State spending €1.5bn annually on housing 'it will have no authority over'

The meeting heard that there are more than 50,000 social housing units within the approved housing body (AHB) sector

The Dáil’s spending watchdog has sounded alarm over a legislative gap “as wide as the barn door” that could see €1.5bn spent annually on housing assets the State will not control in 30 years’ time.

The Public Accounts Committee yesterday heard from the Housing Agency, Approved Housing Bodies Regulatory Authority, and officials from the Department of Housing.

The meeting heard that there are more than 50,000 social housing units within the approved housing body (AHB) sector, which are operated by independent, not-for-profit organisations.

Committee chair Brian Stanley asked what happens when the loan for such projects is discharged.

“There is potentially 50,000 homes here, that the State could provide up to 100% finance in some cases, that when the loan or finances are discharged, despite the fact that they are within the ownership of the AHB, [the State will have no authority over],” said Mr Stanley.

“This is a most serious situation that we have sleepwalked into.”

Mr Stanley acknowledged the good work done by the sector and that many bodies act professionally.

However, he said the manner in which way these schemes were designed will potentially leave the State with no control of a housing asset once the mortgage is up.

“Essentially it becomes a private entity,” he said.

Green Party TD Neasa Hourigan said this is a State approach that will “fund something that we don’t then have any control over as an asset”.

“It could be over €1.5bn of money that we’re spending every year on an asset that in 30 years’ time we won’t have any control over,” she said.

Fergal Quigley from the Department of Housing said the committee had raised a “legitimate” issue.

“There is a working group in the department looking at this particular issue,” he said, adding that it would be “wrong” to give the impression the sector is seeking to act in a way that is not appropriate.