A radical new way of financing social housing has been proposed to the Government by the Irish Council for Social Housing (ICSH).

The initiative would see housing charities borrowing privately to fund social housing for the first time in a major way.

Under the ICSH proposal the Government could ensure the provision of 1,400 units of accommodation for €14m per annum.

The ICSH proposal was made to the Minister for Housing and Local Services, Mr Michael Finneran T.D, at the ICSH Finance Seminar, sponsored by Barclays Corporate in Kilkenny. Over 120 delegates attended the ICSH Seminar representing housing associations, local authorities, government departments and private financial institutions.

The ICSH is proposing a restructuring of social housing funding towards a mixed funding model with housing associations privately borrowing the up-front costs of providing homes for part of the investment programme.

-- Advertisement --

In the context of massive cutbacks in social housing spending alongside the growing demand for such accommodation, this innovative method of financing will enable the Housing Association sector to provide much needed housing without impacting significantly on the Exchequer and therefore the tax payer.

Mr Donal McManus, ICSH Executive Director, stated: "This is a huge reform of public policy but is necessary in the current crisis. Housing associations are experiencing greater demand than ever for their services whilst dealing with massive cutbacks in funding. The ICSH strongly urge Government to support innovative proposals from the voluntary housing sector that will ensure continued delivery of housing for those most in need."

The ICSH believes that by supporting this ambitious new financial model, the Government could ensure the provision of 1,400 units of accommodation for €14m per annum.

Mr McManus welcomed Minister Finneran's sanction of €15m capital towards the private finance model for social housing.

At the seminar Minister Finneran also launched the ICSH Collaboration Toolkit for Housing Associations. The Toolkit will allow voluntary housing associations to achieve greater efficiencies and service delivery by working more closely together.

"The aim of the Collaboration Toolkit is to promote value for money and partnerships within the voluntary housing sector," stated Mr McManus. "We are continually being told to 'do more with less' and our view is that we can achieve more working together."

(CD)