Dáil Éireann Debate, Tuesday - 24 May 2022
229. Deputy Eoin Ó Broin asked the Minister for Housing, Local Government and Heritage if he will publish the expression of interest document that his Department and the Housing Agency are circulating to developers related to the croí cónaithe cities scheme. [26270/22]
Amharc ar fhreagra230. Deputy Eoin Ó Broin asked the Minister for Housing, Local Government and Heritage if he will provide a list of all the developers, building contractors, professional organisations and others that his Department and the Housing Agency consulted in developing the croí cónaithe cities scheme. [26271/22]
Amharc ar fhreagra231. Deputy Eoin Ó Broin asked the Minister for Housing, Local Government and Heritage if a standard developer's margin will be permitted in the market price charged for apartments benefiting from the croí cónaithe cities scheme.. [26272/22]
Amharc ar fhreagra232. Deputy Eoin Ó Broin asked the Minister for Housing, Local Government and Heritage if build to rent apartments with the build to rent design standards will not be eligible to apply for funding via the croí cónaithe cities scheme.. [26273/22]
Amharc ar fhreagraI propose to take Questions Nos. 229 to 232, inclusive, together.
Addressing the current housing shortage requires short, medium and long-term action to stimulate housing supply. Housing for All set out four pathways to achieve its vision of a sustainable housing system. Under Pathway 3, the Croí Cónaithe (Cities) Scheme will help to kick-start urban apartment developments that are currently not being developed to meet strong demand.
The Croí Cónaithe (Cities) Scheme is focused on delivering additional apartment supply in our cities for those who wish to own rather than rent. Every apartment within a proposed development must be sold to an eligible purchaser, who will be an individual or household intending to owner-occupy, in accordance with the terms of the scheme.
As the scheme is specifically for supply of build to sell apartments, developments which are specifically build to rent will not be eligible.
In developing the scheme, the Housing Agency held a stakeholder engagement workshop on December 10th last to gain feedback on the proposed scheme with representatives from State Agencies, Local Authorities and representative bodies from the industry. Those organisations were-
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Department of Housing Local Government and Heritage |
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Housing Agency |
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Banking and Payments Federation Ireland |
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Home Building Finance Ireland |
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Institute Of Professional Auctioneers and Valuers |
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Irish Home Builders Association |
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Ireland Strategic Investment Fund |
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Land Developement Agency |
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National Developement Finance Agency |
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Property Industry Ireland |
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Royal Institute of the Architects of Ireland |
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Dublin City Council |
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Society Of Chartered Surveyors Ireland |
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Irish Institutional Property |
The appropriate margin for each apartment development considered under the scheme as part of the all-in development cost will be scrutinised and considered carefully during the due diligence process. Developers/risk margins vary by type, location, density and overall scale of schemes and buyer appetite to purchase apartments. To access finance to deliver schemes, funders require that the developer can demonstrate a risk appropriate margin. Setting an absolute cap and setting it at a low rate will prevent developments from accessing finance, or add to the cost of finance, widening the viability gap or preventing schemes being built. The due diligence process and competitive nature of the bid will ensure that unduly high margins will be identified and will not be proceeded with.
The scheme will be managed by the Housing Agency on behalf of my Department. Over the next six weeks the Housing Agency will be accepting Expressions of Interest from developers for eligible schemes.
The Expressions of Interest Document is available on the Housing Agency's website at the following link Expression of Interest (EOI) Call Croí Cónaithe Cities_.pdf (housingagency.ie).
Question No. 230 answered with Question No. 229.
Question No. 231 answered with Question No. 229.
Question No. 232 answered with Question No. 229.
