Catherine Murphy (Kildare North, Independent)
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6. To ask the Minister for Environment, Community and Local Government if he will provide an update on promised reforms to regulations governing the voluntary housing sectors in view of the rapidly deteriorating housing and homelessness situation around the country if he has undertaken steps to expedite this process in order that housing associations may apply for external funding to construct more accommodation; and if he will make a statement on the matter. [19563/14]

Catherine Murphy (Kildare North, Independent)
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Housing associations will increasingly play a part in delivering social housing or at least increasing the number of houses in the rental sector. I acknowledge that voluntary regulation has been developed to deal with the Government's management and financial principles. However, charities have told us that while they are not there to make a profit, neither are they allowed to make a loss. Therefore, there will have to be an element of co-responsibility in drawing down funds. Given the importance of this sector, I would like to hear what is being done to address that aspect of this housing solution.

Jan O'Sullivan (Limerick City, Labour)
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The Government’s housing policy statement of June 2011 acknowledged the capacity and track record of the voluntary and co-operative housing sector, and placed approved housing bodies, AHBs, at the heart of its vision for social housing provision. My Department is currently in consultation with the AHB sector regarding the development of a regulatory framework to support the expanded role for the sector as envisaged in the 2011 statement. This framework will provide support and assurance to tenants, the boards of AHBs and their external partners that the sector is well regulated. It will also safeguard the investment that has been made in the sector and encourage future investment.

A significant first step in this regard was taken with the publication on 15 July 2013 of "Building for the Future", a voluntary regulation code for the sector that is available on my Department’s website at . The code sets out key governance, management and financial principles that AHBs commit to meeting on signing a charter of commitments. To date, just over 130 AHBs have signed up to the code.

My Department, together with the Housing and Sustainable Communities Agency and the Housing Finance Agency, is currently working with the sector to define more detailed financial benchmarks to which AHBs seeking private financial investment could also sign up. In the meantime, it remains open to AHBs to apply for external funding whether that be from the Housing Finance Agency or from private lenders. Seven bodies have been certified by the HFA as eligible for loan finance with approximately €40 million in loans approved. I understand that the committee of which Deputy Murphy is a member also met with the HFA.

In February this year I announced the establishment of an interim regulatory committee for the sector to oversee the implementation of the code and to advise on the development of statutory regulation. The committee includes experts in regulation, housing, law and finance and has been constituted as an independent committee operating for the time being within the Housing and Sustainable Communities Agency.

Implementation of the voluntary code will be a valuable source of information about the scope and final content of the proposed statutory regulatory framework to be developed by 2016. In addition, there will be widespread consultation, in the normal way, during the development of the new legal framework.

Catherine Murphy (Kildare North, Independent)
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The Minister of State would agree that there is a limited capacity for the Government to deliver direct builds, which would be the ideal solution. Her answer to me is the fallback position. Is there an impediment to local authorities drawing down this money, even at arm's length? If not, can that process be examined and developed quickly? We already have a significant housing deficit to the point that families are becoming homeless. Some 90,000 individuals or families are on the housing waiting lists, and the number is growing.

Not all of the €40 million that has been approved has been drawn down. When Dr. Michelle Norris appeared before our committee, she told us that up to €500 million was available and that funding was not an impediment. If so, drawing down the funding is the impediment. The housing associations claim to have the capacity to do the work if only they could overcome the obstacle presented by staying within the terms of charities legislation, under which they cannot make a loss. How will the Minister of State deal with this aspect of the matter?

Jan O'Sullivan (Limerick City, Labour)
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My understanding is that there is no legal obstacle to local authorities establishing housing associations if they wish to do so. I agree with the Deputy's comments on the difficulties in accessing funding. I share her frustration. As Dr. Norris stated, the Housing Finance Agency has significant funding. We would all like to see that money being drawn down and used to construct houses for people as soon as possible. For this reason, we established a voluntary code and are working on a statutory one.

I attended the first meeting of the interim regulatory committee in the Housing Agency's offices. It is working hard to engage with voluntary bodies, financial institutions and so on to determine the obstacles. The committee is considering detailed financial benchmarks to which it could sign up. I accept that we want progress to be made as quickly as possible and that some of the voluntary bodies are anxious to be able to borrow money, be it on the private markets or through credit unions, pension funds, etc. We are working to remove obstacles.

Catherine Murphy (Kildare North, Independent)
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This situation must almost be put on a war footing, given the tsunami of difficulties coming down the track with the shortage of accommodation. It is a good news story for the construction industry and unemployed construction workers. They can deliver something tangible and necessary to the community instead of being on schemes, etc. Will the Minister of State take a proactive approach and bring local authorities together in order to assist them in setting up housing associations so that we might widen the scope of those that can draw down this funding and deliver additional social housing, which is critically needed?

Jan O'Sullivan (Limerick City, Labour)
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I have arranged to meet the directors of services for housing in the near future. One of the issues that I want to discuss with them is the provision of housing, but also the issue of voids, which was raised in last night's debate, and how to ensure that local authorities reallocate empty houses more quickly. Some of what I heard about a particular local authority closing houses for more than two years was shocking. I want to put a stop to that process so as to ensure provision.

I also want to meet the approved housing bodies, AHBs, on a regular basis to help them however we can in accessing funding. The capital advance leasing facility, CALF, provides for 25% of the cost, but AHBs must raise the remainder. In the next week or two, I will announce 100% funding under the capital assistance scheme, CAS, for voluntary organisations' provision of housing for older people, homeless persons and people with disabilities.