Dáil Éireann Debate, Wednesday - 6 April 2016
771. Deputy Róisín Shortall asked the Minister for the Environment, Community and Local Government the basis of his decision to fund the full purchase by a voluntary housing association of two new housing estates (details supplied) in Dublin 9 and Dublin 11, given his guidelines as set out in the 2007 publication, Quality Housing for Sustainable Communities and specifically section 3.3.2 thereof. [6058/16]
Amharc ar fhreagraApproved Housing Bodies (AHBs) have a key role to play in the provision of high quality sustainable social housing and this is recognised in the Government’s Social Housing Strategy 2020. In this way, the Strategy recognises the record of steady achievement by AHBs over the past 20 years in providing in excess of 28,000 units of quality accommodation.
Under the Social Housing Current Expenditure Programme (SHCEP), my Department, together with local authorities, can support AHBs to construct, purchase or lease housing units and make them available for social housing. The housing units are secured under long-term leases/availability arrangements between local authorities and AHBs.
In addition, capital support is made available to AHBs through the Capital Advance Leasing Facility (CALF), which provides an up-front capital payment of up to 30% of the relevant construction or acquisition cost of a project, facilitating AHBs in raising private finance, including from the Housing Finance Agency (HFA), to acquire or build new social housing units. The capital advance is repayable by the AHB to the local authority at the end of a payment and availability agreement, usually 30 years. All proposals for CALF are submitted to my Department by AHBs for review and to ensure that the project complies with the terms of the CALF and that there are sufficient funds available. The local authority is also required to examine the proposal and report to my Department that it is suitable to meet housing need in the local area; that the properties comply with relevant standards and regulatory requirements; and that the objectives of sustainable communities are being met (for example, that there is not already an over-concentration of social housing in the area). A detailed independent financial appraisal of the proposal is then conducted by the Housing Agency on my Department’s behalf, including a review of the acquisition or construction costs and details relating to the market rents and availability payments sought by the AHB, in order to ensure that the project is sustainable in the long-term and represents value for money.
Subject to my Department’s approval to the proposal, the local authority then enters into a Capital Advance Agreement (CAA) and a payment and availability agreement with the AHB concerned whereby the properties in question are provided for social housing support purposes for a specified period between 10 and 30 years. Monies paid by the local authority to the AHB for these units are recouped to the local authority from my Department.
The projects specifically referred to by the Deputy, both of which involve the acquisition of units by an AHB in new residential developments, were assessed by my Department and the relevant local authorities, including from the sustainable communities point of view. The relevant AHB has received approval for CALF assistance in both cases, subject to the normal terms and conditions of the scheme. I understand that the balance of loan finance required to meet the purchase price of the units is being acquired by the AHB from the HFA. The units secured in both developments represent good value for money and will provide secure high quality social housing for around 115 households, including many families currently living in emergency accommodation, in areas of high social housing demand.
