Joan Burton (Dublin West, Labour)
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111. To ask the Minister for Finance his plans to improve housing financing structures for new housing, in particular the NTMA, to small and medium builders and the builders of apartments; and if he will make a statement on the matter. [40358/17]

Joan Burton (Dublin West, Labour)
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112. To ask the Minister for Finance when Home Building Finance Ireland will be established; the funds that have been allocated to it to date; the projects it will deliver; and if he will make a statement on the matter. [47232/17]

Alan Kelly (Tipperary, Labour)
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113. To ask the Minister for Finance the estimated number of new housing units that will be built under Home Building Finance Ireland (HBFI); and if he will make a statement on the matter. [47335/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 111 to 113, inclusive, together.

As announced in my Budget speech on 10 October 2017, it is my intention to establish Home Building Finance Ireland (HBFI) to provide funding on market terms to viable residential development projects which are experiencing difficulty in obtaining debt funding.  HBFI will be a standalone entity which will provide funding directly into the market. As the Deputy will be aware, the State is already providing a number of alternative supports into this market, including equity finance, through the Irish Strategic Investment Fund's (ISIF) existing residential development funding platforms. 

I would be hopeful of bringing the establishing legislation to the Houses of the Oireachtas for approval in early 2018, with a view to HBFI commencing operations later in 2018. It is not expected that HBFI will have an indefinite lifespan but it is too early to speculate on how long it may operate as this will depend on the availability of funding in the market to meet demand for homes in the coming years.

With a proposed allocation of up to €750m, it is estimated that HBFI could have capacity to fund about 6,000 homes in the coming years. The current estimated shortfall in residential supply is 15,000 – 20,000 units per annum and, accordingly, HBFI, with an annual average delivery of 2,000 homes, would reduce this shortfall by about 10% (assuming a three year horizon). This would be a significant contribution but it would not make HBFI a dominant player in the residential funding market and it would clearly leave room for banks and other finance providers to increase their contribution to funding much-needed residential development.  

In relation to the products that will be offered by HBFI, the fund will be designed to focus on the provision of debt funding to viable residential development projects. HBFI will not be directly involved in development – its role would be solely as a commercial lender and therefore will not have any role in designing the schemes it funds. HBFI will provide lending on commercial, market-equivalent terms and conditions. This approach would be akin to a bank or private equity investor. As such HBFI will not have targets in relation to social or affordable housing but will provide a significant contribution to supporting the delivery of additional supply of all types of residential housing in the coming years.