Dáil Éireann Debate, Wednesday - 17 January 2024
778. Deputy Eoin Ó Broin asked the Minister for Housing, Local Government and Heritage to set out the details of the Cabinet agreement of 20 December 2023 on the recapitalisation of the Land Development Agency, including the total proposed increase in their capitalisation and a breakdown of the sources of funding for the additional capitalisation agreed, including ISIF, share sales (details supplied), Exchequer funding and private borrowing. [57222/23]
View answerUnder the Land Development Agency's (LDA) Business Plan 2024 – 2028, the agency will provide 12,900 - primarily affordable cost rental - homes over the lifetime of the plan. This is a significant contribution to the overall objectives within Housing for All.
This emphasis on delivering social and affordable housing means that there has been a significant change in the scale and remit of the LDA – limiting the agency’s ability to access private debt finance and use revenue from private housing developed to subsidise other elements of its portfolio.
This Government is determined that the LDA is fully funded to play its full part in delivering much needed affordable and social homes under Housing for All.
At the Cabinet meeting on 20 December 2023, to ensure the LDA was adequately capitalised to meet the requirements of Housing for All, the government agreed:
to commit to the allocation of €1.25 billion additional equity share capital to the LDA from the Ireland Strategic Investment Fund (ISIF). This now brings ISIF equity funding to €2.5bn;
to enable the identification of a further €1.25 billion additional funding for the LDA from other sources;
to further consider and develop options for the sustainable future funding of the LDA in 2024;
the inclusion of a Ministerial representative on the board of the LDA; and
to make the necessary legislative changes to:
the Land Development Agency Act 2021;
the Housing Finance Agency Act 1981; and
the National Treasury Management Agency (Amendment) Act 2014; and
any other legislation necessary to reflect increased capitalisation set out in paragraph (i), (ii), (iv) and (v) above.
The LDA has so far not availed of its borrowing powers and under current legislation, can borrow up to €1.25 billion. Therefore, following on from the decision at the Cabinet meeting on 20 December 2023, the LDA will now have access to up to €5 billion in funding.
Exchequer funding of €3.8 million is being provided to the 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.
