Dáil Éireann Debate, Tuesday - 7 November 2023
1419. Deputy Matt Shanahan asked the Minister for Further and Higher Education, Research, Innovation and Science when a framework for the university sector to develop student accommodation will be agreed; the quantum of capital funding his Department plans to make available to the technological university sector, and specifically SETU, to advance student accommodation builds; and if he will make a statement on the matter. [48255/23]
View answerI welcome the recent announcement by the European Investment Bank (EIB) and the Housing Finance Agency (HFA) which will provide additional financing investment of €434m student accommodation 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 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.
In tandem my Department and I are actively working to address the supply of affordable student accommodation through the development of a number of Government supported policy responses as outlined under Housing for All. As the Deputy is aware, SETU Waterford campus is the only on-campus provision of purpose built student accommodation in the Technological University (TU) sector, providing 426 beds. To date students in TUs have relied almost completely on private rental market for accommodation. We have provided funding, through the HEA to assist our TUs, including SETU to undertake a needs assessment for student accommodation in key regional areas. This will include data led projections of demand for accommodation and a framework to respond to needs in each area.
Department officials and I have had continuous engagement with the sector in relation to the feasibility study. Feasibility studies in respect of SETU Carlow and SETU Waterford, which were conducted independently by SETU are being reviewed in the context of the overall TU Feasibility Study. The Higher Education Authority (HEA) is currently undertaking this study as part of the Governments’ commitment to support TUs in the development of student accommodation strategies. Work programme one of this study is nearing completion.
