Dáil Éireann Debate, Thursday - 26 March 2026
310. Deputy Eoin Ó Broin asked the Minister for Housing, Local Government and Heritage the proposed changes to procurement SHIP, CALF and CAS turnkey approvals as part of the shift from forward purchasing to forward funding models for delivering social housing. [23317/26]
Amharc ar fhreagraCALF funding is capital support provided to Approved Housing Bodies (AHBs) by local authorities to facilitate the funding of construction or purchase of new social housing units. This loan facility can support between 25% and 30% of the eligible capital cost of the housing project, with the remaining finance sourced by the AHBs from private lenders (usually the HFA) with the housing units provided to local authorities for social housing use under long-term lease arrangements known as Payment and Availability Agreements (P&A). A nominal interest rate of 2% fixed per annum is charged by the local authority on the initial capital amount. At the end of the term, the outstanding capital amount plus the interest accrued, is owed and repayable to the local authority. The local authority issues the CALF monies to the AHB and the local authority, in turn, recoups same from the Department.
Accelerated CALF (also referred to as Forward Funding) is where an AHB can request to drawdown up to 95% of the CALF amount approved, for a specific project to meet expected expenditure during the delivery phase, with 5% retained until the signing of the P&A Agreement. Accelerated CALF is permitted where specific milestones are achieved and is based on vouched expenditure.
As regards SHIP and CAS turnkey delivery there is no proposed shift to forward fund these units or change procurement rules. Expenditure is recouped by the Department for turnkey units upon completion. Stage payments are not allowed. A 10% deposit can be paid on contract signing as per standard Law Society Contracts for Sale. As with all public procurement, any ‘Turnkey’ or ‘Partnership-Development Agreement’ proposals must be advertised/procured in alignment with EU Procurement Directives and national law.
