Dáil Éireann Debate, Thursday - 26 January 2023
95. Deputy Willie O'Dea asked the Minister for Housing, Local Government and Heritage if he will provide an update on the review of the capital advance leasing facility scheme; and if he will make a statement on the matter. [3533/23]
Amharc ar fhreagraHousing for All sets out national housing policy and implementation measures for the period to 2030. As part of the objective to increase social housing delivery, the plan recognises the significant role that Approved Housing Bodies (AHBs) have played as partners in social housing delivery and will continue to play over the period of Housing For All.
The Capital Advance Leasing Facility (CALF) funding model has worked very successfully for more than a decade. Under the Housing for All Action Plan Update, a specific objective, Action 4, is to “review the structure and operation of CALF to assess whether any refinements to the facility are required to support delivery of social housing by the AHB sector across a wider range of Local Authority areas, and to identify resulting actions for implementation.” The review was commenced in Q4 2021 and my Department has had the assistance and support of the Housing Agency during the review process.
One of the key purposes of this review was to consider the structure of the P&A-CALF funding model to determine if it should be adjusted to support delivery by the AHB sector across a wider range of areas and what options might be available to enable this. This is a recognition that the CALF model historically did not work well in areas with lower rental market values. The review is also cognisant of the significant rise in construction inflation and increases in interest rates so these aspects have been considered in the context of the recommendations for a revised funding model.
My Department, in conjunction with colleagues in the Housing Agency and relevant stakeholders, has now prepared a number of draft recommendations and a draft report on the CALF Review. I have considered these draft recommendations and the Department of Public Expenditure and Reform will shortly consider a request for sanction for the changes to the CALF Funding model. It is planned to implement the new methodology for the P&A-CALF funding model as soon as approval has been obtained. The implementation will be assisted by a Circular to guide the sector along with intensive stakeholder engagement to explain the changes and this will take place in Q1 2023.
