Dáil Éireann Debate, Tuesday - 8 October 2024
262. Deputy Jim O'Callaghan asked the Minister for Housing, Local Government and Heritage the estimated cost of increasing cost rental delivery through the cost rental equity loan above current targets per 250-unit increments, in tabular form. [40268/24]
View answerThe Government has targeted delivery of 54,000 affordable homes between now and 2030, to be facilitated by local authorities, Approved Housing Bodies, the Land Development Agency and via the First Home scheme, a strategic partnership between the State and retail banks.
The Cost Rental Equity Loan (CREL) funding is available to Approved Housing Bodies who provide cost rental homes. Overall State funding under CREL provides up 55% of capital costs, of which up to 20% can be equity, on a sliding scale as necessary for viability at appropriate rent levels.
The cost of delivering new homes is dependent on a range of variables, such as the location, the scale of the development and the size and type of the homes involved, together with the cost of labour, financing and materials applied to the project in question and ongoing maintenance and management fees.
Using the average cost to the Exchequer for delivery of CREL units in 2023 and based on CREL funding of 55% of capital costs, the estimated cost is set out in the following table:
|
Cost per Unit to the Exchequer |
Cost to deliver 250 |
|
€209,000 |
€52,250,000 |
To note these are estimated figures and the actual site- and project-specific costings for a particular number of additional units would need to be provided to give an accurate cost of increasing delivery above current targets.
