Joan Burton (Dublin West, Labour)
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592. To ask the Minister for Housing, Planning, and Local Government the engagement his Department has had with the European Investment Bank in respect of the funding of additional social and affordable housing here; his plans to secure additional EIB funding for social and affordable housing; and if he will make a statement on the matter. [31569/18]

Eoghan Murphy (Dublin Bay South, Fine Gael)
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The Government is committed to working with the European Investment Bank (EIB) to secure long-term, low-interest funds for major infrastructure works, including housing development. Together with officials from my Department, I met with EIB housing experts in Luxembourg in February of this year to further build on the EIB’s long-standing support for investment in Irish social and affordable housing. During the visit, EIB technical and financial experts outlined funding models that have successfully supported new social and affordable housing investment across Europe and could be adapted to unlock new housing investment in Ireland.

My Department continues to liaise with the EIB to examine how best to secure funding as an additional investment source for the delivery of social and affordable housing, including cost rental initiatives. The EIB has provided ongoing advice and support to the team in my Department working on cost rental, bringing its international experience from funding similar projects to bear. My Department and the National Development Finance Agency have undertaken detailed modelling and financial appraisal on a major site, at St. Michael’s Estate in Inchicore, to assess its suitability for a significant cost rental development. That work is almost finalised and I expect be in a position to announce the first major cost rental project in Dublin shortly, with a broader cost rental programme across Dublin and other cities to follow.

With regard to funding for social housing, in the last five years the EIB has made available €350 million for investment by Approved Housing Bodies across Ireland in cooperation with the Housing Finance Agency. The funds utilised through this facility have supported construction of thousands of new homes and energy efficiency improvements that will significantly reduce household heating bills.

Moreover, in recent months, both Limerick City and County Council and Fingal County Council have entered into financing agreements with the EIB. Fingal County Council signed a €70 million Framework Loan Agreement with the EIB which will trigger a €180 million investment in strategic infrastructure projects within the county’s Capital Development Plan. The EIB also signed off on a €85m loan to Limerick City and County Council, a record commitment for an urban investment programme for the city. The EIB funding will be invested in capital projects, including some residential development.

Such frameworks signal the start of new funding streams for local authorities, which is a very positive development. Other local authorities are being encouraged to consider EIB funding sources for housing, including cost rental and land activation projects, at appropriate sites and Strategic Development Zones.