Conor Sheehan (Limerick City, Labour)
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14. To ask the Minister for Housing, Planning, and Local Government when funding will be released for a project (details supplied); and if he will make a statement on the matter. [35898/25]

Conor Sheehan (Limerick City, Labour)
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When will €5 million of funding be released for infrastructure at the Mungret site in Limerick? This is a partnership between Limerick City and County Council and the Land Development Agency, LDA.

Essentially, it is funding for a plaza and a link road to allow them to proceed to tender and construction for 250-plus homes.

James Browne (Wexford, Fianna Fail)
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I thank Deputy Sheehan for asking when funding will be made available for a project. This is the shortfall of €5 million to cover infrastructure for the Mungret LDA development of 250 units in Limerick. The Deputy's question relates to the development of the lands at the former Mungret College, which is a key strategic priority for Limerick City and County Council. The site will see the delivery of 250 affordable and social homes, together with community and crèche facilities over a three- to four-year period. This includes the proposed development of 181 affordable purchase homes and two community dwellings for people with disabilities in partnership with the Land Development Agency and homes for older people and a crèche being delivered by the approved housing body Clúid.

Funding approval from the affordable housing fund is in place to support the delivery of the 181 affordable purchase homes by the LDA. However, Limerick City and County Council has advised my Department that an additional funding requirement has arisen for enabling infrastructure. I understand that Limerick City and County Council is considering the matter in conjunction with its delivery partners. I also understand the strategic importance of this development and will work proactively with Limerick and its delivery partners to support the work.

It is envisaged that the housing activation office will manage a multi-annual housing infrastructure investment fund under the national development plan. The scope of this fund will be determined as part of the review of the national development plan, which is due to be completed in July. This will inform the programme of investment. While I cannot comment on any individual sites in advance of the opening of that fund for infrastructure proposals, there will be engagement with stakeholders, including local authorities, to identify priority areas for support.

Conor Sheehan (Limerick City, Labour)
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From the substance of the Minister's reply, it sounds like this funding is being delayed until the new infrastructure fund is active. Is there a way he can frontload the delivery of the infrastructure fund to release the funding? As far as I understand, there was a proposal from the LDA that the €5 million shortfall would be added to the purchase price of the affordable homes, which is totally unacceptable. Through the framework, there is potential to deliver 1,950 homes in Mungret. From talking to the local authority, as far as I understand, a funding ask has been with the Department, the Department of public expenditure, and it has even been sent to the Department of the Taoiseach, since March. I sincerely urge the Minister to clarify whether this has been delayed until the infrastructure fund is up and running or to release the funding soon.

James Browne (Wexford, Fianna Fail)
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Funding for the housing activation office will come under the national development plan, which is currently being agreed. Limerick City and County Council has received local infrastructure housing activation fund, LIHAF, funding for the delivery of the first two phases of a new distributor road at Mungret. LIHAF funding approval of €22.1 million was given, of which €6.6 million was funded by the Department and the balance by Limerick City and County Council. Both phases funded by LIHAF are now complete, with the second section of the road opening in April 2024. Up to the end of 2024, this road has allowed 203 homes to be delivered, including 99 cost-reduced units. Funding approval of more than €18 million is in place to support the delivery of 181 affordable purchase units by 2027 with the support of the affordable housing fund. In total, the proposed mixed tenure development will comprise 181 affordable purchase homes and two community dwellings for people with disabilities, which are being delivered by the Land Development Agency, together with 69 social houses for older persons and a crèche to be delivered by Clúid AHB. I welcome Limerick's ambition in this regard.

Limerick City and County Council has informally advised the Department that a funding shortfall of €5 million has been identified. It is understood that this funding requirement relates to the infrastructural realm. We will work with Limerick City and County Council to help meet its ambition.

Conor Sheehan (Limerick City, Labour)
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I thank the Minister. From my point of view and that of the local authority, this entire project is essentially being held up because of €5 million, which is a very small sum of money in the grand scale of things. This project has been in planning since last year and was first announced in May 2024. We have had the highest percentage increase in house prices in Limerick in the past year because we have such a shortage of housing. From the Minister's response, it sounds like the release of the €5 million will be delayed until after the review of the NDP. Will he confirm whether the funding will be released soon or if it will be deferred until the NDP review is published?

James Browne (Wexford, Fianna Fail)
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The Department has not received any formal submission on funding. We have been made aware that there is a funding issue and we are engaging with the local authority to see what is the best way forward to address it.