Róisín Shortall (Dublin North West, Social Democrats)
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376. To ask the Minister for Environment, Community and Local Government the role of his Department in regard to a proposal (details supplied); if contracts have been signed; his proposals to consult with the local community; the guidelines his Department is now working to regarding social mix in new developments; if these guidelines vary according to the size of the development; and if he will make a statement on the matter. [12941/16]

Simon Coveney (Cork South Central, Fine Gael)
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Approved Housing Bodies (AHBs) have a key role to play in the provision of high quality sustainable social housing and this is recognised in the Government’s Social Housing Strategy2020. In this way, the Strategy recognises the record of steady achievement by AHBs over the past 20 years in providing in excess of 28,000 units of quality accommodation.

Under the Social Housing Current Expenditure Programme (SHCEP), my Department, together with local authorities, can support AHBs to construct, purchase or lease housing units and make them available for social housing. The housing units are secured under long-term leases/ availability arrangements between local authorities and AHBs.

In addition, capital support is made available to AHBs through the Capital Advance Leasing Facility (CALF), which provides an up-front capital payment of up to 30% of the relevant construction or acquisition cost of a project, facilitating AHBs in raising private finance, including from the Housing Finance Agency (HFA), to acquire or build new social housing units. The capital advance is repayable by the AHB to the local authority at the end of a payment and availability agreement, usually 30 years. All proposals for CALF are submitted to my Department by AHBs for review and to ensure that the project complies with the terms of the CALF and that there are sufficient funds available. The local authority is also required to examine the proposal and report to my Department that it is suitable to meet housing need in the local area; that the properties comply with relevant standards and regulatory requirements; and that the objectives of sustainable communities are being met (for example, that there is not already an over-concentration of social housing in the area). A detailed independent financial appraisal of the proposal is then conducted by the Housing Agency on my Department’s behalf, including a review of the acquisition or construction costs and details relating to the market rents and availability payments sought by the AHB, in order to ensure that the project is sustainable in the long-term and represents value for money.

Subject to my Department’s approval to the proposal, the local authority then enters into a Capital Advance Agreement (CAA) and a payment and availability agreement with the AHB concerned whereby the properties in question are provided for social housing support purposes for a specified period between 10 and 30 years. Monies paid by the local authority to the AHB for these units are recouped to the local authority from my Department.

The project specifically referred to in the Question involves the acquisition of units by an AHB in a new residential development. The project was assessed by my Department and the relevant local authorities, including from the sustainable communities point of view. While the relevant AHB has received approval for CALF assistance, subject to the normal terms and conditions of the scheme, it is my understanding that the AHB is continuing pre-contract negotiations with the developer and is proceeding with due diligence. The units, if secured, would provide secure high quality social housing for approximately 42 households, including many families, in an area of significant social housing demand.