HBFI commenced operations on the 28th January this year and published its half-year progress update in mid-July. The update is available on the HBFI website (www.hbfi.ie/latest/home-building-finance-ireland-publishes-half-year-update) and I am advised that HBFI furnished a copy to all Deputies. The key highlights to end June (after 5 months of operations) are as follows:
- More than 100 Expressions of Interest (EOIs) received
- Over 30 full funding applications received
- €41m in funding approved, translating to 228 units
- 92% of full applications made to HBFI from outside of Dublin
- Projects range in size from 10 units to 73 units
- Average size of facilities provided to-date is €6m
Since its launch earlier this year HBFI has been actively engaging with small and medium sized builders and developers throughout the country through a range of market awareness raising initiatives. HBFI continues to benefit from a strong pipeline of interest from prospective borrowers as a result of these engagement activities.
The primary objective of HBFI is to increase the availability of funding in the market to developers for viable residential development projects. It is important that appropriate credit, due diligence and legal procedures are adhered to in all areas of the lending process - to safeguard, in so far as possible, the funding provided by HBFI. These procedures require adequate time to ensure the highest standards are met and it is important that HBFI have a consistent approach in all applications for funding.