Mr. Brian O'Gorman:

I am joined by my colleague, Ms Cormican, who leads our development. Clúid Housing has developed more than 10,000 homes across the country, involving the housing of more than 26,000 residents. I thank members for the invitation to address them on the topic of the implementation of the Housing for All strategy. All aspects of Housing for All are important but I will focus particularly on the delivery of social, age-friendly and cost-rental housing, as that is what we are engaged in and they are the aspects on which I can offer insight.

In recent years, the AHB sector has delivered more than 40% of all new housing supply, with a focus on new-build units and adding to our overall housing stock. The sector currently manages more than 50,000 homes and has significantly increased delivery in the past three years. As organisations, we have built our capacity to deliver social and affordable housing. The Housing Alliance, which comprises six of Ireland's largest AHBs, provided more than 3,000 new homes last year and hopes to deliver a further 4,000-plus units by the end of this year. The new-build social housing target under Housing for All is 47,600 homes, with AHBs tasked to deliver 45%, or almost 21,500. Clúid Housing alone has delivered 2,722 units in the past three years. That number is comprised of 2,293 social-rental homes, 147 age-friendly social-rental homes and 272 cost-rental homes.

Clúid Housing has built a strong platform for delivery of both turnkey acquisition and our own construction projects. Our pipeline over the next three years comprises 98% new builds. We have 698 homes on site at the moment under our construction programme, with another 1,300 in the pipeline for delivery over the next three years. We also have a strong pipeline with developers, with more than 3,400 homes we potentially can deliver with developers over the next three years. This pipeline relates to projects we are currently working on and that have the potential to be delivered.

Delivery has become more challenging, with constraints including construction inflation, rising interest rates, increasingly limited access to affordable land and the pressing need to provide homes to Ukrainians fleeing the war. Despite this, we have delivered more than 1,200 homes this year, 200 of which are new cost-rental homes. However, given the current viability challenges in construction and financing, meeting the overall social and cost-rental housing targets will become increasingly challenging. It is on this basis that I highlight three issues that, if addressed, would assist Clúid Housing to deliver housing and increase the chances of success in reaching the Housing for All targets.

The first issue is the funding model for cost-rental housing delivery. In 2021, Clúid Housing was delighted to deliver Ireland's first cost-rental homes, in Balbriggan, County Dublin. Alongside our AHB colleagues in Respond and Tuath Housing, we advocated for this new tenure for many years. We have delivered cost-rental homes in Dublin, Cork, Meath and Kildare. Cost-rental housing offers secure homes to low-income working householders. We have been taken aback by the demand that exists. Our first scheme in Balbriggan saw more than 1,000 households apply for 25 homes. We want to, and we can, deliver more. However, in the context of rising interest rates and construction costs, the current funding model is presenting viability issues. We welcomed the recent decision by the Cabinet to increase the amount available under the CREL scheme but this alone will not serve to ensure the viability of cost-rental projects in the urban and suburban areas in which they are most needed. Cost-rental housing needs to be housing delivered at cost. As costs rise, affordability will be challenging but it will improve in time. Cost-rental provision was always about a step change. It is an initiative that will realise its full potential over the long term. If it is to realise its great potential, the cost-rental model needs to be reviewed as a matter of urgency.

My second issue relates to our gearing ratio, which was referenced by Mr. Hannigan in reference to the Circle Voluntary Housing Association. While growth is to be welcomed, we are currently reliant on a 100% debt-funded model. In the interests of financial prudence, this is not sustainable. Our concerns are shared by the social housing regulator. In addition, the current situation reduces the sector's options for attracting private finance, as funders are likely to baulk at the high gearing ratios we are rapidly approaching. Our social mission is to supply secure, affordable and quality homes and we wish to continue to do so. The gearing issue needs to be resolved or we have the potential of running out of road. We are not seeking additional finance. Rather, we ask for a change to the way in which some of that finance is given. Some component of State equity is required to make our delivery sustainable. In moving in that direction, the State would be following what is the norm across most European countries

Third, the reclassification by EUROSTAT of the largest AHBs in Ireland in 2018 as bodies controlled by the Government is not in the interests of AHBs or the State. The result is that our funding and expenditure is now moved from the off-Government balance sheet to the on-Government balance sheet, prompting a range of concerns regarding future funding opportunities and competition for available Government funding, which will impact on social and affordable housing supply. Ireland's AHB sector is in the minority across the EU in how it operates. The strong and stable social and affordable housing systems throughout Europe were created by non-profit civil society organisations working alongside the state on behalf of citizens. As a sector, we need the support of the Government in addressing this long-standing issue.

We wish to underline our energy, focus and ambition in playing our part in the delivery of Housing for All targets. Clúid Housing and other AHBs are ready, willing and able to respond to the huge level of need and demand that exists for housing. We look forward to working with the Government and others in achieving our common goal to deliver high-quality, affordable housing that will be available in perpetuity to serve successive generations of Irish households.