Written answers

Tuesday, 16 October 2018

Department of Housing, Planning, and Local Government

Social and Affordable Housing Provision

Photo of Clare DalyClare Daly (Dublin Fingal, Independent)
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651. To ask the Minister for Housing, Planning, and Local Government further to Parliamentary Question No. 2670 of 24 July 2018, the estimated cost of building affordable homes for each of the Dublin local authorities in tabular form. [42014/18]

Photo of Eoghan MurphyEoghan Murphy (Dublin Bay South, Fine Gael)
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In order to deliver affordable housing, in the areas of the country most affected by a lack of affordable housing supply, the Government has committed €310 million to support this programme of work, under the Serviced Sites Fund (SSF), as part of Budget 2019. The Exchequer contribution is €275 million with €35 million to be contributed by local authorities. In 2019 funding of €100 million will be available under the Fund with a further €142 million in 2020 and €68 million in 2021. The funding is available for key facilitating infrastructure, on local authority sites, to support the provision of affordable homes to purchase or rent.

A first call for proposals, under the SSF, issued to local authorities in Dublin; the Greater Dublin Area; Cork City and County; and Galway City. 15 proposals were received from 9 local authorities. These are currently being assessed and I expect this process to be finalised and an announcement of the first successful bids to be made in the coming weeks.

I envisage a maximum amount of SSF funding of €50,000 per affordable home. On the basis of this infrastructure investment, I expect that some 6,200 affordable homes could be facilitated in this way.

In preparing their bids for funding, local authorities were advised to be guided by the Unit Cost Ceilings (UCCs) for social housing in determining the cost of the affordable homes to be delivered under this programme. These UCCs are based on the analysis of returned data from tendered social housing schemes over an extended period, and market tender index information. Construction cost is reflective of building costs (including VAT) and also includes normal site works and site development. All-in cost includes cost of construction, land cost, professional fees, utility connections, site investigations/surveys, archaeology where appropriate, VAT and contribution to public art. Abnormal costs are excluded from these figures. The relevant UCC data were set out in the reply to Question No 2670 of 24 July 2018.

Moreover, an important factor in the assessment of bids will be the capacity to translate the secured infrastructure funding into a discount on the affordable homes. In addition, local authorities must consider the market price of similar homes on sale in the equivalent private market and the level of discount on market price envisaged, which will be required under the Affordable Purchase Scheme terms.

The objective is to maximise the benefits from public money by funding the best value for money proposals possible.

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