Catherine Martin (Dublin Rathdown, Green Party)
Link to this: Individually | In context | Oireachtas source

621. To ask the Minister for Housing, Planning, and Local Government further to Parliamentary Question No. 127 of 12 March 2019, when the internal review of the Rebuilding Ireland home loan scheme will be complete; and if he will make a statement on the matter. [16231/19]

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

The Rebuilding Ireland Home Loan scheme was launched in February last year to replace the existing House Purchase and the Home Choice Loan schemes. Towards the end of the year I asked my Department to undertake a review of its operation.

In carrying out the review, the Department has consulted with a number of local authorities, the Housing Agency and the Housing Finance Agency. The review also has regard to the views raised by public representatives since the scheme's commencement.  However, in making any recommendations in relation to the operation of the scheme, it also takes account of the need to ensure that lending issued under it is provided on a prudential basis, so as to protect the financial interests of the borrowers and the local authorities.    

The review has been submitted to me and I am currently examining it with a view to publishing it shortly.

Catherine Martin (Dublin Rathdown, Green Party)
Link to this: Individually | In context | Oireachtas source

622. To ask the Minister for Housing, Planning, and Local Government the councils which have used all funding available to them under the Rebuilding Ireland home loan scheme in tabular form; if further funding will be made available to those councils; if so, when funding will be made available; and if he will make a statement on the matter. [16232/19]

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

The Rebuilding Ireland Home Loan was launched on 1 February 2018 to replace the existing House Purchase and Home Choice Loan schemes, providing a new line of mortgage finance, including fixed rates over 25 to 30 years, to creditworthy first-time buyers who cannot access sufficient mortgage finance from commercial lenders.  

The HFA borrowed €200 million to fund the scheme, and it was estimated that the drawdown would be approximately €200 million over three years.  Some criticism at the time was that insufficient loans were being approved and drawn down. However, as Minister I had made a commitment to seek further funding at an early stage, if necessary, given my belief in the scheme's potential.

The scheme has been more successful than anticipated, and by the end of January, €106m had been drawn down, accounting for 53% of the available funding, at a point at which €66m would have been more consistent with the expectation of a three year draw down period.  By the end of March, draw downs have reached €127m.

As a result, to date, a number of local authorities have issued loans to a level, which has used up their approved allocations for the scheme. These are Cork County Council, Fingal County Council, Meath County Council, Wicklow County Council and Waterford City & County Council.

My officials kept me informed regarding progress on the loan on a regular basis, and have been engaging with the Department of Public Expenditure and Reform since October 2018 when higher lending and drawdown volumes were beginning to materialise.

I informed the Dáil on 29 January 2019 of the scheme’s success and of the need for additional funding, and further indicated that my Department was in discussions with the Departments of Public Expenditure and Reform and Finance with regard to the allocation for 2019.  Local authorities could continue to accept applications as the total funding had not been drawn down.  A meeting with the Minister for Finance and Public Expenditure and Reform took place on 5 March 2019.

Ongoing discussions between the three Departments have included consultation with the Central Bank as recently as last Friday, 5 April.  When these discussions have concluded, I will be in a position to confirm the level of allocation for 2019.  In the meantime, the scheme remains open and all local authorities have been advised to continue to receive and process applications.