The Rebuilding Ireland home loan (RIHL) scheme was launched on 1 February of last year.
When the scheme was initially being developed, it was estimated that the drawdown of loans would be approximately €200 million over three years. The RIHL has proven to be more successful than initially anticipated, with some €140 million drawn down to the end of May. The first tranche of funding has not been exhausted.
My officials have been engaging with the Department of Public Expenditure and Reform since October 2018 when higher lending and drawdown volumes were beginning to materialise.
I informed the Dáil on 29 January 2019 of the scheme’s success and of the need for additional funding and indicated that my Department was in discussions with the Department of Public Expenditure and Reform and the Department of Finance with regard to the allocation for 2019.
At all times, the scheme remained open and all local authorities were advised to continue to receive and process applications up to and including the issuing of loans.
My Department has consulted in detail with each Local Authority as to the anticipated demand in its area, and the likely level of approvals expected. This information has been submitted to the Department of Public Expenditure and Reform with request for sanction for additional borrowing by the Housing Finance Agency. The HFA have an ongoing borrowing facility for when sanction is given so that they are in a position to proceed to borrow this second tranche of funding immediately.
The first tranche of funding has not been exhausted, the Rebuilding Ireland Home Loan remains open to new applicants, and local authorities are to continue to receive, process and issue loans.