Colm Burke (Cork North Central, Fine Gael)
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196. To ask the Minister for Housing, Planning, and Local Government when the new regulations will come into place which will allow local authorities and approved housing bodies to enter into negotiations with builders for the building of new apartment complexes which will qualify for the incentives under the cost rental scheme; and if he will make a statement on the matter. [22217/23]

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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Housing for All targets the delivery of a total of 18,000 Cost Rental homes over the period to 2030 and significant funding is made available to support provision by Approved Housing Bodies (AHBs), local authorities and by the Land Development Agency (LDA).

Local authorities have been encouraged to deliver Cost Rental homes directly by taking advantage of increased grant funding now available under the Affordable Housing Fund to fund the delivery of homes in key urban areas, with subvention of up to €150,000 per unit.

Similarly, with regard to AHBs, the Government improved the original terms and conditions for CREL funding in September 2022. The funding ceilings were increased, with the 30% flat rate being replaced and applications being assessed on a sliding scale basis, up to a ceiling of 45% of the total capital costs of delivering the homes.  This will facilitate further direct delivery of Cost Rental homes by AHBs, and thereby support the development of a long-term AHB delivery pipeline. I can confirm that the criteria of the CREL scheme remains under review to ensure it remains fit for purpose in targeting support at those who cannot affordably access homes for rental on the private market.

The Government recently approved the development of a new Cost Rental Subvention scheme with the objective of further improving the viability and increasing the supply of Cost Rental homes at scale, targeting rents which are at least 25% below prevailing market rates. In this regard, the Government has agreed to commit, subject to further discussion with the Minister for Public Expenditure, National Development Plan Delivery and Reform, between €500 million and €750 million as part of this initiative to complete 4,000 to 6,000 additional apartments under the Cost Rental system. My Department is currently working on the design of the scheme and further details will be available when that work concludes.