Patricia Ryan
Question:39. Deputy Patricia Ryan asked the Minister for Housing, Local Government and Heritage if he will provide details on the Croí Cónaithe cities scheme; and if he will make a statement on the matter. [26605/22]
View answerWednesday, 25 May 2022
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Written answers
Addressing the current housing shortage requires short, medium and long-term action to stimulate housing supply. The Croí Cónaithe (Cities) Scheme is one measure within Housing for All that will help to kick-start apartment developments that might not otherwise be developed.
The Croí Cónaithe (Cities) Scheme supports the building of apartments for sale to owner-occupiers. The Scheme aims to bridge the current “Viability Gap” between the cost of building apartments and the market sale price (where the cost of building is greater).
To achieve the national strategic outcome of more compact growth and vibrant liveable cities, the State must offer a greater range of options for both owner-occupiers and renters in cities, at all income levels. A key focus of Housing for All is to ensure that those who wish to purchase a home have sufficient location choice. This is particularly the case for the core areas of our cities, towns and villages.
The complementary objectives of tackling climate change and delivering more compact growth require action to ensure that we see developments at scale in our cities, particularly close to public transport nodes and existing infrastructure. There is therefore a strong public policy imperative to encourage the development of housing in our cities.
Funding for Croí Cónaithe (Cities) Scheme will only be made available for suitable apartment developments where there is a demonstrated viability gap. Unless bridged, this gap will lead to the apartments not being built or being built but not available for purchase by owner-occupiers. Open book accounting will be required for all developments to make sure that the funding support provided only targets the viability gap in question resulting in a reduction of cost for home-buyers and increased supply into the market.
The scheme launched on the 10th May and will be managed and administered by the Housing Agency on behalf of the Department of Housing, Local Government and Heritage. The Housing Agency will assess eligibility and carry out detailed due diligence and an open book assessment on eligible proposals.
Further details of the scheme and the assessment process are set out in the Expressions of Interest document linked here: Expression of Interest (EOI) Call Croí Cónaithe Cities_.pdf (housingagency.ie)