DUBLIN, Ireland–Credit union funds that have been looking for a home appear to have found some homes looking for funds.
The country’s credit unions, which have been so flush with liquidity they have put caps on member deposits in some cases, have entered into an agreement with asset manager Gresham House to help build or acquire property for social housing around Ireland, according to the Irish Times.
The report said the agreement meets the “strict” rules of the CU regulator, the Central Bank of Ireland, and will involve up to €100 million to purchase or build up to 450 homes through approved housing bodies that are always “hunting for funding,” the Irish Times stated.
The Payback
“The payback for the credit unions and their members will come via the rental stream on the properties over the following 25 years,” according to the report.
“As the Government’s Housing for All policy aims finally to comprehensively address the ongoing housing crisis, funding remains a key stumbling block,” the Irish Times stated. “Bank lending is still much more restricted following the 2008 financial crash. So, developers have to be more creative in how they fund projects.”
The Irish Times added, “For the credit unions, it is a welcome opportunity for a sector that is strictly controlled by its regulator – the Central Bank – in what they can do with members’ money. In large part, this dates back to the voluntary nature of the movement.”