Dáil Éireann Debate, Wednesday - 28 September 2022
54. Deputy Cian O'Callaghan asked the Minister for Housing, Local Government and Heritage the cost effectiveness analysis, cost-benefit analysis or cost evaluation that has been carried out on the Croí Cónaithe cities scheme; and if he will make a statement on the matter. [46839/22]
Amharc ar fhreagraHousing for All set out four pathways to achieve its vision of a sustainable housing system, ensuring that everyone in the State has access to a home to purchase or rent at an affordable price, built to a high standard and in the right place, offering a good quality of life.
Addressing the current housing shortage requires short, medium and long-term action to stimulate housing supply. The Croí Cónaithe (Cities) Scheme is one measure within Housing for All in the short to medium term that will help to kick-start developments that might not otherwise be developed.
Following ongoing review by the Dublin Housing Task Force, we know that there is a sizeable proportion of unactivated planning permissions in urban areas that are capable of being brought forward in the shorter term. These include numerous permissions for apartments in our urban cores, which meet important compact growth objectives. In many cases, the cost of constructing new apartments is more than the price achievable in the sales market, leading to a clear viability gap as set out in a number of reports.
To tackle this issue, Housing for All announced a new Croí Cónaithe (Cities) scheme to bridge that viability gap. Following extensive development work, I launched the scheme on May 10th last.
My Department, together with the Housing Agency, developed the Croí Cónaithe (Cities) Scheme drawing on:
- consultations with the Department of Public Expenditure and Reform, the Department of Enterprise, Trade and Employment, the Revenue Commissioners and legal advice in relation to the operational basis for the Scheme;
- Housing Agency and internal Department published and commissioned research; and
- Housing Agency analysis and assessment modelling; and
- a stakeholder engagement workshop
The scheme will, over the next 5 years, seek to deliver apartment developments in cities for sale to owner occupiers. It will be managed by the Housing Agency on behalf of my Department.
Each proposal is, furthermore, subjected to rigorous assessment by the Housing Agency, first to determine its eligibility under the terms of the scheme and then ranked in accordance with a number of criteria to ensure that schemes providing, inter alia, the best value for money are prioritised for support. Details of the assessment process are set out in the Expressions of Interest document linked here: www.housingagency.ie/CroiConaitheCities
The Housing Agency is currently assessing the Expressions of Interest received from scheme proposers and engagement is ongoing with the EU Commission DG COMP team on the issue of State Aid approval.
