Darragh O'Brien (Dublin Fingal, Fianna Fail) | Oireachtas source

I propose to take Questions Nos. 11, 15 and 24 together.

I am absolutely committed to ensuring that affordable, quality homes are available to everyone in Irish society. This key Government goal is clearly reflected in the Programme for Government: Our Shared Future.

In particular, I am focusing on progressing the affordable purchase scheme and delivery programme and moving the cost-rental scheme forward. This work will focus on our major urban areas, where people and families are facing the greatest challenge in the context of housing access and affordability.

After taking some time to review progress and consult delivery partners, I will outline my detailed plans for affordable housing in the autumn. In doing so, I will also take account of the progress made under the serviced sites fund, SSF, and other existing measures, such as the Rebuilding Ireland home loan scheme and the help-to-buy scheme.

Together with State-led affordable housing for purchase and cost-rental, I also plan to expand Part V of the Planning and Development Act 2000 to deliver much needed affordable as well as social housing and protecting the 10% social provision.

I am bringing all delivery partners together to work on the expansion and acceleration of our affordable housing programmes. Local authorities, the Housing Agency, the Land Development Agency and approved housing bodies all have a part to play. They have all been most helpful to me in recent weeks since I took over as Minister.

I intend to expand the €310 million SSF, which targets local authority areas where affordability has been identified as an issue and which provides funding for facilitating infrastructure on local authority land thereby subventing the end cost of the affordable homes.

With a maximum funding ceiling of €50,000 available per home, the SSF can facilitate at least 6,200 affordable homes. To date, funding of €127 million has been allocated in support of 35 projects in 14 local authority areas, which will assist in the delivery of almost 3,200 affordable homes. Details of all projects that have received funding approval, including those in Dublin and Cork, are available on the Department's website.

In terms of affordable purchase, Part 5 of the Housing (Miscellaneous Provisions) Act 2009, commenced in June 2018, provides the statutory basis. Under regulations issued in March 2019, a scheme of priority is decided by each local authority detailing the arrangements for the access to affordable purchase homes. In the first instance, it is the responsibility of local authorities to identify affordability issues and bring forward sites where the provision of more affordable housing is viable. The scheme of priorities has been problematic and must be greatly improved on and that will be part of the more streamlined affordable housing approach for local authorities.

The main eligibility criterion under the Act is that the applicant must be a first-time buyer, with limited exceptions. The applicant's net household income must be such that the repayments on a 90% mortgage for the purchase of a suitable home at market value would not exceed 35% of his or her net income.

As part of my work leading up to the autumn announcement, I will be scrutinising the statutory basis of the scheme with delivery partners, particularly as it relates to viability and eligibility criteria, in order to ensure that it reflects this Government's policy priorities and delivers the outcomes we need.

The first homes that will be made available under the new affordable purchase scheme will be on Boherboy Road in Cork city in early 2021. I commend Cork City Council on its progressive work in respect of this project and utilising moneys from the SSF. Other local authorities are following suit and I will ensure that we see more and more projects like this delivered on key local authority sites.

To support rental affordability, the Government is also committed to the introduction of cost-rental housing in Ireland, where the rents charged cover the cost of delivering, managing, and maintaining the homes only. A working group has been examining the most appropriate model for delivering cost-rental, including the use of public land, appropriate Exchequer inputs and operational matters such as tenant eligibility.

The work is also being supported by research by the European Investment Bank. I expect initial findings of this group to be completed within the coming months and I have asked that this work be expedited. This will allow us to expand on the three pilot developments currently under way. I will also provide an update on cost rental in the autumn. We need options on a national cost rental plan and policy. I know I will have the Deputy’s assistance in putting that together and I hope that has answered her specific question on affordability.

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