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Approved Housing Bodies

Dáil Éireann Debate, Wednesday - 24 February 2021

Wednesday, 24 February 2021

Ceisteanna (336)

Eoin Ó Broin

Ceist:

336. Deputy Eoin Ó Broin asked the Minister for Housing, Local Government and Heritage the total value of the capital loan subsidy scheme, CLSS, the capital advance leasing facility, CALF, and other loans currently issued to each approved housing body; the dates on which these loans start to fall due; and his plans with respect to these loans, that is if he plans to have the loans repaid, waived or turned into equity in the respective properties in tabular form. [10348/21]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Housing)

The information requested is being compiled and will be forwarded to the Deputy in accordance with Standing Orders.

The following deferred reply was received under Standing Order 51
Approved Housing Bodies (AHBs) are making an important contribution to social housing delivery. My Department operates a number of funding programmes that assist local authorities to work in partnership with AHBs to construct, purchase and lease new homes and make them available for social housing.
This funding is underpinned by either mortgage agreements, capital advance agreements, leases or Payment and Availability agreements which set out the terms and conditions of the funding and the specific responsibilities the AHB has for the properties and their tenants.
Capital Advance Leasing Facility (CALF)
Capital Advance Loan Facility (CALF) funding is capital support provided to AHBs by local authorities to facilitate the funding of construction, acquisition or refurbishment of new social housing units. This loan facility can support up to 30% of the eligible capital cost of the housing project, with the housing units provided to local authorities for social housing use under long-term lease arrangements known as Payment and Availability Agreements. A nominal interest rate of 2% fixed per annum is charged by the local authority on the initial capital amount. Repayments on either the capital or interest of the CALF funding are not required during the term of the loan (between 10 and 30 years), although where an AHB chooses to, repayments can be made during the term. At the end of the term, the outstanding capital amount plus the interest accrued, is owed and repayable to the local authority. The local authority issues the CALF monies to the AHB and the local authority, in turn, recoups same from the Department. The loans are administered, managed, and registered on the Central Credit Register by the Local Authorities. Clear guidance was issued in 2019 to the sector that the CALF loan for AHB Accounting purposes is reported under long-term liabilities. AHBs recognise the CALF Loan as a debt and understand their obligation to repay the debt upon its due date. It is the responsibility of the AHB to operate prudentially in order to be in a position to fulfil its obligations under the Capital Advance Agreement. The remainder of the capital cost is sourced by the AHB through other borrowings, to which the local authorities are not party.
My Department does not hold the loan agreements under CALF, as the loan agreement, is between the local authority and the relevant AHB. Accordingly, information on the number and value of CALF loans, including the balance owning and associated due date, is held by the relevant local authorities. The value and the term of each CALF loan varies by project.
While my Department does not hold the loan agreements, the following is a table of CALF-related monies drawn down from my Department since 2011 by the various local authorities.

LOCAL AUTHORITY

CALF DRAWDOWN FROM 2011 TO 31/12/2020

Carlow

€9,052,178.46

Cavan

€3,668,543.77

Clare

€6,242,229.14

Cork City

€33,127,703.49

Cork County

€25,946,071.83

DLR

€34,479,515.43

Donegal

€2,329,930.45

Dublin City

€105,073,851.87

Fingal

€74,170,279.86

Galway City

€17,829,890.48

Galway County

€2,661,946.11

Kerry

€12,929,106.62

Kildare

€34,613,088.05

Kilkenny

€12,164,020.07

Laois

€6,970,816.93

Leitrim

€392,843.38

Limerick

€3,886,640.88

Longford

€117,006.69

Louth

€50,381,721.51

Mayo

€648,556.22

Meath

€39,123,313.00

Monaghan

€4,938,148.32

Offaly

€3,802,010.59

Roscommon

€1,032,249.62

Sligo

€37,507.00

South Dublin

€43,678,119.25

Tipperary

€6,108,878.65

Waterford

€8,687,130.33

Westmeath

€3,369,004.98

Wexford

€16,274,994.84

Wicklow

€17,385,263.34

Owing to the nature of the CALF, delivery of new housing does not always arise in the same year as expenditure and projects delivered under phased programmes may cross a number of payment periods.
The first loan under CALF and Mortgage to Rent (MTR) Calf falls due in 2029.
Mortgage to Rent Scheme (MTR)
A feature of the Mortgage to Rent (MTR) scheme is that the borrowers, having become social housing tenants following their voluntary surrender of their home to their lender who then sells it to an AHB, have the option of buying back their home at a later date which may be during the lifetime of the CALF loan issued by the local authority to the AHB to fund the acquisition. When the property sale by the AHB to the tenant is completed, the CALF loan issued in respect of the property is required to be repaid by the AHB to the local authority together with the interest accrued.
While my Department does not hold the loan agreements, the following is a table of MTR CALF-related monies drawn down from my Department since 2013 by the various local authorities.

LOCAL AUTHORITY

MTR-CALF DRAWDOWN FROM 2013 TO 31/12/2020

Carlow

€624,892.65

Cavan

€311,814.31

Clare

€142,414.05

Cork City

€748,311.60

Cork County

€845,559.58

DLR

€271,210.09

Dublin City

€2,030,163.45

Fingal

€2,211,542.26

Galway City

€196,913.71

Galway County

€373,766.89

Kerry

€180,165.53

Kildare

€2,183,805.58

Kilkenny

€573,298.84

Laois

€479,963.15

Leitrim

€14,532.37

Limerick

€652,256.41

Longford

€119,330.74

Louth

€758,510.48

Mayo

€193,542.83

Meath

€1,991,867.32

Monaghan

€183,229.38

Offaly

€573,841.53

Roscommon

€20,021.00

Sligo

€9,478.80

South Dublin

€1,981,390.23

Tipperary

€778,128.95

Waterford

€1,242,669.12

Westmeath

€515,731.22

Wexford

€848,981.80

Wicklow

€1,781,735.15

Capital Loan and Subsidy Scheme (CLSS)
In relation to the Capital Loan and Subsidy Scheme (CLSS), which provided mortgage finance to AHBs by way of loans from the local authorities, approximately 10,200 new social homes were delivered. A breakdown of this delivery by year and by local authority, is available at the following link: https://assets.gov.ie/100009/2ce03d43-8854-4bd8-b9f2-366b18ab8132.xlsx
The interest rate is 1.50% and the vast majority of the loans between the Housing Finance Agency (HFA) and the local authorities are for a 30-year term. The table below sets out the value and number of the loans advanced to the local authorities by the HFA and the balance owing on these loans at the end of 2020.

Local Authority

Amount Advanced

Balance at 31/12/2020

Local Authority

Amount Advanced

Balance at 31/12/2020

Carlow

€26,000,076

€11,928,689

Cavan

€7,577,925

€4,816,853

Clare

€13,830,697

€7,130,075

Cork City

€44,399,250

€26,085,705

Cork

€75,570,429

€45,401,735

Donegal

€49,697,965

€26,280,854

Dublin City

€316,179,480

€186,584,110

DLR

€88,693,512

€56,026,281

Fingal

€107,234,792

€68,751,025

Galway City

€19,258,415

€9,700,335

Galway

€20,720,741

€11,059,506

Kerry

€24,505,839

€14,631,951

Kildare

€54,794,583

€29,475,128

Kilkenny

€10,255,152

€3,749,398

Laois

€42,212,240

€25,546,896

Leitrim

€5,377,885

€2,919,374

Limerick

€23,341,132

€12,599,250

Longford

€29,274,185

€17,628,768

Louth

€83,222,447

€48,430,565

Mayo

€25,525,405

€15,900,113

Meath

€19,176,927

€9,128,483

Monaghan

€9,586,444

€5,417,528

Offaly

€28,879,678

€14,748,326

Roscommon

€2,870,331

€1,366,022

Sligo

€20,664,964

€9,819,365

South Dublin

€140,933,682

€79,121,922

Tipperary

€77,532,692

€45,543,295

Waterford

€42,058,000

€18,731,067

Wexford

€26,601,011

€11,767,541

Wicklow

€8,060,232

€3,746,890

The CLSS loans will start to expire in 2022 and the table below shows the maturity profile of loans as at end 2020.

Expiry Year

Value of Loans Expiring

Expiry Year

Value of Loans Expiring

2022

€171,072

2023

€1,282,637

2024

€3,150,128

2025

€5,108,185

2026

€5,124,030

2027

€4,443,196

2028

€4,567,357

2029

€12,079,680

2030

€27,203,796

2031

€36,282,816

2032

€41,272,428

2033

€57,856,893

2034

€52,066,081

2035

€43,931,627

2036

€49,203,779

2037

€99,242,266

2038

€157,624,756

2039

€94,912,475

2040

€66,735,027

2041

€33,268,013

2042

€10,043,183

2043

€7,033,851

2044

€5,638,030

2045

€2,065,299

2046

€1,956,446

2047

€1,099,330

2048

€124,050

2050

€550,620

Question No. 337 answered with Question No. 282.
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