Richard Bruton (Dublin Bay North, Fine Gael)
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231. To ask the Minister for Housing, Planning, and Local Government if he plans to increase the means threshold for cost rental, in view of the recent increase in the threshold for social housing. [61461/22]

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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The policy intent of developing a new Cost Rental sector in Ireland is to assist those on moderate incomes who are facing affordability pressures in the private rental market and may not qualify for social housing supports. The social housing sector already caters for a significant cohort of people and it is not intended for Cost Rental to overlap with or replace traditional social housing for low-income households, which remains a priority for the Government. Cost Rental is a fundamentally different proposal and represents a new tenure option. The main eligibility condition for leasing a Cost Rental dwelling is that a household’s annual income, less income tax, PRSI, USC and superannuation contributions, must not be greater than €53,000, as per the Cost Rental Letting and Eligibility Regulations: www.irishstatutebook.ie/eli/2021/si/755/made/en/print

Cost rents are set to cover the costs of providing, financing, managing and maintaining each home. In order to reduce these costs, thereby making the rent lower and more affordable for the tenant, upfront State capital subsidies are being deployed including the Cost Rental Equity Loan (CREL) scheme for Approved Housing Bodies (AHBs) and the Affordable Housing Fund (AHF) for Local Authorities. As such, income limits are important in targeting these limited State resources at those who fall within the moderate income cohort and are considered most in need of support.  

This net income limit of €53,000 for Cost Rental is equivalent to gross incomes in the region of €80,000 per year for single and dual-income households. This limit targets the Cost Rental homes that are available at moderate-income households, who are currently facing inflated private sector rents without any State assistance. This income eligibility limit was informed by considering affordability and the cost rents achievable under CREL and with data on median income levels.  The parameters for Cost Rental eligibility will be kept under review to ensure the scheme best targets the support provided.