Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

The Department of the Environment, Community and Local Government is the Department primarily responsible for the formulation and implementation of policy and the preparation of legislation on housing.

My Department has received a number of different proposals from the Credit Union Development Association, CUDA, and Irish League of Credit Unions, ILCU.  Proposals from both representative bodies on the funding of social housing are at various stages of development. In respect of the ILCU proposal, I have been informed that the Department of the Environment, Community and Local Government met representatives of the Irish League of Credit Unions in December 2015 to discuss its proposal to fund social housing developments. There have been a number of follow up meetings between officials from my Department and the Department of Environment, Community and Local Government to consider any potential regulatory or legislative implications of credit unions becoming involved  in social housing funding. In addition, a meeting was held between the Central Bank and the Departments of Environment, Community and Local Government and Finance on 21 April 2016 to provide information of a technical nature on social housing funding arrangements.  This was done with a view to assisting the Central Bank in understanding how these arrangements operate, as it is the body which deals with issues arising from proposals put forward for credit union investment in social housing.

Two alternative models of funding were proposed by the Irish League of Credit Unions in respect of social housing and it was determined that the second of the two models would be best placed to achieve the objective of providing a mechanism for investment in social housing without negatively impacting on the general Government balance and keeping the funding off balance sheet.  It was agreed that ILCU would progress the preferred model, with both Departments indicating their availability should any assistance be required regarding technical advice or further information. Officials from my Department also met representatives of CUDA on 8 April 2016 to assist in progressing its proposal on social housing.

The Registrar of Credit Unions at the Central Bank is the independent regulator of credit unions. Any decision regarding credit unions providing such funding would ultimately require regulatory approval prior to implementation.

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