Eoin Ó Broin (Dublin Mid West, Sinn Fein)
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197. To ask the Minister for Finance the loans approved by HBFI for residential developments in the past 12 months; the number of units in each development in tabular form; the location of each development; the number of designated build-to-rent units included in the grant of planning permission in each development; if HBFI or officials in his Department were aware that the loan application had an advanced purchase agreement with an institutional investor in place for all or part of the development at the time the loan was approved; if so, the number of units included in such agreements; and the number of these units that were designated as build to rent in the planning grant. [27147/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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HBFI was established in late 2018 to address a shortfall of finance available for the construction of residential housing. HBFI was designed to increase access to residential development finance generally and in particular to projects that had not been the current focus of traditional or alternative lenders at that time.

Since commencing operations at the end of January 2019, HBFI has approved over 50 loan facilities and has made available funding of over €500m which would allow the delivery of over 2,300 new homes across 17 counties. Over 90% of loan facilities approved to-date have been to fund new homes for either private sale or social housing.

HBFI regularly assesses the market to determine what type of residential construction projects are experiencing difficulty accessing finance and responds accordingly in line with its commercial remit.

Following the outbreak of Covid-19, HBFI consulted with the Minister for Finance to seek approval to widen its remit on a temporary basis to allow it to provide finance for larger prime residential projects that were experiencing difficulties in accessing financing. In May 2020, HBFI established a temporary step-in product called the “Momentum Fund”.

The purpose of this product was to fund large scale developments that would ordinarily have been funded elsewhere but due to COVID-19 and the constrained lending market funding was not available at the time. By providing funding to this market segment on a temporary basis, HBFI ensured that developments were not delayed, and the supply of new homes was not interrupted due to a temporary tightening of the lending market for new homes.

HBFI through its engagement with the market also identified a need for a funding product specifically for apartment developments in urban areas and accordingly introduced an ‘Apartment Product’ to the market also in May 2020.

To-date any funding approved by HBFI for PRS related projects has been provided under these two categories.

HBFI have provided the details sought by the Deputy as set out in the table below.

There were 30 facilities approved by HBFI between 15^thMay 2020 and 18^thMay 2021, with the potential to deliver 1,646 new homes:

In relation to the number of designated build-to-rent units included in the grant of planning permission in each development, HBFI have advised that they are currently compiling the information as requested by the Deputy. Unfortunately they were not in a position to finalise the information within the timeframe, therefore I will provide this information directly to the Deputy once it is received from HBFI.

HBFI would be aware of any advance purchase agreement that had been in place or planned at the time a loan is approved. I am advised by HBFI that there have been 916 units included in such arrangements.