Dáil Éireann Debate, Tuesday - 24 May 2022
238. Deputy Joe Carey asked the Minister for Housing, Local Government and Heritage the additional financial assistance that will be provided to approved housing bodies involved in the provision of social housing projects in order to ensure that the delivery of much-needed social housing projects is not negatively impacted in view of significant construction cost increases; and if he will make a statement on the matter. [26436/22]
View answerThe Housing for All strategy is the Government’s plan to increase the supply of housing to an average of 33,000 per year over the next decade, including an average of 10,000 social homes per annum from 2022-2030. Housing for All is supported by an investment package of over €4bn per annum, through an overall combination of €12bn in direct Exchequer funding, €3.5bn in funding through the Land Development Agency and €5bn in funding through the Housing Finance Agency.
Under Housing for All, the Government will deliver 47,600 new build social homes and 3,500 social homes through long-term leasing in the period 2022-2026. Approved Housing Bodies (AHBs) are important delivery partners in the provision of social housing. My Department operates a number of funding programmes that assist local authorities to work in partnership with AHBs to construct, purchase and lease new homes and make them available for social housing. The main funding programme that AHBs progress construction projects through is the Capital Advance Leasing Facility (CALF). AHBs also deliver projects funded from my Department’s Capital Assistance Scheme (CAS).
In recent months it has been clear that the levels of construction inflation were causing difficulty for many public housing projects. On 10 May, the Minister for Public Expenditure and Reform introduced further measures to address the impact that exceptional inflation in construction materials and energy is having on public works contracts. These measures include the introduction of an ‘Inflation Cooperation Framework’. This Framework will facilitate both parties to engage with one another for the purpose of addressing the impacts of this most recent onset of exceptional inflation and supply chain disruption and will operate on an ex gratia basis. My Department has also issued information to local authorities and AHBs in relation to the application of similar arrangements for housing projects being delivered through developer agreements (turnkeys).
My Department will continue to work closely with the local authorities and Approved Housing Bodies to support the delivery of housing projects.
