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Supporting Home OwnershipA National Housing Roadmap

Dara Calleary TD SPOKESPERSON ON JOBS, ENTERPRISE AND INNOVATION

SUPPORTING HOME OWNERSHIPA NATIONAL HOUSING ROADMAP

APR

IL 2015

Barry Cowen TD SPOKESPERSON ON THE ENVIRONMENT AND LOCAL GOVERNMENT

Supporting Home OwnershipA National Housing Roadmap 1

“Fianna Fáil will build more homes, create

more jobs, help more first time buyers,

empower more local authority tenants and secure more elderly people in their homes than any other party.”

FOREWORDThe right to own a home is a central part of Fianna Fáil’s vision for Ireland. For many this simple aspiration is slipping away as the country experiences a serious housing crisis. Acute shortage of supply in Dublin is leading to spiralling rent levels and rising house prices. Over 90,000 people are on local authority waiting lists. First time buyers are being frozen out of the market by limited supply and credit restrictions. Cuts to housing adaption grants are hitting many elderly and disabled people, preventing them from staying in their homes. All the while homelessness scars our cities.

These problems come against the backdrop of a severe construction collapse that has left thousands unemployed. The construction industry continues to dismally underperform what should be a healthy level in a functioning economy leaving skilled employees out of work.

Tackling the housing crisis is an economic, social and moral imperative for the Ireland and establishing a credible, fully funded national housing roadmap is a core issue for Fianna Fáil. The National Housing Road Map sets out a series of policy proposals to build 150,000 new affordable, quality homes, help revitalise the construction industry with 80,000 jobs, support elderly people living independently in their own homes and broaden social housing provision with 45,000 new units.

At the heart of this document is a belief that the right to own across all generations of Irish society is good for families and good for communities. Fianna Fáil will build more homes, create more jobs, help more first time buyers, empower more local authority tenants and secure more elderly people in their homes than any other party. This document is a clear, 4 step road map to that bold but achievable commitment.

Barry Cowen TDFianna Fáil Spokesperson on the Environment and Local Government


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EXECUTIVE SUMMARYSupporting Home Ownership

A four step road map for housing

Fianna Fáil Commitment: › 150,000 new homes› 80,000 first time buyers, › 80,000 jobs› 20,000 new local authority homeowners› secure homes for the elderly

1 The Right to Own› First Time Buyers Savings Scheme for 80,000 homes

› New Tenant Purchase Right to Buy Scheme for 150,000 tenants

› Tackling Mortgage Arrears –Getting rid of the banker’s Veto

2 Building for families: Investing in 150,000 new homes by 2021› Strategic Investment Fund Finance

› A new Home Development Bank

› Revised Density Levels to encourageconstruction

3 Homes for all: Building 45,000 new Social Housing Homes› New €4.5bn Social Housing building program for urban and rural Ireland

› Retain Part V in full and establish Part V teams in Local Authorities

› Vacant /Derelict Houses Refurbishment Scheme

4 Keeping Homes Warm› New Green Deal Agency

› New National Retrofitting scheme

› A social contract for the elderly – Supporting Independence


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EXECUTIVE SUMMARYSupporting Home Ownership

A four step road map for housing

Fianna Fáil Commitment: › 150,000 new homes› 80,000 first time buyers, › 80,000 jobs› 20,000 new local authority homeowners› secure homes for the elderly

1 The Right to Own› First Time Buyers Savings Scheme for 80,000 homes

› New Tenant Purchase Right to Buy Scheme for 150,000 tenants

› Tackling Mortgage Arrears –Getting rid of the banker’s Veto

2 Building for families: Investing in 150,000 new homes by 2021› Strategic Investment Fund Finance

› A new Home Development Bank

› Revised Density Levels to encourageconstruction

3 Homes for all: Building 45,000 new Social Housing Homes› New €4.5bn Social Housing building program for urban and rural Ireland

› Retain Part V in full and establish Part V teams in Local Authorities

› Vacant /Derelict Houses Refurbishment Scheme

4 Keeping Homes Warm› New Green Deal Agency

› New National Retrofitting scheme

› A social contract for the elderly – Supporting Independence

INTRODUCTION A clear path to home ownership is the central theme of Fianna Fáil’s national housing road map. Ensuring that aspiring workers can achieve home ownership, that elderly people can live independently in their homes and that low income and marginal households have access to quality accommodation will be a red line issue for Fianna Fáil in government.

This road map comes against a backdrop of rising rent levels in urban centres, increasing house price levels, substantial changes to mortgage deposit requirements, 90,000 households languishing on the social housing waiting list and a serious homelessness crisis. All the while the construction industry has grounded to a halt.

The ERSI estimates that approximately 25,000 households per annum will be formed with demographic growth in Ireland up to 2021. The national Housing Agency report forecasts a minimum required supply of 79,660 residential units in urban areas to support the population between 2014 and 2018, an average annual equivalent of 15,932. The per annum requirement across the country ranges from 9,526 units in 2014 to 20,853 units in 2018. Goodbody stockbroker’s estimate that up to 36,000 per annum will be required from 2016-2021. Typically over the past forty five years new build has been between 20-30,000 per annum, rising to 40,000+ post 1998. 12,500 is in fact lower that the lowest build rate going back to when DECLG records start in 1970. Based on data from the CSO and Daft.ie the limits to supply and increasing demand has led to significant price rises in urban areas. Drawing on this data and the need for a new geographic focus for construction in key areas Fianna Fáil is targeting 30,000 new units per annum which would create 80,000 jobs a year.

Despite the escalating demand due to demographic shifts and household fragmentation, private housing supply is under significant pressure due to the collapse of activity in the construction sector. Employment levels in the field have plummeted while prices and rent levels have escalated in Dublin forcing out many households. A strong construction sector plays a vital role in a healthy economy and must be supported.

Social housing construction has plummeted over the past number of years. The government’s home building plans will do little to alleviate the burden of social housing waiting lists. Even after the launch of Construction 2020 and the new housing strategy in October 2014 social housing funding levels still fall far short of finance levels under Fianna Fáil in 2010. High quality social housing in the right location is vital to addressing a serious social crisis. This must involve a ramped up role for local authorities and expanded finance for

voluntary housing associations. A major home building program with real finance must be launched not the speculative figures in the government’s recently announced plans.

The social housing crisis is compounded by the dreadful vista of homelessness that has metastasised from Dublin and other cities across the country. It is a moral imperative for the country to address the blight of homelessness on our streets and hidden in temporary refuges and houses in every county. The original measures taken in direct response to the crisis have to be built on. Homelessness has no place in a modern democratic society.

The right to buy has been an important mechanism to open up the opportunity of home ownership and transferring wealth towards low income households. The option of owning a valuable long term asset has empowered thousands of families across the country. Opening up a path to home ownership across all social strata is at the very heart of Fianna Fáil policy. Fianna Fáil strongly believes that home ownership is good for families and good for communities. Ireland cannot afford a divided society where home ownership is confined to a few while the rest struggle with unstable tenure and rent levels.

Fianna Fáil is committed to opening up home ownership, tackling the social housing waiting list, revitalising the construction sector on a sustainable footing to get construction workers back in long term employment and re-asserting the fundamental right to housing for all citizens. This involves getting the state back involved in direct build and taking decisive measures to help revitalise the private sector.

Our targets over the lifetime of the next government are to build 150,000 new units by 2021, facilitate 80,000 first time buyers, facilitate 20,000 local authority and voluntary housing association tenants to buy their home, build 45,000 new social housing units and forge a new Social Contract with the elderly to ensure they can live independently for as long as possible.


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THE RIGHT TO OWN – PROMOTING HOME OWNERSHIPFianna Fáil will work towards the following measures:› First Time Buyers Saving Scheme for

80,000 New Buyers› 2,000 Homes for First Time Buyers› 30% - 60% discount Right to Buy Tenant

Purchase Scheme for 125,000 Tenants› Voluntary Housing Association Tenant

Purchase Scheme for 27,000 tenants› Tackling Mortgage Arrears – Removing

the Banker’s Veto› Reviewing Central Bank lending criteria

for Second Time Buyers› Developing Credit Union Mortgage

Lending

Making homeownership an accessible goal is good for families and good for communities. Owning a home is both a source of pride, stability and a major financial asset for future development. Fianna Fáil is committed to ensuring there is a viable path to home ownership for all families, not just a limited few. This means helping first time buyers save their deposit, boosting supply, ensuring accessible credit and an attractive tenant purchase scheme for local and voluntary housing association tenants.

First Time Buyers Saving Scheme for 80,000 New BuyersThe changes to lending criteria set out by the Central Bank threatens to exclude substantial numbers of first time buyers from the market. Fianna Fáil is committed to supporting first time buyers in securing a good quality home to start their families.

Fianna Fáil will introduce a first time buyers saving scheme to help families starting out get the money together for a deposit on their new home. This involves a 25% top up on individual’s special deposit savings account. For every €200 saved the government will add €50 to help meet the deposit. As an example, for the average national asking price of €200,000 this requires a €20,000 deposit. Under the 25% special savings scheme, first time buyers would be required to save €16,000 and receive a €4,000 top up. The top up would be subjected to a €5,000 cap as part of a monthly saving scheme over a minimum of 4 years. Deposit accounts will be opened with banks.

With estimated First Time Buyers numbers of 16,000 per annum based on a Goodbody Stockbrokers study, this will help some 80,000 new homeowners along the property ladder over the lifetime of the next government. Every year 10,400 of these would be joint borrowers, young couples who would enjoy a bonus of using two savings account as the scheme will be per person rather than per home at a per annum cost at full effect of €105m.

Price and Deposit Table

LocationAverage House Price

Deposit under new Central Bank rules

Savings Needed

25% Savings Scheme Top Up

Dublin €300,000 €38,000 €33,000 €5,000Leinster (excluding Dublin city)

€164,000 €16,400 €13,125 €3,280

Munster (excluding Cork City)

€147,000 €14,700 €11,760 €2,940

Cork City €195,000 €19,500 €15,600 €3,900Connaught/Ulster (excluding Galway city)

€121,000 €12,100 €9,980 €2,495

Galway City €190,000 €19,000 €15,200 €3,805

Building over 2,000 Starting Out HomesHelping families to achieve a safe, secure place to call home is vital to giving them a good start in life. Home ownership forms the cornerstone of that. Combined with the special savings scheme for first time buyers Fianna Fáil is proposing earmarking “Starting out Homes” for first time buyers. These will be new build home units where developers can access low cost finance from the First Time Buyers Savings scheme to construct new homes. The savings in finance costs will be used to directly reduce the cost of homes specifically available to first time buyers under 40. With 16,000 first time buyers saving €4,000 per annum on average , a €256m fund will be saved under the Special Savings scheme over a 4 year period. This will be used to finance low cost loans for Starting Out Homes for Under 40 first time buyers. Some 2,100 new homes will built under this scheme, concentrated in Dublin and other high cost areas.

A new tenant purchase scheme for 125,000 TenantsA clear path to home ownership should not be the preserve of the private market. Owning a home is a vital asset for families and helps boost low income groups with financial leverage. Mixed tenure housing estates are a key part of the Fianna Fáil vision for strong families and stable, thriving communities.


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Fianna Fáil will launch a new Right to Buy local authority purchase scheme across Ireland. The basic tenant purchase scheme will be rolled out at a 3% discount on the valuation of the property per annum lived in the unit up to a maximum of 10 years. This means that a homeowner living in their local authority house for over ten years may be eligible for a 30% discount on buying their home. Additional income level criteria may also be agreed with local authorities on discount rates with low income households eligible for total discount rates of 40-60%. Dividends from the sales of Local Authority homes will be specifically earmarked for investment in further social housing construction and compensating Voluntary Housing Associations for loss in value from their tenant purchase schemes.

The scheme will include a claw back provision for homes that are sold within 20 year period to ensure the loss borne by the state is compensated for.

Local Authorities will be empowered to offer mortgages backed by the Housing Finance Agency to tenants refused mortgages by the banks. Based on the per annum buy out rate of 2.67% from previous schemes of total stock in previous schemes the total expected purchases every year is 3,000.

Voluntary Housing Tenant Purchase SchemesFianna Fáil has published and will work to implement legislation to empower Voluntary Housing Association tenants with the right to buy out and own their own home. Under Fianna Fáil local authorities will continue to provide and develop an accessible Tenant Purchase scheme that empowers families to purchase their own place. The tenant purchase scheme will be rolled out at a 3% discount on the valuation of the property per annum lived in the unit up to a maximum of 10 years. The total cost of the new scheme will be balanced out against the new bond structure and long term finance of housing associations. Tenant associations will be compensated for the loss of value on their property via the proceeds of Local Authority home sales.

Data from the NESC shows that Previous Right to buy schemes such as over the 1979-2002 period had a 37% take up rate amongst the local authority stock. Per annum an average of 3,100 homes was purchased during that period or 2.69% of the stock per annum. Extrapolating such a rate to the current 125,000 local authority units some 3,362 units would be sold per annum. For the 27,000 voluntary housing associations some 726 homes would be sold per annum.

Between both schemes some 4,000 homes would be bought by families every year or 20,000 over the lifetime of the next government.

Tackling Mortgage ArrearsThe long term mortgage arrears crisis is consuming thousands of lives across the country, jeopardising family homes. This is compounded by underlying problems in the short term arrears numbers that will emerge in the months to come. A major cause of the worsening situation is the government’s flawed personal insolvency legislation which tilts the playing field firmly in favour of the banks. Fianna Fáil has already put forward detailed legislation to remove the bank’s veto in insolvency deals.

Fianna Fail will legislate to re-balance the personal insolvency framework in favour of a fair deal for the homeowner. The bank’s veto will be removed. Ultimately our aim is to ensure people are enabled to reach an arrangement to remain in their family home.

Reviewing Central Bank Lending CriteriaAccess to credit is a vital step on the road to home ownership. Fianna Fáil has made substantial submissions to the Central Bank setting out our concerns over hikes in deposit rates and the impact this will have on home ownership. The changes introduced by the Central Bank will hit first time buyers and trap other home owners looking to move but unable to reach the onerous 20% deposit rate.

Fianna Fail respects the independence and integrity of the Central Bank. We will ensure the Bank continues to place the issue under annual review with regard to the impact it has on the housing market and on home ownership levels across the socio-economic and geographic spectrum. In particular, we will request a review on the effect that the new criteria have on homeowners looking to trade up.

Developing Credit Unions Mortgage LendingFianna Fáil will support the development of a new Credit Union mortgage model to provide greater competition to banks in the mortgage lending


market. This should be based on the successful Canadian model where a new central body is established funded by local Credit Unions. Individuals will be referred to this body by their own Credit Union therefore retaining the local knowledge link while establishing a high standard of central financial control. An additional €4bn in lending can be opened up via Credit Union lending which will facilitate some 20,000 new mortgages.

BUILDING FOR THE FUTURE – BUILDING 150,000 NEW HOMES BY 2021Fianna Fáil will work towards the following measures, creating 80,000 jobs:

› Strategic Investment Fund Finance for private home building

› Using the Strategic Banking Corporation as a Home Development Bank

› Strengthen Local’s Right to build in rural Ireland

› Vacant Site Levy in urban areas

› Residential Development in Town Centres

› Transforming Development Plans to ensure zoning meets demand

› Opening up more families homes through the “Downsizing” initiative

› Revising Density Levels

› High Quality Design

› Reducing Development Levies

Home ownership is a positive step for families and communities. A vibrant private sector is a critical part of providing abundant, affordable quality homes to facilitate that in the right location. Government policy must support a positive frame-work for investment, sound planning and supporting home ownership as part of a balance of tenure for households. Addressing the supply issue must be the single biggest priority for any government. Drawing on ERSI and Goodbody stockbroker studies some 30,000 new homes per annum are required every year over 2016-2021, the timespan of the next government. This will sustain 80,000 jobs per year over the same period. Fianna Fáil is committed to achieving that target through the following measures.

Strategic Investment Fund FinanceThe increase in yields from the private rental market and steady recovery in house prices means that there are fair profits to be made from the private housing market in Ireland. The failure of banks and developers to step up to the mark to date and start putting units on the ground is driving up unsustainable price increases, excluding swathes of the market.

The Strategic Investment Fund should be used to directly finance private house building for profit in Ireland. The current market yields will allow for a profitable return to the taxpayer which can then be recycled into social housing provision. Fianna Fáil will direct part of the €7bn Strategic Investment Fund to invest in private housing to start getting units built where they are needed.

Using the Strategic Banking Corporation as a new Home Development BankIn order to further address the credit crunch that is limiting the capacity of developers to start building the focus of the SBCI must be radically revised. The role of the SBCI should be broadened out to encompass financing private developers at a profitable interest rate. The record low borrowing rates enjoyed by the state should be maximised to issue debt which can then be channelled into home building. Profits yielded from this may be used to help finance social housing projects. A new Home Development unit should be established as a section of the bank with the specific remit of financing developers.

The bank should be empowered to issue bonds which are then used to finance private developers with viable projects. This additional competition will help re-invigorate the banking system and inject badly needed funds into development projects.

Vacant Site Levy in Urban AreasIn urban areas a vacant site levy will be used to curb land hoarding and incentivise development. Proper use of the levy will encourage developers to invest in urban renewal projects and get the most out of precious space in high demand areas. In particular in Dublin utilising empty spaces which are unused due to speculative hoarding will be vital in addressing the shortage of homes in the capital.

Residential Development in Town CentresTown centres under pressure with high commercial vacancy rates and dwindling population based in the heart of the town. Local authorities should be enabled to introduce flexible permissions that can

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facilitate ease of conversion from empty commercial units into residential units. Local Authorities should also consider investing in such units for social housing purposes in order to encourage a social mix in the town centre.

Transforming Development PlansDevelopment plans should only facilitate the construction of homes where sustainable demand is confirmed. This demands a strong regional role in the creation of long term housing policy. Fianna Fáil will utilise clear regional government structures to set out overall housing policy according to local need.

Maintaining Rural DevelopmentRural Ireland cannot be left behind in future construction. Local people have the right to own a home in their community and raise their family there. Fianna Fáil is committed to defending local people’s right to build and own their own home in their own community. We will strengthen the Planning and Development Act to protect this core right and place an onus on local authorities to provide a clear, transparent route for local people from a community to build and own there.

In addition the onerous Building Regulations imposed by the government in 2014 will be suspended pending a review to reduce the unsustainable costs homeowners are incurring in one off homes.

Opening up more families homesThere is an acute shortage of family homes, particularly in the Dublin area. Many older couples whose families have grown up and moved out would consider selling 3 or 4 bed family homes which are possibly too big for their current needs and trading down to a smaller house or apartment.

Incentives to persons who wish to trade down in such circumstances include:

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› Exempt the seller from stamp duty on the purchase of a new home.

› Exempt the seller from Local Property Tax on their new home for a period of five years.

This will open up new homes for young families helping to revitalise areas. In conjunction with this measure Fianna Fáil proposes a new “social contract with our elderly” to ensure they can live in their communities which is detailed in Step 4.

Density LevelsHousing construction should adhere to sustainable planning guidelines. Onerous unit density criteria is having a prohibitive impact on construction levels and stoking up prices to the exclusion of low to middle income earners. Fianna Fáil will revise density levels and replace them where appropriate with bed density criteria to inform future planning permissions. Density levels in city centres will be maintained to ensure that supply problems are addressed and urban sprawl limited. This is vital in combating unsustainable development and overstretching resources.

High Quality DesignEnsuring that design quality and adequate space is achieved is vital for the future of apartment living, particularly in urban areas. A mixture of homes is necessary to reflect changing demographics and the variety of homes that individual and their families will live in throughout their life. Revising the 2007 Guidelines is necessary to setting out a fresh vision of the quality of place we expect in apartments to make them feasible options for a variety of households types. Apartments should be places where individuals and families and elderly couples are comfortable living without creating unsustainable costs in urban areas.

Development LeviesPrior to the establishment of Irish water, up to 50% of development levy money has been spent on water supplies. This supply will now be subject to charges from Irish Water under the government’s new water charges regime forming a type of double charge on the homeowner.

Fianna Fáil will review all development levies across every Local Authority to re-assess development levy rates based on a re-evaluation of cost levels following the removal of water provision from local authorities and payment of water levies to Irish water.

Rogue Builder DatabaseIssues at Priory Hall underline the pressing need to protect homeowners from rogue developers who fail to build homes to the highest standards. A


national database of non-compliant builders who fail to meet their planning permission criteria will be established. This Rogue Builder database will be used to inform planning permission decisions in the future and the level of bonds required by local authorities.

Digitise the Planning ProcessThe current planning system demands reams of paper work through multiple copies of each application. This drives up costs for home builders and administrative costs for local authorities. Fianna Fáil will move to digitise and simplify the planning process to reduce costs and increase transparency.

National Planning PortalAccurate information is the cornerstone of an effective planning system. Fianna Fáil supports the establishment of a national planning portal containing information across every local authority that all citizens can access. This will be a positive step towards providing full information to inform the planning process, identifying trends and enabling local authorities to pinpoint future problems.

A real time planning information system will help ensure planning is genuinely responsive to demand and need in a sustainable framework.

Expanding Historic Building Refurbishment SchemesFianna Fáil supports the living cities initiative that incentivises the refurbishment of historic buildings to make them liveable again. The Finance Act should be amended to expand the refurbishment scheme across the entire country and to cover buildings constructed prior to 1963, the introduction of the first planning act in Ireland. This will help save the unique architectural heritage of the country while opening up more residential properties for use.

HOMES FOR ALL – 45,000 NEW SOCIAL HOUSES BY 2021Fianna Fáil will work towards the following measures:› A New €4.5bn Direct Home Building

Program for urban and rural Ireland› Keeping Part V in full to deliver 12,000 units› Housing Associations Finance› NAMA Transfer Units to transfer 4,000 units› Housing Adaption grants › Vacant/Derelict Home Refurbishment

Scheme› Devolving Housing Assistance Payment

to Local Authorities

The right to a safe, secure home in a community of your choice is a core Fianna Fáil value. Fianna Fáil believes that direct building by the state, utilising NAMA, getting the most from Part V and ramping up housing assistance devolvement is the best strategy to tackle waiting lists and address homelessness. Replenishing Local Authority stock from Right to Buy combined with the 30,000 new units required based on estimated from the National Housing Agency will create 45,000 new units by 2021.

A New Home Building ProgramFianna Fáil will launch a new €4.5bn home building programme across Ireland. The rising number of social housing waiting lists and its subsequent impact on the private market can only be meaningfully addressed with a strategy that has direct provision at its core. This will directly supply social housing via local authorities and will be financed through the Strategic Investment Fund, European Investment Bank, Public Private Partnerships, Special Purpose Vehicles and exchequer funding. At present Credit Unions hold in excess of €8 billion of surplus funds on behalf of members in deposits and investments. Fianna Fáil will work with credit unions and the central bank to mobilise part of these funds for direct social housing provision.

Per annum some €630m will be used via the exchequer with the remaining €270m per annum coming from the SIF and additional sources outlined above. Building new homes to tackle the spiralling waiting lists is vital to achieving the right to a home for all citizens. It will also help address the issue of over 70,000 housing assistance recipient numbers placing further pressure on the private housing market.

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The new housing building program will be drawn up by the Department of Environment in consultation with each local authority based on demand. The housing program must reflect the diversified nature of housing need ranging from single member households to elderly couples. Rural homes must also be constructed to ensure that fresh life is brought into more isolated communities.

Keeping Part V in fullFianna Fáil is a socially progressive party and it supports the principle of fully retaining Part V as a major source of future housing supply. Mixed tenure housing has an important role to play in building sustainable communities. Local Authorities should have the power to decide the appropriate nature of the mix based on local considerations but it should be kept to a minimum of 20%.

This should be done by creating Part V teams in each local authority drawing from the housing and planning sections to ensure a coherent approach. They will be tasked with developing annual plans and targets, ensuring that contracts are signed quickly, smoothing the expeditious transfer of units and drawing from development plans to target their construction in the right locations.

The teams will bring together developers and housing associations to ensure safe design, location, timelines and transfer issues are acceptable.

Part V can yield up to 12,000 new units over 5 years if the target of 110,000 new private units, of which 60,000 will qualify under Part V criteria, is accomplished. This will be used to replenish the social housing stock from the Right to Buy purchases.

Housing Associations FinanceHousing Associations are a key vehicle in delivering more units to meet social housing demands. They are currently restricted by limited access to finance and a lack of economies of scale. Fianna Fáil will

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help promote the development housing association sector.

We will draw on experience in Northern Ireland and the UK to develop Housing Association Bonds to empower the associations to access financial support independent of direct state aid. These bonds will encourage bolder financial thinking by the associations based on sound planning and future revenue streams. It will also alleviate the immediate pressure on the state to fund all significant scale developments. The bonds will be partially guaranteed by the state to reduce borrowing costs.

We will introduce legislation to strengthen re-enforce and monitor the regulation of housing associations charged with the delivery of social housing to maintain the highest standards of governance and accountability.

NAMA Transfer UnitsThe National Assets Management Agency has a specific role in providing a broader social dividend to the state. Some 4,319 homes have identified by NAMA for transfer as social housing units. These should be vigorously pursued to allow the transfer of properties to local authorities to help meet the social housing waiting list. A special transfer unit will be set up in each Local Authority drawing on personnel from the local sections, Department of Environment and NAMA.

The teams will be tasked with expediting the transition of homes from NAMA to Local Authorities and housing associations. Greater flexibility must be shown with regard to the building criteria used. The teams will also be charged with drafting future development plans for NAMA lands to ensure they play a central role in addressing housing deficits in the right places.

Vacant/Derelict Home Refurbishment SchemeThe total available Local Authority housing stock has been eroded by the large number of vacant homes across the country. Local Authorities should allow families on the waiting list to move into these homes and refurbish them. The costs of refurbishment should be gradually defrayed over time through reduced rents. This will open up more units to tackle the waiting lists while simultaneously reducing the upfront costs to local authorities.

Devolving Housing Assistance Payment to Local AuthoritiesThere are approximately 71,500 persons in receipt of rent supplement across the state with a total budget of €298m in 2015. The current system empowers central government to set rent limits


in different counties with no flexibility, which effectively establishes a rent floor in many areas. It is up to the individual to secure accommodation at that price. The new Housing Assistance Payment (HAP) will do little to improve that rental situation. Shifting responsibility to Local Authorities will allow for greater flexibility in rent limit levels which reflect local realities and empowers the authority to negotiate directly with landlords will help reduce the rent supplement bill.

Combining powers for rent supplement with the Local Authorities responsibility for housing, similar to the RAS scheme, will also reduce an unnecessary duplication of functions. Enhancing state provision of social housing will reduce the costly bill of this short –term provision.

Fianna Fáil is also committed to ensuring that people who move onto HAP are not automatically taken off the housing waiting list as the government implemented in its 2014 Housing Bill.

KEEPING A WARM HOME– A GREEN DEAL FOR IRELAND AND SOCIAL CONTRACT FOR THE ELDERLYFianna Fáil will work for the following measures:› A New Green Deal› A National Retrofitting Scheme› New Apprenticeship scheme› A social contract for our elderly

The challenge of climate changes demands real action across a wide range of areas. Improving home energy efficiency is one area of real possibility. Homeowners benefit from warmer, more comfortable homes and reduced bills, the green economy creates new jobs while the environment benefits from reduced energy usage.

A new Green DealFianna Fáil will establish the Green Deal Agency, a new multi-fund cross departmental agency tasked with accessing European Regional Development Fund, EU Cohesion and European Investment Banking funds as well as private finance. The agency will be tasked with financing a new simplified, easy access scheme across all tenure types that will revolutionise home energy usage in Ireland.

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A National Retrofitting Scheme› Social Housing ModelFianna Fáil will introduce a new Pay as Go model based on the German Klimabonus example to refurbish social housing across the country. The existing 160,000 social houses in the country will be eligible for funding. Local Authorities will be able to finance the scheme via the New Green Deal Agency. It is designed around the principle that the lower the level of energy consumption for a property, the higher the rent which can be charged. This energy consumption must be documented and validated with an energy performance certificate with rent increases restricted within the energy savings measured by the certificate. The result should be that the resident is no worse off, as the increased rental level is offset by the decrease in energy bills with potential for energy bills to be reduced below rent level rises in order to save money.

› Private and Rented Housing ModelThe Green Deal Agency will provide low cost loans to private homeowners and landlords to incentivise investment in green initiatives on their homes. A wide range of options for investment will be outlined and a major advertising campaign launched to encourage homes to take up the offer. The primary funding behind the scheme is a pay as you save mechanism where the reduced energy bills will be used to re-pay the original loan taken out.

A Social Contract for our elderlyHaving worked hard and raised their families our elderly deserve to live a full and dignified life. This will become increasingly important as our population ages and presents a major unprecedented challenge for the Irish state. Fianna Fáil is committed to a “Social Contract for our elderly” that will guarantee over 65’s can stay in their own home if possible or accommodate them in a safe, secure and suitable home to spend the later stages of their life in


their communities. We are committed to supporting elderly people to live independently as long as possible.

› Restoring Housing Adaption GrantsFianna Fáil is committed to fully re-storing the housing adaption grant to allow older people and people with disabilities to live independently in their homes. We will also set waiting time targets that will be published on-line quarterly to ensure that delays will be kept to a minimum and best practise exchanged between local authorities. Restoring these grants will cost an additional €23m per annum.

› Promoting Specialised Elderly Accommodation

Building on from the Empty Nest Initiative that facilitates elderly people downsizing if they choose it is important to promote specialised elderly accommodation. Specialised accommodation will be at the heart of the community and enable elderly people to live independently and actively. Creating specialised units will also enable more effective care such as home help and reduce isolation.

Fianna Fáil will allow private developers of care based developments to negotiate alternative arrangements for Part V requirements such as an alternative site or a cash investment, recognising the unsuitable of these specialised units to the social mix envisaged by Part V.

Fianna Fáil will amend the Planning and Development Act 2000 to include a provision for specialist accommodation for elderly people in development plans.

› Developing a new Fair Deal Scheme for independent living

Fianna Fáil will explore further opportunities to be opened up for elderly people who own their own homes to leverage its worth through a “Fair Deal” type scheme. Investment in the home to upgrade it to ensure it is feasible for the elderly person to continue to live independently. Financing the scheme will operate similar to the Fair Deal scheme for nursing home care. This will enable elderly people to live independently as long as they choose without being forced to move due to inadequate infrastructure in their home.

Apprentice Labour ModelThe dramatic decrease in construction activity has decimated apprenticeship numbers. Skilled labour is vital to the future of the construction industry and a reliable employment source for young people across the country. Local authorities should consult and plan with Solas for the increased skills needed.

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CONCLUSIONThis road map sets out clear measures to boost supply, pave a path to home ownership and ensure every household has a safe, secure place to call home. Fianna Fáil has a proud record in launching the most ambitious housing programmes in the history of the state. “Home Together” marks the continuation of the tradition of tackling this core issue.

By expanding the role of the state, utilising EU funds and bolstering the private sector we can address the escalating housing crisis across the country and achieve our aim of eradicating homelessness, address waiting lists and creating good quality affordable homes for all.


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APPENDIXTable 1. Additional Exchequer Specific Costings

Proposal Additional Cost per year

Total Cost over 5 years

First Time Buyers Savings Scheme €105m €525m

Housing Adaption Grants €23m €115m

Exchequer Funding to direct build

€630m (€170m increase on current

levels) €850m

Green Deal Agency €9m €45mTotal Additional Exche-quer Cost per annum €307m €1.535bn

Table 2. Housing Construction Units

Measure Per Annum Total Output over 5 years

Private Building 22,000 110,000Direct Build 6,000 30,000Part V/NAMA 3,000 15,000

Total 31,000 155,000


Barry Cowen TDFIANNA FÁIL SPOKESPERSON ON THE ENVIRONMENT AND LOCAL GOVERNMENT

Dáil Eireann, Teach LaigheanSráid Chill Dara, Baile Átha Cliath 2 .Email [email protected]

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