Catherine Murphy (Kildare North, Social Democrats)
Link to this: Individually | In context | Oireachtas source

145. To ask the Minister for Finance the action ISIF is taking to boost the supply of affordable housing here; the definition of affordable housing it is working to in this regard; his plans to change the remit of ISIF to give it a much clearer responsibility for the supply of affordable housing; and if he will make a statement on the matter. [36362/18]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am informed by the Ireland Strategic Investment Fund (ISIF) that it is making a very substantial contribution to new private housing supply generally which is critical in terms of meeting the pent-up demand for housing across all sectors of the market.

In line with its double bottom line mandate, ISIF has already invested and approved over €726 million in a number of significant financing platforms and projects in the construction sector, covering both the ‘Build to Sell’ and ‘Build to Rent’ space. This represents one of the largest investment commitments by ISIF in any sector, alongside more than €850m of external co-investment capital. These investments are, in all cases, focused on new housing supply and therefore on making much needed additional supply available to purchase and rent. Collectively, ISIF’s investments are expected to support the supply of 15,000 new homes by 2021, with to date specific funding commitments made by ISIF platforms for over 3,500 residential units. All such housing projects financed by ISIF capital include, in line with the wider market, an element of both Part V housing and, in the case of rental properties, Housing Assistance Payment (HAP) tenancies.

As the Deputy is no doubt aware, ISIF is required by legislation to ensure that all of its investments meet both commercial criteria and are off-balance sheet from the Exchequer perspective.  In that context, investment in social housing supply is particularly challenging, although ISIF continues to engage intensively with the market to examine the potential for social housing investment that is both commercial and off-balance sheet.

ISIF’s contribution therefore, in line with its mandate, is focused particularly on helping to overcome barriers to new housing supply, particularly through the provision of equity for investments that may not otherwise happen, and in this way is helping, as part of a wider range of Government policies and actions, to narrow the gap between housing supply and housing demand which is at the heart of both access and affordability issues.

On July 4th 2018, following extensive review, the Government decided to refocus ISIF funds on the priorities that will support Project Ireland 2040 and have a more direct and positive impact on the economy’s long-term growth potential. Housing supply is one of the identified priorities. The reallocations of ISIF funds requires the passage of legislation, including the legislation establishing Home Building Finance Ireland for which €750 million of the original ISIF fund has been earmarked. On foot of the recent Government Decision, I will soon be writing to the Chief Executive of the NTMA to request that ISIF prepare the necessary proposals to operationalise the decision for my consideration.  My officials have already held discussions with ISIF so as to allow it to begin preparatory work on the refocused investment strategy.