Written answers

Wednesday, 13 July 2016

Department of Environment, Community and Local Government

Social and Affordable Housing

Photo of Clare DalyClare Daly (Dublin Fingal, Independent)
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126. To ask the Minister for Environment, Community and Local Government his views on the prices paid for social housing units in an estate (details supplied); if he achieved value for money in this instance.; and if he will make a statement on the matter. [21460/16]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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The project referred to in the Question involves the acquisition of units by an Approved Housing Body (AHB) in a new residential development, which will be made available to the local authority for social housing under long-term lease arrangements associated with my Department’s Social Housing Current Expenditure Programme (SHCEP). Prior to my Department’s approval of these lease arrangements, the project was assessed by the local authority who confirmed that there was a very strong need for social housing in the area; that the AHB in question has developed an excellent reputation in the management of their existing units; and that provision of these units for social housing use will not negatively impact the existing tenure mix in the area. In addition, the A HB also received approval for assistance under the Capital Advance Leasing Facility (CALF) towards the cost of the acquisition costs of these units. The CALF 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 applications for CALF are subject to a detailed independent financial appraisal conducted by the Housing Agency on my Department’s behalf. This review includes examination of the acquisition or construction costs and other 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.

The units secured in this particular development represent good value for money and will provide secure high quality social housing for 68 households, including many families currently living in emergency accommodation, in an area of high social housing demand. In addition, as the development includes ground floor units it is suitable for adaptation for people with disabilities.

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