Dáil Éireann Debate, Tuesday - 7 July 2020
314. Deputy Eoin Ó Broin asked the Minister for Housing, Planning and Local Government if it is policy to deliver affordable housing at prices between €160,000 and €250,000; if the equity share of the State in the properties is included in these prices; if not, if it is additional to these prices; the equity share in same; and the all in development costs that will allow his Department to deliver affordable homes at these prices. [14388/20]
Amharc ar fhreagraThe delivery of affordable housing is a top priority for this Government and for me, as Minister. To this end, since taking up office, I am working within my Department and with all relevant stakeholders and delivery partners to ensure that new affordable homes are delivered, particularly in Dublin and other major urban areas, where people and families are facing the greatest housing access and affordability challenge.
In terms of affordable purchase, it is my intention that the new Scheme is finalised without delay and that the programme to build new affordable homes is accelerated and expanded. It is difficult to be definitive regarding the final purchase price of affordable homes at this point but I have clearly signalled to officials working on the Scheme in my department that the new homes must be affordable for the individuals and families that badly need them.
Importantly, a significant amount of the foundations are already in place. For example, under the Serviced Sites Fund (SSF), €310 million has been allocated to provide infrastructure to support the delivery of more affordable homes on local authority lands. A maximum SSF funding amount of €50,000 is available per home. This sum comprises €44,500 (or 89%) Exchequer contribution and a €5,500 (or 11%) local authority contribution. On this basis, at least 6,200 affordable homes, to buy or rent, can be facilitated. This funding is being made available in areas where local authorities have demonstrated that a requirement exists for more affordable housing and it is viable to deliver such housing from their sites.
To date, SSF funding of €127 million has been allocated in support of 35 projects in 14 local authority areas. This will provide for infrastructure works that will support the delivery of almost 3,200 affordable homes. The selling price of homes that will be made available for purchase under the affordable dwelling purchase arrangements will obviously be influenced by a number of factors which will vary significantly from development to development. This includes the overall development cost of each particular development, the housing type/tenure mix involved and the local housing market. The majority of the projects approved for funding under the SSF are at the planning and design stage. As such, the final sales prices will not be fully determined until planning permission has been obtained and after the procurement process for construction of the development in question has been completed.
The most advanced, SSF funded, affordable housing project is at Boherboy Road in Cork City. The construction has commenced on the project, which includes 116 brand new energy efficient, 2 and 3 bedroom homes. The Council has confirmed these homes are expected to be made available to first time buyers at purchase prices ranging from c.€198,000 to €223,000. Under the terms of the Scheme encompassed in the Housing (Miscellaneous Provisions) Act, 2009, a charge would be placed on the property equal to the percentage discount given from the open market value at the time of sale, with the housing authority taking a repayable equity stake in the property. In case of a 2-bed unit in the Boherboy development, sold to a purchaser for €198,000, if the open market value of that home is, for example, €230,000, a local authority equity charge of 13.9% would be placed on the property.
In addition to the range of existing measures, the Programme for Government makes clear, that the target for this Government will be to bring forward a range of measures to enable home ownership for more people through increased supply and interventions that make home to make home ownership more affordable. In particular, the Programme commits to the progression of a State-backed affordable home purchase scheme, which is a priority.
