Dessie Ellis (Dublin North West, Sinn Fein) | Oireachtas source

In raising this issue I am not criticising the Housing Finance Agency which does a very important job. The HFA's handling of funds with responsibility and care is crucial to its success. However, these funds need to be accessible. It is important that worthwhile projects are not delayed because of the lengthy HFA application process. I have met many of the large approved housing bodies, representatives of which told me they found the process of applying for funding for social housing projects more difficult and protracted than necessary and that in some cases it had forced them to seek funding from commercial banks.

Currently, we have a major crisis in terms of a shortage of affordable rental housing for low-paid people and those out of work. This has driven up rents and increased homelessness, which in the end is very costly to the public purse. The Government is only now recognising this but is doing its best to put in place money to tackle the crisis. The European Investment Bank has made €150 million available through the HFA for social housing projects. This money is vital to increasing our social housing stock as soon as possible, to stem the tide of tenants into homelessness, to end the static condition in emergency accommodation and to lower rents across the rental market.

The Housing Finance Agency is in place to source funding for social housing projects by approved housing bodies like Focus Ireland, Respond, Simon or the many other excellent groups that are seeking to build homes now. It was set up by the State to help these bodies to fund projects and has done so, but many groups in the absence of schemes like CAS are finding the HFA's application process prohibitive. It has done great work in the past but it needs to reform some practices in order for it to be fit for the challenge today.

This is not risky business. We are talking about providing homes in a time of unrivalled demand and applicants that have proven themselves as diligent and responsible housing providers. Unfortunately 120-page applications and protracted processes have led to some groups going to commercial banks which despite improved regulations in the wake of the economic crisis have proven easier to get credit from albeit they are a little more expensive in terms of interest.

It is in the interest of the Government for the HFA to be lending the EIB funding it has received to tackle the housing crisis. We need the Minister to work with the HFA to look at how commercial banks are lending and to find a middle ground which will be responsible but also accessible.

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