Results 10,981-11,000 of 15,092 for speaker:Eoin Ó Broin

Joint Oireachtas Committee on Housing, Planning and Local Government: Update on Affordable Homes, Public Lands, Strategic Planning and Projects: Land Development Agency (23 Jan 2024)

Eoin Ó Broin: It is not. There is a €20,000 gap between the social housing upper limit and your entry-level rate.

Joint Oireachtas Committee on Housing, Planning and Local Government: Update on Affordable Homes, Public Lands, Strategic Planning and Projects: Land Development Agency (23 Jan 2024)

Eoin Ó Broin: I appreciate it.

Joint Oireachtas Committee on Housing, Planning and Local Government: Update on Affordable Homes, Public Lands, Strategic Planning and Projects: Land Development Agency (23 Jan 2024)

Eoin Ó Broin: That neatly leads into my next round of questions. I am trying to understand how that equity model is working. Under the Affordable Housing Act and with the approved housing bodies, they raised debt through the Housing Finance Agency and the cost-rental equity loan they acquire through their turnkey. They charge rent, over 40 to 60 years the debt is paid and then the rent roll generates a...

Joint Oireachtas Committee on Housing, Planning and Local Government: Update on Affordable Homes, Public Lands, Strategic Planning and Projects: Land Development Agency (23 Jan 2024)

Eoin Ó Broin: How long is that return paid for? Is it a return to the LDA and held by the LDA or is there a monthly or annual transfer of the return to ISIF or somewhere else in the State? Does the LDA accumulate that return?

Joint Oireachtas Committee on Housing, Planning and Local Government: Update on Affordable Homes, Public Lands, Strategic Planning and Projects: Land Development Agency (23 Jan 2024)

Eoin Ó Broin: I have two questions. Obviously that return is quite small in real terms.

Joint Oireachtas Committee on Housing, Planning and Local Government: Update on Affordable Homes, Public Lands, Strategic Planning and Projects: Land Development Agency (23 Jan 2024)

Eoin Ó Broin: Therefore, it would take quite a lot of cost-rental properties paying quite a lot of rent that would allow the LDA to deliver, for example, a significant increase in units in terms of that recycling. ISIF is giving money to the Minister, who is giving the money to the LDA. That is investment capital from ISIF. What is Mr. Coleman's understanding of what ISIF gets out of this relationship...

Joint Oireachtas Committee on Housing, Planning and Local Government: Update on Affordable Homes, Public Lands, Strategic Planning and Projects: Land Development Agency (23 Jan 2024)

Eoin Ó Broin: Exactly. That is my point. The first €1.25 billion and then the second €1.25 billion or whatever it is, that is basically money that goes to the LDA, which spends the money. The LDA makes a very minimal commercial return on that to cover day-to-day costs. That money is never paid down in the sense of a traditional cost-rental debt. Does that mean the LDA will never get what...

Joint Oireachtas Committee on Housing, Planning and Local Government: Update on Affordable Homes, Public Lands, Strategic Planning and Projects: Land Development Agency (23 Jan 2024)

Eoin Ó Broin: The debts are paid down.

Joint Oireachtas Committee on Housing, Planning and Local Government: Update on Affordable Homes, Public Lands, Strategic Planning and Projects: Land Development Agency (23 Jan 2024)

Eoin Ó Broin: But the difference is that at a certain point in time - this is really important for the long-term viability of cost rental - under the debt-financing model, debt is paid down and the AHB physically owns the unit and therefore the rent that was previously paid whereby approximately 50% of it was paying down the debt, is an additional revenue surplus from that point on. Under the LDA's model,...

Joint Oireachtas Committee on Housing, Planning and Local Government: Update on Affordable Homes, Public Lands, Strategic Planning and Projects: Land Development Agency (23 Jan 2024)

Eoin Ó Broin: Yes, and the LDA can borrow against it if it wants to borrow.

Joint Oireachtas Committee on Housing, Planning and Local Government: Update on Affordable Homes, Public Lands, Strategic Planning and Projects: Land Development Agency (23 Jan 2024)

Eoin Ó Broin: Sure. That leads me on to borrowing. Obviously the cost of borrowing is too high. How much would interest rates have to come down before it would be sustainable for the LDA to borrow, given where rents are at currently?

Joint Oireachtas Committee on Housing, Planning and Local Government: Update on Affordable Homes, Public Lands, Strategic Planning and Projects: Land Development Agency (23 Jan 2024)

Eoin Ó Broin: I understand that, but my question is a separate one. Obviously the LDA is fully State funded currently by the ISIF. The original idea of this funding model is that the LDA would be able to leverage the State fully for private borrowing. What is the rate at which the LDA could borrow privately given what the current rent structure is at?

Joint Oireachtas Committee on Housing, Planning and Local Government: Update on Affordable Homes, Public Lands, Strategic Planning and Projects: Land Development Agency (23 Jan 2024)

Eoin Ó Broin: So, it would be pretty low.

Joint Oireachtas Committee on Housing, Planning and Local Government: Update on Affordable Homes, Public Lands, Strategic Planning and Projects: Land Development Agency (23 Jan 2024)

Eoin Ó Broin: This is my final question. I got a response back to a parliamentary question on recapitalisation. I will come to this if there is more time, Chair. The interesting point is that, if I am correct, there is a member of the Department of Housing, Local Government and Heritage currently on the LDA's board.

Joint Oireachtas Committee on Housing, Planning and Local Government: Update on Affordable Homes, Public Lands, Strategic Planning and Projects: Land Development Agency (23 Jan 2024)

Eoin Ó Broin: The reply to the parliamentary question said there was a representative of the Minister for Housing, Local Government and Heritage on the board, but I also understand there is a request from the Department of Finance. Am I correct in saying there are now requests for two new board positions, one from the Department of housing and one from the Department of Finance?

Joint Oireachtas Committee on Housing, Planning and Local Government: Update on Affordable Homes, Public Lands, Strategic Planning and Projects: Land Development Agency (23 Jan 2024)

Eoin Ó Broin: But it is not a surprise that I have raised it with Mr. Coleman.

Joint Oireachtas Committee on Housing, Planning and Local Government: Update on Affordable Homes, Public Lands, Strategic Planning and Projects: Land Development Agency (23 Jan 2024)

Eoin Ó Broin: Sure, but ultimately these are also matters for the LDA. Has any formal request for additional board positions from the Department of housing and the Department of Finance been made to the LDA to date? Is Mr. Coleman saying no formal request has been made?

Joint Oireachtas Committee on Housing, Planning and Local Government: Update on Affordable Homes, Public Lands, Strategic Planning and Projects: Land Development Agency (23 Jan 2024)

Eoin Ó Broin: But Mr. Coleman is not aware of any such appointment.

Joint Oireachtas Committee on Housing, Planning and Local Government: Update on Affordable Homes, Public Lands, Strategic Planning and Projects: Land Development Agency (23 Jan 2024)

Eoin Ó Broin: I will make a final point, with your indulgence, Chair. I am desperately trying to get a copy of the NewERA report into the LDA but the Minister will not give it to me. I have submitted a freedom of information, FOI, request. I am sure if I send an FOI request in to the LDA it would refer to "commercial sensitivity". Could Mr. Coleman tell us anything about the report, because there are...