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Housing association sector operating below full capacity Housing association sector operating below full capacity Irish Council for Social Housing 50 Merrion Square East, Dublin 2 Tel: 01 661 8334 Fax: 01 661 0320 Email: [email protected] Web: www.icsh.ie SOCIAL HOUSING NESC call for 73,000 extra homes in social housing Government’s strategy on homelessness to be reviewed Low-cost site scheme figures underline access to land problem NESC call for 73,000 extra homes in social housing Government’s strategy on homelessness to be reviewed Low-cost site scheme figures underline access to land problem Newsletter of the Irish Council For Social Housing ISSUE No. 62 Winter 2005 ISSN No. 0790-1321

Newsletter of the Irish Council For Social Housing · that is required which the NESC estimate at €1.4bn per year over the next 8 years. Also key is the recommendation in the Report

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Page 1: Newsletter of the Irish Council For Social Housing · that is required which the NESC estimate at €1.4bn per year over the next 8 years. Also key is the recommendation in the Report

Housing association sector operating below full capacityHousing association sector operating below full capacity

Irish Council for Social Housing 50 Merrion Square East, Dublin 2 Tel: 01 661 8334 Fax: 01 661 0320 Email: [email protected] Web: www.icsh.ie

SOCIAL HOUSING

NESC call for 73,000 extra homes in social housing

Government’s strategy on homelessness to be reviewed

Low-cost site scheme figuresunderline access to land problem

NESC call for 73,000 extra homes in social housing

Government’s strategy on homelessness to be reviewed

Low-cost site scheme figuresunderline access to land problem

Newsletter of the Irish Council For Social Housing

ISSUE No. 62 Winter 2005 ISSN No. 0790-1321

Page 2: Newsletter of the Irish Council For Social Housing · that is required which the NESC estimate at €1.4bn per year over the next 8 years. Also key is the recommendation in the Report

NEWS

The National Economic and Social

Council (NESC) has published its long

awaited report on housing entitled

Housing in Ireland: Performance and

Policy. The report is a detailed

examination of housing and land markets

and the policy framework which underpins

our housing system.

The ICSH welcome the recommendation

for social housing in the report which calls

for an increase of 73,000 units of social

housing to bring the sector to a total stock

of 200,000 permanent units by 2012. This

recommendation indicates the agreement

of the Social Partners (who are

represented on the Council) that the stock

of social housing has fallen below

sufficient levels and requires significant

investment and commitment to reverse

this situation. Ireland has currently one of

the smallest social housing sectors in the

EU at less than 8%.

The key to achieving this is that adequate

capital funding is allocated to local

authorities and housing associations to

provide a continuous development

programme. The social and affordable

housing action plans to 2008, currently

being finalised by the Department of the

Environment, Heritage and Local

Government, could have provided the

mechanism to achieve this, however early

indications show this is unlikely. The

Council envisage “a substantial increase in

investment” above current levels, however

recent announcements by Minister Noel

Ahern to commit €6bn in investment over

the coming five years falls short of the

Council estimate of the level of funding

that is required which the NESC estimate at

€1.4bn per year over the next 8 years.

Also key is the recommendation in the

Report on implementing a policy of active

land management. It remains to be seen

whether land for social housing will be

made available from any such intervention.

While the transfer of state land is now a

policy of the Government for affordable

housing, housing associations providing

social housing for rent to those on the

lowest incomes do not have any significant

access to such land.

One of the recommendations of the report

it to “create a defined revenue stream for

housing bodies providing on-site and care

supports” and this is welcomed by the

ICSH. Housing associations providing

special needs housing services with higher

running costs for care, for example for the

elderly, can access capital funding to build

housing projects but there is no specific

funding scheme as yet to pay for the

running costs.

The NESC, representing all Social Partners,

is well positioned to advise the

Government on strategic issues relating to

the efficient development of the economy

and the achievement of social justice. This

report gives clear guidance on social

housing and it is hoped this will be taken

on board. The goal of 73,000 additional

social rental homes is certainly achievable

and not unrealistic assuming the issues of

increased capital funding and access to

building land are urgently addressed.

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NESC Housing Report Calls for Increase inStock of Social Housing to 200,000 Homes

ContentsHousing Association Sector Operating Below Full Capacity 3

Disability Bill Brings Controversy and Disappointment Over Housing Measures 4

Review of Memorandum on the Capital Funding Schemes: Bible or Dust Collector? 5

Rental Accommodation Scheme Established 6

Dublin Hosts European Housing Conference 7

Low-Cost Site Scheme Figures Underline Access To Land Problem 8

Irish Council for Social Housing Activities 8

Government’s Strategy on Homelessness to be Reviewed 9

ICSH Annual Regional Meetings 10

Publications 11

Housing Overseas 12

Front cover Dundalk Voluntary Housing Association opening of An Slí. Ahousing project built using the capital assistance scheme providing 7 units of accommodation for people with intellectual disabilities.

Page 3: Newsletter of the Irish Council For Social Housing · that is required which the NESC estimate at €1.4bn per year over the next 8 years. Also key is the recommendation in the Report

With housing associations now

managing over 17,500 homes

and providing over 1 in 4 of

all new social housing each year, the

sector is still primed for further

expansion although there are still a

number of significant factors curtailing

this proposed expansion such as

required scale of capital investment

and land availability.

Housing association output in the mid

1990’s had recorded an annual output

of over 1,000 units per year which had

fallen by half by the late 1990’s due to

the fall off in sites and huge capital

funding shortfalls.

Since 1999, when the Government

launched the National Development Plan

(NDP), there was an anticipation by the

sector, that the incremental targets set for

housing associations to allow it provide up

to 4,000 units per year by 2006 would be

matched with the necessary capital

resources. Despite concerns in some

quarters about the capacity of housing

associations, the output of the sector has

doubled in the last 5 years, with housing

associations reaching 94% of the targets

set for them in the NDP from 2000-2003.

Significant increased capacity

through specialist staff

Since 2000, there has been a significant

increase in activity of locally based housing

associations as well as larger housing

associations who have significantly

increased their ongoing building

programmes throughout the country. The

number of housing associations now in

operation is at its highest level with many

housing associations now employing

specialist housing staff. It is an important

feature of the housing association sector

over the years where staff expertise tends

to remain within the housing association

sector with people seeing working in

housing as a distinct career path. Therefore

the housing association sector is well

capable of increasing output from the 2004

figure, but the hope is that output will not

have reached a plateau of around 1,700

new homes, which is significantly short of

the 2,750 that was anticipated by the

Government target for 2004 under the NDP.

While it is of course widely acknowledged

by the sector that the level of capital

finance for housing associations has

increased in the previous 4 years from

€144m to €235m, it is significantly short of

the amount required to meet the

Government’s own targets for housing

associations under the NDP and Programme

for Government. Finally one other

additional fact is that local authorities who

act as ‘enablers’ for housing associations

now have had to administer three new

affordable housing schemes since 1999,

with more or less the same staff

resources. This may in some areas have

meant less focus on social housing

especially with the Government having

set specific targets for affordable housing

as part of the commitment to housing in

Sustaining Progress. 3

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NEWSHousing Association SectorOperating Below Full Capacity

Despite concerns in somequarters about the capacityof housing associations, the

output of the sector hasdoubled in the last

5 years, with housingassociations reaching

94% of the targets set forthem in the NDP from

2000-2003.

Tintean Housing Association

Minister Eamon O’Cuiv officially opened thelatest project developed by Tintean HousingAssociation in Carlow. Tintean Carraig,Ballinacarrig caters for six tenants withspecial needs. The housing associationmanage the project and a local voluntaryorganization, Delta, provide the support.Tintean Housing Association, in partnershipwith Carlow County Council plan to extendthis facility by adding another building tocater for four tenants with special needs.Tintean already manage four housingprojects for families and elderly in Carlow.

Page 4: Newsletter of the Irish Council For Social Housing · that is required which the NESC estimate at €1.4bn per year over the next 8 years. Also key is the recommendation in the Report

There has been significant reaction to

the Disability Bill as published by the

Government with many disability

organisations unhappy and vocal in their

disappointment. The Disability Legislation

Consultation Group, which represents 507

organisations, said there were fundamental

flaws in the Bill and outlined ten areas of

concern. Some organisations have asked for

it to be redrawn.

No Mention of Housing

The Irish Council for Social Housing (ICSH),

as the national social housing federation, is

deeply concerned about the lack of

reference to housing or accommodation in

the proposed legislation. The most relevant

section of the new Bill in relation to

housing is contained in the proposed new

Sectoral Plans. The Sectoral Plan of the

Department of the Environment, Heritage

and Local Government states its

commitment on the assessment of housing

need of persons with disabilities, provision

of social and affordable housing including

under the voluntary and co-operative

housing sector, housing design

issues and other accommodation grants and

services. Unfortunately, this does not offer

much in the way of assurances to people

with disabilities that their accommodation

needs will be adequately dealt with.

The ICSH believe that the provision of

housing to people with disabilities is of vital

importance and will underpin

effective delivery of other health and

educational services. Because of this,

it is essential that access to housing

be specifically articulated in the

legislation itself to copper-fasten its

provision rather than leave it to a

sectoral plan, which can be amended

within a Department and is therefore

far weaker.

If one takes the example of the

housing needs assessment which

was established statutorily in the

1988 Housing Act. There is currently

no confidence in how this process

operates in relation to identifying

and assessing disabled peoples’

housing needs.

In the most recent assessment

(2002) the figure for persons with

disability was 423, out of a total of

48,413 households. The new

assessment in March 2005 should

reflect the need more

comprehensively and it would be

useful if it provided more detailed

information on the level of need and type

of housing required by persons with

disabilities. However, if the assessment is

merely outlined in a sectoral plan with no

real force of the new legislation behind it,

there are concerns that the next assessment

will do little better for people with

disabilities than the previous one.

Improving the Bill

Housing for people with disabilities is a

crucial issue with many low income

disabled people unable to access suitable

accommodation and the availability of

supported accommodation for persons with

an intellectual, mental disability is in short

supply. As it stands, this Bill will do nothing

in real terms to house low - income people

with disabilities. A central part of the new

Bill is that it provides a statute-based right

to an assessment of disability-related health

and education needs. This should be

amended to include provision for an

assessment of accommodation and

housing needs. This should be linked to a

more refined housing needs assessment

process as the current assessment only takes

place every three years and it does not

define the specific category of disability and

support requirement. Housing associations

are a key source of accommodation for

persons with disabilities with increasing

numbers of projects coming through each

year. However there are a number of issues:

• Revenue funding for such projects is

extremely limited.

• In developing housing projects for

persons with disabilities, co-ordination

between the local authority, health

boards and the housing association is

key, particularly in relation to any

on-going revenue implications for care

and staffing. Housing associations

regularly find that co-ordination greatly

lacking and this impacts negatively on

their project developments.

It will be important to see if the Bill

improves this situation in light of the

proposed multi-annual revenue funding

budgets and closer liaison arrangements.

These are the types of real changes that the

ICSH would like to be able to welcome in

the new Bill. Also it would be useful if the

extra €10m allocated by the DoEHLG in

Budget 2005 for the sectoral plan would be

specified and it be indicated whether there

is additional capital funding or funding for

on-site supports.

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NEWS

Disability Bill Brings Controversy andDisappointment Over Housing Measures

Housing for people with

disabilities is a crucial

issue with many low

income disabled people

unable to access suitable

accommodation and the

availability of supported

accommodation for

persons with an

intellectual, mental

disability is in short

supply

Page 5: Newsletter of the Irish Council For Social Housing · that is required which the NESC estimate at €1.4bn per year over the next 8 years. Also key is the recommendation in the Report

The Department of the Environment,

Heritage and Local Government’s

Memorandum on the Capital Funding

Schemes is now in circulation for over 2

years. When the Memorandum was first

produced in 2002 it was heralded as a

progressive move that would help to

streamline the administration of the capital

funding schemes for voluntary housing.

A Streamlining Measure

The objective of the Memorandum was to

consolidate all information relating to the

operation of the capital funding schemes. It

was also intended that the Memorandum

would serve to streamline practices in

relation to the operation of the funding

schemes across local authorities. Previously

the administration of the schemes varied

considerably between authorities, making it

difficult for housing associations to

anticipate the steps involved such as

making applications for capital funding etc.

Implementation of the Memorandum

While the Memorandum has proved very

beneficial, it has become apparent over the

past year that the operation of the funding

schemes still varied to some degree. A

survey carried out by the ICSH of its

members in the Spring of 2004 revealed

that the implementation of the manual

varies considerably across local authorities.

Above are some of the discrepancies in

relation to practices found.

Overall it was found that the

implementation of the Memorandum is

uneven depending on the local authority

area. Some local authority staff appear not

to be familiar with the basic measures

contained in it. Time frames are not being

adhered to and lack of adherence is leading

to delays and frustrations. The position of

designated officer is one of the more

successful measures of the Memorandum.

Service provided by local authorities tohousing associations

The local authority has a key enabling role

in relation to the development of social

housing schemes by housing associations.

The growth of the sector and its

performance depends to a large extent on

how housing associations are assisted and

facilitated by local authorities. The scope of

social and now affordable housing

programmes dealt with by local authority

housing personnel is broad and continues to

widen. In this context the Memorandum

offers an opportunity to local authority staff

to institute working practices that are

understood by the housing associations they

work with.

The survey undertaken by the ICSH shows

that the Memorandum has been successful

to date, but that it is not implemented in its

entirety by every local authority. These

anomalies cost time and energy to housing

associations and most likely lead to

misunderstandings. Perhaps a renewed

emphasis is called for with practical training

for local authority staff who are working in

this area (both designated officers and their

colleagues).

There is also a need for the sector to work

closely with City and County Managers to

ensure the implementation of good practice

with the various measures that were

included in the Memorandum. 5

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REVIEW

Review of Memorandum on the CapitalFunding Schemes: Bible or Dust Collector?

Streamlining Measures introduced in Memorandum

LAs are to designate a senior officer responsible for all aspects

of the capital funding schemes and for the housing association

sector.

The approval of capital funding is now an executive function of

the LA and not elected members.

HAs should not have Section 48 development charges (levies)

imposed on their capital funding applications.

Decision should be notified to the HA no later than 2 months

following application.

LA should issue cheques for stage payments to the HA within 10

days of the claim being made.

Yearly statements should be issued by LA on mortgage loans

with HA.

Standardised Mortgage Agreements are to be used by the LA.

Experience to date

Working well, particularly in urban areas. However there are some

counties where the designated officer is not sufficiently senior or

has shared duties.

Some LAs still go back to elected members for the approval of

capital funding applications.

The majority of cases don’t impose levies however it is still the

practice in some and this can cause delays.

Mixed practice. Some found that it takes considerable longer – 10

months to a year.

Does not happen across all LAs. Practice of LA still releasing

payment to intermediary solicitors was identified by 2 members.

This never happens.

Practice is standard in most cases, only some do not adhere to this.

LA = Local Authority HA = Housing Association

Page 6: Newsletter of the Irish Council For Social Housing · that is required which the NESC estimate at €1.4bn per year over the next 8 years. Also key is the recommendation in the Report

Last summer there was an

announcement by the Departments of

Environment and Social & Family

Affairs of a new accommodation based

scheme which will meet the needs of

households who

are renting in

the private

sector and

receiving rent

supplement for

over 18 months.

It is estimated

that 19,000

households are

in this situation.

Since the

summer, both

Departments

have been

actively

developing this scheme and designing

measures for the implementation of this

new rental accommodation scheme (RAS).

The main thrust of the scheme will be

delivered through long-term arrangements

with private landlords and new

developments procured through public-

private partnership initiatives.

Role for housing associations?

The voluntary housing sector has a dual

role in this new scheme. Tenants

accommodated under the capital assistance

scheme are eligible to apply for rent

allowance (subject to a ceiling) to assist

towards their rent payments and there are

c.3,500 housing association tenants in

receipt. Current arrangements governing

rent supplement payments to housing

association tenants will remain in place

until the new scheme is fully implemented.

It would be important that post-2007 when

the new arrangements are operational that

housing associations would not have to

administer two rental systems, i.e. one for

tenants receiving rent supplement within

the first 18 months of their tenancy (which

is considered short-term) and those who

are post 18 months (which is then

considered a long-term housing need).

Secondly, the scope for involvement of the

voluntary housing

sector in the

provision of new

accommodation

under the RAS is also

being explored.

There are a number

of issues that need

to be considered

prior to establishing

whether any

individual housing

associations could

have involvement in

the PPP type

arrangement for the

supply of new build accommodation.

These would include ensuring that under

any new arrangements there is an

adequate stream of rental income for

housing associations. Relatively straight

forward administrative procedures from a

housing management perspective, e.g.

payment system, level of assistance, would

also need to be a feature of any new

arrangement.

Also at present the rent supplement

scheme operates only in relation to the

Capital Assistance Scheme (CAS), the

potential to incorporate rent assistance

arrangements under the Capital Loan and

Subsidy Scheme (CLSS) would also need to

be established. The ICSH Development &

Management Sub-committee is currently

examining the impact of any new scheme

on the sector.

The ICSH is involved in discussions with

both departments in relation to how these

issues and others can be resolved so that

the changeover in the housing association

sector is smooth.

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NEWS

Rental Accommodation Scheme Established

There are a number of

issues that need to be

considered prior to

establishing whether any

individual housing

associations could have

involvement in the PPP

type arrangement

The Irish Council for Social Housing

group insurance facility is now up

and running with over 60 ICSH

members joined up.

The facility has delivered savings to

members of an average 40% reduction in

premiums. It is clear that this facility is

now driving the insurance market for the

housing association sector, with other

insurance companies reacting in a

predictable manner.

Some insurers have responded by

reducing their premium quotes as they

are now aware of the ICSH group scheme

whose bulk buying power has influenced

the market and drove prices down. There

may be a temptation for ICSH members to

use the group insurance scheme to lever

lower premium quotes from their existing

insurance provider. This would undermine

the basis of the facility which was

established by the ICSH after a tendering

process.

However, the success of the scheme relies

on the loyalty and solidarity of members

signing up to the facility that was adopted

by the ICSH membership in June 2004. It

is only through the strength of the group’s

purchasing power that long-term savings

will be delivered.

The facility is insured by Eagle Star

Insurance and managed by BHP Insurance

Brokers. For more information contact BHP

on 01 6202030.

Group Insurance Facility Pushes Market’s Buttons

Page 7: Newsletter of the Irish Council For Social Housing · that is required which the NESC estimate at €1.4bn per year over the next 8 years. Also key is the recommendation in the Report

The Irish Council for Social Housing and

the National Association of Building

Co-operatives co-hosted a meeting of

the European Social Housing Liaison

Committee (Cecodhas) in Dublin from

October 20th – 22nd.

This is the first time in fourteen years that

a meeting of Cecodhas took place in

Ireland.

Cecodhas is a European wide non-profit

organisation formed in 1988 to promote

the work of social housing organisations in

the European Union. It carries out a

representative role for housing

organisations at EU level working with the

EU Institutions in relation to issues affecting

social housing. There are 46 full members

of CECODHAS comprising of national and

regional housing organisations from 19 EU

member states.

Public housing, voluntary and co-operative

organisations are members of Cecodhas

although Ireland is one of the few countries

who have no representation from public

housing authorities (local authorities).

Together CECODHAS members provide over

25 million housing units for rent or low-cost

home ownership across Europe.

Governance issues across Europe

A seminar entitled ‘EU policies and the future

of social entrepreneurs in housing; Promoting

our independence - Be proud of what you

have’, organised by the CECODHAS Voluntary

Housing Association section, took place on

the first day. This seminar addressed the

characteristics of ‘third sector’ or non-profit

social housing organisations. The "third

sector" comprises mainly voluntary and co-

operative housing organisations working for

not-for-profit community benefit. The E.U.

has no direct responsibility for housing but

the policies, directives and regulations issued

by the Commission promote market and

competitive solutions, which affect the

operations of the social housing

organisations. Complex compliance

requirements are imposed without due

regard to the non-profit status and social

purposes of the "third sector" organisations.

The seminar concluded by agreeing the need

for clarification of the position of such

organisations under EU legislation as they do

not fit neatly into either public sector or

private sector organisations which are

formally recognised by the EU institutions

while non-profit organisations are not.

Europeans visit Irish social

housing developments

The participants were taken on a study

tour of two Dublin social housing projects

to introduce them to housing association

developments in Ireland and how they

are undertaken. The participants were

given a tour of each of the projects,

explaining how they are funded,

developed and managed and what

housing and additional services are

provided to tenants.

Proposed directive on Services

in the internal market -

What impact will it have?

There is currently an EU proposal on the

implementation of a common market for

services in the EU. CECODHAS is concerned

that the implementation of this directive

as it now stands could lead to an erosion

of quality standards, particularly of social

services as well as an increased

administrative burden for actors in the

social housing sector. CECODHAS is

looking for the potential negative impact

of this directive on social housing to be

carefully assessed before it is applied.7

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NEWS

Dublin Hosts European Housing Conference

Bernard Thompson, General Secretary, NABCo with Italianand Portugese delegates on a professional visit to a ClúidHousing Association project - Killarney Court in Dublin

David Orr, Director, Scottish Federation of Housing Associations and Claire Roumet, GeneralSecretary, Cecodhas at the European meeting in Dublin hosted by the ICSH and NABCo.

Page 8: Newsletter of the Irish Council For Social Housing · that is required which the NESC estimate at €1.4bn per year over the next 8 years. Also key is the recommendation in the Report

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NEWS

Irish Council for Social Housing Activities

ICSH Seminar, Athlone

Delegates actively participating at the ICSH

continuing professional development seminar on

governance in housing associations,

Athlone, November 2004.

Recent figures produced in the DoEHLG

June Quarterly Bulletin 2004 show

that there were just 13 low-cost sites

sold by local authorities between January

and June 2004. These sites can be sold for

social housing delivered by housing

associations as well as to individuals, and it

is not always clear how the sale of such

sites are recorded by local authorities. This

low figure represents a significant reduction

from the already low number of 112 sites

that were sold by local authorities in 2003.

This trend is severely problematic for the

voluntary and co-operative housing sector

as a continuous supply of building land is a

pre-requisite for increasing the sector’s

supply of social housing. With land being

very slow to be provided through ‘Part V’ as

yet, it now begs the question if the

Government want the housing association

sector to have a much greater role how

does it envisage such a scenario without

the basic provision of building land?

While many years ago housing associations

may have received donated building sites,

these options have since dried up for

housing associations. Previously local

authorities, as part of their statutory

enabling role, were key in providing many

sites to housing associations in the mid to

late 1990’s. If many local authorities are

reducing (or at least not expanding) their

‘strategic enabling’ role in supplying sites to

housing associations then it begs the

question of where housing associations are

to now obtain land to forward plan building

programmes.

As Part V land is essentially developer-led, it

is much more difficult to accurately predict

where a continuous flow of sites will come

from. Also the scale of ‘Part V’

developments for social housing directly

relate to the output of private housing

which is now at record levels, but it is

reasonable to assume that this scale of

private output will fall off in the near future.

Therefore the simple assumption could be

less Part V agreements and less potential

for Part V social housing in particular in the

supply of sites.

In addition the voluntary and co-operative

housing sector did, as far back as 1999, see

the potential positive of the Housing

Finance Agency (HFA) as an additional

instrument for expanding the role of the

housing association sector.

However although legislation was passed

on this in 2002 with subsequent EU

approval, the ICSH has been concerned

about the lack of progress and type of

process that has evolved in trying to

conclude this process.

Unfortunately in the absence of any of the

above measures housing associations have

had to resort to buying land as a last resort

in the private market in recent times.

Housing output targets without land

While much public comment concentrates

on the ability of social housing providers

such as housing associations to meet

housing targets year-on-year, a much more

rigorous analysis is needed to reflect the

realities for providers such as linkages

between issues like land acquisition and

assembly, numbers of projects in

construction progress and how they relate

to the numbers of completed homes each

year.

It is certainly interesting to note the

dramatic progress that has been made by

the Government in the past year alone to

identify almost 10,000 sites for the

affordable housing initiative under the

national agreement Sustaining Progress.

Something similar to this for social housing

would dramatically bolster the capacity of

the social housing sector to provide more

social housing and avoid having to compete

in the private market for land.

Low-Cost Site Scheme Figures Underline Access To Land Problem

Page 9: Newsletter of the Irish Council For Social Housing · that is required which the NESC estimate at €1.4bn per year over the next 8 years. Also key is the recommendation in the Report

Homelessness – An Integrated

Strategy was launched in May

2000 by the Government in a

concerted effort to combat the persistent

problem of homelessness in Ireland. The

aim of the strategy was to introduce a

cross-departmental approach to the issue

which would harness resources across

Government departments from housing to

health, education and training. It also

established an inter-agency approach

linking local authorities, health boards and

voluntary associations to work in

partnership in providing services to

homeless people.

On foot of the strategy each local

authority was to prepare a three-year

action plan outlining how it would deliver

services to combat the problem in each

area.

A Homeless Forum was also to be set up

in each local authority area where

representatives of the various state and

voluntary agencies would oversee the

implementation of the plan. In Dublin

where there is the greatest incidence of

homelessness, the Homeless Agency was

set up in 2001 to co-ordinate the response

for the Dublin region covering the four

Dublin local authority areas.

Two years after the launch of the

integrated strategy, a Homeless Prevention

Strategy was launched by four Ministers

from the areas of housing, health, justice

and education. The preventative strategy

was aimed at improving policies which

contributed to homelessness, such as

discharge policies in hospitals and prisons,

and targeting services towards vulnerable

people such as early school leavers and

those leaving care.

The Department of the Environment,

Heritage and Local Government is

currently undertaking a review of the

Government’s Homeless Strategy to

evaluate the progress made in the

implementation of the Integrated and

Preventative Homeless Strategies and their

associated Homeless Action Plans.

Still a Housing Problem

While there has been much progress on foot

of the Strategy, there remains the key

problem of an overall lack of social housing

and acutely so for single people. As the

majority of homeless people are single, the

unavailability of social housing units to

allocate to them presents a major problem.

Commitments under the National

Development Plan for the voluntary housing

sector are not being met, largely due to

inadequate funding. The target for 2004 is

2,750 units, however funding allocation will

only meet c.1,700 units. There also appears

to be a problem with a lack of units in the

development pipeline specifically for

homeless people. The introduction of the

Rental Accommodation Scheme (RAS) may

in future provide an additional option for

some homeless people.

While some of the action plans are

functioning well, there is concern among

members of the ICSH that a number of local

authority homeless action plans are not all

being implemented or are not given due

priority. There is also feedback that in some

areas the co-ordination between statutory

agencies could be greatly enhanced as well

as some of the mechanisms for funding

services by voluntary associations.

It would appear from the experience over

the past four years that we need to prioritise

the provision of housing for homeless

people. The provision of a secure home will

make it easier for people to access other

services such as health, education, job

training etc.

According to the National Agreement,

Sustaining Progress this issue remains one of

priority for the Government. While the

strategies to date have been important in

improving services and channelling

resources, there is a need for three elements

of housing provision to be focussed on:

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Government’s Strategy on Homelessness to be Reviewed

• Crisis intervention - the provision of

housing for when people become

homeless.

• Planned resettlement accommodation –

supported housing to move people to.

• Prevention measures - an adequate supply

of social housing and other targeted rental

housing for homeless people.

Finisklin Housing Association

Housing associations provide accommodation for homeless people throughout Ireland. Above is Finisklin

Housing Association in Sligo town, which provides hostel and transitional accommodation for homeless people.

Page 10: Newsletter of the Irish Council For Social Housing · that is required which the NESC estimate at €1.4bn per year over the next 8 years. Also key is the recommendation in the Report

The membership of the Irish Council

for Social Housing came together in

the seven ICSH regions in the autumn

of 2004. There were many issues discussed

and debated over the course of the

Regional Meetings. There was also an

opportunity for members within each

region to get to know one another better

and to discuss issues of common concern

locally. Among the topics covered were a

review and update on the voluntary

housing sector, information on audit and

governance requirements for housing

associations, ICSH Board changes and the

ICSH group insurance facility.

In a review of the sector over the previous

year, ICSH Head of Development Chris

White reported activity has been strong,

however levels of output vary depending

on the particular county. The funding limits

for capital finance under the capital

funding schemes haven’t been updated in

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ICSH Annual Regional Meetings

Frank Gunter, Inagh Housing Association, Clare and Mary Ita Griffin and Frances Connellan,Kilmaley Housing Association, Clare at the ICSH Mid-West Regional Meeting in Limerick.

three years. While the limits are flexible in

nature, some members felt it was timely

for a review of the limits by the

Department to take inflation levels into

account.

Other sector issues discussed include the

move of the Voluntary & Co-operative

Housing Unit to Ballina, Co. Mayo. There

was a mixed reaction to this news with

some concern over the impact on time

frames for applications being assessed as

the technical appraisals of schemes will

continue to operate from the Custom

House in Dublin.

Donal McManus, ICSH Executive Director,

spoke about the upcoming housing needs

assessment in March 2005. The

assessment process is limited particularly

in relation to the assessment of elderly

and people with disabilities. There is a

need to redesign the assessment process

so that more detailed information on

peoples’ housing need is collated, including

the types of accommodation required and

whether people need support or care. This

would in turn allow housing organisations

to have a much clearer idea in the planning

of housing projects for the elderly and

people with disabilities.

Karen Murphy, ICSH Head of Services, spoke

on the governance requirements of housing

associations and in particular recent

changes in relation to the roles and

responsibilities of company directors of

housing associations. Members were

updated on a new type of legal entity,

known as the ‘Designated Activity

Company’ (DAC), which is currently being

proposed as a replacement for the current

system whereby charities register as

companies limited by guarantee.

Mark Phelan, Managing Director, BHP

Insurances Ltd, introduced the new ICSH

Group Insurance Facility. He explained that

BHP Insurances Ltd is one of Irelands

leading business insurance brokers and risk

management advisers. They have many

years experience in the insurance business

and in formulating group schemes and are

regulated by the Irish Financial Services

Regulatory Authority.

The principal insurer for the new facility is

Eagle Star. Members were informed of the

benefits of the new policy which has been

specifically tailored for housing

associations. The facility has been in

operation since July 2004 and the average

saving for members so far was 40%.

Members of the ICSH can join the facility at

the time of renewal of their own insurance

policy. It was emphasised to members that

support for the scheme would be essential

for its continued success.

Changes to the structure of the ICSH board

of management were outlined. Part of the

ICSH board will in future be elected on a

regional basis. Therefore future Regional

Meetings will include an election process to

elect board members from individual

regions to go forward to the board. These

changes are now operational from 2005.

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PUBLICATIONS

“Overlooked Options for

Caring for the Elderly”:

A report on sheltered housing provided by

housing associations in Ireland. Irish Council

for Social Housing, 2004.

The Irish Council for Social Housing has

produced a report on sheltered housing

projects for the elderly provided by ICSH

members. The report surveyed 79 housing

associations providing 3,165 units of

accommodation for the elderly. One-third of

the units were high-support sheltered housing

for frail elderly and the remainder were low-

support schemes. Housing associations provide

housing and support services for older people

ranging from low support schemes, for

example with visiting support, to high support

sheltered housing projects with on-site

facilities and staff such as a warden. According

to the organisations surveyed, over 70% of

the units that are provided for the elderly

received no statutory revenue funding in

2003. A total of 84 local housing associations

have plans to develop a further 2,400 units for

the elderly over the coming years. The major

difficulties encountered by housing

associations in providing housing for the

elderly include the lack of funding for running

costs and the lack of any co-ordination

between Health Boards and Local Authorities.

One of the main recommendations was that a

ring fenced revenue funding scheme for the

on-site care and support costs incurred in

sheltered housing projects should be

introduced.

New Residential Tenancies

Act 2004 in Operation

This new piece of legislation is of great

importance to the lives of many who have

lived, to date, in difficult circumstances and

often with insecurity as residents in the

private rented sector. The Act, which came

into operation on the 1st September, provides

for reform of the sector which will hopefully

be to the benefit of both residents and

landlords.

Key Reforms

The Act sets out the obligations of both the

tenant (such as payment of rent) and the

landlord (such as carrying out repairs). The list

of obligations for both must be adhered to

whether or not there is a lease or written

agreement. Some of the major changes

include:

• Rent may not be greater than the open

market rate and may be reviewed once

a year only, unless there has been a

substantial change in the nature of the

accommodation.

• New measures providing security of

tenure were introduced including 4-year

tenancy cycles.

• Notice periods for termination of

tenancies have been introduced which

vary according to the length of the

tenancy (e.g. tenancy of 4 or more

years requires a notice period from the

landlord of 112 days).

• The Private Rented Tenancies Board

(PRTB) will now deal with

landlord/tenant disputes rather than

the courts.

• Landlords must register details of their

tenancies with the PRTB. Registration at

the start was very slow however almost

one-third are now registering and the

remainder will be penalised should they

default in this regard. Compliance by

landlords to the measures will be key to

the overall effectiveness of the new

legislation.

Implications for Housing Associations

Under Section 3 of the Act dwellings let by a

body standing approved for the purposes of

section 6 of the Housing (Miscellaneous

Provisions) 1992 and which is occupied by a

person referred in section 9(2) of the Housing

Act 1988 are exempt from the legislation. This

means that social housing let by approved

housing bodies to persons from the waiting

list is specifically exempt from this new

legislation. Under the legislation local

authorities will continue to have responsibility

for the enforcement of the Regulations under

the Housing Acts relating to rent books and

standards of accommodation.

ICSH Certificate Awards

Minister Noel Ahern with some of the graduates of the ICSH Certificate in Housing Management and the ICSH Certificate in Housing Development after

presenting them with their awards.

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Currently some local authorities in Scotland

who have poor quality housing stock are

considering a range of three financial

incentives offered from the Scottish Executive

(Government Department) to transfer their

housing stock to lever in more public and

private finance in order to have their local

authority housing stock upgraded much of

which is poor quality. Scottish local authorities

are prohibited from raising private finance for

housing and can only use the route of

transferring their housing to an alternative

landlord as means to increase investment. This

is in stark contrast to the ongoing discussions

within Dublin City Council on stock transfer

where it is claimed that their housing stock is

currently in the best condition and therefore

the motives for stock transfer appear markedly

different.

A report Social Housing Provision in Northern

Ireland, published by the Westminster based

Northern Ireland Affairs Committee, has

warned social housing output is failing to meet

the current demand.

The report indicated that currently 27,000

households were seeking social housing in

Northern Ireland and the target of around

1,700 new homes which are to be provided by

housing associations was yet to be met.

Housing associations are the only providers of

new social housing in Northern Ireland. The

report said that housing associations had failed

to meet new build social housing targets in

recent years. Housing associations have

experienced difficulties with planning,

financing and the approval process for housing

schemes. However, Michael Mates, the Chair of

the Committee which produced the report,

called for an appropriate level of funding to

meet social housing targets as there was a

serious situation of rising demand for social

housing against a fall in houses available. (The

Northern Ireland Elected Assembly, which did

have responsibility for housing, has been in

suspension over the last 2 years.)

Recent figures have shown that Hungary, a

recent member of the EU, has had its share of

social housing reduced from 21% to less than

4% of the total housing stock between 1999

and 2001.

Current demand for rental housing is at around

750,000 new homes of which 500,000

households it is estimated need forms of social

support. Current output of rental housing in

Hungary is in the region of 7,000 new homes

per year. An additional consequence of the high

number of newly created homeowners is an

increased risk of homelessness in many cases

due to increased costs such as utility bills.

At the annual two day EU Round Table on

Social Inclusion held in Autumn 2004 under

the Dutch Presidency in Rotterdam, action on

homelessness was one of the 8 key

recommendations adopted by the Dutch State

Secretary of Social Affairs and Employment.

The agreed proposal from the EU Round Table

relating to homelessness specifically

recommended the ‘development and

implementation of integrated strategies to

combat homelessness in the National Action

Plans of all 25 Member States’. This was

submitted to the final plenary session by one

of thematic working groups discussing

homelessness chaired by Donal McManus of

the ICSH. Ministers of Social Affairs responsible

for the EU National Action Plans, including Irish

Minister Seamus Brennan, were asked to have

this proposal on homelessness tabled at the

next meeting of EU Social Affairs Ministers. It is

hoped that a recommendation from EU

ministers will give the European Commission a

stronger mandate to include combating

homelessness as an integral part of the next

National Action Plans on Social Inclusion to be

produced in 2006.

The Labour Party plan to introduce a

Government 5 year plan for housing with a

shared equity scheme for housing association

tenants being central to the plan. Proposed by

the National Housing Federation, the shared

equity scheme is seen as an alternative to the

right to buy for tenants. The Irish Government

introduced legislation for housing associations

to develop shared equity housing in 2002

although only one new co-operative shared

equity project in Dublin has to date been

supported.

Housing Overseas

ScotlandFinancial incentives from Government

driving stock transfer

Irish Council for Social Housing 50 Merrion Square East, Dublin 2Tel: 01 661 8334 Fax: 01 661 0320 Email: [email protected] Web: www.icsh.ie

Northern IrelandConcern over social housing supply in

Northern Ireland

HungaryTenant purchase depletes social housing

stock

United KingdomShared Equity for tenants part of new 5

year plan

NetherlandsDutch Presidency adopts proposal on

homelessness