Housing Minister announces details of €750 million cost-rental scheme

By Cillian Sherlock, PA

Builders could get up to €200,000 euros per cost-rental home as part of a new Government scheme to deliver more than 4,000 units by 2027.

The €750 million Secure Tenancy Affordable Rental (STAR) investment scheme is designed to stimulate the creation of cost-rental accommodation by providing equity to address viability challenges for developers.

Private providers and approved housing bodies can apply for the funding if they designate the homes as cost rental for 50 years.

A maximum of €175,000 will apply under the standard STAR scheme for areas of Dublin and €150,000 in the rest of the country.

However, a further €25,000 will be available if the housing meets sustainable development criteria.

At the end of the 50 years, operators can extend the agreement for an agreed period with the dwellings remaining in cost-rental usage, make a repayment to the State and exit cost-rental designation, or the State can purchase the homes at market value, taking account of its investment.

Minister for Housing Darragh O’Brien said the Government is making “record investment” in delivering homes.

“We are using every tool at our disposal to activate sites and to boost the construction of new homes at scale,” he said.

The Government also announced increased income thresholds for cost-rental homes, with net household income limits for eligibility of 66,000 euros in Dublin and 59,000 euros elsewhere.

The new threshold replaces the former national net income limit of 53,000 euros in August.