Government grants to build 350 affordable rental homes

DUBLIN: The government plans to make up to 350 homes with affordable rents by the end of 2021. The new low-rent housing scheme aims to finance housing companies purchase homes or apartments that can be rented below the private market value. The government has given €35 million in funding for this.

It is hoped that the scheme will help in providing rental solutions to people earning more than the eligibility limit for social housing.

Minister for Housing Darragh O’Brien said the rent paid on the property provided for the project would be used to cover the cost of the house or apartment. Mr. O’Brien added that the Cost Rental Equity Loan would be issued by the Government in the form of a long-term, low-interest 40-year loan to cover 30% of the purchase price of the property.

It is confirmed that the Housing Finance Agency, Approved Housing Bodies, will also provide an extra €100m next year to help cover the remaining costs of purchasing or developing accommodation.

Mr. O’Brien said that “Approved Housing Bodies have consistently demonstrated their capacity and expertise in developing and managing homes for the social housing sector.”

The AHB is now being asked to submit proposals for a scheme to the Housing Department that could be approved by next month. The finance agency will be responsible for the maintenance of the rental properties when they are on the market.

“This new scheme provides for an expanded role for the AHB sector, enabling it to support moderate-income households in need of quality, affordable homes, Minister for Housing said.