Michael Noonan (Limerick City, Fine Gael)
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ISIF and the wider NTMA is examining the feasibility of establishing, in conjunction with the private sector, a Housing Investment Fund, in a way that is both off-balance sheet and is commercially viable. This vehicle should be capable of funding the delivery of substantial new mixed-tenure residential developments, comprising social and private housing.

Whilst a major objective of any such funding vehicle is to leverage additionality in terms of social housing supply, it is envisaged that a substantial portion of the overall supply of new units may need to be for private housing to meet the commerciality test and to satisfy the requirements of an off-balance sheet investment model.   

Although there have been a number of recent proposals in this space from private sector residential investors and developers, none have proven to be either commercial or likely to pass the requirements for an off-balance sheet model. 

Engagement with a wide array of key stakeholders in both the public and private sector is ongoing and involves the input of relevant Government departments, the CSO and others. There is ongoing engagement, also, with the European authorities, including Eurostat, and the European Commission.

Initial discussions with the EIB have taken place, and these have explored possible EIB participation in funding the housing model. These discussions follow recent interaction between this Department and ISIF with the EIB regarding EIB support for housing projects in other Member States. Initial discussions and soundings indicate that the EIB is interested in supporting a housing model. Attention is now focused on developing a model which meets the off-balance sheet requirements, and one in which the EIB might participate.

On the occasion of the formal launch of the EIB Group office in Ireland on 9 December 2016, I chaired the first meeting of the EIB-Ireland Financing Group, comprising relevant Government Ministers, heads of agencies and EIB senior management. One of the purposes of the Group is to examine opportunities for using EIB financing and technical assistance to address housing, transport and other infrastructure investment requirements. The Group is supported by three sub-groups of officials and agency representatives, one of which is tasked with addressing issues in the area of Social Infrastructure, including housing.