Housing body could deliver 4k social and cost rental homes

Homes in the 32-unit cost rental development in Ballinglanna, near Glanmire, Cork, developed by Respond.
Housing body Respond said it could triple the number of social and cost rental homes it is building once it gets clarity on a new State funding initiative.
The approved housing body (AHB), which has almost 1,400 social housing units in construction, said it could ramp that up to 4,100 over the coming months, and deliver 900 units by Christmas 2024, once it gets details on how the Stateâs new Cost Rental Equity Loan (CREL) initiative will treat "exceptional costs' that may arise during the delivery of large housing projects.
The Government announced a number of changes to the CREL initiative in a bid to fast-track the delivery of cost rental homes â a new tenure type in Ireland aimed at providing affordable rental options to people who do not qualify for social housing but who often struggle to afford market-rate rents.
Crucially, it will see State funding for cost rental homes increasing from 45% up to 55% of capital costs, on a sliding scale as necessary for viability at appropriate rent levels, and faster funding drawdowns to support housing bodies like Respond to âforward-fundâ construction projects.â
85% of the homes Respond delivers are developed by Respond. They operate a 'construction led' model.Â
They need these additional Gov commitments because given the are involved in construction they are exposed to risks during the construction period.

Respond spokesperson Niamh Randall welcomed the changes and said the AHB, supported by local authorities, has secured fixed-price contracts with major developers and construction firms and is poised to ramp up its social and cost rental housing output.
But she said they must ensure the actual costs of delivery are fully covered and all risks are managed.
âAs a not-for-profit AHB and service provider, we must continue to fulfil our obligations to our existing tenants and service users,â she said.
She said headroom to cover such exceptional costs has been built into another social housing funding scheme, the Capital Advanced Leasing Facility â costs which must be verified by quantity surveyors before being covered.
Ms Randall said they await more detail on how CREL will operate and treat similar exceptional costs that may arise during the construction of cost rental homes.
âWe have been working in the background on this for some time,â she said.
âThe changes look very promising and we are looking forward to receiving more detail.
"We could triple the number of social and cost rental homes we have in construction up to 4,100, subject to greater clarity and the workability of the new scheme.
âPeople urgently need the security of a place to call home. They donât have the time to wait.Â
âWe are poised and ready to move on this immediately, subject to details being finalised.âÂ
Respond has developed a number of cost rental projects in Cork, including a 32-home development in Ballinglanna, near Glanmire.