Dáil Éireann Debate, Tuesday - 8 October 2024
264. Deputy Jim O'Callaghan asked the Minister for Housing, Local Government and Heritage the estimated cost of increasing local authority affordable purchase scheme delivery above current targets per 250-unit increments, in tabular form. [40270/24]
Amharc ar fhreagraThe 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.
In the case of the Local Authority Affordable Purchase scheme, the Affordable Housing Fund (AHF) is available to local authorities as a direct subvention towards the development costs of providing affordable houses. Subsidy of €50k, €75k or €100k per affordable home is available to affordable purchase schemes, depending on the scheme density and its location. A higher funding threshold of €150k applies to higher density cost rental schemes in city areas only.
The subsidy enables the Local Authority to contribute to the development costs, thus allowing the homes to be made available eligible applicants at a discounted affordable purchase price at least 15% below the market sale price. The local authority retains an equity share in the home, equal to the percentage discount of the affordable purchase price from the market value of the home, which is redeemable by the purchaser at a future date.
A sizeable portion of the delivery costs are thus met from purchaser’s funds with the only Exchequer outlay representing 95% of the AHF subsidy amount to which a 5% local authority contribution applies.
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 and materials applied to the project in question. The average Exchequer cost commitment per unit was €78,000 in 2023.
Having regard to the differing levels of AHF subsidy available in the circumstances described above, the Exchequer cost of grant aiding the delivering of 250 affordable purchase homes with AHF support will fall within the range set out in the following table:
|
AHF Subsidy per affordable home |
Exchequer contribution per affordable home |
Exchequer contribution for 250 affordable purchase homes |
Remarks |
|
€50k |
€47,500 |
€11.875m |
Low density schemes |
|
€75k |
€71,250 |
€17.813m |
Medium density schemes |
|
€100k |
€95,000 |
€23.75m |
High density schemes |
Depending on the density and location, the Exchequer cost of grant aiding the delivery of 250 affordable purchase homes by local authorities with AHF support will range from €11.875m to €23.75m.
All costs are once-off Exchequer payments which, generally, arise for payment once contract for sale has closed.
