Initial details of the affordable housing scheme were issued to all housing authorities in March last and a comprehensive circular followed on 8 April. The scheme is targeted primarily at major urban centres and their hinterlands where house prices have created an affordability gap for low income house purchasers and where the problem of house price escalation has been most acute, and also at certain other areas where particular factors such as strong demand for holiday homes have increased house prices and created an affordability gap for local people. Local authorities have been requested to assess the extent to which the scheme could appropriately be used in their areas and to formulate proposals for specific developments which could be brought to construction at the earliest possible date. To avoid any delay in getting projects off the ground local authorities are not required to submit proposals to my Department for prior approval. Local authorities can meet any expenditure under the affordable housing scheme from their capital allocations for publicly funded housing loans etc. and these allocations will be reviewed in the light of requirements throughout the year.
While it is very early days yet to see the impact of a scheme which requires the construction of additional housing, I am aware of a range of proposals, some ready to commence construction, in a number of areas. I expect that the target of 400 houses for 1999 will be met.
