DARRAGH O'BRIEN TD
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Parliamentary Questions

Home Building Finance Ireland

26/3/2019

 
QUESTION

To ask the Minister for Finance his plans to task Home Building Finance Ireland with an expanded remit to issues loans to owner management companies to cover remedial building costs; and if he will make a statement on the matter.

REPLY

In the first instance I would like to acknowledge the stressful circumstances which the owners and residents of buildings face when defects occur in their homes.

HBFI was established late last year as a supply based measure to help address as shortage of new housing in the State. I have always been clear that HBFI was to be established on a commercial basis and that its activities would comply with State aid rules. Any funding provided by HBFI will be backed by appropriate security and normal banking terms and conditions will apply. Any deviation from this structure could give rise to State aid issues and may impact the expected balance sheet treatment of HBFI's activities.

While there is nothing contained in the Home Building Finance Ireland Act 2018 that excludes loans to owner management companies to cover remedial building costs, the Act requires that HBFI lend on commercial terms. The commerciality of funding such remediation is risky from two perspectives:
  1. The projected costs of such projects can often exceed the estimates once the ‘opening up’ works are undertaken due to the discovery of other issues which were not evident or identified during the investigation work.
  2. Management Companies do not generally have the ability to provide security for the sums being borrowed.

Based on the high level of risk that would pertain to such lending, it may not be considered commercial in many cases and could put HBFI in breach of its commercial remit.

HBFI will examine each application received on its own merits and particular circumstances. It is a matter for HBFI to assess and, if thought appropriate, issue a term sheet having regard to State aid rules and its commercial responsibilities.

I am advised by HBFI that only a very small number of calls and emails have been received in relation to this type of funding to date and that none of these enquiries have progressed to a full application at this time

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Darragh O'Brien TD


Address

Darragh O'Brien TD
Leinster House
Kildare Street
Dublin 2

Telephone

T:  01-6183802

Email

At present, and as a result of the COVID-19 pandemic, I am not holding my regular meetings across our towns and villages in North County Dublin. However, both I and my office are happy to speak to you and assist you with any issues you may have.

For all housing, planning or heritage related queries please don’t hesitate to contact:
Email: minister@housing.gov.ie
Phone: 01-8882000
Postal address: Department of Housing, Local Government and Heritage, Custom House, Dublin 1, D01 W6X0
 
For all constituency related queries please don’t hesitate to contact:
Email: Darragh.obrien@oireachtas.ie
Phone: 01-6183802
Postal address: Dáil Éireann, Leinster House, Kildare Street, Dublin 2.
 



  • HOME
  • About Darragh
  • News
  • Parliamentary Questions
    • Housing, Planning & Local Government PQ's
    • School PQs
    • Foreign Affairs PQS
    • Oral Questions
  • Newsletters
  • Videos
  • PHOTOS
  • FIANNA FAIL
  • CONTACT
  • DATA Protection Statement