Michael McGrath (Cork South Central, Fianna Fail)
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546. To ask the Minister for Environment, Community and Local Government if voluntary housing bodies are allowed by his Department to enter into contractual arrangements committing them to purchasing residential units prior to the units being constructed; the reason for the current rule; and if he will make a statement on the matter. [10484/15]

Alan Kelly (Tipperary North, Labour)
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My Department’s Capital Assistance Scheme provides capital funding support, through local authorities, towards the costs of approved housing bodies in providing accommodation for persons with specific categories of housing need, including older people, people with an intellectual, physical or mental health disability, homeless people and returning emigrants.

Subject to normal approval procedures, approved housing bodies may enter into contractual arrangements committing to purchasing residential units prior to the units being constructed. Full details in relation to the Capital Assistance Scheme, including the provision of Turnkey Developments (section 8.17), are available on my Department’s website at the following link: .

Under my Department’s Capital Advance Leasing Facility, the financing of purchases by approved housing bodies is a financial decision for each body. Department approval is not required as the approved housing body is raising the finance independently of the Department. Approval is required where they seek a repayable advance and a payment and availability agreement to bring the units into social housing use. This applies regardless of whether it is a construction proposal or an acquisition.