Dáil Éireann Debate, Tuesday - 28 November 2017
694. Deputy Robert Troy asked the Minister for Housing, Planning and Local Government his plans to ensure the necessary actions are taken to allow a housing body to purchase properties (details supplied); and if he will make a statement on the matter. [50034/17]
Amharc ar fhreagraI can confirm that Clúid Housing Association have received approval from my Department under the Capital Advance Leasing Facility (CALF) to acquire 13 homes at the site concerned. I understand from the local authority that the units are currently undergoing refurbishment works, which are due to be finished early in 2018. Once these works are complete, the approved housing body (AHB) will proceed to close the sale with the vendor.
CALF is available as a low interest loan provided by local authorities (and recouped by my Department) to AHBs. This funding 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 (SHCEP). 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 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.
