Affordable housing body’s work questioned
Ciarán Lynch, questioned what the work of the Affordable Homes Partnership (AHP) is, now that the scheme is no longer being given state funding to acquire properties.
Mr Lynch said the affordable homes scheme had left many local authorities with unsaleable properties on their hands and advocated a new rent-to- buy scheme in favour of the Government’s leasing scheme.
Under the leasing scheme, affordable homes which councils have been unable to sell in the face of house price collapse are being temporarily used for social housing.
Rent received by the council will be used to pay off interest on the money borrowed to buy them.
However, the Department of the Environment has admitted that of about 1,400 affordable homes approved for transfer to the leasing scheme, less than one third are currently occupied. And there are another 1,500 unsold affordable homes still lying idle.
Mr Lynch said it seemed as though the AHP was becoming a leasing agent of the state.
According to the department, however, there is still plenty of activity on the sale of affordable properties with some 1,300 sold in the first nine months of last year.
Another function of the AHP, which recently published its 2008 annual report, is to run controversial Home Choice Loan scheme.
The scheme was announced in the 2009 budget to help first-time buyers who were having difficulty securing finance.
According to the AHP annual report, running costs of the scheme were €155,000 last year, as well as €280,000 incurred in 2009 in establishing the scheme.
However, since it was set up of the 1,400 prospective purchasers who registered an interest in the scheme, a mere 44 applications were made. Of these, just four loan applications were approved.
The scheme has been heavily criticised as a concession to builders’ representatives and the Construction Industry Federation who lobbied heavily for its introduction.
The AHP was established in 2005. It has a board of 11 and a staff complement of 16.
Wages and salaries in 2008 cost almost €1m, more than €200,000 greater than in 2007.
A spokesman for the Department of the Environment said since late 2008, the department and the AFP have worked closely with local authorities to ensure that unsold affordable housing units are deployed effectively.
“The AHP provides local authorities with support and advice including legal advice with regard to transferring affordable units to social by arrangements with voluntary bodies.”
