Dáil Éireann Debate, Tuesday - 26 July 2022
709. Deputy Paul Murphy asked the Minister for Housing, Local Government and Heritage if he is of the view that long-term leases are an effective use of public money and a sustainable solution to the lack of social housing in relation to the €450 million State fund which has been launched to lease 1,000 new-build homes for social housing. [40872/22]
View answer710. Deputy Paul Murphy asked the Minister for Housing, Local Government and Heritage if an alternative plan been drawn up in relation to the €450 million State fund which was launched to lease 1,000 new-build homes for social housing, including the direct building of social housing on State land; and if so, the estimated number of units that could be provided for the same amount. [40873/22]
View answerI propose to take Questions Nos. 709 and 710 together.
As a necessary measure to accelerate the provision of social homes and to alleviate pressure on the wider housing system this year; the Housing Agency in conjunction with my Department is exploring the introduction of a new emergency targeted leasing initiative.
On 15 July, a without prejudice call for expressions of interest was published on www.etenders.gov.ie, to test the market’s ability to deliver up to an additional 1,000 social homes between 2022 and 2025.
This new targeted leasing initiative is designed to provide greater value for money to the state than existing standard leasing. It aims to secure a greater discount than standard leasing (currently up to 20% market rent discount). It also explores the financial feasibility of long-term ownership of the homes at the end of the lease term by means of asset transfer at the greatest possible open market value discount. Expression of interest submissions will be assessed and ranked against a number of criteria, the top one being value for money.
The outputs from the project submissions will enable an accurate cost analysis to be completed to determine the exact funds required to progress this initiative, which will then be assessed by the Department of Public Expenditure and Reform for funding approval.
Housing for All commits to ending long term leasing by 2025 year end. This policy remains unchanged, however leasing continues to be an important mechanism for faster delivery to meet social housing needs as build supply ramps up to meet demand.
Question No. 710 answered with Question No. 709.
