It was announced today that Home Building Finance Ireland (HBFI), the new State lender for small and medium sized builders/developers, has opened for business today with an initial €750 million to fund the delivery of up to 7,500 new homes over the next 5 years.
HBFI will have €750 million available from the Ireland Strategic Investment Fund (ISIF) but has the ability to raise further funds on the market if needed.
All HBFI lending will be on commercial market terms, with interest rates charged reflecting the market, the credit risk of each particular project, the quality of collateral, the creditworthiness of the borrower and their track record in the delivery of residential development projects.
Loan durations will be up to 5 years with loans of up to €35m for any single development. The minimum development size will be 10 units. Sites must have planning permission or a lodged planning application.
Minister for Housing, Planning and Local Government, Eoghan Murphy said, "There are no easy solutions to the housing crisis but this targeted measure in the creation of HBFI will have a real and tangible impact in addressing one of the underlying problems in the market today. It will build on the progress already made in boosting supply. It is a very significant step and restores another once broken part of our housing sector in a sustainable way."
HBFI Project Lead, Michael Broderick added, "We are ready with an experienced team of specialist residential lending managers to lend to quality projects that can help address Ireland’s housing shortage. We are actively targeting the existing gap in the market that has made it hard for small and medium sized builders/developers and we plan to facilitate this market segment in growing substantially over the next 5 years and beyond."