1. Social Housing Expenditure
CMG
Government Construction Projects & Capital Spend Conference 2016
Social Housing Expenditure
John O’Connor
Chief Executive
11 May, 2016

2. Agenda Social Housing Strategy Capital Expenditure Current Expenditure
Roles of local authorities and approved housing bodies

3. Dept. Housing, Planning & Local Government Approved Housing Bodies
Organisations
Dept. Housing, Planning & Local Government
Approved Housing Bodies
Housing Finance Agency
Housing Agency
Local
Authorities

4. Social Housing Strategy 2020

5. Social Housing Strategy 2020 Overview
The strategy is broken into 3 pillars:
Pillar 1 – Provision of new social housing
Pillar 2 – Providing housing supports Through the private rented sector
Pillar 3 – Reform: creating flexible & responsive social housing supports

6. Social Housing Strategy 2020 Overview
The strategy will:
a) Provide 35,000 new social housing units over 6 years.
b) Support up to 75,000 households through enhanced private sector.
c) Reform social housing supports to create a more flexible and responsive system.

7. Social Housing Strategy 2020 Overview Continued
Delivery in broken into two phases
Phase 1 (2015 – 2017)
18,000 additional houses
32,000 HAP and RAS
Phase 2 (2018 – 2020)
17,000 additional houses
42,000 HAP and RAS
HAP - Housing Assistance Payment
RAS - Rental Accommodation Scheme

8. Pillar 1 – Provision of New Social Housing
Targets the delivery of 35,000 new social housing units
Two primary delivery channels:
a) Local Authorities
b) Approved Housing Bodies

9. Pillar 1 – Provision of New Social Housing Continued
Delivery in 2 phases: Phase 1 – Building on Budget 2015: 18,000 additional social housing units by 2017 Phase 2 – 2018 – 2020: 17,000 additional social housing units by 2020

10. Expenditure

11. Exchequer Housing Expenditure 2016
Capital Expenditure €405 m Current Expenditure €528 m Total €933 m Plus approx. €250 expenditure on rent supplement

12. Pillar 1 – Provision of New Social Housing
Supply of Social Housing (2015 – 2020)
Delivery
2015
Units
Current
3,000
8,400
12,000
Capital
2,386
5,097
4,690
Period Total
5,386
13,497
16,690
Cumulative Total
18,883
35,573

13. Pillar 1 – Provision of New Social Housing
Housing Units to be Delivered: Capital and Current 2015 – 2020

14. Pillar 2 – Providing Housing Supports Through the Private Rental Sector
Provides social housing supports for low-income households through the private rental sector
Pillar 2 has 2 building blocks:
a) The new Housing Assistance Payment (HAP)
b) Innovative measures in the rental sector

15. Pillar 2 – Providing Housing Supports Through the Private Rental Sector Continued
Additional HAP and RAS Units (2015 – 2020)
Delivery
2015
2016
2017
2018
2019
2020
Units
HAP
8,400
10,000
RAS
2,040
1,000
500
Period Total
10,400
11,000
15,500
16,500
Cumulative Total
21,400
32,400
43,400
58,900
75,440

16. HAP, RAS and Rent Supplement
Currently €450m per annum is spend on these housing and income supports
HAP (housing assistance payment) will become the major element of this over the coming years

17. Social Housing Supply AHB Local Authority Acquisition Acquisition
Grant Funded (CAS)
SOCIAL HOUSING
SHCEP - CALF & Private Finance
Construction
Construction
Part V
SHCEP (Leasing)
SHCEP
(leasing & rent)
RAS
SHCEP is the Social Housing Current Expenditure Programme (previously SHLI or Social Leasing)
HAP

18. A Changing Approach

19. Rental Current expenditure A changing approach
The bulk of new social housing provision over the coming years will be
Rental
Current expenditure

20. Social Leasing What is Social Leasing?
Social Leasing is a new way to provide social housing.
Two provision arrangements:
Social Leasing
Long Term Direct Provision by Approved Housing Bodies
Buy or Build
Lease
Long Term Private Leasing

21. Delivery by Approved Housing Bodies
Approved Housing Bodies may:
Lease properties from a private owner or developer.
Buy or build properties using private finance.

22. Payment and Availability Agreement
Local Authorities will pay AHB for the properties, on a quarterly basis for a period of years.
In return, the AHB will make those properties available as social housing.

23. Financial Arrangements
Approved Housing Body enters into a Payment and Availability Agreement with Local Authority
Receives 92% of market rent on quarterly basis
The Department may provide a repayable capital advance of up to 30% of the cost
AHB borrows the balance of the finance required
AHB receives a rent payment from the social housing tenant (a low rent)

24. Private Leasing
Companies, landlords and individuals may lease or rent properties to local authorities or approved housing bodies
Long-term Leasing (10 to 20 years)
Enters into payment and availability agreement and receives 80% of market rent
Rental Arrangement
Enters into a contract and receives 92% of market rent (and retains responsibility for management and maintenance)

25. Information Brochure
Available on :

26. The Changed Approach
Provision of social housing on long-term rental / leasing arrangements
Needs organisations taking a long-term view
Needs private finance and investment
Needs higher standards of construction
Needs organisations that are in the business of long-term management

27. Who will it be? Approved Housing Bodies Professional landlords
Companies interested in long-term development and management
Investment & Private Finance
All need to be able to attract investment funds and private finance

28. Key Points Government Capital Expenditure is limited
Current expenditure utilisation is critical
Local authorities having a strategic role while continuing to deliver housing
Increasing role in provision by approved housing bodies
Private finance and investment needed

29. Thank You
Tel: