James Browne (Wexford, Fianna Fail)

I move: "That the Bill be now read a Second Time."

The Bill intends to make an amendment to the Housing Finance Agency Acts 1981 to 2024. Section 1 of the Bill amends section 10 of the Housing Finance Agency Act 1981 to increase the agency's statutory borrowing limit from €12 billion to €13.5 billion. Section 2 of the Bill sets out the Short Title, collective citation and construction.

The mission of the Housing Finance Agency, HFA, is to facilitate the delivery of social and affordable housing in Ireland and to advance funds to local authorities, approved housing bodies and higher education institutes for this purpose. The borrowing capacity of the agency is set out in primary legislation and the current limit is €12 billion. Having been established in 1981 with a borrowing limit of €200 million, the agency's statutory borrowing limit, SBL, has increased six times since, reflecting the ever-increasing demand on funding for social, affordable and cost-rental housing.

The HFA is the main lender to the AHB sector, which provides almost half of all new social and cost-rental homes. Following Government approval of additional funding for social and cost-rental housing in July of this year, the Housing Finance Agency's flow of borrowing applications increased, with the majority of applications coming from the approved housing body sector. Based on its recent projections, the Housing Finance Agency has advised that its €12 billion statutory borrowing limit will be reached at its 6 November credit committee meeting, at which point no additional lending can be approved. As a consequence, it is proposed to increase the SBL to €13.5 billion with this Bill, enabling the agency to continue to support the ever-increasing delivery of social and cost-rental homes.

On 18 September, the Government approved an increase to the statutory borrowing limit of the Housing Finance Agency from €12 billion to €13.5 billion. Priority drafting of the Bill was also approved and we have sought that pre-legislative scrutiny of the proposed Bill be waived given the urgency associated with the proposal. On 23 September, the Government approved the publication of the Housing Finance Agency (Amendment) Bill 2025 and authorised me, as Minister, to arrange for the presentation of the Bill to Dáil Éireann and for it to be circulated to Deputies at the earliest opportunity. Officials in my Department met with the Oireachtas joint committee on Monday, 6 October. Following this engagement, a pre-legislative scrutiny waiver was granted. The increase to €13.5 billion will provide sufficient headroom for the Housing Finance Agency to continue lending until mid-2026 and will enable the delivery of 5,650 new social and cost-rental homes in the coming three years.

By mid-2026, the Housing Finance Agency will have had time to consider the relevant aspects of the national development plan and the new national housing plan and to develop its own new corporate plan. The HFA's new corporate plan will include reformed forecasts for its future SBL requirements, factoring in delivery partner-specific and scheme-specific funding requirements over the period of the national housing plan.

As the role of the Housing Finance Agency continues to be vital in supporting the Government's ambitious housing delivery plans to 2030 and beyond, it should be noted that this proposed increase to the Housing Finance Agency's statutory borrowing limit from €12 billion to €13.5 billion should be seen as an interim measure. It should also be noted that the Housing Finance Agency is totally self-funding and requires no current expenditure subvention from the Exchequer. The 2024 annual report of the Housing Finance Agency reports that, during 2024, the agency reached its highest level of loan approvals thanks to the continued dedication and hard work of staff, customers and key stakeholders. The HFA provides long-term competitive finance to approved housing bodies, local authorities and higher education institutes and uses its collective financial expertise and resourcing to support customers in the development and implementation of effective housing programmes. There are thousands of people who, because of the financing made available by the HFA, will have a safe and secure roof over their heads, living in supported mixed-tenure communities or modern student accommodation. The HFA continues to demonstrate sound financial management and good corporate governance, both of which are essential to the success of any organisation. With a number of additional staff and new board members appointed in recent months, the Housing Finance Agency is more capable than ever of addressing the challenges ahead.

Approved housing bodies continue to deliver social and cost-rental homes for the State. The sector has built up capacity, knowledge and expertise in the delivery of housing. These capabilities and oversight of the AHB sector are essential to that sector's effective operation. The Approved Housing Bodies Regulatory Authority, AHBRA, will continue to be supported to ensure a robust and effective regulatory regime that continues to support high standards of governance, financial management and tenant management in the sector.

Budget 2026 reinforces the Government's commitment to boosting housing supply. The total Exchequer funding being made available for the delivery of housing programmes in the budget is €7.21 billion, comprising capital funding of €5.19 billion and current funding of €2.02 billion. An increased capital allocation of €2.9 billion has been provided to support local authorities and approved housing bodies in the delivery of newly built social homes. In addition, €1.2 billion has been committed to the affordable purchase and cost-rental schemes, which deliver long-term secure housing at below market rates for thousands of individuals and families across the country. This will support the delivery of 7,500 affordable purchase and cost-rental homes in 2026. The increased level of capital investment secured will support the new housing plan and provide certainty and confidence to citizens and the wider housing market.

Should this Bill pass through these Houses, it is anticipated that it will be signed into law by the end of this month in advance of the Housing Finance Agency's 6 November credit committee meeting, thereby ensuring the continued smooth lending capacity of the Housing Finance Agency.

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