Under the Serviced Sites Fund (SSF), €310 million is available to provide infrastructure to support the delivery of more affordable homes on local authority lands. With a maximum SSF funding amount of €50,000 available per home, at least 6,200 affordable homes, to buy or rent, can be facilitated. To date, SSF funding of €127 million has been allocated in support of 35 projects in 14 local authority areas which will assist in the delivery of almost 3,200 affordable homes.
Details of all projects that have received funding approval in principle are available at the following location;
https://rebuildingireland.ie/news/minister-murphy-gives-the-go-ahead-for-ten-local-authority-sites-for-affordable-housing-under-the-serviced-sites-fund/
https://rebuildingireland.ie/news/minister-murphy-approves-funding-of-e84m-to-support-delivery-of-1770-affordable-homes-under-the-ssf/.
The ultimate selling prices of affordable homes 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 project, the housing type/tenure mix involved, and the local housing market. Given that the detailed design, planning and procurement process have yet to be completed and as the open market value of homes cannot be ascertained until the homes are made available at the time of sale, it is not possible to confirm in advance the local authority equity stake in the homes or the ultimate final sales price in advance. However, I can confirm that applications for SSF funding were made by local authorities on the basis of being able to deliver homes for sale at discounts of between 10% and a maximum of 40% below open market prices.
Under the Housing (Miscellaneous Provisions) Act, 2009 (under which affordable homes for purchase supported by the SSF are to be sold) a charge will be placed on the property equal to the percentage discount from open market value, giving the housing authority an equity stake in the property. The amount charged must be repaid at the end of the charged period (which must be at least 25 years) but may be paid off in installments at any time after the first 5 years of the charged period. This will ensure the sustainability of the funding model so more people can be helped meet their housing needs in the future.
