Announcing the acquisition of homes in the Dublin suburb of Sandyford, the association outlined how – in partnership with the Department of the Environment – it has acquired these units using an innovative finance model for funding social housing.
The homes in the Sandyford project – located in the Beacon South Quarter development – are being purchased by Clúid. A loan of approximately 75 per cent of the purchase price has been approved in principle by the Housing Finance Agency (HFA), the first such transaction by the HFA. The remaining 25 per cent is being funded from Clúid resources and the Capital Advance Leasing Facility (CALF), a new facility that has been created to support the acquisition or development of new homes using funding from financial institutions.
Clúid is the first voluntary housing organisation to be approved for borrowing by the HFA and this loan (subject to final agreement on detailed terms and conditions) will be the first finance deal for the voluntary housing sector using this source of funds.
Speaking in Sandyford today, Clúid’s Director of Operations, Neil Bolton, said: “This represents a sea change in how social housing will be funded in Ireland in the coming years. In the past, it was the norm for projects developed by voluntary bodies like Clúid to be 100 per cent grant-funded through Exchequer sources, but this is no longer an option.
“The recession has forced us to explore different ways to fund the delivery of new social housing. Public funds are extremely scarce, but demand for social housing continues to grow. So the voluntary housing sector has worked closely with the Department of the Environment to identify various funding mechanisms and develop a model that delivers positive outcomes for all.
“We are excited that Clúid has become the first voluntary housing association to avail of debt finance through the HFA. We feel this is a way forward for the voluntary housing sector, and we are keen to work with other private sector partners to identify possible schemes to which this funding model could be applied.”
There are 58 apartments in the new Clúid project: 34 of these will be allocated to social housing, and the remaining 24 will be rented through the private rental market. All apartments were purchased through the Receiver, appointed by NAMA, at a total of €10.3 million, an average cost of €177,500 per unit.
“This Sandyford project will offer high-quality accommodation in a well-serviced location to both private tenants and those on social housing lists,” said Neil Bolton. “This is in keeping with the Government’s ethos of developing mixed-tenure communities that have the capacity to be socially and economically sustainable in the long term.
“There is a high demand for social housing in the Dun Laoghaire Rathdown local authority area and there is consistent demand from the private rental sector also. Beacon South Quarter has great infrastructure with strong transport links, as well as access to established community facilities such as schools and parks. There are potential employment opportunities for residents with a large local business community.
“Clúid has skilled and dedicated staff with experience of working in both the social housing sector and private market. We take great pride in our work and are committed to the long-term sustainability of all our housing developments.”
Willie Penrose TD, Minister of State for Housing and Planning, was present at the launch of the Clúid project in Sandyford. He praised the new approach adopted by Clúid and said it was a model he hoped to see replicated by other voluntary housing organisations.
“Today marks a new departure for housing in Ireland,” he said. “This is not just the delivery of a new housing project in a high-quality, landmark development by one of the country’s foremost approved housing bodies – we are also marking the first such project funded by the voluntary and cooperative sector using loan finance from the HFA under its new direct lending mechanism. This mechanism will play an important part in the delivery of permanent new social housing in the years ahead.
“Approved housing bodies like Clúid have made a massive contribution to social housing in Ireland – not just in providing many thousands of homes, but also in developing expertise and promoting excellence. The Government’s new housing policy statement, launched last month, clearly acknowledges the capacity and track record of the voluntary and cooperative housing sector. Approved housing bodies will be at the heart of the Government’s vision for housing provision – not by default, but by design.”