Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

I thank the Deputy. The fund is only up and running since 1 January 2016 and as such is only five months in operation. Already, it has funded 800 new homes with a potential to fund 11,000. There is a roll-over effect as money is repaid and can be lent again. One can argue about the interest rate, but equity is always dearer than normal lending. The banks do perhaps 65% after which money gets dearer for the equity piece. However, the interest rate is being suppressed by arrangements whereby the investor can share in the upside as well as the promoter or building developer. I see it as only one option. The new housing committee is considering all aspects of the supply shortage in housing and is also looking at new financial models. The NTMA is doing some work on possible new models also. I will keep the Deputy informed if those come to fruition.

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