Cian O'Callaghan (Dublin Bay North, Social Democrats)
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58. To ask the Minister for Housing, Planning, and Local Government the action he will take to ensure that enough affordable housing is built to meet demand; and if he will make a statement on the matter. [24356/24]

Cian O'Callaghan (Dublin Bay North, Social Democrats)
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In the previous election, the Government promised it would deliver 10,000 affordable homes each and every year. Not only did it fail to deliver on this promise, it failed to meet the much more modest targets it set last year, when only 499 affordable purchase homes were actually delivered. The Minister promised when we previously had oral questions that he would answer my priority question. Why has the Government not provided the early-stage finance that is so badly needed to ensure that more affordable purchase homes are built?

Malcolm Noonan (Carlow-Kilkenny, Green Party)
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Housing for All sets out a range of actions necessary to increase the supply of housing out to 2030, comprising 54,000 affordable homes to be delivered by local authorities, approved housing bodies, AHBs, the Land Development Agency, and through the first home scheme, which is a strategic partnership between the State and retail banks.

In 2023, more than 4,000 affordable housing supports have been delivered via our delivery partners, an output which has more than doubled since the previous year and represents an increase of 128% on 2022 activity, which highlights the significant progress achieved to date on affordable housing from a standing start. Our various schemes are now operating at scale, with this momentum continuing as the pipeline is developed. Data for affordable housing delivery is published on my Department's website up to quarter 4 2023, with quarter 1 2024 data currently being collated.

Following on from the ongoing work on the review of the national planning framework, and the forthcoming update of the housing need and demand assessment based on updates to population and housing projections under census 2022 data, the Minister has asked the Department to prepare a revised affordable housing strategy, which will update pathway 1 of Housing for All while retaining a focus on increasing homeownership. Building on the momentum already made, the revised strategy will consider the new housing targets and outline plans to ensure that further delivery of affordable housing takes place alongside increased overall supply of homes more generally. It is anticipated this will be published in quarter 3 of this year.

On the revised affordable housing strategy, which is at the core of the Deputy's question, an internal working group has been established. It will look at serious considerations regarding the development of a revised affordable housing strategy. The key thematic considerations for the revised strategy will include capital supports, the timeline for delivery and support programmes, the capacity and resources required to support same, and delivery targets. In addition, a series of external stakeholder group meetings have been commenced over quarters 1 and 2 of 2024. I will come back in with a supplementary answer on the other matters the Deputy raised.

Cian O'Callaghan (Dublin Bay North, Social Democrats)
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I am specifically asking about affordable purchase homes because of the lack of early-stage finance to get projects off the ground. The last time I attended oral questions on housing, the Minister said he would answer the question the next time. He has shown disregard for that. If I did not know better, I would think he has shown favouritism and bias towards Sinn Féin by answering its questions-----

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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Certainly not.

Cian O'Callaghan (Dublin Bay North, Social Democrats)
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-----but not ours. I said if I did not know better.

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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I have never been accused of being biased towards Sinn Féin.

Cian O'Callaghan (Dublin Bay North, Social Democrats)
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When the Minister took office, there was a successful, viable model of how to deliver affordable purchase housing. Ó Cualann was building high-quality homes at prices that families on middle incomes could afford. For example, three-bedroom, A2-rated semi-detached homes at Dun Emer, Lusk, were available for €258,000. Instead of expanding this model of housing delivery, the Government has done its very best to scupper it. For several years now, Ó Cualann has been crying out for early-stage finance so it can get is projects off the ground. If it could get 4% of the project costs upfront, it could build many more badly needed affordable homes. That is just 4%, which could be provided by way of a loan rather than a grant. Hundreds of badly needed affordable purchase homes with planning permission are not getting built. When will the Government provide the early-stage finance needed to get these projects off the ground? If the senior Minister actually answered, he would not have to whisper the answers to the Minister of State for heritage.

Malcolm Noonan (Carlow-Kilkenny, Green Party)
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Generally, when it comes to overall delivery, to the end of quarter 4 2023, more than 5,800 affordable housing solutions have been delivered through cost rental, the first home scheme, the local authority affordable purchase scheme, and the vacant property refurbishment grant. The first home scheme is assisting first-time buyers to purchase new homes. Recently-published quarter 1 2024 delivery figures show more than 4,000 approvals have been issued since the scheme launched, with 75% of approvals issued in counties Dublin, Cork, Kildare, Meath and Wicklow.

Cian O'Callaghan (Dublin Bay North, Social Democrats)
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I asked about early-stage finance. Will the Minister of State please answer the question?

Malcolm Noonan (Carlow-Kilkenny, Green Party)
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On the issues around the general delivery of affordable housing, the affordable housing fund now provides funding of up to €150,000 to support apartment delivery in urban areas.

In July 2023, the Government approved additional supports for AHBs to deliver cost-rental homes by increasing funding to up to 55% of capital costs from the previous 45%. This funding comprises a mixture of favourable loan financing and State equity investment. The secure tenancy affordable rental, STAR, scheme provides investment of up to €750 million for the delivery of new cost-rental homes by the private sector out to 2027.

Cian O'Callaghan (Dublin Bay North, Social Democrats)
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I am asking the Minister of State about early stage finance to get the affordable purchase homes we need. He is not answering. He clearly cannot answer and the Minister who can answer is sitting beside him and will not answer the question, which is completely unacceptable. I will read from correspondence sent to the Minister, Deputy O'Brien, recently by the Ó Cualann Cohousing Alliance. It reads:

Dublin City Council (DCC) supported by the Dept of Housing can fund a Hong Kong based, mega wealthy developer to build 516 affordable and social houses and we cannot get a red cent from anyone – and we had over 1,000 affordable and social homes in our pipeline.

Bartra get 100% funding including for enabling or abnormal works for the affordable and 80% for the social.

I’m livid.

[...]

With 1% of their funding, Darragh, 1% we would have all our projects on site. It seems like you just don’t care [...]

What the hell is going on?

Will the Minister of State tell us why early stage finance for much-needed affordable purchase homes is not being provided so that we can get these projects off the ground? If the Minister of State with responsibility for heritage cannot answer that question, perhaps the senior Minister would.

Malcolm Noonan (Carlow-Kilkenny, Green Party)
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I will not get into a response on specific projects. The local authorities are delivering affordable homes with funding approval in place to assist with the delivery of more than 4,135 purchase and cost-rental homes across 21 local authorities with support of more than €335 million from the affordable housing fund. Again, I will not get into specifics about-----

Cian O'Callaghan (Dublin Bay North, Social Democrats)
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Is the Minister of State going to say anything about early stage finance? That is what my question is about. Does he have anything to say about it?

Malcolm Noonan (Carlow-Kilkenny, Green Party)
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That is what the AHF is for.

Cian O'Callaghan (Dublin Bay North, Social Democrats)
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It is for providing early stage finance for affordable purchase homes.

Malcolm Noonan (Carlow-Kilkenny, Green Party)
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Yes.

Cian O'Callaghan (Dublin Bay North, Social Democrats)
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Then why are these not getting off the ground?

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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I am not getting into specific issues relating to that particular-----

Eoin Ó Broin (Dublin Mid West, Sinn Fein)
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He answers now.

Cian O'Callaghan (Dublin Bay North, Social Democrats)
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If the Minister wants to answer, he should go on and answer.

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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Raise it under Questions on Promised Legislation, Cian. I will answer you then.

Cian O'Callaghan (Dublin Bay North, Social Democrats)
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I have just asked the question here now and you will not answer it.

Eoin Ó Broin (Dublin Mid West, Sinn Fein)
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That is right.

Cian O'Callaghan (Dublin Bay North, Social Democrats)
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No answer has been given.

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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Lean ar aghaidh.