Aideen Hayden (Labour) | Oireachtas source

I thank the witnesses for their presentations. It is widely accepted that Clúid represents the gold standard in the voluntary housing association sector. Given the lack of regulation of the sector historically, it is probably a miracle we have not had one or two significant disasters. In terms of the timescale for regulation, Mr. Ó Lionáin mentioned a lead-in time of approximately two years. Given that the lack of regulation has already proved to be a barrier to the voluntary housing association sector in accessing commercial finance and in accessing finance for the Housing Finance Agency, is that lead-in time too long? Would it be preferable to see statutory regulation in a much shorter timescale?

I refer to the UK model, its regulator and its powers, including the power to remove an entire board of directors and other quite wide-reaching powers. Would the witnesses favour an Irish regulator having that level of power in regard to the voluntary housing association sector?

I wish to ask a question about the Housing Finance Agency, and perhaps this is one all the witnesses could answer. Is there capacity in the voluntary housing association sector, as it is currently constituted with a number of large providers and a large number of small providers, to deliver the social housing supply which is necessary given that we are seeing quite a squeeze already in urban Ireland in the private rented sector? We are seeing pressure on social housing provision and we are potentially looking at a scenario where, after many years of lack of delivery on housing supply, we can see greater pressure on housing which will inevitably push poorer people down to the bottom of the pile. Is there capacity in the voluntary housing association sector to fill that gap? What can we do, outside improving regulation and access to finance, to ensure those barriers are removed and that the voluntary housing association sector delivers to the widest possible extent that it can?

In regard to the Housing Finance Agency, I am confused about one thing and perhaps it can be clarified. The presentation stated that the State's capacity to fund large-scale capital grants for social housing provision through the local authorities is likely to be limited for some time and that social housing provision through the local authorities forms part of the national debt. The presentation went on to state that the HFA loans to the approved housing bodies also constitute part of the national debt. Given that it may not be possible for the entire social housing provision to be delivered through the voluntary housing association sector - I am leaving out other measures, such as long-term leasing, and I am focusing entirely on social housing construction or acquisition - is there any reason local authorities should not be able to access loans through the HFA in the same way as the approved housing bodies under the same terms and conditions?

In other words I mean gearing their stock at 80% and accessing a further 20% possibly directly through the Department or through the commercial sector.

I joined the meeting at the end of Mr. Callan's contribution. He mentioned that there may be options outside commercial borrowing for the sector. Is there any scope for real estate investment trusts, for example, which were announced in the last budget, but which at the moment are seen more as a means to fund commercial property enterprises? Is there any reason a public-private partnership arrangement could not be reached between the voluntary housing association sector and the private sector through a REIT structure? It has been said that Ireland is unusual in having social housing provision through the local authorities. What are the options for having large-scale voluntary transfers of stock from the local authorities? Mr. Ó Lionáin said there was no real future for them as social housing providers. Particularly with the land banks held by the local authorities is there any possibility for some transfer of stock out of the local authority sector to the voluntary housing association providers which would make them more commercially viable as housing associations?

Arrears on loans that local authorities have they have given out over the years have been mentioned. I am aware that in the Dublin City Council area there are very significant arrears on local authority loans. There has already been a discussion on shared-ownership loans. I understand that because of the structures of those loans through the HFA, the local authorities can offer a MARP, mortgage arrears resolution process, but they cannot offer a MARS, mortgage arrears resolutions solutions process because they are not in a position to offer the same types of solutions to their borrowers as commercial banks. Does the HFA have any function in that? Mr. O'Leary said that he does not envisage the difficulties local authorities are experiencing having any impact on the HFA loan book. However, without intervention from the Department I believe it would have an impact on the HFA loan book if the local authorities are in significant difficulties with arrears without having the armoury other lenders have in offering solutions to borrowers.

I wish to address the transfer of regulation for the voluntary housing association sector to the PRTB. I wish to state for the record that I am chair of an approved housing body, Threshold. I completely favour regulation which represents the best way forward for the sector. What arrangements have been made for the sector to come under the remit of the PRTB, or RTB as it is to become? I know the registration fee that will need to be paid was of great concern given the volume of stock within the AHB sector. Would it be appropriate for some of that funding to be allocated towards additional staffing in order to facilitate the transfer of the voluntary housing association sector into the PRTB?