Catherine Murphy (Kildare North, Social Democrats)
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621. To ask the Minister for Housing, Planning, and Local Government the prior assessment carried out when allocating LIHAF in respect of ensuring that housing is affordable; the definition of affordable in this regard; if the definition differs throughout the country; if so, the way in which it differs; and if he will make a statement on the matter. [48969/17]

Eoghan Murphy (Dublin Bay South, Fine Gael)
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The overall aim of the Local Infrastructure Housing Activation Fund (LIHAF) is to increase housing supply by removing infrastructural obstacles that were preventing the early development of key sites.

All proposals for funding under LIHAF were assessed in line with the criteria set out in the Call for Proposals (Circular PL 10/2016) which issued on 26 August 2016 which was further clarified in a notification which issued on 30 September 2016 (both documents are available at ).

The proposals received were allocated marks under five headings (1) Project proposal and link to housing delivery, (2) Innovation and Collaboration, (3) Strategic Fit, (4) Financial Package and Prudence and (5) Delivery.  Projects were also required to submit a Multi-Criteria Analysis or Cost Benefit Analysis as appropriate.  A LIHAF Advisory Committee, comprised of experts in housing & planning, evaluated and marked the proposals received and made recommendations to the LIHAF Management Committee who assessed the proposals and made the final recommendations for Ministerial approval.

34 proposals received preliminary approval in March 2017 and as required under the LIHAF scheme's criteria and conditions, local authorities were asked, inter alia, to obtain commitments from housing providers on associated sites in relation to housing delivery timelines and cost reductions commensurate with the State's investment on the sites.  Local authorities were asked to ensure that a cost reduction was included in the local agreements to ensure that there is a proportionate dividend for the State’s investment in infrastructure over and above the obvious benefit in terms of the overall market effect of increased supply of housing. 

The objective of securing cost reductions is to make the housing more affordable than would otherwise be the case, as opposed to requiring that houses be priced under a certain ceiling. The level of the reduction is proportionate to the scale of the LIHAF investment in the enabling infrastructure which is different for each project.

Local authorities have used a range of mechanisms to meet the cost reduction commitment, tailored to the individual circumstances of each proposal. In some instances, the local authority itself owns some or all of the associated development lands and consequently has a high degree of control in terms of ensuring delivery of extra social and affordable housing over and above the 10% normally required under Part V of the Planning and Development Act 2000.

Where land is owned privately, providers of housing have entered into an undertaking with local authorities where, in recognition of the early delivery of the necessary public infrastructure, those providers have undertaken that housing will be delivered in accordance within an aligned timeframe of construction and with agreed cost reductions to be taken off the market price.  This can be an agreed cost reduction across all units or a larger cost reduction across a specified number of units.

My Department is preparing summary details on each of the approved projects and intends to publish this on the Department's website as well as on the Rebuilding Ireland website shortly.