Darragh O'Brien (Dublin Fingal, Fianna Fail)
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We are working on revisions to the cost-rental equity loan, CREL, model, which is what funds AHBs to deliver them. If we take Kildare for example, in Barnhall in Leixlip, the average monthly rental cost per unit there is about €1,250. In Newbridge in Kildare it is €1,197. As costs of development and financing have gone up, this has led to pressure on the upper limit of €1,545 per month. We are working that through. Ms Laura Behan and Ms Caroline Timmons might have covered this with the committee last week. We are well advanced on the issue. We wanted to get cost rental up and running and we have done so. We have funded over 1,000 tenancies and there about 600 homes with people actually in place now. They are paying substantially less than the market rate, on average about 30% less. However, the increases in construction and financing costs have put pressure on the upper limits. We are working on it and I would expect the changes to be out in advance of the summer. We are aiming for June. The cost-rental viability measure announced today will operate mainly through the LDA . Its main aim is to reduce the cost of development and thereby pass on the reduction to the tenant who is going to be there on a long-term basis at reduced rental. That is the timeframe we are operating under.