John Curran (Dublin Mid West, Fianna Fail)
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52. To ask the Minister for Finance the steps he is taking and the progress being made in establishing a mechanism that would allow and facilitate funds from an organisation (details supplied) to be invested in social housing; and if he will make a statement on the matter. [17724/19]

Paschal Donohoe (Dublin Central, Fine Gael)
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This is a question that has been asked, and answered, many times. I last answered it in Dail myself in mid February this year (PQ 1750/19) and my colleague Minister English also answered a similar question at his oral Parliamentary Questions last week. Each time it has clearly been stated that the Government is not, and has never committed to, establishing a Special Purpose Vehicle (SPV) on behalf of the organisation mentioned in the details supplied. 

At present I am not aware of any legal or regulatory barriers to the organisation mentioned establishing its own SPV to invest social housing through Tier 3 Approved Housing Bodies (AHBs). 

Since 2015, there has been extensive engagement from my Department and the Department of Housing with this organisation. Following analysis of their two proposals and meetings with the organisation in question, both Departments stated in writing that the second of the proposed models – the establishment of an SPV by credit unions – was the most suitable.

In July 2016, Rebuilding Ireland separately committed to establishing an Innovation Fund to support the development of innovative financial models, such as SPVs, by Approved Housing Bodies (AHBs).  It has been repeatedly clarified both in writing and indeed in answers to Parliamentary Questions that this commitment was not to establish a state owned SPV, rather to provide funding to help develop a sector-led AHB SPV.

In relation to supporting Credit Unions in the provision of funding for social housing, the role of the Government and the Central Bank is to ensure there are is an appropriate legislative and regulatory framework. In this regard, the Central Bank revised the Credit Union Investment Regulations in March 2018 to enable credit unions to invest in social housing via an SPV.

As such the Government and the Central Bank have fulfilled their role and it is now up to both the credit union and social housing sectors themselves to progress and develop any specific funding mechanisms.

I am aware that one of the Credit Union representative bodies has completed all of the preparatory work for establishing an SPV but is awaiting a minimum level of projects to justify the costs of establishing the SPV. I have not been made aware of progress made by the organisation referred to in establishing such an SPV.