Simon Coveney (Cork South Central, Fine Gael) | Oireachtas source

I am glad Deputy Collins has asked me this question because it gives me an opportunity to clarify the position. In 2015, a €300 million fund for investment in social housing was put in place by the Housing Finance Agency with the support of the Government. A sum of €150 million of this fund was provided by the European Investment Bank. This funding is available to approved housing bodies for the delivery and upgrade of social housing. A 25-year fixed rate of 3.25% is charged.

To date, 29 individual projects totalling €233 million have been approved for support from the fund. The funding is being provided to seven AHBs to develop a total of 964 new homes and for retrofitting and upgrading projects in respect of an additional 550 homes. The AHBs concerned include Clúid Housing Association, Oaklee House Trust, Túath Housing Association, The Iveagh Trust, Co-Operative Housing Ireland, Focus Housing Association and Respond Housing Association. I have become familiar with all of these organisations and they are all doing a great job.

Of the €300 million in the fund, €34 million has been drawn down to date. Given the nature of the projects the majority of the drawdown will occur in 2017. It is expected that the fund will be fully allocated for specific projects by the end of this year.

Given the success of this fund, initial discussions have commenced with the European Investment Bank with a view to establishing another fund. This would incorporate a €200 million contribution from the European Investment Bank and would be match-funded by the Government. This fund would be aimed at providing loans to both AHBs and local authorities to support the provision of social housing.

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