Working Towards Delivery. 27 th April 2015

Transcription

1 Working Towards Delivery 27 th April 2015

2 Karen Kennedy New Business Director

3 Who we are Established in 1994 As an independent, not-for-profit charity Now the largest housing association in Ireland. We provide more than 5,000 of the 27,000 homes provided by all housing associations in Ireland. Clúid is one of only 10 organisations approved for funding via the HFA Clúid has delivered the greatest number of units of any AHB in recent years Cluid has delivered the most units through NAMA including the largest NARPS scheme (Belmayne, 125 units)

4 What we have done Examples.

5

6

7

8

9

10 PSL & NARPS Case Study 1, College Manor: Illustration of how Private Sector Leasing works by use of case study examples Case Study 2, Belmayne: Illustration of how leasing works under NARPS

11 College Manor, Dundalk

12 AHB 1. Source Properties and Manage negotiations with Private landlord 4. Submit Proposal 7. Take on properties when complete to standard 9. Manage tenants and maintain properties Landlord Pays Service Charge Pays Building insurance DoECLG 5. Approve Project and Confirm rents and terms in writing Local Authority 2. Confirm Need and support 3. Confirm Rents 6. Sign P&A agreement 8. Nominate Tenants 10. Monitor P&A Terms

13 College Manor, Dundalk

14 Prospect Hill, Finglas

15 Prospect Hill Market Rent Calculation 2 bed 870 x 14 x 12 = 146,160 3 bed 1050 x 14 x 12 = 176,400 Total Market Rent = 322,560 Proposed annual leasing payment to Property Owner 20% discount of 322,560 = 64,512 Total (with 20% discount) 258,048 Points to Note Structure of Property Responsibility of Property Owner Internal Repairs & Maintenance Responsibility of Cluid Housing Association Building Insurance Responsibility of Property Owner Service Charges (if any) to be paid by the Property Owner Specification To Apartments to be satisfied by the Property Owner

16

17 NARPS

18 Belmayne, Dublin

19 AHB 5. Respond to Request for Expressions of Interest 9. Sign legal agreements 10. Take on properties when complete to standard 12. Manage tenants and maintain properties, collect differential rent PAY SERVICE CHARGE Landlord - NAMA 1. Make units available 8. Issue legal agreements PAY FOR INSURANCE Housing Agency/DoECLG 2. Approve units for social housing 4. Issue Request for Expression of Interest, confirming rents and terms 6. Allocate Scheme to AHB Local Authority 3. Confirm need, rents and support 7. Sign P&A agreement 11. Nominate Tenants 13. Monitor P&A Terms

20 Differences between NARPS and PSL NAMA rents under NARPS are usually 83% P&A Agreements granted to AHBs are either 83% or 88% for apartments Additional 5% is to cover service charges longer and more onerous term than PSL (replace kitchens, bathrooms etc. within lease period) Lease term is 20 years, 9 months NAMA covers 50% reinstatement costs at end of end of lease term Option to purchase during leasing period.

21 Belmayne, Dublin

22 1,500 units in next 3 years

23 Built for Scale In-house feasibility: Senior Architect, QS, New Business & Development Managers, Technical team In-house Legal team Multiple supply channels: Acquisition, New Build, Regeneration, Mortgage to Rent, Leasing - NARPS/Private Sector, Management and Maintenance Low cost funding: Low cost funding, repayments linked to market rents or 100% capital grant funding Mixed tenure: private, social, special needs, older persons, homeless PRSA accredited Housing Management team

24 We need new and sustainable supply, at scale. It is in our interest to partner We have capacity and funding to deliver We have in-house expertise and experience More can be done by working together

25 Working Towards Delivery 27 th April 2015

26 FUNDING THE DELIVERY OF SOCIAL HOUSING CALF & P&A PARTNERSHIP l CHOICE l GETTING MORE FOR LESS PLAYING OUR PART l SOCIAL RESPONSIBILITY

27 CAPITAL ADVANCED LEASING FACILITY(CALF) CALF funding can be used for: 1. Acquisition 2. Construction 3. Mortgage to Rent Changing Housing for the Better

28 CASE STUDIES - PURCHASE SCOTCH HALL, DROGHEDA KNIGHTSBRIDGE, TRIM HONEY PARK, DÚN LAOGHAIRE 1.7m for 19 homes 15 CALF & Private Finance 30% CALF Loan Finance: Bank of Ireland 4 CAS Local Authority: Louth CoCo 0.85m for 6 homes CALF & Túath Reserves 47% CALF 53% Túath Reserves Local Authority: Meath CoCo 13.4m for 61 homes 35 CALF & Private Finance 30% CALF Loan Finance: HFA 19 social leased (30 year term) 26 CAS Local Authority: DLRDCC Changing Housing for the Better

29 CASE STUDIES - ACQUISITION & COMPLETION ROSEBERRY HILL, NEWBRIDGE MACROOM, CORK 1.1m for 7 homes CALF & Private Finance 20% CALF Loan Finance: HFA Local Authority: Kildare CoCo 0.6m for 6 homes CALF & Private Finance 30% CALF Loan Finance: HFA Local Authority: Cork CoCo Changing Housing for the Better

30 CASE STUDY NEW BUILD AN LEARGAN, GALWAY CITY 3.6m for 25 homes 12 CALF & Private Finance 25% CALF Loan Finance: Ulster Bank 4 social leased (5 year term) 13 CAS Local Authority: Galway CC Changing Housing for the Better

31 ROLE OF AHB Development Opportunity Arises Submit Private Finance Application Discuss with Local Authority Demand Market Rents Property Suitability Begin Acquisition/Construction Process Organise Independent Valuation Sign CAA/P&A/Continuation Agreement Instruct Condition Survey Drawdown of funding from LA/Lender Carry out Internal Financial Analysis Submit CALF application form LN008b Complete Acquisition/Construction Process Changing Housing for the Better

32 ROLE OF LOCAL AUTHORITY Provide relevant info to AHB Demand Market Rents Property Suitability Confirm support for AHB s CALF Application Formulate CAA/P&A and send to AHB Provide nominations for available units Issue Capital Advance Amount Facilitate P&A lease payments on completion Changing Housing for the Better

33 ROLE OF DECLG/HOUSING AGENCY (HA) DECLG receive CALF Application DECLG request confirmation of support from LA DECLG forward to Housing Agency HA assess application and advise DECLG HA recommend CALF amount/term DECLG provide AHB with CALF Approval which includes: Capital Advance amount P&A lease payments Conditions of approval DECLG provide Capital Advance/Lease Payments to LA Changing Housing for the Better

34 PARTNERSHIP WORKING LOCAL AUTHORITY Confirm Need Draw down CALF for AHB Sign P&A/CAA/Continuation Agreement Nominate Tenants Monitor P&A Terms * Finance accessed by AHB from Private Lending Institution / HFA DECLG Project Approval Funding Provision Túath Submit Proposal Finance Project Provide Properties Manage Properties Landlord to Tenants HOUSING AGENCY Application Appraisal Changing Housing for the Better

35 CONTRACTUAL FRAMEWORK Capital Advance Agreement (CAA) Agreement between LA and AHB 30% of Acquisition/Construction cost max Equity injection used to leverage PF required Payment & Availability Agreement (P&A) Agreement between LA and AHB Term years Lease Payments 92/95% of market rents Payments available monthly/quarterly through LA Covers repayment of the Private Finance loan Continuation Agreement 3 way Agreement between AHB/LA/Lender Local Authority takes over loan repayments if AHB defaults on obligations Extra security for Private Lenders Changing Housing for the Better

36 CONTRAINTS WITH CALF/P&A CALF Assessment Process CALF & Turn Key/Design & Build CALF & Newbuild Payment & Availability based on OMR Changing Housing for the Better

37 PRIVATE FINANCE Investment appetite increasing P&A attractive terms Continuation Agreement Security Voluntary Regulation Code / Financial HFA / Bank of Ireland / Ulster Bank EIB funding Exploring Institutional Investment options Centrus appointed as financial advisors Changing Housing for the Better

38 BACK TO THE FUTURE Changing Housing for the Better WORKING IN PARTNERSHIP

39 Leasing Schemes & CALF in Practice Hugh Hogan Senior Executive Officer Housing Department 27th April 2015

40

41 Housing Expenditure ,600,000,000 1,400,000,000 1,200,000,000 1,000,000, ,000, ,000,000 Current Capital 400,000, ,000,

42 LOCAL AUTHORITY HOUSING OUTPUT NEW BUILD AND ACQUISITIONS ,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Series Series

43 Housing Lettings Stock 1 1 Let Stock Let List

44 Housing Stock 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% General list demand % 70% 60% 50% 40% 30% 20% 10% 0% 1 Homeless demand Series1 Series2 Series3 Series bed 2 bed 3 bed 4 bed 5 bed 6 bed

45 Waiting list Nearly 8.5K on the list 5% have priority need 95% don t Waiting list Ground floor Medical Priority Homeless % 1% 0% 2%

46

47 Types of Social Housing Council owned accommodation Voluntary Housing (CLSS & CAS) Leasing {Applicant Sourced Homes (ASH) and Rental Accommodation Scheme (RAS) } Private Rented Accommodation (HAP)

48 Leasing As of 31/12/2014, 547 properties have been secured under Leasing Arrangements Total Privately Owned Unsold Affordable Payment & Availability with AHB's Total Total

49 Rental Accommodation Scheme (RAS) December 2014 Year Total Target Delivered

50 Leasing Schemes and Calf in Practice Good Experiences Takes people off the Housing list at a rent they can afford Tenants usually get area of their choice Landlords in the scheme registered with PRTB Tax Clearance Creates good social mix Helps in filling vacant properties Properties Inspected Improved Health & safety Standards

51 Leasing Schemes and Calf in Practice Not So Good Experiences Changes in the economy landlords wanting to terminate the agreement Competing with the private rented sector Some landlords not carrying out repairs Rent reviews

52 Real issues for SDCC P & A Agreements ASB AHB Pepper potting Voids Cherry Picking Homelessness Capacity to deal with it National Capacity Where staff are based Reletting process Residualisation for LA

53 Working Towards Delivery 27 th April 2015

54 Lunch