Cork City Council to fast-track affordable homes at €80K below market value
Cork City Council's assistant chief executive Brian Geaney said there was a critical need to deliver affordable homes for eligible applicants, a need which will only increase as the city’s population grows.
A €40m bridging loan has been approved by Cork’s city councillors to fast-track the delivery of hundreds of affordable homes.
The finance could help reduce the net sale price of a €300,000 home by about €80,000 for house buyers in the “squeezed middle” – those who earn too much to qualify for social housing but who don’t earn enough to secure a mortgage.
It will be used to fund land acquisition, provide enabling infrastructure on key sites and to provide stage funding to certain contractors, subject to certain conditions.
The city’s assistant chief executive Brian Geaney said there was a critical need to deliver affordable homes for eligible applicants, a need which will only increase as the city’s population grows.
He said while the council has made significant progress in the delivery of social housing in recent years, it now wants to accelerate the delivery of affordable housing.
“The rolling bridging facility will be ring-fenced for this purpose only and will be repaid and replenished by income from home sales and various Government affordable housing supports, as schemes progress," he said.
“It is an ambitious but responsible approach to the need to deliver more affordable housing."
The Fianna Fáil group’s leader on council, Cllr Seán Martin, proposed the motion several months ago, suggesting a loan facility be considered.
His party colleague, Cllr Colm Kelleher, said the facility would enable the council to get out of the traps fast when national legislation is enacted and he criticised Sinn Féin for supporting the loan facility while at the same time suggesting they would consider the matter on a case-by-case basis.
“You’re terrified we’re going to sort the housing crisis and then you’ll have nothing to give out about,” he said.
Solidarity councillor Fiona Ryan pointed to soaring rents and growing numbers of people in their 20s who are still living with their parents.
“The reality is we are treating the symptom and not the disease. It’s only a drop in the ocean of what’s necessary,” she said.
About 276 affordable housing units are in the pipeline, including 116 units at a site on the Boherboy Road which is already under construction; 27 units in a scheme in Montenotte which was due to start before lockdown; 35 units in a scheme on Hawke’s Rd in Bishopstown, due to start construction this year; and 17 units by O’Cualann Housing on a site in Knocknaheeny.
CONNECT WITH US TODAY
Be the first to know the latest news and updates
