Dáil Éireann Debate, Tuesday - 1 July 2025
84. Deputy Shay Brennan asked the Minister for Housing, Local Government and Heritage the changes he is making to enable smaller developers to apply for the croí cónaithe cities scheme; and if he will make a statement on the matter. [35840/25]
Amharc ar fhreagra105. Deputy Conor Sheehan asked the Minister for Housing, Local Government and Heritage to outline his plans to rework the croí cónaithe (cities) and STAR schemes to allow them to function more effectively for a wider cohort of developers. [35903/25]
Amharc ar fhreagraI propose to take Questions Nos. 84 and 105 together.
The Croí Cónaithe (Cities) Scheme and the Secure Tenancy Affordable Rental (STAR) Investment Scheme are part of a suite of housing measures in Housing for All designed to increase social, affordable and private housing supply. Such measures also include local authority delivered affordable housing for purchase, the new cost rental tenure, Land Development Agency delivery of affordable housing and the First Home Scheme. The Department keeps all theses scheme under review and any changes required to optimise participation or improve efficacy as may be feasible are considered on an on-going basis
The Croí Cónaithe (Cities) Scheme supports the building of apartments for sale to owner-occupiers. The Scheme aims to bridge the current viability gap between the cost of building apartments and the market sale price (where the cost of building is greater). My Department has recently made a number of changes to the Scheme to further enhance it and encourage greater participation from private operators. These include extending the Scheme's eligible geographical area to include the metropolitan boundaries of our cities and also allowing smaller developments to apply for the Scheme, with the minimum eligibility threshold for units reduced from 40 to 20.
The STAR Scheme is intended to bring forward Cost Rental Units at scale and at rents which are more affordable, with the aim of assisting eligible households in the private rental sector, particularly in urban centres where prevailing rents are especially high.
One of the key housing commitments in the Programme for Government is to continue the STAR scheme while reviewing its criteria, to ensure greater take-up by the private development sector. This review is presently underway and my Department is evaluating the interface between STAR and private capital investment sector in order to identify any potential optimisations that could be made to enhance delivery under the scheme and encourage greater participation by private operators.
