Key Performance Indicators. Gene Clayton Irish Council for Social Housing

Transcription

1 Key Performance Indicators Gene Clayton Irish Council for Social Housing

2 KPIs : Who needs Them? Background 2008/09 Credit Crunch: sudden lack of normal availability of finance Worldwide inability/unwillingness of banks/finance houses to lend Affected some countries/ sectors worse than others For example: some A Countries: France, Germany, UK, Holland, Nordic countries; business as usual (more or less) B Countries: Spain, Portugal, Ireland (Greece); very difficult or impossible to raise finance

3 Impact on social housing sector in Europe For A countries: some effect, but continue to develop and meet housing need For B countries: near or total collapse of state funding systems, little or no access to private finance: near or complete collapse of social housing development, Dysfunctional housing market, increased mortgage arrears, negative equity, potential increase in foreclosures, growing housing need Diminished ability of national & local government & social housing sector to meet growing housing need

4 CECODHAS Response Recognition that existing financing only works for some members in some countries Following success of housing bond issues in UK, idea for transnational European Housing Bond put forward Proposal that social housing companies that are capable of participating come together across Europe to issue bonds Bond aimed at Pension Funds, ethical investors, those wishing to meet Corporate Social Responsibility requirements with modest, safe return.

5 European Commission Response Strong interest from EC in social investment and role KPIs can play Consultation between DG Market & CECODHAS to try to establish: What is a social business & social output What role can EC play in improving access to finance for social businesses Access to finance for SMEs & Social Enterprises now included as a priority in Single Market Act Proposal to develop quality standards for Social Investment Funds to enable bonds to be issued across EU

6 Potential Benefits Less reliance on hard pressed individual national banking sectors Potential to create a niche market for a new financial product Potential to secure access to sources of secure, longterm funding at reasonable rates Longer term potential for risk sharing to enable B countries to access funding to continue to provide social housing

7 KPI Working Group KPI Working Group set up in CECODHAS to establish feasibility and see what investors want Investors want to see all aspects of company performance in a transparent, comparable way KPI Working Group is looking at ways of meeting this demand Existing models in place; IPD/AeDex (Holland), Urban Returns (Germany), Social Return on Investment (UK) Collaboration with International Property Data, Delphis and interested members to define & agree relevant KPIs

8 Main Activities to be measured Financial Performance: All aspects of financial performance which impacts risk & return Management Performance: How efficient is the company in providing homes and services Environmental/Energy Performance: How green /energy efficient is the housing stock Social Return on Investment: What additional benefits does it bring to neighbourhoods and society

9 Pilot project Not for Profit sector in CECODHAS agrees to set up Pilot Project Looking for social housing companies, esp. from A countries willing to take part Commitment to collect & contribute all relevant performance data needed to satisfy investors Define & establish acceptance of social dividend as part of investors return Test the market by issuing an initial Social Housing Bond

10 Short, Medium & Longer Term Aims Short Term Identify CECODHAS members willing to take part in pilot project leading to the issuing of European Social Housing Bond Medium Term: Establish a credible track record for social housing companies with investors by raising funds on a regular basis by issuing European Housing Bonds Longer Term: Build reputation as solid performer to attract ethical investors and enable qualifying social housing companies from B countries to access funds

11 Conclusion It is: A prudent recognition of changing financial environment in a number of member countries An additional source of finance not a replacement of existing funding systems in member countries An opportunity to create a financial product specifically for the social housing sector across Europe A way of meeting growing housing need across Europe A long term project with long term benefits

12 Thank You