I propose to take Questions Nos. 508 and 509 together.
My Department operates a number of funding programmes that assist local authorities to work in partnership with Approved Housing Bodies (AHBs) to construct and purchase homes and make them available for social housing. One such programme that local authorities and AHBs progress Social Housing projects through is the Capital Advance Leasing Facility (CALF). CALF funding is capital support provided to AHBs by local authorities to facilitate the funding of construction, acquisition or refurbishment of new social housing units. The local authority issues the CALF monies to the AHB and the local authority, in turn, recoups same from the Department.
All funding provided to AHBs to support social housing is made available by my Department through Local Authorities. Indeed, Local Authorities, as the statutory housing authorities, are the decision makers in relation to the suitability of a proposed social housing project. For example, local authorities are required to ensure that any project appropriately reflects the housing need in that particular area and that there is sufficient need in the area to support the units over time; provide a level of assurance around the costs associated with projects; the properties comply with relevant standards and regulatory requirements; and the objectives of creating and maintaining sustainable communities are being met.
It is a matter for Donegal County Council to determine the most appropriate response to the need for social housing supports and to progress the purchase of any second hand acquisitions or new turnkey developments in line with parameters set out by my Department.
In relation to the specific housing development in Milford, Co. Donegal, mentioned in your correspondence, I can confirm that the Local Authority had previously received Department funding support following a Turnkey procurement process run by Donegal County Council in 2018. An uplift to the original tender was sought post-covid and the Council issued a revised offer in March 2023 to reflect an eligible cost increase. The Local Authority informed the Department that the developer withdrew from the process at that stage.
My Department subsequently received a CALF application for the 17 homes in July 2025 from Cooperative Housing Ireland (CHI). After detailed consideration of all the parameters (including the previous funding approval, the increased costs now sought from the exchequer, the previous occupation of the units and the length of time since completion) it was communicated to the relevant AHB that this project would not be eligible for CALF funding.
