Written answers
Tuesday, 18 September 2012
Department of Environment, Community and Local Government
Local Authority Housing Provision
Bernard Durkan (Kildare North, Fine Gael)
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To ask the Minister for Environment, Community and Local Government when it is expected that a local authority house building programme can be put in place in view of the vast number of applicants currently on local authority housing lists; the extent to which these numbers are likely to increase in the current economic climate; and if he will make a statement on the matter. [39319/12]
Jan O'Sullivan (Limerick City, Labour)
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The Government’s housing policy statement, published in June 2011, clearly identifies that the priority for Government will be to meet the most acute needs of households applying for social housing support. I am determined to ensure that the social housing programme is framed in a manner which optimises the delivery of social housing and the return for the resources invested. To achieve this it is essential that we tailor the use of available Exchequer supports to prevailing conditions and explore the full range of solutions to address housing needs.
The social housing capital budget has been reduced from €1.535 billion in 2008 to just over €333.7m this year, and the financial parameters within which we will be operating for the coming years rule out a return to large capital funded construction programmes. Nevertheless, the Government is committed to responding more quickly and on a larger scale to social housing support needs through a variety of mechanisms, including through increased provision of social housing. In spite of the challenging circumstances within which local authorities are now operating, a tentative projection of 4,000 to 4,500 housing units is anticipated for 2012.
Delivery of social housing will be significantly facilitated through more flexible funding models such as social leasing, but the Government is also committed to developing other funding mechanisms that will increase the supply of permanent new social housing. Such mechanisms will include options to purchase, build to lease and the sourcing of loan finance by approved housing bodies for construction and acquisition. In this regard, the Housing Finance Agency has received twelve applications for Certified Borrower status and awarded status to four bodies. The Agency has approved four applications for 98 social housing units in total (at a valuation of €13.4 million). It is envisaged that further lending will be generated for the Agency in 2012, under this scheme, with more approved housing bodies applying for Certified Body status and subsequent loan applications for social housing schemes.
I am conscious that the move from capital funded programmes of construction and acquisition by approved housing bodies to more revenue funded options presents challenges for them. I intend to develop an enabling regulatory framework for the sector that will provide support and assurance both to the sector itself and to its external partners as it takes on the expanded role envisaged for it by Government and to underline its status as a viable and attractive investment opportunity for financial institutions. My Department is actively working with the sector on the development of a voluntary code which I expect most bodies will endorse. This code, which should be finalised and agreed in the coming months, will serve as a learning opportunity for the sector and for my Department as we develop a longer-term statutory framework that will best support the enhanced role of AHBs.
There is also obvious potential, across a range of housing programmes, for the Government’s objective of sourcing and providing suitable residential units for use as social housing to be aligned with the commercial objectives of the National Asset Management Agency (NAMA). My Department and the Housing Agency are working closely with NAMA with the aim of ensuring that a significant number of housing units are made available in this way by NAMA in the current year and beyond.
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