EIB backs record €405m Irish social housing investment programme
2nd March, 2017
European Investment Bank backs record EUR 405 million Irish social housing investment programme
The European Investment Bank today (2nd March, 2017) confirmed support for record new investment in social housing totaling EUR 405 million that will construct and improve thousands of properties across Ireland. It is expected that 1,400 new homes will be built and more than 700 properties upgraded in Dublin and across the country under the new initiative jointly financed with the Housing Finance Agency.
The largest ever European Investment Bank support for social housing in Ireland was formally announced during a visit to the recently completed Túath development at Thornwood, Beaumont in Dublin by Simon Coveney, T.D., Minister for Housing, Planning, Community and Local Government, Andrew McDowell, Vice President of the European Investment Bank and Barry O’Leary, Chief Executive Officer of the Housing Finance Agency.
Using funding from a previous HFA and EIB social housing initiative agreed two years ago, housing association Túath has constructed 68 new energy efficient homes, comprising both apartments and houses, at the Thornwood site.
Commenting at the event, the Minister for the Housing, Planning Community and Local Government Simon Coveney T.D. said, “I welcome the announcement of this record investment package by the European Investment Bank in social housing in Ireland, which I have been able to facilitate as Minister. Over 1,400 families will have a new home as a result. A further 700 householders will see their properties upgraded. The financial package will provide additional employment and support local construction suppliers. We are seeing a vital economic and social investment of €405 million.
This initiative represents a significant combined effort from a number of critical partners in addressing what is the biggest social policy challenge we are currently facing as a country. It brings together the European Investment Bank, the Housing Finance Agency, Approved Housing Bodies, local authorities and the construction sector. In these times of almost unprecedented demand for housing, this new funding mechanism shows a flexibility and imagination in delivering new and improved social housing.
It has become a prevailing narrative in some public discourse in recent times to question our European institutions. The European Investment Bank is owned by the Member States of the European Union, including Ireland. This investment package provides a clear demonstration of the relevance and adaptability of our European institutions in meeting the specific challenges that Ireland is currently facing to increase social housing supply”.
“The European Investment Bank is pleased to confirm our largest ever backing for social housing investment in Ireland that demonstrates our firm commitment to supporting transformational investment to increase the number of affordable homes and cut heating bills in existing properties across Europe. The ongoing partnership with HFA has already benefited thousands of families, as well as construction firms and suppliers here in Dublin and across the country. Reflecting the hard work of colleagues at HFA, government departments and leading housing associations such as Túath, Ireland now represents the fourth largest recipient of long-term low-cost EIB financing for social housing anywhere in Europe.” confirmed Andrew McDowell, Vice President of the European Investment Bank.
Barry O’Leary, Chief Executive Officer of the Housing Finance Agency, welcomed the second Finance Contract, saying that “following the success of our previous agreement, which is now fully committed towards financing new social housing projects, I am very pleased to continue our close working relationship with the EIB. This significant new funding will help us support the ongoing strong momentum in new activity seen in 2016 and enable the continued provision of excellent value long term fixed rate funding to approved housing bodies and local authorities.”
Under the new initiative EUR 200 million of new financing from the European Investment Bank will be matched by the Housing Finance Agency to provide EUR 405 million for new lending to support investment by Approved Housing Bodies to upgrade social housing and improve energy efficiency.
By accessing EIB funding the Housing Finance Agency will be able to offer Approved Housing Bodies long-term finance at competitive rates. The new social housing investment scheme is supported by a guarantee from the Minister of Finance.
Reflecting the increased engagement by Europe’s long-term lending institution in Ireland, later this month the European Investment Bank will host a workshop with housing finance experts from across the country to exchange ideas on how to enable increased off-balance sheet financing for social and affordable housing. This represents the first sector focused engagement under a new initiative to increase engagement with government departments and key stakeholders to strengthen support for crucial investment across key sectors.
The European Investment Bank also confirmed expected future lending for social housing investment under a dedicated PPP financing structure to be announced in the coming months. This will enable international investors to back construction of social housing in the country for the first time.
The new EUR 405 million initiative announced today follows a EUR 300 million social housing lending programme agreed between the European Investment Bank and the Housing Finance Agency in December 2014. This supported construction of 1,302 new homes and retrofitting at 550 properties by eight different Approved Housing Bodies. Projects backed by the 2014 programme were located in Dublin, as well as Wexford, Louth, Meath, Waterford, Cork, Kildare and Galway.
Since 1973 the European Investment Bank has provided more than EUR 15 billion for investment to improve public services, key infrastructure and unlock new opportunities for Irish companies across the country.
The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals
GALWAY ON THE DOUBLE
Minister Simon Coveney visits new Túath Galway City homes
Knocknacarra and Roscam Part V social housing & new Túath office news
Minister Coveney was on hand to welcome new tenants to Túath’s first houses under Part V planning requirements in the Maoilin development at Knocknacarra to the west of the city. Minister Coveney then went on to inspect progress at Reilean to the east of the city at Roscam where O’Malley’s Ltd are building out a high quality scheme of over 100 homes with fabulous views over Galway Bay. Twenty four of the new homes will come on stream for social housing before Easter. The Minister was joined by Brendan McGrath, CEO Galway City Council, Noel Larkin, Mayor of Galway City and local TD, Deputy Hildegarde Naughton amongst others.
Blended funding of CALF from the Department and long-term loan finance through the Housing Finance Agency and European Investment Bank is being utilised for Túath’s acquisition at a total cost of €5.5M for both schemes.
As part of Túath’s continuing expansion the association is opening a new office in Galway City centre, and are recruiting to four new permanent positions for it. The office will serve Túath’s western based tenants, including those in parts of the Midlands.
TÚATH OUT OF THE BLOCKS FOR 2017
Abbot Court, Cualanor
Túath have recently secured the acquisition of 52 new homes in Dún Laoghaire in partnership with NAMA, Dún Laoghaire Rathdown County Council and the Department of Housing, Planning, Community and Local Government via the NARPS leasing initiative.
These homes represent the first phase of three to close and a total of 124 properties all to be completed and occupied before the end of April 2017. The acquisition of these properties fulfils the developer’s; Cosgrave Developments, Part V obligation with the Council. Residents are due to move into the first phase of apartments all of which are fully furnished to a turnkey standard over the next week.
Túath are delighted to have completed the purchase of the last 8 homes in Thornwood from developers Grandbrind. The final phase of apartments and duplexes were completed in February and bring a total of 68 homes into management within this development. Having commenced on site in January 2016, all 68 homes have been acquired by Túath within a 13 month timeframe across 9 phases.
These A3 rated homes, comprised of 46 x 3 and 4-bedroom houses and 22 x 2 and 3-bedroom apartments and duplexes, were finished to an exceptionally high standard both internally and externally.
The final phase will be allocated to priority persons from Dublin City Council’s social housing waiting list in the coming weeks. These homes are very much welcomed due to the small number of social homes in this area, which is fewer than 2% of the overall housing stock.
Túath would like to thank all partners involved in this project including Dublin City Council, the Department of Housing, Planning, Community and Local Government, the Housing Agency, the Housing Finance Agency and Grandbrind.
Following the recent opening of our regional office in Galway city, we are delighted to announce the acquisition of the first units in Maoilin on the Ballymoneen Road. With the regional expansion, Maoilin is the first of a number of projects in partnership with Galway City Council.
Maoilin consists of 73 houses, of which Túath have agreed to acquire 6 from Galway based developers Burkeway Homes. These homes are earmarked for social housing under Part V of the Planning and Development Act. Galway City Council agreed the Part V figures directly with Burkeway Homes, with Túath fulfilling the council’s obligation to acquire the homes and provide social housing.
These 6 homes are all 2-bedroom terraced houses and have an A3 BER rating, gas fired central heating and fitted kitchens.
The properties were acquired using CALF funding from the Department of Housing, Planning, Community and Local Government and private finance from the Housing Finance Agency via the European Investment Bank. We thank all stakeholders, including Galway City Council and the Housing Agency, for their support with this project.
Castlemanor Retirement Village, Drumalee, Cavan
We are delighted to complete the acquisition of a further 20 homes in Castlemanor Retirement Village bringing our total number of homes owned here to 30.
These 20 homes will offer secure comfortable living for those in need of a home in the over 55 years category for which they were purposely developed.
All tenants for these homes have been nominated by Cavan County Council from their housing list.
We look forward to these tenants moving in over the next few weeks. We trust they will love their new homes as they are presented to the highest standard and form part of the Castlemanor Retirement Village community.
We would like to thank both Cavan County Council and the DHPCLG for their help in bringing this scheme to fruition. All 20 homes were funded via the Capital Assisted Scheme (CAS).
Power to Paddy!
Professor Paddy Gray voted No1 Housing Power Player in Ireland and the UK.
Congratulations to Professor Paddy Gray on being voted the No1 Housing Power Player in the UK and Ireland. 24 Housing is an influential housing focused monthly magazine which annually invites the public to vote for the most influential person in housing today via an on line poll. The results of the poll were recently published in their list of Top 50 Power Players from around the UK and Ireland. Paddy was Professor of Housing at the University of Ulster and President of the Chartered Institute of Housing and is a voluntary Director on the Boards of Túath and Threshold. Paddy is a regular contributor to housing debates internationally via social media, publications and conferences.
Every year the shortlisted nominations for the annual Chartered Institute of Housing (CIH) Awards are revealed in January and this year Túath are thrilled to announce that we have been nominated for three of the prestigious all Ireland housing awards. These categories include: More thank Bricks and Mortar, Sustainable Development and Working Together.
Sustainable Development nomination: Honeypark is a mixed tenure development located in Dún Laoghaire. Túath have already purchased 61 apartments and manage 19 additional units on a 30 year lease within the development. Túath are now working with NAMA to lease 124 additional units on the Cualanor section of the site through the NARPS vehicle. Cosgraves, the developers were named Winner of the Building Award at the sustainable energy awards, Community Benefit Project of the year, and overall winner of Irelands most prestigious SEAI Environment Award for sustainability.
Working Together nomination: The development at Tallaght Cross highlights the work of many key stakeholders including Túath, Dublin Regional Homeless Executive, South Dublin County Council, NAMA, and Focus Ireland who worked tirelessly together in order to deliver sixty five much needed transitional homes in Tallaght, Dublin. The homes are exclusively let to families coming from hotels and B&B’s from the Dublin region. The high specification apartments are located on Tallaght Square, and came fully furnished in turnkey condition.
Túath representatives will be in attendance at the CIH Annual Awards which are due to be held at Titanic Belfast on the 24th February 2017. We very much look forward to hearing about all the shortlisted projects and initiatives for this years awards.
Town and Country
Túath have surpassed the 500 homes mark with the delivery of 565 social homes in 2016 throughout the country in collaboration with 21 local authorities.
The provision of homes nationally ranged from second hand bungalows for the elderly in Cavan to high end city centre apartments in Dublin Docklands, both purchased from receivers.
€72 million was spent in acquiring the new homes using State funding and private finance from the Housing Finance Agency (HFA) and the European Investment Bank (EIB). The homes provided were for families, elderly, single people, the disabled, the homeless and a number of homeowners unable to maintain their mortgages.
Long Term Homes Secured
In addition the association secured more than 100 homes occupied by tenants who faced eviction as receivers were in the process of selling homes on the open market. Túath, in collaboration with local authorities, intervened and acquired these properties using a combination of funding from the State and the Housing Finance Agency (HFA).
Sean O’Connor- CEO said that “Túath would seek to deliver even more social homes in 2017 and the years ahead through innovation and collaboration with the private and public sectors. It is essential that ordinary working class people who cannot provide for themselves in the open market are given hope that they will be able to secure a place they really can call home”.
New Homes for January 2017 – Dublin Docklands
Clonsilla, West Dublin
Beaumont, North Dublin
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Túath we would like to congratulate the residents for achieving the Coveted No.1 slot in “Best Overall Housing Estate in County Louth” for 2 years running 2015 & 2016.
Autumn has brought the welcome delivery of thirty new homes in Harbour Heights, Passage West, County Cork in partnership with NAMA and Cork County Council. The scheme provides quality homes in a mixed tenure setting development in a popular area with high customer demand.
The development consists of a mix of apartments and duplexes which have been finished to an extremely high, turnkey standard. The homes are currently being let with the first of new tenants already moved in.