Eoin Ó Broin
Question:
689. Deputy Eoin Ó Broin asked the Minister for Housing, Local Government and Heritage the average cost per unit of new-build social housing delivered in 2023, broken down by SHIP construction, SHIP turnkey, CALF construction (including full cost and CALF cost), CALF turnkey (including full cost and CALF cost), CAS construction, CAS turnkey, Local Authority Part V, AHB Part V, acquisition, Affordable Housing Fund (including full cost and AHF cost), Cost Rental Equity Loan (including full cost and CREL cost), in tabular form. [15017/24]
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The relevant details are being compiled and will be provided to the Deputy in accordance with Standing Orders.
The following deferred reply was received under Standing Order 51:
Cost information on the delivery of social homes through the various construction streams, is collated by my Department at development/project level rather than at individual housing unit level. The cost of constructing new homes is dependent on a range of variables, such as the location, the scale of the development and the size and type of the homes involved.
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2023 Average Cost per Unit
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SHIP construction
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€309,700*
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SHIP turnkey
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€301,300
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LA Part V
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€294,202**
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CAS construction
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€149,337***
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CAS turnkey
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€294,653
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CAS Part V
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€332,700
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* Refers to the All-In cost to include construction/land/design team fees/utilities/% for Art etc.
Calculations are based on the most up to date data available to the Department, however, the average cost is subject to revision as claims are received from local authorities and final accounts are finalised for the SHIP Construction Projects.
**This is the most up to date data available, however, the average cost is subject to revision as claims are received from local authorities
*** Of the 161 CAS Construction units delivered, 14 units had minimal or zero costs associated, leading to a lower than expected average cost per construction unit
CALF funding is capital support provided to Approved Housing Bodies (AHBs) by local authorities to facilitate the funding of construction, acquisition or refurbishment of new social housing units. This loan facility can support from 25% to 30% of the eligible capital cost of the housing project, with the housing units provided to local authorities for social housing use under long-term lease arrangements known as Payment and Availability Agreements. A nominal interest rate of 2% fixed per annum is charged by the local authority on the initial capital amount. Repayments on either the capital or interest are not required during the term of the loan (between 10 and 30 years), although where an AHB chooses to, repayments can be made during the term. At the end of the term, the outstanding capital amount plus the interest accrued, is owed and repayable to the local authority. The local authority issues the CALF monies to the AHB and the local authority, in turn, recoups same from the Department.
The table below, sets out an indicative average CALF unit cost up to the end 2023 under the P&A-CALF Scheme, based on the information submitted to my Department. It should be noted that average costs vary depending on design and type of units (e.g. bedroom numbers, apartment/house). Average costs are also determined by the number of units delivered in individual local authorities.
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Number of Units
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Average Capital Outlay Approved per unit (€)
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Average CALF Approved per unit (€)
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AHB CALF Construction
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312
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€301,940.71
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€70,636.71
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AHB CALF Turnkey
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3,196
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€362,011.50
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€101,492.97
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Part V
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941
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€310,950.33
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€79,038.58
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Note 1: Delivery does not necessarily occur in the year of approval or spend
Note 2: The CALF figures are based on application details and may be subject to change as the project progresses.
Note 3: The CALF Capital Outlay represents the average amount of CALF funding provided. (A maximum of 30%)
Note 4: Agreement on Part V arrangements are a matter for the local authorities. In some cases the Part V average is affected by delivery of homes that were subject to agreements prior to the current Part V arrangements. Complete details of PART V arrangements are available from the local authorities.
The level of subvention provided from the AHF towards the capital cost of an affordable purchase or cost rental home varies having regard to factors such as density of affordable homes per hectare achieved and the location of the development. Subventions ranging from €50,000 to €150,000 per home are provided, with the Exchequer cost representing 95% of the subvention and the remaining 5% coming from a Local Authority contribution. Housing delivery being supported by funding approved originally under the earlier Serviced Sites Fund is also progressing with funding comprised of 89% Exchequer contribution matched by an 11% Local Authority contribution. For the homes delivered in 2023 with AHF subsidy funding support, the average exchequer cost commitment per home is €78k.
Cost Rental homes supported by the Cost Rental Equity Loan, of which 286 were delivered in 2023 in twelve developments across five counties: Dublin, Kildare, Limerick, Louth and Westmeath. The average capital cost per unit was €365,935, with average CREL funding per unit of €150,641.
