Written answers

Wednesday, 24 October 2018

Department of Housing, Planning, and Local Government

Housing Issues

Photo of Caoimhghín Ó CaoláinCaoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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319. To ask the Minister for Housing, Planning, and Local Government the details of the new special purpose vehicle referenced recently by the Minister of State, Deputy Damien English, in a reply to a Parliamentary Question and committed to in his Department's policy document Rebuilding Ireland published in July 2016; when this special purpose vehicle was established; and if he will make a statement on the matter. [44032/18]

Photo of Damien EnglishDamien English (Meath West, Fine Gael)
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Considerable work has been ongoing between the Irish Council for Social Housing (ICSH), a number of larger Tier 3 AHBs and their financial advisor on the development of a vehicle or mechanism for delivering private financing for AHBs providing social housing in line with commitments under the Government's Action Plan on Housing and Homelessness, Rebuilding Ireland.

This project involved a number of phases, including engagement with a range of financial institutions. Part of this also involved the AHBs examining models that will facilitate private financing, now having regard also to the recent reclassification decision by Eurostat of the larger Tier 3 AHBs in 2018. Two phases of the work have now been completed.  The first stage was to produce up to date market testing for social housing financing from financial bodies and investors, including credit unions, which was completed in mid-2017. The second stage included considering the demand and terms from AHBs for such off balance sheet financing to inform heads of terms for financial investors. This was completed in January 2018.

The third phase of work is still ongoing due to a number of issues and changes in the operating environment that have arisen in recent months.  Considerable and complex work has been undertaken to date, with a particular focus on how to increase the level of private financing for these larger Tier 3 AHBs involved in the project, and the most appropriate structure that meets their needs.

To date, one AHB has established and implemented a special purpose vehicle for a specific purpose, including a lending facility for accessing and using €50m of private finance from a financial institution.  In recent months, this facility has been used to acquire and develop properties sourced through the Housing Agency Acquisitions Programme.   In addition, another AHB  involved has, arising from work in this project, obtained private finance from a private financial institution and this has been used in the development of new housing by the AHB to meet Government social housing delivery targets in 2018 and 2019.

 

 

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