Council giving mortgage to tuath

mickuhaha

Can anyone explain to me why the county council's are lending money to tuath to purchase houses to let to people on housing lists? Why don't the council's just use the money to buy the Houses? I assume that all the money is coming from the same place. Can any fill me in?

Darkglasses

It is complicated, but it's to do with the government being able to lend money to them "off balance sheet". Google "council lending to ahbs off balance sheet".

Marcusm

mickuhaha wrote: »

Can anyone explain to me why the county council's are lending money to tuath to purchase houses to let to people on housing lists? Why don't the council's just use the money to buy the Houses? I assume that all the money is coming from the same place. Can any fill me in?

It’s for silly, easily circumvented rules similar to why the phrase “fiscal space” entered the lexicon a few years ago. I have no problem with housing assocs but I do wonder whether their proliferation is creating pools of administrative costs rather than efficiency and innovation.

Local councils not wanting to be on the hook for unpaid debts.

Mrs OBumble

Because private orgs can do things government workers can't do.

mickuhaha

Darkglasses Google search does suggest that it is indeed all about keeping the debt used to fund social housing off the Irish balance books. It reads that the government will amend these private non profit organizations any way required to do so.
https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.oireachtas.ie/en/debates/debate/joint_committee_on_housing_planning_and_local_government/2018-02-08/3/&ved=2ahUKEwjTmcb81crgAhUyUBUIHTJnBBQQFjAAegQIBRAB&usg=AOvVaw2l7GbNXeXkxss1q0k1Ab7W