Dr. Donal McManus:

I thank the committee for the invitation to address it today. The Irish Council for Social Housing, ICSH, is the national representative federation for housing associations. Accompanying me are my colleagues, Ms Tina Donaghy, vice president of the ICSH and head of development with Fold Ireland, Mr. John Hannigan, ICSH council member and CEO of the Circle Voluntary Housing Association, and Ms Karen Murphy, ICSH director of policy. We have supplied the committee with a number of background papers which I hope will provide members with further understanding of the sector. I refer to two aspects in particular, the role of the sector and its engagement with other stakeholders.

The ICSH was established in 1982 by a number of voluntary, non-profit and co-operative housing associations that believed non-profit housing associations working together could play a more significant role in meeting the housing needs of specialist groups, such as older people, people with disabilities and formerly homeless households, as well as the housing needs of low-income families, using new housing management approaches. These housing associations had witnessed social housing being provided throughout the rest of the EU by a range of not-for-profit housing associations and co-operatives. That was in addition to housing provided by the public housing authorities. It was felt Ireland was missing out in not providing additional options for those households in need of social housing.

The ICSH has almost 260 members. These comprise a small number of larger, tier 3, organisations, many active throughout the country, as well as a large number of smaller community or regionally-based organisations that have provided a specific type of housing service in a local community. Approved housing bodies also work in partnership with local authorities in the refurbishment, rejuvenation and management of local authority estates, in urban and rural local authorities, towns and cities. As well as providing and managing social housing, AHBs have provided supports to tenants to improve their quality of life. In some cases, that has involved providing supported housing, and ensuring older people do not have to move to nursing or care homes prematurely, or providing supports to vulnerable families and children.

Some ICSH members have been active providing rental housing for families since the 1890s, such as the Iveagh Trust in Dublin, and still continue to deliver new housing today. The sector, therefore, has a long-term commitment to providing housing and investing in local communities. By the 1980s, it was estimated that non-profit housing associations owned and managed around 2,000 homes throughout the country. Much of that early success was achieved by local voluntary effort, such as raising finance and securing the donation of sites and properties. ICSH members, also known as housing associations or approved housing bodies, have a social mission and purpose and assist local authorities in addressing housing needs. The recent expansion of the sector from the 1980s, in providing homes and new types of housing services to address gaps in housing provision, was facilitated by the introduction of two State capital funding schemes by the then Department of the Environment. They were the capital assistance scheme, CAS, in 1984 and the capital loan subsidy scheme, CLSS, in 1991.

These schemes yielded over 27,000 new homes, with CAS comprising over 60% of the total. As well as being supported by central government and local authorities through the subsidised sites scheme, as well as Part 8 schemes, approved housing bodies also sourced sites locally themselves. Those have delivered an estimated 6,500 new homes. Output figures for the sector, contained in the background paper, show that delivery of homes by housing associations increased from a few hundred in the 1980s to more than 2,000 homes in 2009. That was before the property crash and Government cutbacks in social housing expenditure. During the 1990s and 2000s, it is estimated that housing associations provided between 20% and 30% of all new social housing annually.

Currently, within the commitments under the Government action plan on housing and homelessness, Rebuilding Ireland, the sector is earmarked by Government to provide one third of the total 50,000 social rented homes. In 2018, approved housing bodies delivered approximately 38% of social rented homes via build, acquisition and long-term leasing. In 2017, approved housing bodies delivered 2,330 homes, the highest ever total, through new build, acquisition and long-term leasing, more than 1,000 of which came through new construction. This is a significant increase in delivery since 2013-14 when only a few hundred homes were delivered due to the reduction in capital expenditure and the elimination of the capital loan and subsidy scheme.

Since 2010, there has been a significant change in the capital financing of approved housing bodies. A mixed funding scheme has been introduced comprising a capital advance leasing facility, CALF, and payment and availability agreements. This includes a maximum of 30% State capital loan, with the remaining finance of 70% being raised either through the option of the Housing Finance Agency, HFA, or private financial institutions. This new approach of taking on more risk through borrowing loan finance has necessitated significant organisational change and upskilling within approved housing bodies wishing to increase their capacity to provide more homes. This transition to mixed funding for the sector occurred incrementally over 34 years in EU member states, whereas in Ireland we have fast-tracked it within five to ten years.

Since the economic crash, AHBs have been working with private sector developers. An example is completing unfinished estates to make them available for social housing. Alongside these new capital funding arrangements, there has been a range of new statutory, regulatory and compliance requirements for AHBs. AHBs now come under the remit of the Residential Tenancies Act, the Charities Act and HIQA in some cases, as well as the requirements of the voluntary regulation code, VRC, and various covenants of financial institutions, to name a few. These are in addition to the contractual requirements with local authorities comprising the terms and conditions of the capital funding schemes.

Importantly, there are a number of strategic issues which the sector is encountering and will be encountering in coming years. These include continued access to sites to meet targets for delivery, the reclassification of AHBs as part of the local government sector, which is a particular focus for those developing approved housing bodies with significant delivery plans and that wish to reverse classification, access to affordable and cost rental schemes, the new statutory regulation framework and increased delivery of supported housing particularly for older people.

The delivery of housing for people with specific needs remains challenging, particularly given the current restricted nature of homes available. Different approved housing bodies within the sector have different ambitions and capacities. A number of larger approved housing bodies are focusing on significant scaling up of social housing delivery using loan finance, as well as seeking to deliver additional forms of intermediate rental housing. Others approved housing bodies are focusing on consolidation and succession planning. Although approved housing bodies will develop in different ways, the sector will still rely on a coherent policy framework on finance and regulation from the Government to enable the AHBs to play its part in meeting housing needs. We look forward to any questions.