Mr. Eddie Taaffe:

I am chair of the County and City Management Association's committee on housing and I am chief executive of Wexford County Council. I am accompanied today by Ms Niamh McCarthy of the housing delivery co-ordination office, which is based in the Local Government Management Agency.

The affordable housing fund, AHF, is a cornerstone of Government's Housing for All plan and was established to accelerate the availability and delivery of affordable homes for purchase or rent. The AHF provides subsidies to local authorities to help cover the development costs of affordable housing schemes. The subsidies enable local authorities to offer homes at lower cost for purchase or rent to approved affordable housing candidates. The AHF grant typically ranges from €50,000 to €250,000 per affordable housing unit, depending on location and density of the scheme. Between 2022 and 2025, local authorities have demonstrated the capability to scale up delivery of affordable homes for purchase, having come from a standing start in 2022 and despite operating in a challenging environment marked by inflation, rising construction costs and changing legislative frameworks.

Of Ireland's 31 local authorities, 18 were initially assigned affordable housing targets under the fund, having been identified as areas with affordability constraints. Delivery to date is of the order of 1,700 affordable purchase units with a pipeline of 3,200 working their way through planning, design and construction, while a further 6,000 dwellings are being assessed as proposals out to 2030.

Cost-rental housing presents a complex set of challenges for local authorities. The model is structured over a 40-year lifespan requiring long-term viability and careful financial planning. One of the key risks is that local authorities could breach sector borrowing thresholds, which could constrain their ability to fund other essential services, such as infrastructure, community development and maintenance. Additionally, the requirement to deliver homes at a minimum of 25% below market rent has proven difficult to achieve outside of urban centres and main cities where market rents are high enough to make the model financially sustainable. In rural or lower rent areas, the cost-rental model struggles to gain traction without significant subsidy or land cost offsets.

The future of affordable housing delivery and the provision of the AHF must build on progress while addressing persistent challenges. Local authorities continue to highlight the need for flexible and inflation-responsive capital supports, streamlined delivery mechanisms and enhanced capacity across the sector.

While CCMA is confident local authorities can deliver on the objectives contained in Housing for All, we highlight that the next phase must confront the realities of viability, borrowing constraints and market dynamics, ensuring both urban and rural areas can participate meaningfully in the delivery of affordable homes. A balanced, well-resourced and locally empowered approach will be key to sustaining momentum and achieving the ambitions of Housing for All. Thank you.