SOME homeless charities are failing to draw down hundreds of millions of euros in funds to build or buy social housing, according to an Oireachtas committee chair.
Joanna Tuffy, a Labour TD, claimed two of the country’s largest homeless charities, Focus Ireland and the Peter McVerry Trust, should be doing more to provide social housing given their capacity and expertise.
The Housing Finance Agency (HFA) has confirmed that just five out of 13 charities registered as approved housing bodies (AHBs) have applied to it for funding. Focus Ireland secured AHB status earlier this year, but has not applied for funding. The Peter McVerry Trust has not applied for AHB status.
“At the risk of agreeing with the taoiseach, funding doesn’t seem to be the problem — there is plenty of money around,” said Barry O’Leary, chief executive of the HFA. “We have facilities to lend up to €500m — €300m for house-building, €200m for house purchases. We are open for business, we are very keen to lend, and we can lend European Investment Bank money fixed for 25 years at about 3.25%, which is an absolutely phenomenal offering.”
He said the €300m could fund the construction of up to 2,000 homes, and pointed out the European Investment Bank has said “come back when it is gone, there’s more where that came from”.
Advertisement
A further €200m was made available by the Council of Europe Development Bank for purchases of social housing on the open market.
O’Leary said some charities had specialised in working on issues such as hostel
accommodation, sleeping on the streets, and the provision of emergency accommodation, but now need to broaden their scope to providing social housing.
Focus Ireland says it has restructured its accounting structure to meet the requirements of the HFA but got a “more attractive” offer from a commercial bank earlier this year to finance the development of 28 homes at Harold’s Cross, Dublin. “We are planning another development of 25 units at John’s Lane West later this year and we will draw down funds from the HFA if we think that is the best deal,” it said.
Pat Doyle, chief executive of the Peter McVerry Trust, said he was disappointed with Tuffy’s comments. He said the trust is in the process of meeting the HFA’s rigorous requirements for recognition, and is currently buying 55 homes in Dublin using a mixture of commercial finance and business donations.
Advertisement
Tuffy said increasing the rent supplement cap — as suggested by Focus and the McVerry Trust — would simply drive rents up further. “The issue is supply,” she said. “Some AHBs are stepping up to the plate and borrowing from the Housing Finance Agency to fund social housing, but two major players have been slower than others — Focus Ireland and the McVerry Trust.
“They are criticising [the government] but they need to step up to the plate themselves. Look at what smaller organisations like Cluid, Tuath and the Oaklee Housing Trust have done.”
Sr Stanislaus Kennedy, chairwoman of Focus Ireland, has asked the government to increase rent allowances and to provide access to temporary housing. She claimed environment minister Alan Kelly had yet to deliver on a promise to bring in rent certainty.
McVerry has called for a freeze on rents and an rise in the rent supplement to prevent more families “floating” into homelessness, although he did not expect this to happen. “Well, there are a number of TDs who are landlords; I don’t think they are going to vote for it,” he said last week. The Department of the Environment confirmed Kelly will bring proposals to cabinet on rent certainty after the summer recess. “The regulation of rent raises many complex economic and legal issues, and the minister has to be satisfied any measures proposed are balanced and have the desired effect on the rental market, while being fair to landlords and tenants alike,” a spokesman said.
Aideen Hayden, a Labour party senator and chairwoman of housing charity Threshold, said she was confident Fine Gael ministers would support rent certainty — linking rent increases to inflation — and having the Private Residential Tenancies Board monitor the rental market for unjustified increases.
Advertisement
Hayden disagrees with Tuffy and her party leader Joan Burton, the social protection minister, on not increasing rent supplement. “We are depending on the private rental market to house vulnerable people,” she said. “You cannot depend on the market to supply housing if you are not going to pay the market rate.”