The European Investment Bank (EIB) and the Housing Finance Agency (HFA) have agreed a new €434m student accommodation financing initiative to support higher education institutions in the development of affordable student housing. The new scheme, backed by a forty-year €200m EIB loan, is expected to support the delivery of an estimated 2,700 new student beds across Ireland.
The initiative provides a framework loan facility to the Irish Housing Finance Agency (HFA) to provide finance directly to Irish public higher education providers to develop student accommodation.This deal will further the Government’s priorities, as this new funding will form 25% of the Housing for All commitment made by the HFA. The funding is ring fenced for 5 years and is now open for applications.
The investment is separate to the Government announcement where a total of up to €61 million has been approved in principle to unlock the development of over 1,000 beds across our universities. These were developments with planning permission that had stalled due to rising construction costs, and are now being activated under short term response measures.
As you are aware, Government approved investment of €1 million in 2023/2024 to assist our Technological Universities (TUs) to undertake a needs assessment for student accommodation in key regional areas. Department officials and the Higher Education Authority (HEA) have been extensively engaging with the sector to progress this study.I can confirm that the HEA is currently finalising the first report of this study, which is a supply and demand analysis of student accommodation across each region. This report will inform long term policy development for State supported student accommodation for the TU sector. The remaining work programmes of this study will commence imminently to design a framework for student accommodation for the TU sector including an assessment of specific proposals.The Housing Finance Agency Act 1981, as amended, facilitates lending by the HFA to institutions of higher education, including TUs. My Department and I are working with relevant Government Departments and Agencies to explore the development of a specific borrowing framework for the TU sector, as part of an assessment of a range of mechanisms for the delivery of student accommodation for the TU sector. The options arising from the TU feasibility study will inform this ongoing engagement.
