Dáil Éireann Debate, Tuesday - 25 January 2022
95. Deputy Neale Richmond asked the Minister for Housing, Local Government and Heritage if he will provide an update on the roll-out of the cost rental scheme in local authorities; and if he will make a statement on the matter. [3072/22]
View answerMy Department is utilising the expertise of Local Authorities, the Land Development Agency (LDA) and Approved Housing Bodies (AHBs), to deliver Cost Rental projects in a variety of ways, in order to prove the concept of this new sector. This is in conjunction with the policy framework as to how the Cost Rental sector will operate in Ireland, as set out in the Affordable Housing Act 2021.
Over the period to 2030, it is intended that approximately 18,000 Cost Rental homes will be delivered. They will be provided by AHBs supported by Cost Rental Equity Loan funding (CREL), by Local Authorities through the Affordable Housing Fund and by the LDA on their portfolio of sites or through Project Tosaigh.
Cost Rental delivery will be informed by National Planning Framework priorities. It will be focused, at least initially, on densely populated urban areas where rental affordability pressures are particularly acute and where State resources can have the biggest impact. It is important that the State targets its affordability measures towards the parts of the country that are experiencing the most extreme affordability challenges. This is why my Department requested Housing Delivery Action Plans from each Local Authority before the end of December 2021 and will use the data submitted to target the most affected areas.
The implementation of initial Cost Rental projects is being supported by the CREL scheme, under which Government provides loans to AHBs to finance up to 30% of the capital costs for new cost rental homes, while the Housing Finance Agency is offering AHBs very competitive commercial debt funding to cover the remaining capital costs. €70 million was allocated to CREL in Budget 2022.
A total of 390 Cost Rental homes were approved under the first tranche of CREL funding in early 2021. These new homes are located in Dublin, the Greater Dublin Area and Cork, with cost-covering rents projected at a minimum of 25% less than comparable open market prices.
The first 25 Cost Rental homes to be designated in Ireland were completed by the Clúid AHB at Taylor Hill, Balbriggan and the first tenants moved into their new homes at Taylor Hill in August 2021. The cost-covering rents for these homes are 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.
Another 40 Cost Rental homes have recently been completed at Barnhall Meadows in Leixlip, County Kildare, where all tenants have moved into their new homes. The cost-covering rents for these CREL-funded homes range from €900 per month for the two-bed homes to €1,250 per month for the three-bed homes, which are approximately 42% below market rent.
Overall, AHBs are targeted to provide some 700 homes through CREL in 2022 of a total target of 1,500 Cost Rental homes to be provided this year. In addition, another 50 two-bedroom Cost Rental apartments are in the final stages of completion at Enniskerry Road, Stepaside, Dún Laoghaire-Rathdown, by the Respond and Tuath AHBs, alongside 105 social housing units. This project is the result of an innovative collaboration between the two AHBs and of Dún Laoghaire-Rathdown County Council. The 50 purpose-built Cost Rental apartments are due to be tenanted over the next few weeks.
Dublin City Council is also progressing 375 Cost Rental homes on a site at Emmet Road, Inchicore (formerly St. Michael’s Estate) and the LDA is collaborating with Dún-Laoghaire Rathdown County Council to deliver over 300 cost rental homes on a site at Shanganagh, Shankill.
