It was announced yesterday that the European Investment Bank has confirmed support for record new investment in social housing totalling 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.
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.
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.
Speaking yesterday, Vice President of the European Investment Bank, Andrew McDowell said, "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."
Minister for the Housing, Planning Community and Local Government, Simon Coveney added, “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.
Source: www.busunessworld.ie
