Barry Cowen (Offaly, Fianna Fail)
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206. To ask the Minister for Housing, Planning, Community and Local Government the way in which the €10 million from the proceeds of the sale of Bord Gáis Éireann made available in budget 2016 for an affordable housing pilot scheme was spent; the details of this pilot scheme; and the reason it did not proceed. [4707/17]

Martin Heydon (Kildare South, Fine Gael)
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221. To ask the Minister for Housing, Planning, Community and Local Government the status of the pilot scheme for a new model of affordable rental to provide more housing options for low income households and to relieve pressure on the social housing sector; and if he will make a statement on the matter. [4888/17]

Simon Coveney (Cork South Central, Fine Gael)
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I propose to take Questions Nos. 206 and 221 together.

Action 4.6 of Rebuilding Ireland provided for the introduction of an affordable rental scheme to enhance the capacity of the private rented sector to provide quality and affordable accommodation for households currently paying a disproportionate amount of disposable income on rent.

As set out in the recently published Strategy for the Rental Sector, this commitment is to be progressed through kick-starting supply in rent pressure zones. Lands held by local authorities in rent pressure zones are to be brought to market on a competitive tendering basis, with a view to leveraging the value of the land to deliver the optimum number of units for rent, targeting middle income households, in mixed tenure developments. The cost of providing rental units is to be permanently reduced by lowering the initial investment and development costs for providers - AHB or private - allowing the rental units to be made available at below market prices without the need for ongoing rental subsidies.

The local authorities concerned will identify a number of sites with the potential for up to 1,000 units of accommodation and will move forward, as soon as possible, to issue calls for proposals from parties interested in developing projects. As speed of delivery will be critically important, appropriate licence arrangements, incorporating clear timescales for delivery, will be a key feature of the process.

This programme is being co-ordinated with the dedicated measures in Rebuilding Ireland to accelerate housing output from the Major Urban Housing Delivery Sites, including support from the Local Infrastructure Housing Activation Fund (LIHAF) where necessary.

In 2016, €10 million was provided through my Department’s Vote in order to support the implementation of the affordable rental pilot scheme. As the scheme was in preparation and under consideration during 2016, the available funding was redirected and used to support additional activity under other housing programmes.