Dáil Éireann Debate, Wednesday - 17 January 2024
1863. Deputy Paul Murphy asked the Minister for Further and Higher Education, Research, Innovation and Science to provide an update on the development of a 'borrowing framework' for technological universities and a timeline for this framework, given that the absence of such a framework makes it impossible for TUs to borrow money on the financial market to build student accommodation. [1982/24]
View answerIn recognition of the need to stimulate supply of student accommodation, the Government has supported my Department to develop policy responses to stimulate the development of new and additional student accommodation for public higher education institutions. In November 2022, Government approved investment of €1m in 2023/2024 to support the TUs in conducting activation feasibility assessment to ascertain student accommodation needs in campus locations. The Higher Education Authority (HEA) has appointed consultants BDO to undertake the first phase of this work which is nearing completion. The objective of the feasibility study is to; establish an accurate “as is” account of available student accommodation supply available in private rented units, purpose-built student accommodation (PBSA) and rent a room schemes; project future supply and demand for accommodation in both PSBA and private rented on a national and regional level and within each Technological University (TU) catchment area; and to ascertain what opportunities are available to meet the future demand for student accommodation through either new-build PSBA, leasing, acquisition or refurbishing/redevelopment of existing sites. The study has involved extensive data-gathering across all TUs, Universities and Colleges, comprising a data collection framework, 1-to-1 meetings with HEI representatives, and a centralised student survey on student accommodation. Phase two of the feasibility study will commence shortly to design and assess a frame work for student accommodation for the TU sector and mechanisms for delivery of accommodation.This is informing the long term policy responses which I received government support for this week, and will be the foundation of discussions on a TU Borrowing Framework. It is anticipated that any borrowing framework would in the first instance prioritise the provision of student accommodation in line with commitments in the Government's Housing for All plan. My Department is working with relevant Government Departments to explore the development of a specific borrowing framework for TUs. The Housing Finance Agency Act 1981, as amended, facilitates lending by the HFA to institutions of higher education, including TUs. The European Investment Bank (EIB) and the Housing Finance Agency (HFA) recently announced capacity for an 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.
