Eoghan Murphy (Dublin Bay South, Fine Gael)
Link to this: Individually | In context | Oireachtas source

In order to deliver affordable housing in the areas of the country most affected by a lack of affordable housing supply, a three-pronged, targeted approach is being pursued. 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 and Galway on 29 June 2018. The closing date for applications was 31 August and 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. Further calls for proposals will be made thereafter.

Once the funding is awarded and the infrastructure is provided I expect delivery of affordable homes from 2019 onwards. Separately, all local authorities will now carry out an economic assessment of the requirement for affordable housing in their area, and the authorities' capacity to deliver housing at affordable prices from their sites. Based on this analysis further local authorities may be considered for funding under the SSF.

I envisage a maximum amount of SSF funding of €50,000 per affordable home and on this basis some 6,200 affordable homes could be facilitated.

In terms of the type of affordable housing that will be delivered on local authority sites it may be affordable housing for purchase, under the recently commenced provisions of Part V of the Housing (Miscellaneous Provisions) Act 2009, or cost rental, which is being advanced on a number of pilot sites before being rolled out more generally. Under the 2009 Act, the maximum discount is 40% of the market value of the home and the local authority takes a charge, equivalent to the discount, against the property. The scheme applies to new homes, and is targeted at single applicants earning up to €50,000 per annum or €75,000 for dual applicants.

This new scheme replaces the time-limited claw-back which applied under the various previous affordable housing schemes. The local authority will retain a charge equivalent to the discount and the household must recoup the charge at re-sale or during the charge period. The funding repaid by the purchaser is paid into a new Affordable Dwellings Fund which can then be used to fund more affordable housing.