Dáil Éireann Debate, Wednesday - 21 April 2021
725. Deputy Richard Bruton asked the Minister for Housing, Local Government and Heritage the location of the first 440 cost rental homes; the criteria that will be used for the allocation of same; and the way persons that are not first-time buyers but have a housing need will be accommodated. [19070/21]
View answerThe first Cost Rental site in Ireland, comprising 50 units at Enniskerry Road in Stepaside, is currently under construction by the Tuath and Respond Approved Housing Bodies (AHBs), with the support of low-cost land from the Housing Agency and an infrastructure grants of c.€4m from my Department’s Serviced Sites Fund. The mixed-tenure development also includes 105 social housing units. The cost-covering rent for a two-bedroom apartment is projected to be €1,200 per month, which represents a very significant discount on market prices in the area (c.€2,000). Delivery is scheduled for Q3 2021.
On 8 February 2021 I announced approval in principle for a further 390 Cost Rental homes under the new Cost Rental Equity Loan (CREL) scheme. This scheme was allocated €35m in funding in Budget 2021, which is being used to make loans on favourable terms to AHBs for up to 30% of the cost of new homes for Cost Rental. Following a Call for Proposals and assessment process, CREL financing has been granted this year for 390 new homes. These are located in Dublin, the surrounding Greater Dublin Area, and Cork, with cost-covering rents projected to be at least 25% below comparable open market prices. Precise details of the funded projects, including specific locations, housing typologies, and cost-covering rents, will be released once the relevant AHBs have fully completed the necessary financial and commercial arrangements.
All Cost Rental homes will be operated and allocated in line with provisions which will be contained in the forthcoming Affordable Housing Bill. The Bill will define Cost Rental in Ireland for the first time and will allow the Minister to regulate tenancies in which the rent covers only clearly defined costs. It is my intention that the Bill will stipulate that the rent may increase on an annual basis only in line with consumer inflation, so that it will remain stable in real terms while continuing to cover rising management and maintenance costs.
Operational conditions for Cost Rental, including specific eligibility criteria and allocations procedures, will be finalised in the legislation. The primary condition on eligibility being considered is the setting by the Minister of a maximum household income for new tenants, which will ensure that Cost Rental benefits the target cohort of moderate-income households. These households would be above the income limits for social housing supports and facing affordability pressures in the private rental market. As Cost Rental is not a means of purchasing a home, there are currently no plans to restrict applications for Cost Rental tenancies to those who are first-time buyers only.
