Dáil Éireann Debate, Tuesday - 28 February 2023
282. Deputy Eoin Ó Broin asked the Minister for Housing, Local Government and Heritage the current status of the €70 million Housing Agency revolving fund; what has been agreed as terms of reference in terms of the review of this revolving fund; and the timeline for the review to be completed. [9826/23]
Amharc ar fhreagraThe €70 million revolving Housing Agency Acquisitions Fund (HAA fund) was established with effect from the 1 January 2017 with the objective of acquiring vacant property portfolios from banks and financial institutions that could then be used for social housing. The target for the HAA fund was to acquire 1,600 units over a four year period to 2020 with this target subsequently extended out to 2021.
The HAA fund has enabled the Housing Agency to actively engage with banks and investment companies in relation to the acquisitions of properties. Through the provision of direct access to capital funding for the Housing Agency, the aim was to simplify the current acquisition process for vacant portfolio purchases; speed up the acquisition process and to encourage investors to make additional supply available. The HAA fund is replenished by the Housing Agency through the sale of units primarily to the Approved Housing Body (AHB) sector and the funds received are recycled back into the fund for future acquisitions.
This was intended to be a medium term initiative, targeting the vacant property portfolios of financial institutions and investment companies, in direct response to the social housing shortage that would be designed to complement, not displace, ongoing targeted acquisition activity by local authorities and AHBs.
As at Q4 2022, 903 units were acquired under the HAA fund programme. A further 52 properties were delivered under the HAA fund programme but bought directly by local authorities in 2019/2020 using capital funding through the Social Housing Capital Investment Programme. The Housing Agency also completed the acquisition of 582 properties while acting on behalf of local authorities.
Under the commitment in Housing For All, my Department completed a review of the HAA fund which investigated the challenges faced by the fund and explored opportunities that centred on potentially repurposing the fund to support other initiatives within Housing for All. My Department has engaged with the Department of Public Expenditure, NDP Delivery and Reform on these proposals. Most recently, my Department further explored the scope of the HAA fund to add to the social housing system through converting non-residential premises or larger residential units into smaller units and, as appropriate, some communal / community use, particularly for social housing applicants experiencing homelessness. My Department is currently engaging with the Department of Public Expenditure, NDP Delivery and Reform on this proposal.
