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ICSH calls for expanded social housing programme in its pre-budget submission

Resources need to match new social housing strategy expectation

The Irish Council for Social Housing (ICSH) has called on the Government to tackle the deepening housing crisis in Budget 2015 as a national priority. In its pre-budget submission the ICSH is calling for an expansion of the social housing programme to target the housing needs of the most vulnerable in society and those in priority need of affordable rental housing.

Mr Donal McManus, ICSH Executive Director said “There is an urgency now to deal with this crisis to stem the rise in homelessness and reverse the decline in social housing provision since the economy collapsed from 2009”. The ICSH is proposing a number of recommendations to increase the supply of social housing to a target of 6,000 homes to be provided by housing associations and local authorities in 2015. This call should be part of the need to supply 40,000 new social rental homes up to 2020 to make a much more significant impact on reducing waiting list figures.

The recommendations to expand the social housing programme include:

  1. Shift in policy to revitalise the construction programme to deliver permanent social housing.
  2. Increase the capital and revenue funding for housing associations to deliver housing.
  3. Reactivate the low-cost sites scheme for housing associations delivering new housing.
  4. Develop the private finance funding model and establish a special purpose vehicle (SPV) to facilitate financing of social housing which is off the Government balance sheet.  
  5. Introduce a housing ‘starts’ development programme for the housing association sector to enhance and ensure greater certainty to meet output targets.
  6. Strengthen the social housing return from Part V for new social housing supply.

The ICSH recommend that a construction and acquisition programme for social housing be revitalised in 2015.  During the recession there was a policy shift away from building social housing to leasing units from the private market. Output by housing associations and local authorities through new build, acquisition and Part V fell from 7,000 units in 2008 to 750 units in 2013. “The over reliance on the private market to meet social housing demand is unsustainable and ultimately unpredictable and it is time to refocus on construction” said Mr McManus.

The ICSH is calling for increased funding of €100m for the Capital Assistance Scheme under which housing associations provide homes for special needs categories- homeless, elderly and people with disabilities.  It is also calling for an increase in the capital and revenue funding for general needs social housing. The provision for social housing has been significantly downgraded in successive budgets from over €1.5bn in 2008 to €500m in 2014 and the ICSH believe it is now time to reverse this and provide a greater stimulus for creating sustainable employment in the construction related sector.

In addition, low-cost subsidised sites should be earmarked for initiating a new social housing construction programme for social housing. An operational land supply programme to assemble sites, including from state sources such as the Land Aggregation Schemes (LAGS), NAMA or other inventories of state land from public bodies is required. The objective would be for land costs not to exceed 15-20% of total costs of social housing projects.

Mr McManus is calling for support for a private finance funding model where housing associations can borrow money from financial institutions to provide social housing. “Housing associations private loan financing is off balance sheet, which is a significant benefit to the State in raising finance. A special purpose vehicle to access financial institutions such as the EIB is essential in raising low cost finance that doesn’t add to the national debt.”

The ICSH is calling for the introduction of an incentivised housing development programme for the non-profit housing association sector over three years (2015-2017) co-ordinated centrally through a dedicated unit to assist in expanding the social housing programme.

The ICSH also believe the Government should support a strengthening of the Part V provision for 20% of social housing units in areas of need, rather than payments in lieu of new homes.

In conclusion, the ICSH claim in tandem with the forthcoming launch of a new social housing strategy by Government, there has to be a strong focus by Government on the additional resources that are required in the 2015 budget to achieve increased social housing targets and not to solely rely on the private sector.

Ends

For queries contact: Donal McManus, Tel: 01 6618334; Donal@icsh.ie.

The Irish Council for Social Housing (ICSH) is the national federation for non-profit housing associations, representing approximately 270 members who provide social housing. The sector manages over 27,000 homes for families on a low income, older people, people with disabilities and homeless households.