Dáil Éireann Debate, Thursday - 4 December 2025
354. Deputy Conor Sheehan asked the Minister for Housing, Local Government and Heritage the criteria considered when the threshold for entry to the Croí Cónaithe scheme was set at 20-units; if a viability study was carried out to ensure that schemes below 20 units are more viable, than those above 20-units; if there is scope for this to be reconsidered; and if he will make a statement on the matter. [68979/25]
Amharc ar fhreagraThe Croí Cónaithe (Cities) Scheme supports 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). It is targeted principally at activating planning permissions already in place for such homes. The scheme is managed and administered by The Housing Agency on behalf of my Department. The Housing Agency is uniquely positioned to understand the needs of the Irish housing sector and has a team of dedicated housing professionals with the knowledge and expertise to administer the Scheme.
Following a recommendation from the Housing Agency, my Department approved a proposed change to the number of eligible units under the Scheme from 40 to 20, in order to a allow for in-fill developments for proposals of 20 units or greater located in the five cities, and increase proposals for the supply of Build to Sell apartments under the Scheme. In determining the new minimum threshold under the Scheme, account was taken of the Scheme's requirements that developments must be a minimum of four stories with a net density threshold of 35 dwellings per hectare or higher.
Furthermore, the change facilitates applications for smaller blocks in larger housing developments, which promotes the development of mixed-tenure communities in our cities. The minimum threshold was set at 20 units in order to meet one of the key objectives of the Scheme, which is to support the viability of compact growth in our cities, in line with the National Planning Framework. Delivering more compact growth requires action to ensure that we see developments at scale in our cities, particularly close to public transport nodes and existing infrastructure. There is therefore a strong public policy imperative to encourage the development of housing in our cities which is coupled with a strong demand for urban living, with people wanting to live close to work and urban amenities.
The Croí Cónaithe Cities scheme design must also be compatible with EU internal market requirements pursuant to Article 107 (3)(c) of the Treaty on the Functioning of the European Union and any proposed changes to the scheme must be considered in this context. DG Comp in the European Commission confirmed that the adjustment to the minimum threshold was congruent with Article 107 (3)(c) on 12 December 2024 and the amendment was subsequently included in the 4th call for Expressions of Interest under the Scheme, which closed on 15 August 2025.
My Department has no plans to make further changes to the threshold for the minimum number of eligible units under the Scheme.
