Written answers

Tuesday, 17 June 2008

Department of Environment, Heritage and Local Government

Social and Affordable Housing

11:00 pm

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 895: To ask the Minister for the Environment, Heritage and Local Government the amount that has been spent in 2007 on the provision of social housing, including construction of new social housing and rent supplement; the amount he will spend in 2008; and if he will make a statement on the matter. [22813/08]

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 896: To ask the Minister for the Environment, Heritage and Local Government the number of new social houses that were constructed in 2007 and to date in 2008; the number that will be built for the remainder of 2008 and in 2009; and if he will make a statement on the matter. [22814/08]

Photo of Michael FinneranMichael Finneran (Roscommon-South Leitrim, Fianna Fail)
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I propose to take Questions Nos. 895 and 896 together.

Expenditure on the provision of social housing through the local authority housing programme, the voluntary and co-operative housing programme and the Rental Accommodation Scheme (RAS) last year amounted to some €1.242 billion. Funding provided for these programmes has been increased again in 2008, with some €1.369 billion available. This will allow for the commencement of a significant number of new social housing units and the completion of a large number of units under these programmes this year. Funding and administration of rent supplement is a matter for the Minister for Social and Family Affairs.

The impact of the record levels of investment this Government is committing to these housing programmes is already evident. Last year, over 9,400 social housing units were delivered, which represented an increase of over 40% on 2006. Figures for activity in the first quarter of 2008 are not yet finalised but indications from returns received to date from local authorities are that strong activity is being sustained.

The Government's housing policy statement, Delivering Homes, Sustaining Communities, and the National Development Plan 2007-2013 (NDP) reflect the strong commitment to expand social and affordable housing provision contained in the social partnership agreement Towards 2016. The needs of some 100,000 households are to be met through the full range of social housing measures, including through the commencement and acquisition of 63,000 new social homes in the period 2007-2013. Over the period 2007 to 2009, sufficient resources will be made available to commence or acquire some 27,000 of these.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 897: To ask the Minister for the Environment, Heritage and Local Government the amount spent in 2007 on the provision of affordable housing including construction of new affordable housing; the amount he will spend in 2008; and if he will make a statement on the matter. [22815/08]

Photo of Michael FinneranMichael Finneran (Roscommon-South Leitrim, Fianna Fail)
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My Department provides direct funding to local authorities for the provision of affordable housing under the 1999 Affordable Housing Scheme through the subsidisation of the site costs. A subsidy is available to local authorities to make houses affordable by covering all or part of the cost of the site so that the selling price of the unit is within the income range of the target group.

To further assist households with income below €28,000 in the previous tax year, a mortgage subsidy or, as appropriate, a rental subsidy under the Shared Ownership Scheme is available to these purchasers. This subsidy is paid by my Department to the local authority advancing the loan and is intended to reduce the monthly outgoings of the purchaser. A mortgage allowance of €11,450 spread over 5 years is also available to assist tenants or tenant purchasers of local authority houses to become owner-occupiers of other dwellings and tenants of dwellings provided by approved voluntary housing bodies under the Capital Loan and Subsidy scheme, who return their accommodation to the body, thus making it available for re-letting.

Details of this expenditure by my Department during 2007 is as follows:

Site SubsidyRental & Mortgage SubsidyMortgage Allowance Scheme
€9.61m€5.30m€3.34m

In addition, €24,924,737 was allocated in 2007 to the Affordable Homes Partnership (AHP) to fund the purchase of homes on the private market, for subsequent sale to eligible affordable housing applicants at discounted prices.

For 2008, my Department has set aside €71m for site subsidy and a further programme of affordable housing acquisitions by the AHP, €4.2m for Rental and Mortgage subsidy and €3.8m for Mortgage Allowance.

This direct funding by my Department represents only one element of the overall range of supports for the various affordable housing schemes. Significant support under the schemes is provided by way of non-voted capital expenditure. This allows local authorities to purchase the units and also provides mortgage finance for house purchasers, where necessary, by means of borrowing through the Housing Finance Agency. In addition, investment in affordable housing is supported through the assignment of State lands for this purpose and through the delivery mechanism under Part V of the Planning and Development Acts 2000 to 2006.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 898: To ask the Minister for the Environment, Heritage and Local Government the number of new affordable units that were constructed in 2007 and to date in 2008; the number that will be built for the remainder of 2008 and in 2009; and if he will make a statement on the matter. [22816/08]

Photo of Michael FinneranMichael Finneran (Roscommon-South Leitrim, Fianna Fail)
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Information on affordable housing activity up to the end of 2007 is available on my Department's website at www.environ.ie. Information is also published in my Department's Housing Statistics Bulletins, copies of which are available in the Oireachtas Library. My Department is collating data on output for the first quarter of 2008 which will be published in the near future.

Under the social partnership agreement, Towards 2016, the Government has committed to a challenging target to deliver 17,000 affordable homes over the three years 2007 to 2009.

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