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Minister for Housing and Planning, Jan O’Sullivan today stated new funding models, involving both public and private capital investment, has the capacity to increase the supply of social homes provided through the not-for-profit housing sector.

Speaking at a Housing Finance Agency seminar the Minister said, “This is a time of reform and growth for the not-for-profit housing sector in Ireland. The financial realities facing the public purse mean that new models of funding social housing supply in the sector have to be developed. This involves collaboration between government, approved housing bodies and external finance providers.

“The Capital Advance Leasing Facility (CALF) launched in 2011 has the capacity to increase the supply of social homes through such co-operation. Under this initiative, an approved housing body may undertake to purchase or construct properties. Funding up to a maximum of 30% is available from the Exchequer with the balance being raised using private or HFA finance. The properties acquired are then made available to meet social housing needs, supported by on-going revenue subsidies from the Exchequer known as payment and availability agreements.

“To date my Department has advanced €13.5 million under the CALF facility to assist approved housing bodies in the provision of 353 housing units. In addition, CALF funding has been advanced for a further 22 units that are either under construction or in the process of being tenanted. These are positive developments and the CALF programme has enabled AHBs to engage in tri-partite agreements with local authorities and lenders and continue to contribute to social housing provision.”

Speaking about the forthcoming Government Strategy for the Construction Sector the Minister stated, “I believe that Part V has produced important social gains in terms of increased housing units for low income families and, importantly, a greater social mix in neighbourhoods. These social gains should be maintained in any revised Part V.

“The original Part V secured units for both social and affordable purposes. The Government has subsequently stood down its affordable housing programmes, and in future affordability should be ensured through adequate supply, prudent credit, good planning, and careful macro-economic management.”

“A new recast Part V mechanism needs to be simpler and, more transparent. It needs to pursue tenure mix and social integration, and make a contribution to social housing provision. While the detail of the revised measure remains to be agreed by Government I would envisage a contribution in the region of 10% as being feasible and practicable. There should be real opportunity for the approved housing body sector to work with developers and local authorities in delivering these units in an efficient and timely manner.”