Dáil Éireann Debate, Thursday - 21 September 2023
190. Deputy Eoin Ó Broin asked the Minister for Housing, Local Government and Heritage to provide an update on his Department’s efforts to ensure the delivery of cost rental accommodation on the O’Devaney Gardens and Oscar Traynor Road sites, including the number of such units that will be made available; and the expected rent for those units. [40870/23]
View answerUnder Housing for All, the Government will deliver 54,000 affordable homes between now and 2030, and significant funding has been secured and is being made available to support this delivery for purchase or for cost rental by local authorities, the Land Development Agency, and Approved Housing Bodies.
Last year I wrote to local authorities to set out the increased level of Affordable Housing Fund (AHF) subsidy available for applications in respect of Cost Rental apartment developments in cities. The level of subsidy available to local authorities ranges from €50,000 to €150,000 per affordable unit depending on the density of affordable units per hectare on the development and its location. In return for the subsidy, the local authority must make the homes available at a starting rent targeted at least 25% below comparable local market rents.
I have recently approved €48.45 million for Dublin City Council for the delivery of 340 Cost Rental homes at the Oscar Traynor Road site. Planning for commencement of works is under way, with construction to commence in Q3 2023 and phased delivery from 2024 to 2027. It is envisaged that the precise cost-covering rents for these new homes will be announced closer to delivery.
In relation to the O'Devaney Gardens site in Dublin City, I understand that an Approved Housing Body intends to apply to my Department's Cost Rental Equity Loan (CREL) scheme for funding the acquisition of new homes currently under development there. This is in accordance with an agreement reached between Dublin City Council and the developer of the site, under which a housing charity will be able to acquire 30% of the new homes for Cost Rental. These acquisitions will be eligible for the increased CREL funding of up to 55% of capital costs, including a State equity investment, which was announced by Government in July.
My Department is committed to supporting Cost Rental delivery by Approved Housing Bodies, and will work to progress a funding application for O'Devaney Gardens swiftly and efficiently. As with the local authority delivery at Oscar Traynor Road, it is envisaged that the Approved Housing Body will announce the cost-covering rents for these new homes closer to the time of delivery.
