Dáil Éireann Debate, Thursday - 11 April 2024
92. Deputy Richard Bruton asked the Minister for Housing, Local Government and Heritage the extent to which the scheme for promoting the sale of apartments to owner-occupiers has been taken up; and if he would consider simplifying its terms so that higher take-up can be achieved. [15264/24]
View answerThe Croí Cónaithe (Cities) Scheme is a viability measure designed to support the building of apartments for sale to owner-occupiers that would otherwise not be built, providing a greater range of tenure in our urban centres.
To date, two calls for expressions of interest have been undertaken. Five contracts have been signed for the delivery of 582 units in total – 210 in Dublin and 372 in Cork. The Housing Agency is assessing the remaining proposals which were received under the first and second calls for expressions of interest for the Scheme. There will be a third call for expressions of interest in the Scheme later in the year.
With regard to the take-up of the scheme and any proposed amendments to its terms, it should be noted firstly that the Croí Cónaithe (Cities) is part of a suite of housing measures in Housing for All designed to increase social, affordable and private housing supply. Such measures include local authority delivered affordable housing for purchase, the new cost rental tenure, Land Development Agency delivery of affordable housing and the First Home Scheme. Secondly, the Croí Cónaithe (Cities) Scheme aims to bridge the gap between the delivery cost of building apartments and the market sale price, where the cost of building is greater. The Scheme was designed to support the delivery of such apartment blocks and to be congruent with EU State Aid requirements. In February 2023, the Directorate General for Competition in the European Commission confirmed that the scheme was compatible with the internal market under Article 107 (3) (c) of the Treaty on the Functioning of the European Union. Any proposed adjustments to the scheme would need to be viewed within this context. My Department keeps the scheme under constant review and such changes to improve efficacy as may be feasible within the boundaries outlined above are being considered.
The First Home Shared Equity Scheme can be used by owner-occupier purchasers in conjunction with Croí Cónaithe (Cities) to bridge the affordability gap for those with an affordability challenge, which also serves to increase the pool of potential purchasers. First-time buyers may also avail of the Help-to-Buy scheme to assist them with deposits. Help-to-Buy provides a maximum benefit of €30,000 or 10% of the cost of the newly constructed home.
