Minister Browne Urges Engagement on Cost-Rental Project Viability After Cabra Collapse
Minister James Browne is urging housing bodies with financially challenged cost-rental projects to engage with his department. This follows Clúid converting a 140-apartment Cabra project to social housing due to unviability. Browne seeks to ensure the success of cost-rental schemes, which provide affordable housing for those above social housing thresholds.
Minister for Housing James Browne is urging housing bodies facing financial difficulties with cost-rental projects to engage with his department to ensure scheme viability. This follows the recent collapse of a north Dublin cost-rental project deemed financially «unviable».
Housing association Clúid scrapped the cost-rental element of over 140 apartments in Cabra, converting the development to 100 per cent social housing. Clúid stated rising maintenance costs made it impossible to deliver these as cost-rental homes with rents 25 per cent below market rate.
Browne emphasized a «very significant pipeline» of cost-rental projects, designed for workers earning too much for social housing but unable to afford private market rents. He stressed that housing bodies with project issues should consult the Department of Housing to resolve challenges and ensure viability.
Browne spoke at an event marking the start of construction for 578 cost-rental and social housing apartments at the former St Michael’s estate in Inchicore. This is Dublin City Council’s only direct cost-rental scheme, funded by a €132.5 million loan. Apartments are expected to cost up to €450,500 each to build, while the government provides only a €150,000 grant per home. Browne expressed a desire for more local authority-led cost-rental schemes.