Social and Affordable Housing Expenditure

Dáil Éireann Debate, Friday - 7 September 2018

Friday, 7 September 2018

Questions (1389)

Seán Fleming

Question:

1389. Deputy Sean Fleming asked the Minister for Housing, Planning and Local Government the guidelines and rules in place for funding to local authorities in respect of turnkey housing schemes to be provided by the private sector; the maximum percentage a local authority can pay into an escrow account at the commencement of the process; if stage payments can be made during the building process; if the balance of the project is only payable on the completion of the houses; and if he will make a statement on the matter. [36469/18]

Written answers

Minister for Housing, Planning and Local Government

Given that turnkeys are a good source of social housing that can often be quickly delivered, at value for money prices, local authorities actively utilise turnkeys as one of a range of mechanisms to deliver additional social homes.

Turnkey delivery involves local authorities going to the market to procure a social housing solution to meet an identified social housing need. As is standard with turnkey development, apart from an initial 10% of the purchase cost that my Department will provide to a local authority to cover its deposit costs, the balance of the funding provided by my Department is based on delivery, as homes are completed in a turnkey condition and keys handed over to the local authority.

In many cases, these developments would not go ahead without the certainty of the end purchaser and they are of particular use where the local authority has limited or no lands available for housing in an area.