Borrowing limit of the Housing Finance Agency to also be increased


Minister for Housing, Local Government and Heritage, Darragh O’Brien TD today welcomed Government approval at today’s cabinet meeting for interim funding for the Land Development Agency (LDA) to ensure the delivery of their business plan in the short to medium term – with a total of approximately €5bn available to the agency up to 2025. The long term sustainable funding of the LDA will also be considered, as it delivers its programme of work up to 2028.


Minister O’Brien today explained: “Under the LDA’s Business Plan 2024 – 2028, the agency will provide 12,900, primarily affordable cost rental, homes over the lifetime of the plan. This is a significant contribution to our overall objectives within Housing for All.


“This emphasis on delivering social and affordable housing means that there has been a significant change in the scale and remit of the LDA – limiting the agency’s ability to access private debt finance and use revenue from private housing developed to subsidise other elements of its portfolio.


“This Government is determined that the LDA is fully funded to play its full part in delivering much needed affordable and social homes under Housing for All. Only last week, the agency announced that it had started on the development of almost 220 affordable and social homes at the former Devoy Barracks in Naas, Co Kildare. This week the LDA announced that it has completed the purchase of lands in Clongriffin in north Dublin with planning permission for over 1,800 homes and the potential to deliver a total of over 2,300 affordable and social units. Today’s decision will give the agency the reassurance it needs to maintain this momentum.”


Amongst today’s considerations, the Government decided to:


• commit a further €1.25 billion from the Ireland Strategic Investment Fund for share equity in the Land Development Agency as required;
• agree to securing additional funding sources for a further €1.25 billion in funding for the LDA;
• further develop and agree options for the sustainable future funding of the LDA in 2024.


This additional funding, combined with the funding already allowed for under legislation (€2.5bn), means that the LDA may make funding commitments of up to €5bn, which should enable the agency to deliver into 2025 while longer term funding is developed and agreed.


Meanwhile, the Government today also decided to approve an increase in the borrowing limit of the Housing Finance Agency.
Minister O’Brien explained:


“My Department will now move to legislate to increase the borrowing limit of the agency from €10b to €12bn. We are now delivering homes at a rate not seen since the crash and the Housing Finance Agency has a crucial role to play in sustaining this momentum – particularly in funding projects from approved housing bodies which have been so effective in delivering social housing.”


This decision is in keeping with Housing for All (Action 18.5) which requires the Department to increase the borrowing capacity of the Housing Finance Agency to support the local government sector in land acquisition and the delivery of social and affordable homes.

The Department of Housing, Local Government and Heritage has published its monthly data on the number of Commencements Notices (residential construction starts) for November 2023.
Overall, the data show that the number of commencements in the first 11 months of 2023 (29,634) already exceeds the total number for the whole of 2022 (26,957).
The data also show that Commencement Notices for 3,087 new homes were received by Building Control Authorities in November 2023. This is an increase of 29% on the number of new homes commenced in the same month last year (2,402 units). 
The strong uptick in commencements this year has continued and 29,634 homes have been commenced in the first eleven months of 2023. This is a 17.7% increase on the same period last year (25,162) and a record for this period when compared to similar periods since the data series began in 2015.
Of the 3,087 units commenced, 43% are scheme dwellings, 45% are apartments and 12% are for one-off units.
The full commencement data set can be accessed at: Construction Activity Statistics.

The Department of Housing, Local Government and Heritage today [13 December] published the Q3 social and affordable housing delivery statistics following the standard and necessary verification processes.
The figures, which are largely in line with delivery during the same period in 2022, indicate that the strongest delivery in social housing will be seen in Q4 of this year which is typical in housing delivery. Affordable delivery in the first three quarters of 2023 has already exceeded what was delivered in 2022.
The Minister for Housing, Local Government and Heritage, Darragh O’Brien TD said he was particularly pleased that current pipeline figures indicate that this year’s delivery of social homes is set to exceed last year’s output – which was the highest level of delivery since 1975. 
Social Housing
The latest figures show that 2,528 new social homes were delivered by local authorities and Approved Housing Bodies in Quarter 3, including 1,252 new-build homes, 573 acquisitions and 703 homes delivered through leasing programmes.
Including Housing Assistance Payment (2,065) and Rental Accommodation Scheme (369) 4,962 housing supports were delivered in Quarter 3. 
Overall, in the first 9 months of 2023, 4,815 new social homes were delivered by local authorities and Approved Housing Bodies, including 2,642 new-build homes, 1,033 acquisitions and 1,140 homes delivered through leasing programmes. When the Housing Assistance Payment and Rental Accommodation Scheme are added, 12,184 housing supports were delivered in the first three quarters of 2023.
Traditionally, the delivery of social housing by local authorities builds throughout the year and the bulk of delivery is achieved in Q4. This was the case in 2022 when 10,263 social homes were delivered (11.9% increase on 2021 figures) - the highest annual output of social homes in decades and the highest level of delivery of new-build housing since 1975. 
Minister O’Brien pointed out:
“The current social housing pipeline indicates that last year’s record will be exceeded this year. The latest Construction Status Report shows the social housing pipeline is strong, with over 23,600 homes either onsite or at design and tender stage at the end of Q3 2023. Indeed, during Quarter 3 2023, 160 new construction schemes - almost 2,200 new homes - were added to the pipeline.
“This delivery of social housing reflects the improvement in the overall housing sector, where 26,547 homes have been commenced in the first ten months of 2023 - a 16.6% increase on the same period last year. Furthermore, the latest CSO data on completions shows that that 22,443 new homes were completed in the first nine months, an 8.9 % increase on last year and the highest number of completions recorded for the first three quarters of any year since the CSO data series began in 2011.
“This week we had more great news as Housing Body Respond announced several new home-building construction projects in Dublin that will deliver over 2,900 new social and cost rental homes upon completion. I am also aware that there will be news shortly from the Land Development Agency regarding the delivery of significant numbers of new social and affordable homes.
“We have a gathering momentum in the delivery of homes – whether private, social or affordable – and we intend to keep our foot on the pedal throughout 2024 to build on this progress”
Affordable Housing
Today’s data from the Department also showed that to the end of Q3, over 2,000 affordable housing supports were delivered via Approved Housing Bodies, Local Authorities, the Land Development Agency (LDA), the Cost Rental Tenant-in-Situ (CRTiS) scheme and through the First Home Scheme. 
Over 2,500 First Home Scheme approvals have issued in the 15months since launch in July 2022, over 1,800 of which have been issued in 2023.
Following delivery of the first Affordable Purchase homes in a generation, made available in 2022, over 150 Local Authority Affordable Purchase homes have been delivered in the first three quarters of this year. 1,015 affordable purchase homes have been advertised to date by local authorities in Carlow, Cork City, Cork County, Fingal, Kildare, Meath, Limerick, South Dublin, Waterford, Westmeath and Wicklow. Just last month the Minister announced funding of €24m for 250 affordable purchase homes in Dublin alone.
These new affordable homes compliment the direct grants available for individuals and families to refurbish a vacant or derelict property. Up to €70,000 euro is available as a direct State support ensuring there are further options for those who wish to own their own home. 
To date, there are over 800 Cost Rental homes in the State delivered by Approved Housing Bodies (AHB’s), Local Authorities and the LDA. In addition, the Minister approved Cost Rental Equity Loan funding of €424m for Approved Housing Bodies which will support the delivery of over 1,650 new cost rental homes. 
Minister O’Brien added:
“A very ambitious programme of affordable housing is now in place. New Government measures such as the increased financial support for delivery of Cost Rental homes by Approved Housing Bodies and the new Secure Tenancy Affordable Rental scheme, aim to address viability challenges in the sector and activate uncommenced sites for the provision of affordable housing. This momentum will continue as the pipeline of affordable housing delivery is developed and expanded by local authorities, by AHBs and by the LDA.”

• The first liability date for RZLT will be deferred until 1 February 2025.
• All local authorities published final RZLT maps on 1 December 2023 in connection with the current phase of the mapping process.
• There will be a further opportunity for landowners to make submissions regarding the zoning of their land when draft maps are published by local authorities on 1 February 2024 as part of the 2024/25 annual mapping process, ahead of the initial liability date in 2025.

 
The Minister for Finance, Michael McGrath TD, and the Minister for Housing, Local Government and Heritage, Darragh O’Brien TD, have announced the deferral of the initial liability date for the Residential Zoned Land Tax (RZLT) by one year, from 1 February 2024 until 1 February 2025.
This deferral, announced as part of Budget 2024, will afford landowners an additional opportunity to submit requests for a change in the zoning of their land to local authorities in respect of the mapping process being undertaken as part of the 2024/25 annual mapping process, ahead of the initial liability date in 2025. 
The RZLT measure is an important component of the pathway to increasing new housing supply, contained in the Government’s Housing for All plan to 2030. 
The aim of the tax, which will apply from 2025 to relevant land at a rate of 3% of market value, is to activate appropriately zoned land for residential development throughout the country, rather than to raise revenue.
Speaking following the announcement of the deferral Minister McGrath said:
 “The extension of the initial liability date of the Residential Zoned Land Tax by a year is an important step to ensure fairness and transparency in the process of implementing the tax.
Ireland requires increased housing supply to meet our housing needs. The RZLT aims to incentivise landowners to activate existing zoned and serviced residential development land for housing on identified lands and lead to the building of more homes. The tax measure is a key pillar of the Government’s response to address the urgent need to increase housing supply in suitable locations. However, affected landowners should have another opportunity to engage with the mapping process before the tax comes into effect, especially considering the application of the tax to previously unaffected lands for the first time.  For these reasons, I have decided to defer the liability date to 1 February 2025.
The deferral will provide a further opportunity to landowners whose land will appear on the annual draft  map for 2025, to be published on 1 February 2024, to request the rezoning of such land from the local authority in whose functional area the land is situated." 
Commenting on the deferral of the initial liability date for the Residential Zoned Land Tax, Minister O’Brien said: 
“It’s estimated that only one-sixth of residentially zoned land is currently activated for housing during a local authority’s six-year Development Plan period. We need to see more suitable land which is serviced and available for housing unlocked for the delivery of homes and the RZLT is an important measure to ensure suitable land is brought forward for development. 
I wish to acknowledge the significant work put into publication of the draft, supplemental and final maps and provision of determinations to landowners by each local authority and An Bord Pleanála during 2022 and 2023. The publication of Final Maps on 01 December identifying the land in scope is an important step in the process of introducing this measure, a key action in Housing for All, aimed at increasing housing supply.
As a consequence of the deferral of the tax liability, landowners now have an additional opportunity to make submissions to their local authority, , if they consider that their land does not fall into the scope of the tax, or if they wish to seek the re-zoning of their land. 
Taken together with the planned Land Value Sharing initiative and reform of the planning system, the Government is ensuring an active approach to land management and that housing will be built more quickly.” 
Homeowners will not have to pay the Residential Zoned Land Tax if they own a dwelling which appears on the local authorities’ Residential Zoned Land Tax Maps, where the property is subject to the Local Property Tax (LPT).
More information on the RZLT can be found at www.gov.ie/rzlt

Scheme specifically targets Waste Water Collection and Treatment needs for villages and settlements without access to Public Waste Water Services
Clarinbridge, Craughwell, Ramsgrange, Broadford, Cooraclare, Beaufort and Ballygawley applications all successful
The Minister for Housing, Local Government and Heritage, Darragh O’Brien today (7 December 2023) announced the successful applications under a new funding scheme targeting the waste water collection and treatment needs of villages and settlements without access to public waste water services. The Minister received Government approval to progress with the scheme at Cabinet today.
The scheme is funded by a €50 million commitment under the National Development Plan (NDP) to 2025 and today’s announcement follows the completion of a review of villages and settlements that do not have access to public waste water infrastructure.
Commenting Minister O’Brien said:
“This Government have committed, through the NDP, to support the proportionate growth of rural towns and villages. We absolutely understand the need for balanced regional investment and growth throughout the country and the importance of equitable rural investment.
“As well as that we are extremely conscious of the risks arising from inappropriate waste water treatment infrastructure both to public health and indeed the environment.
“That’s why I am making the announcement today that the villages of Clarinbridge and Craughwell in Co. Galway, Ramsgrange in Co. Wexford, Broadford and Cooraclare in Co. Clare, Beaufort in Co. Kerry and Ballygawley in Co. Sligo will all proceed to funding stage subject to engagement and agreement with the relevant with Local Authority.
“Having visited many of these villages, I acknowledge and greatly appreciate the work of the local communities in campaigning for these facilities.”