Financing for Land, Regeneration and Energy Options: A Dublin City Council Perspective

Transcription

1 Financing for Land, Regeneration and Energy Options: A Dublin City Council Perspective Report to National Social Housing Conference (ICSH) 26 th October 2018

2 Funding Options Examples

3 Summary More and Better Public Housing on public lands Need to significantly ramp up our capital works programme City Capital Works Plan

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5 Houses: 12,827 Flats: 8,862 Senior Citizens 3,555 Total: 25,244 A high proportion of buildings are in need of renewal/redevelopment 6,391 units across 109 flat complexes built from the 1930s onwards

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7 Strategic objectives More Better Quality Sustainable Compact City

8 Where are we going? More Homes Increased public housing built on public lands Achieved through more efficient and effective use of public lands. Better Homes a plan for every apartment complex to ensure the delivery of quality, safe, warm, sustainable and energy efficient homes. needs of the elderly and disabled Improved neighbourhoods Catalyst for the renewal of underutilised areas Reducing anti-social behaviour Future proofing homes

9 Compact City

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11 Each site needs to be reviewed in conjunction with elected members and residents. Decanting no longer an option/innovative solutions A one size fits all is not appropriate

12 Deep retrofit? Phased demolition and rebuild New build extensions to blocks? New build blocks on site? Additional floor to the blocks?

13 Funding Options

14 Funding Challenges State funding for replacement housing is likely to be challenging Should be more available where we achieve significantly higher densities Focus will be on development potential and additionality Grant vs Loan? How is any loan repaid? Differential vs Economic vs Market Rent To enable DCC to raise/borrow finance some form of State funding is required over the term

15 9 Funding Options 1. Continue to seek funding from the Department of Housing 2. Seek funding from the Housing Finance Agency 3. Seek funding from Corporate bonds 4. Set up an arms-length company to deliver the programme 5. Investigate Public Private Partnership options 6. Land Disposal 7. Leverage land through long-term leasing 8. Transfer some apartment complexes to Approved Housing Bodies 9. Negotiate with adjacent landowner

16 Multi-Criteria Assessment of options Cost benefit analysis PSC 4 Criterion: 1. Cost (double weighting) 2. Does the option facilitate the ramping up of regeneration programme? 3. Does DCC retain control of lands? 4. Risk assessment

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18 Continue to seek funding from the Department of Housing Up to 100% grant funding No pay back required Risk: Focus on new builds

19 Seek Funding from the Housing Finance Agency HFA: LAs are an attractive lending proposition Most efficient model: 1. DCC to identify a project requiring finance 2. HFA to lend up to 100% 3. DHPLG agrees to underwrite an adjusted Payment and Availability Agreement Contraints: P&A only available to AHBs Borrowing envelope availability Current indebtedness to HFA > 500m

20 Seek funding from Corporate Pay back funding? bonds 2001 Act precludes DCC engaging with bonds as a source of funding Compared with other sources?

21 Set-up an arms length company to deliver programme 4 Dublin examples: 1. DDDA 2. BRL Ltd 3. Grange Gorman Development Agency 4. Temple Bar Cultural Trust Control? Transfer of assets? Why? If repayment costs higher?

22 Investigate Public Private Partnership options DCC has had mixed fortunes with PPPs UK National Audit Office (NAO) have formally recognised PPPs as high risk and not recommended for LAs.

23 Control? Timing? Proportion? Partial Land Disposal Finance vital community infrastructure/services?

24 Leverage land through longterm leasing Freehold is retained by LA Leasehold for 45 years issued by LA to investor Development is funded by investor at their own risk After lease expired, LA retains entire built site

25 Transfer some apartment complexes to Approved Housing Bodies at the heart of social housing provision Government s Social Housing Strategy 2020 Capital Advance Leasing Facility Payment and Availability Agreement

26 Negotiate with adjacent landlord HSE CIE/Dublin Bus Religious Instutiions Educational Institutions and Dept of Education Private Developers NAMA

27 Multi-disciplinary project team convened to: Review the development potential of all housing apartment complexes across the five administrative areas Meet with councillors across the five area committees to discuss a rolling implementation plan

28 DCC s Construction Pipeline 22 projects on site (638 units) AHBs leading projects at tender (387 units), AHB leading 6 16 at initial stages of approval process (628 units) (AHBs leading out 9) Challenge: to triple output

29 General master planning and financial strategy Deliver social housing and community infrastructure in first/second phase Introduce mixed income/tenure during subsequent stages

30 Dolphin House 1950s 436 unit scheme (incl 44 Dolphin Park) Failed PPP Phase 1: 63 deep retrofit; 37 new units Phase 2: Delivery of social

31 Dolphin House Phase 1: 63 deep retrofit; 37 new units Phase 2: Delivery of social Phase 3: Mixed tenure

32 St Theresa s Gardens

33 St Theresa s Gardens Phase 1: 54 units Strategic Regeneration Development Zone (1,100 mixed tenure units)

34 Failed PPP Dominick Street

35 Dominick Street 72 units 5 Townhouses 67 Apartments Commercial - 12m own resources: retail strategy to recoup return on investment being developed

36 O Devaney Gardens Failed PPP. 54 houses being constructed. Housing Land Initiative: 30% social; 20% affordable and 50% private residential Competitive Dialogue Process. Going to tender

37 Charlemont St (PPP)

38 Charlemont Street

39 Fatima Mansions (PPP)

40 Herberton (PPP)

41 St Michael s Estate 30% social 70% cost rental (10% of these may be affordable purchase)

42 St Mary s Mansions Cluid 21m redevelopment of 70 year old complex Expected completion mid homes 2 additional floors

43 St Mary s Mansions

44 Affordable Cost Rental Challenges What is affordable? Viennese model

45 Summary More and Better Homes Need to gear up significantly

46 Go raibh maith agaibh