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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
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.
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.
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
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
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
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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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.
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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
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:
9
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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.
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 NEWS
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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NEWS
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