Dáil Éireann Debate, Thursday - 1 December 2022
82. Deputy Paul McAuliffe asked the Minister for Housing, Local Government and Heritage his plans to provide cost rental accommodation in Dublin 9 and 11; and if he will make a statement on the matter. [59833/22]
Amharc ar fhreagraThe Housing for All strategy commits to delivering a total of 18,000 Cost Rental homes over the period to 2030 and significant funding is made available to support delivery of Cost Rental by Approved Housing Bodies (AHBs), Local Authorities and by the Land Development Agency (LDA).
Delivery will increase incrementally, to an average of 2,000 Cost Rental homes per year. 10,000 Cost Rental homes will be delivered from 2021 to 2026. AHBs will be supported by Cost Rental Equity Loan (CREL) funding and Local Authorities will be able to avail of funding for Cost Rental delivery through the Affordable Housing Fund (AHF). The LDA will also deliver Cost Rental on its own portfolio of sites, or through acquisitions under Project Tosaigh.
In terms of Dublin City Council’s delivery of affordable housing, the local authority has published its 5 year Housing Delivery Action Plan to 2026 which can be found on the Council website.
To date, AHBs have utilised Departmental CREL funding to deliver the majority of the Cost Rental homes tenanted since the legislation was passed last year. In responding to the rising interest rate environment and construction cost inflation, which directly impact on the viability of schemes, the Government has recently improved the terms and conditions for CREL funding. The CREL funding ceilings have increased, with the 30% flat rate being replaced and applications being assessed on a sliding scale basis, up to a ceiling of 45% of the total capital costs of delivering the homes. Budget 2023 also saw the funding allocation for CREL increase from €70m in 2022 to €75m for next year.
Furthermore, local authorities have been encouraged to deliver Cost Rental homes directly, by taking advantage of recent increase to the level of grant funding available under the AHF to fund the delivery of Cost Rental homes in key urban areas to €150,000 per unit. Funding for the AHF also rose in Budget 2023 from €60m in 2022 to €90m for next year. This will help facilitate the delivery of Cost Rental homes on State lands by local authorities, and it will be particularly important in areas with high land costs such as Dublin City Council, where the significant work done to progress the delivery of Cost Rental homes directly at the Emmet Road site in Dublin 8 can provide a model to deliver further homes elsewhere in the city. The use of State lands by the LDA, such as at Dundrum, will also help deliver a critical mass of Cost Rental homes in central locations.
