Affordable Cost Rental Homes - Parag Joglekar, Head of Development 10th November 2020 - House Building Summit

Affordable Cost Rental Homes

  Parag Joglekar, Head of Development

           10th November 2020

This Presentation
• About Approved Housing Bodies.
•About Respond.
•Affordable Cost Rental.
•Enniskerry Road.
•Budget 2021 & CRELF.
•Some of our developments

About Approved Housing Bodies (AHBs)
•Approved Housing Bodies
(AHBs) are not-for-profit
organisations that have a
social purpose to provide for
people’s housing needs by
working in close co-operation
with the Government, local
authorities & relevant
agencies.

Delivery by Approved Housing Bodies (AHB)
•AHBs:- A third of Rebuilding Ireland housing delivery targets.

•Housing Crisis has not gone away.

•A home as a safe place during Covid 19 for everyone, especially
people currently homeless.

•Collaborating with statutory partners to maintain delivery during Covid.

Responds Activity & How It Fits With This
•Core principle for Respond: Adding to the national housing stock

•Commissioning the construction of additional homes.

•Additional homes that wouldn’t otherwise be built.

Delivering Homes & Communities
Respond model:

•84 Community Buildings.
•17 Early Education and Childcare Centres.
•6 Homeless Services with intensive wrap-around support 24/7.
•3 Day Care centres for elderly with high support needs.
•4 Refugee Resettlement Services for Local Authorities.
•Extensive Housing Management Services in 26 counties.
•8m maintenance programme per annum.
•20m deep retrofit energy upgrade programme over last 4 years.

Development Team
•In-house multi-disciplinary development
team

•Which includes:
✔Registered Architects
✔Quantity Surveyors
✔Planners, Project Managers.
✔Clerk of Works
✔Technicians.

Development Team

About Affordable Cost Rental
•Many people do not qualify for social housing and will never be able to
afford to purchase their own home and are struggling with the high rents
in the Private Rental Sector.

•Internationally two approaches have been taken:
✔Cost rental housing where the rents are calculated based on the input costs
✔Affordable rental which seeks to set rents below market rent where tenants pay a
  lower percentage of their income.

Enniskerry Road
The scheme is being delivered by:
1.   Respond and Túath (owners and scheme operators).
2.   Department of Housing, Local Government & Heritage (CALF
     funding).
3.   Dun Laoghaire Rathdown County Council.
4.   Housing Agency (land, control over cost rents).
5.   Housing Finance Agency (long-term private finance).

How it Will Work

                              Debt
Provision      Cost         Servicing
   of           of                       Rents
  Sites     Construction   Management
                                &
                           Maintenance

155 homes, Enniskerry, Dublin

Scheme Details
•Enniskerry Road Pathfinder Project provides for the construction of155
 homes; 50 Cost Rental homes & 105 social homes.
•Tenants will pay €1,200 per month for 2-bed apartments.
•Significant reduction compared to market rents for 2 bed apts. in this area.
•Cost rent will change over time according to movements in general
consumer inflation which should mean predictable rents for tenants.

155 homes, Enniskerry, Dublin

Rents
Rents must make provision for:
1. Repaying the loan taken out to pay for the provision of the homes
   (construction costs, fees etc.)

2. Ongoing management & maintenance costs including;
   – Insurance & maintenance
   – Long-term replacement of building items such as roof finishes,
      windows, lifts etc.

Security of Tenure
• These Cost Rental properties at
  Enniskerry Road must be retained &
  managed as such for at least 70 years.
• Homes will be professionally managed
  by Respond & Tuath
• Tenancies will fall under remit of the
  Residential Tenancy Acts.

                                           Site Layout Map

Budget 2021
CRELF
New Cost Rental Equity Loan Facility (CRELF) of €35m will
allow AHBs to borrow up to 30% of the cost of Cost Rental
homes from the State, meaning the delivery of homes at
significantly below market rents.

Significance
•First time Irish Govt. have introduced a funding scheme to finance the
provision of affordable cost rental homes.
•Respond advocating for some time for a sustainable & replicable model.
•Has the potential to transform the Irish housing landscape.
•Providing a new housing tenure in addition to social, private rental &
private purchase.
•If successful could achieve, the long sought goal of, integrated
communities & neighbourhoods.

55 homes Northwood, Santry, Dublin 9

Thank You
        for
    listening

@respondhousing