Oireachtas Joint and Select Committees

Tuesday, 2 October 2012

Joint Oireachtas Committee on Environment, Culture and the Gaeltacht

Discussion with Housing Finance Agency

3:45 pm

Photo of Ciarán LynchCiarán Lynch (Cork South Central, Labour) | Oireachtas source

Let me summarise the issues that are outstanding. We are seeing the broadening of social housing provision, which goes back to the Housing (Miscellaneous Provisions) Act 2009 under which every agency is now defined as a social housing agency provider, once it is registered to be so. The HFA is a lending agency and will be lending more and more to voluntary housing bodies, in respect of which there is always a risk. One of the historical difficulties with social housing concerns the differential rent and income ceilings. Traditionally, one ends up with poor people in poor housing. If a different approach was adopted, one could have a blend, with some having a higher income threshold. From the point of view of funding, that means the ratio of risk would be much better and the people living in voluntary housing estates would not be drawn only from those on low incomes. One would have a more balanced society as a result.

That leads us to the differential rent system operated by the local authorities. The local authorities and voluntary housing bodies repay their loans to the HFA. Is there a possibility of revisiting the differential rent scheme and creating a second tier for those with more substantial income in order that they could participate in the voluntary housing sector, albeit at a different level?

I tabled a parliamentary question on the number of vacant properties in the possession of the local authorities. I remember that in terms of rent forgone to local authorities, the figure ranged between €12 million and €15 million per annum. That is a whopping amount of money when one considers €20 million a year is being put aside to fund long-term leasing. In fact, a greater number of properties are vacant and they would generate more money than the sums paid out to fund long-term leasing.

Mr. O'Leary referred to short-term lending. Is it time to look at this? I recognise that he does not decide on policy, but could consideration be given to the issue? Is there a possibility that some short-term lending programme could be looked at where the turn-around process for vacant local authority houses could be speeded up? If one takes it, as a base level, that a local authority house will be vacant for the 52 weeks of the year, at €100 a week, the local authority will lose €5,200.

Comments

No comments

Log in or join to post a public comment.