Thomas Gould
Ceist:235. Deputy Thomas Gould asked the Minister for Housing, Local Government and Heritage the expected cost of an affordable unit in Cork city. [26393/22]
Amharc ar fhreagraTuesday, 24 May 2022
Ceisteanna (235)
Freagraí scríofa
The Housing for All strategy delivers on the Programme for Government commitment to step up housing supply and put affordability at the heart of the housing system, with an ambitious target of 300,000 homes over the next decade for social, affordable and cost rental, private rental and private ownership housing. It will see 54,000 affordable home interventions which includes 36,000 affordable purchase and 18,000 cost rental homes to be delivered between now and 2030 by local authorities, Approved Housing Bodies (AHBs), the Land Development Agency (LDA) and through ‘First Home’ a strategic partnership between the State and retail banks.
In relation to Local Authority Affordable Purchase delivery, any funding being made available through the Affordable Housing Fund will be underpinned by local authorities' Housing Delivery Action Plans. Local authorities, including Cork City Council, submitted their initial Plans to me last December. Preparation of the Plans allows each local authority to assess the level of demand with affordability constraint in their area based on the Housing Need and Demand Assessment and plan provision accordingly. The Plans are being revised and updated by local authorities in the light of ongoing engagement and clarifications, and I expect that they will be ready for publication by the summer.
I have signed two sets of Regulations which underpin the Local Authority Affordable Purchase Scheme, made under the provisions of the Affordable Housing Act 2021, which came into effect on 13 April 2022. The Regulations provide the basis for the making available of affordable purchase homes by local authorities and the administration of sales.
The Affordable Housing (No. 2) Regulations 2022 prescribe, among other things, the notification of affordable dwelling schemes to the public, the use by Local Authorities of schemes of priority, the calculation of home purchase prices and the equity shares to be taken by the Local Authority, and the minimum payment for a homeowner redeeming the Local Authority's equity interest. The text of these Regulations is available online at:
https://www.irishstatutebook.ie/eli/2022/si/184/made/en/print
Affordable Purchase homes are being delivered by Cork City Council in Boherboy, Cork City in the near future using Departmental Serviced Sites Funding. This includes 22 two- and three-bed dwellings to be delivered at a purchase price of €218,000 to €243,000. A further 15 units are be completed by year end, and will be sold according to the associated regulations, meaning they will be sold at a price related to applicants’ means, subject to a minimum set sales price. Under the Local Authority Affordable Purchase Scheme, the difference between the market price and the sales price will be held as a percentage equity stake held by the local authority until redeemed.
Cork City Council have also indicated that they will deliver 36 Affordable Purchase homes in Cluain Chaoin, Tower in two phases this year, with indicated prices of €237,000 for a 2-bed, €275,000 for a 3-bed, €300,000 for a 4-bed Affordable Purchase home.
In addition to the Local Authority Affordable Purchase Scheme, the First Home shared equity scheme will be available nationally on a demand-led basis and it will help applicants to afford new homes in the private market through the use of an equity share model. First Home will only support purchases of homes within regional price ceilings, set with reference to the median prices for new homes purchased by first-time buyers in the area. I expect that a significant proportion of First Home supported home purchases will be located in Cork, in proportion to the market for newly constructed homes. It is anticipated that the scheme will be rolled out over the coming months.
Furthermore, the LDA is working on the former HSE Site at St Kevin’s Hospital in Cork City. The LDA has secured planning permission for 265 social and affordable homes for this development. The first homes are expected at the end of 2023/Q1 2024.
The LDA will also support the delivery of 5,000 affordable purchase and cost rental homes through acquisitions under Project Tosaigh. Project Tosaigh will comprise multiple phases over the coming four years and a ‘Phase 1’ transaction pipeline is expected to yield affordable homes including in our key cities.
Additional affordable housing delivery will be facilitated under the provisions of the expanded 20% Part V requirement as and when they arise, and subject to the planning process.