Apartments make social housing list via NAMA

NAMA has delivered on its “social dividend” promise by providing social housing in a top-end Dublin development through the Clúid Housing Association.

The project consists of 58 one- and two-bedroom apartments in a block of the Beacon South Quarter Development at Sandyford.

Twenty-four apartments will be provided for private housing, with the remaining 34 used as social housing.

The apartments were purchased through NAMA for €10.3 million — an average cost of €177,500 per unit. A two-bedroom apartment in the complex is currently being advertised for almost €250,000.

Clúid becomes the first voluntary body to strike such a deal with the Department of the Environment, and also the first to raise finance though the state’s Housing Finance Agency.

Clúid’s loan from the agency will cover 75% of the purchase price, while the remaining 25% is being funded from Clúid resources and the Capital Advance Leasing Facility, which supports the acquisition or development of new homes using funding from private financial institutions.

The deal is the culmination of months of negotiations between the Housing Minister, Willie Penrose, and all involved parties.

A spokesperson for the department said now that there is a model, officials will be urgently looking for similar arrangements with other voluntary bodies.

Clúid director of operations Neil Bolton said the deal represents a sea change in how social housing will be funded in Ireland.

“The recession has forced us to explore different ways to fund the delivery of new social housing. Public funds are extremely scarce, but demand for social housing continues to grow,” he said.