporting the Shift Towards a Low Carbon Economy, my Department submitted a proposal under the South and East Regional Operational Programme 2014-2020 for the deep retrofitting of some 2,000 local authority apartments and flats in Dublin, Cork and Limerick at an estimated cost of €100 million. It is proposed that 25% of the cost would be met by way of a grant from the ERDF with a further 50% of the cost to be met by way of loan finance from the EIB. The balance of funding would be provided from my Department's social housing budget.
It is intended that the retrofitting works would be undertaken by a number of AHBs who would subsequently manage and maintain the properties on behalf of the local authority. My Department held a series of meetings with relevant stakeholders in connection with this application including the Departments of Finance and Public Expenditure and Reform, the Regional Assemblies which act as Managing Authority for the EU Structural and Investment Funds, and the Irish Council for Social Housing (ICSH). My Department understands the ICSH intend to invite AHBs with an interest in participating in the project to a meeting in the near future.
Further social housing proposals of this nature and involving the EIB and the AHBs will be considered in the context of the outcome of this proposal.
