Dáil Éireann Debate, Tuesday - 12 December 2023
451. Deputy Ivana Bacik asked the Minister for Housing, Local Government and Heritage how, and to what extent, the Land Development Agency will be funded in 2024; and if he will make a statement on the matter. [55315/23]
View answer452. Deputy Eoin Ó Broin asked the Minister for Housing, Local Government and Heritage to provide an update on the additional capitalisation for the Land Development Agency, including whether the funding will be provided via ISIF, HFA, Exchequer revenue or a combination of these and other sources; how much additional capitalisation is expected; and when a decision will be made on this matter. [55318/23]
View answerI propose to take Questions Nos. 451 and 452 together.
Exchequer funding of €3.8 million is being provided to the Land Development Agency (LDA) in 2024 to cover expenditure associated with their non-commercial functions. This is further broken down into €3m for Capital and €800,000 for Current funding.
These functions are detailed under Section 29 of the LDA Act 2021 and include the maintenance of the Register of Relevant Public Lands, the development of a report to Government on relevant public lands and any functions associated with the development of a Strategic Development Zone as provided for under Part IX of the Planning and Development Act 2000, as amended.
The LDA currently has access to €1.25bn of equity capital from the Ireland Strategic Investment Fund (ISIF) and a further €1.25bn of borrowings as provided for under the LDA Act. Of the €1.25bn available through ISIF, the LDA has to date drawn down €625m of this funding - €100million on establishment, and a further €525million paid over two tranches in H1 2023. Approval was granted for the drawdown of a further €300m in early November 2023.
The LDA has sufficient funding at present and has a balance of €300m equity capital to be drawn down as required. The LDA has so far not availed of its borrowing powers.
Importantly, the LDA is advancing its key work - developing social and affordable housing on vacant or underutilised state lands. The transfer of agreed lands to the LDA is well underway and the LDA is growing a housing delivery pipeline from those lands, actively developing 12 sites, capable of delivering some 6,000 homes.
In addition, Project Tosaigh has delivered its first cost rental and affordable purchase homes. The scale of delivery is ramping up and 2023 delivery and pipeline for 2024, 2025 and 2026 is strong. A process to establish a panel of delivery partners with the intention of scaling up and accelerating delivery through this channel has also commenced. It is anticipated that the panel will be established in early 2024.
The LDA is also progressing a number of key, strategic, large-scale housing schemes supporting and partnering with local authorities, such as Shanganagh, Shankill (597 homes); St Teresa’s Gardens (543 homes); Cromcastle, Coolock (143 homes); and Cherry Orchard (673 homes).
Discussions are ongoing between my Department, the Department of Public Expenditure, NDP Delivery and Reform and the Department of Finance to determine the level and source of funding required to ensure that the LDA can sustainably deliver social and affordable housing in line with targets set out in their business plan 2024-2028.
