Dáil Éireann Debate, Tuesday - 27 July 2021
634. Deputy Eoin Ó Broin asked the Minister for Housing, Local Government and Heritage the number of cost rental projects approved by cost rental equity loan; and the number of these homes that will be tenanted in 2021, by local authority and approved housing body. [39526/21]
View answerAs the Deputy will be aware, Budget 2021 allocated €35m for a new Cost Rental Equity Loan (CREL) scheme, under which Government is making loans to Approved Housing Bodies (AHBs) on favourable terms for up to 30% of the capital cost of new homes for Cost Rental. Following a Call for Proposals from AHBs in December 2020, a rigorous assessment process was undertaken by my Department and the Housing Agency. In February 2021 I announced approval-in-principle for the CREL financing this year of 390 new homes at eight sites across Ireland, to be owned and managed by the Clúid, Respond, and Tuath AHBs. These CREL projects are located in Dublin, the surrounding Greater Dublin Area, and Cork City, with each development delivering cost-covering rents for homes on average at least 25% below comparable open market prices.
The first of these CREL-financed homes, located at Taylor Hill, Balbriggan, were formally launched this month and will be the very first homes to be delivered into the Cost Rental sector in Ireland. The 25 homes will be owned, managed and maintained by the Clúid AHB, which is acquiring them with the assistance of a €2.4m CREL loan.
The cost-covering rents for these Taylor Hill homes will be approximately 40% below comparable open-market prices in the area, ranging from €935 per month for a two-bed terraced house to €1,150 for a four-bed detached house. It is envisaged that these dwellings will be occupied by the first tenants next month.
The necessary financial and commercial arrangements in relation to the other CREL-financed projects are being completed by the AHBs concerned. When these arrangements are concluded, details of the other projects, including specific locations, housing typologies, and cost-covering rents, will be made public.
CREL will accelerate delivery in the Cost Rental sector, in advance of the LDA’s planned future output and the delivery of homes by Local Authorities. The Affordable Housing Act 2021, signed into law on 21 July, together with regulations made thereunder will provide the legislative framework.
