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Housing Strategic Policy Committee Meeting 9 th December, 2014.

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Presentation on theme: "Housing Strategic Policy Committee Meeting 9 th December, 2014."— Presentation transcript:

1 Housing Strategic Policy Committee Meeting 9 th December, 2014

2 Agenda 1.Housing SPC - Role 2.Social Housing Strategy Review Housing Work Plan Homelessness 5.A.O.B.

3 1. Social Housing Strategy 2020 Overall Objectives of a 6 year Multi-Annual Strategy – Pillar 1: Provide 35,000 new social housing units – Pillar 2: Support 75,000 households in private rented sector – Pillar 3: Reform social housing supports Delivery in 2 Phases – : 18,000 additional housing units and 32,000 HAP/RAS units – : 17,000 additional housing units and 43,000 HAP/RAS units

4 Pillar 1 – Provision of New Social Housing Supply 35,000 new units – Construct – Acquire – Lease To be delivered by Local Authorities and Approved Housing Bodies (AHB’s) Estimated cost €3.8 billion How to fund? Off balance sheet mechanisms – NAMA SPV (National Asset Residential Property Services) – A large scale PPP – A new financial vehicle

5 Enhanced Role for AHB’s Encourage the formation of large scale providers from this diverse sector Introduction of multi-annual housing programmes Prioritisation of funding to incentivise scale More streamlined funding process Promotion of collaboration at local and regional level between local authorities and AHB’s Enhanced regulation

6 Pillar 2 – Providing Housing Supports through Private Rented Sector Housing Assistance Payment (HAP) Rental Accommodation Scheme (RAS) Currently €500 million annually spent on Rent Supplement and RAS. New objective for development of a cost rental segment in the housing market to – Avoid exposure to rising market rents – Ensure a steady and enduring increase in the supply of affordable and cost rental housing to help ease the demand for social housing

7 Cost Rental Explained The basic idea of cost rental is that a housing provider raises the finance to provide accommodation and charges rents that are sufficient to cover both capital costs and on-going maintenance and management. The alternative, profit-rental, is where a landlord charges the maximum obtainable rent; these market rents tend to rise with the increasing value of property. In normal circumstances cost-based rents will increase slower than market rents in the same way that an individual’s mortgage payments will generally increase at a slower rate than market rents.

8 Pillar 3: Reform of Social Housing Supports To ensure that social housing supports are responsive to people’s current needs, as well as to improvements in their circumstances Local authorities will continue to be key social housing providers Local authorities will have an enhanced leadership and coordination role in facilitating and enabling social housing delivery by other providers

9 Implementation of and Other Reforms Continuing support for transfer to HAP A new housing rents framework for all forms of social housing A new tenant purchase scheme for existing local authority houses Expansion of powers to counter anti-social behaviour in local authority housing stock Choice based letting allocation process Development of a housing passport to facilitate tenant mobility between local authorities More regular annual assessment of housing need

10 Where to for Kilkenny? Pillar 1 – Construct/Acquire/Lease – Until we see the detail – hard to comment. – Limited land bank for construction - reasons? – Land we do have on which we hope to advance housing projects either directly or with AHB’s in 2015/16 Kilkenny City - New CAS Street Callan Castlecomer Acquire various brown field sites and land House acquisitions not an option in Kilkenny City Leasing

11 Where to for Kilkenny Pillar 2 – Private Rented Sector RAS – Over 450 tenancies at present HAP – Introduced in mid October and 50 tenancies to date Both RAS and HAP have the added value of removing the poverty trap by facilitating tenants to return to employment without losing rent support

12 2. Housing Work Plan 2015 Martin Mullally

13 3. Homelessness in Kilkenny Margaret Newport and Mary Cashin,

14 3. Homelessness in Kilkenny 1 st January 2014 to 8 th December 2014 Homeless Potentially Homeless - 84 Other - 42 Total no presentations/referrals - 354

15 Analysis of Homeless Statistics Of the 312 homeless/potentially homeless referrals, 94 presented with children (27 couples with children and 67 single parents with children who were predominantly female). In the first quarter of 2014 Kilkenny County Council dealt with 76 homeless/potentially homeless presentations and this can be compared with 105 presentations in the final quarter which is not yet finished. At present Kilkenny County Council is providing emergency B&B to 4 single individuals, 1 elderly couple, and one family. This does not include emergency accommodation at GSC (inc. The Lodge) and Amber Women’s Refuge.

16 What is causing Homelessness or “At Risk of Homelessness” in Kilkenny City Lack of housing supply – 6 years since any housing scheme development. Limited supply of units in “unfinished” estates Rising rents in private rented sector combined with landlords unwillingness to accept Rent Supplement Repossessions Addiction(s) Mental illness

17 What could be done NOW? Incentivise property owners to enter the private rented market – Tax incentives rather than tax take – Subsidised loans to renovate suitable properties Incentivise landlords to enter RAS and HAP Schemes Allow local authorities to give loans to bring private properties up to a standard provided owner signs up to RAS for identified period Delay repossession of “buy to let” properties Temporary HAP arrangements where financial institutions are repossessing Encourage housing applicants to remain in family home Incentivise “Rent-a-Room”

18 What not to do Increasing rent supplement where supply is limited will only increase rents. The issue is that of Supply Rent control may potentially reduce supply as properties would be sold


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