Jackie Cahill (Tipperary, Fianna Fail)
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475. To ask the Minister for Housing, Planning, Community and Local Government if he will engage with the Irish League of Credit Unions to explore the possibility of a joint financial venture between his Department and the league to provide social housing that will offer an investment return to the credit unions and provide much needed housing units to local authorities; and if he will make a statement on the matter. [20069/17]

Simon Coveney (Cork South Central, Fine Gael)
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The agreed Programme for a Partnership Government recognises the potential role that credit unions can play in housing finance and supports the efforts of the Registrar of Credit Unions at the Central Bank to gradually lift current lending restrictions as appropriate, including for housing. The Programme further provides for consideration, with all stakeholders, as to how credit unions can support the delivery of social housing.

The Irish League of Credit Unions (ILCU) has set out a proposed means by which funding could be provided by credit unions to Approved Housing Bodies for the development of social housing. My Department and the Department of Finance have met with the ILCU on a number of occasions to examine how credit unions can assist in the area of financing social housing delivery.

Conscious of the independence of the Central Bank in its regulatory role in respect of credit unions, bilateral engagement has taken place between my Department and the Department of Finance to consider the potential regulatory and legislative implications of credit union involvement in the social housing sector. My Department and the Department of Finance have met with the Central Bank to provide information of a technical nature in relation to social housing funding arrangements. This was with a view to assisting the Central Bank in understanding how these arrangements operate, as it deals with issues arising from proposals put forward for credit union investment in social housing.

Ultimately, the funding mechanisms required will have to be put in place in the first instance by the ILCU, with the support of their members and with the agreement of the Central Bank. My Department will continue to contribute to this process by providing necessary technical advice and support.

I acknowledge the willingness of credit unions to actively seek a role in financing the delivery of social housing. The potential scope for credit union involvement is being examined in developing the proposed new mortgage to rent pilot scheme arising from the review of the existing scheme published in February 2017. My colleague Minister of State English, and my Department, have met with credit union representatives to consult on the potential for their involvement in the proposed pilot scheme.