Oireachtas Joint and Select Committees

Tuesday, 24 May 2022

Joint Oireachtas Committee on Housing, Planning and Local Government

Construction Costs in Housing: Discussion

Mr. Eddie Taaffe:

To clarify, I work for the Local Government Management Agency. The main mechanism for affordable housing delivery is the affordable housing fund administered by the Department. The main criteria the Deputy is referring to are that for a local authority to be eligible to apply for approved housing funding to provide affordable housing, it has to cover more than 5% of its households, as defined by the housing needs demand assessment. That is based on Central Statistics Office data on incomes and house prices. Each local authority has data on that. Eighteen local authorities met those criteria and are therefore eligible to put forward schemes for approved housing funding. The other local authorities did not. The Department has stated clearly to local authorities that if there are local circumstances, such as in the county town, with house prices far above the average for the county and if they can make a case with data to support it, they would be eligible for approved housing funding. One local authority has made that case and is now eligible.

The reality as regards the affordable housing fund is that there is demand for affordable housing across the country and the funding has to be targeted where the need is greatest. I am sure the Department would make that argument. It is still free to local authorities where they have a specific issue and where they disagree.

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