Dáil Éireann Debate, Wednesday - 28 November 2018
278. Deputy Clare Daly asked the Minister for Housing, Planning and Local Government his views on the manner in which developers are remunerated for properties sold in circumstances in which they access funds under LIHAF in terms of the percentage profit they are permitted per affordable unit and the manner upon which it is calculated; and if he will make a statement on the matter. [49672/18]
View answer283. Deputy Clare Daly asked the Minister for Housing, Planning and Local Government the number of affordable properties that were made available as a result of the LIHAF funding provided towards a development (details supplied); his views on whether the provision of two bedroom properties at a price of €295,000 constitutes affordable housing; and if he will make a statement on the matter. [49773/18]
View answerI propose to take Questions Nos. 278 and 283 together.
The Local Infrastructure Housing Activation Fund (LIHAF) is a measure designed to activate housing supply by putting in place enabling public infrastructure to facilitate large-scale development on key sites. Under Pillar 3 of the Rebuilding Ireland Action Plan, LIHAF is designed to specifically address the issue of housing supply, which is a crucial factor in terms of moderating house prices.
LIHAF provides much needed public infrastructure. No funding is provided to housing developers as the infrastructure is procured by the local authority, ensuring transparency and value for money.
Where a site has been activated by LIHAF, developers and local authorities have made individual agreements with respect to their particular projects in terms of the acceleration of housing supply to be delivered and making housing on associated sites more affordable than it otherwise would have been. Local authorities were directed to negotiate the best agreement possible for their own relevant local sites as each project was different.
Summary details of those agreements were made available in March 2018 and are published on the Rebuilding Ireland website at the following link: http://rebuildingireland.ie/lihaf/. In some cases developers have provided a cost reduction off the purchase price of units across the development. In other cases, a smaller number of units will be provided for allocation by the local authority as affordable housing.
As outlined in the document published last March, in relation to the specific development referred to, the local authority secured an agreement with the developer to deliver 800 residential units within the Local Area Plan area by 2021. In addition to the 10% social housing being provided at this development, the open market value of the units will also have a cost reduction of €2,500 for the remaining 720 units. These units constitute much needed housing supply in that area and the provision of public infrastructure will be instrumental in its delivery.
LIHAF is a supply measure but the Government also continues to address affordability through a range of specific measures. In particular, for those households earning low to moderate annual gross incomes, a multi-stranded approach is being taken to the targeted delivery of affordable housing including measures such as Help to Buy, the Rebuilding Ireland Home Loan and the new Serviced Sites Fund (SSF). In order to support the affordable housing programmes of local authorities, the Government has committed €310 million, over the three years 2019 to 2021, under the SSF announced as part of Budget 2019. The funding is available for key facilitating infrastructure, on public lands, to support the provision of affordable homes to purchase or rent. It is envisaged that a maximum amount of SSF funding of €50,000 per affordable home will be provided and on this basis at least 6,200 affordable homes could be facilitated.
