Dáil Éireann Debate, Wednesday - 22 July 2020
137. Deputy Alan Kelly asked the Minister for Housing, Planning and Local Government the definitions his Department uses to describe an affordable rent in the context of cost-rental schemes; if he will describe a significant discount on market rents; and if he will make a statement on the matter. [17574/20]
View answer142. Deputy Aodhán Ó Ríordáin asked the Minister for Housing, Planning and Local Government the progress of the cost-rental project at Enniskerry Road; the projected rental cost of each on-site unit; and the position on the roll-out of further cost rental projects nationally. [17693/20]
View answerI propose to take Questions Nos. 137 and 142 together.
Cost Rental rents cover the cost of delivering, managing, and maintaining the homes only. Therefore the rents for Cost Rental units will be directly linked to the overall cost of each development, and will vary according to the site and design specifics. Value engineering with long-term maintenance in mind can put downward pressure on costs and help to make Cost Rental more affordable for tenants. If construction is to be funded by borrowing, it is crucial that Cost Rental providers obtain low-cost, stable finance that is repaid over a long period of time. Developments may also be supported by subsidies such as sites from the public land bank and infrastructure grants from my Department’s Serviced Site Fund.
The first Cost Rental pilot development at Enniskerry Road, Stepaside, Dún Laoghaire-Rathdown is being undertaken by the Tuath and Respond Approved Housing Bodies, with the assistance of DLR County Council. The mixed-tenure development comprises 50 Cost Rental homes alongside 105 social housing homes. The Cost Rental homes at this site are supported by zero-cost land supplied by the Housing Agency, an infrastructure grant from my Department's Serviced Site Fund, and debt financing from the Housing Finance Agency. Construction began on the site in July 2019 with delivery scheduled for Q3 2021.
A second pilot project, sponsored by my Department is under development for a site at Emmet Road, Inchicore (the former St Michael’s Estate). The project is being led by Dublin City Council. The proposal is for DCC to construct 375 Cost Rental units alongside 109 social housing units. A Development Framework Plan has been completed and DCC has recently appointed an architect-led integrated design team to progress the project through the planning and construction phases.
Another proposed Cost Rental development is at Shanganagh Castle, Shankill, Dún Laoghaire-Rathdown, where DLR County Council is working in partnership with the Land Development Agency to develop the Council-owned site. On Monday, 13th July, planning permission was confirmed for a mixed-tenure development of 597 homes, which it is intended will comprise 306 Cost Rental homes, 200 social homes, and 91 homes for sale under the Affordable Purchase scheme.
In parallel with the pilot projects policy formulation for Cost Rental is underway, supported an inter-departmental/agency Cost Rental Working Group. The Group is evaluating potential funding models, including the use of public land and appropriate Exchequer inputs and is also considering operational matters such as tenant eligibility. I expect to receive a focused initial report from the Group in the coming weeks.
This work will be further assisted by a recently initiated research consultancy sponsored by the European Investment Bank on behalf of my Department. The EIB has extensive experience in supporting the delivery of affordable housing across Europe. This Report is scheduled for completion in December.
