Ireland's first cost rental housing scheme has been approved in principal according to the Minister for Housing Darragh O'Brien.
Approved Housing Bodies (AHB) Clúid, Respond and Tuath were given the green light to deliver 390 homes under the new scheme which will offer rents of at least 25 per cent below market value according to The Irish Times.
The scheme will allow AHB landlords to offer reduced rents to cover costs, while tenants rent will cover the cost of delivery, managing and maintaining of the site.
A budget of €35 million had been made available to the scheme as part of Budget 2021, under the overall €468 million allocation for affordable housing measures.
Mr O'Brien previously said 350 homes would be provided by the end of 2021 under the scheme, however today's announcement shows an increase on the original figure.
The developments will be spread across Dublin, the greater Dublin area, and Cork, including 50 homes at Enniskerry Road in Dun Laoghaire-Rathdown which are expected to be finished before the end of the year.
The locations of other developments under the scheme will be published on completion of commercial and contractual arrangements according to a statement from the Department of Housing.
Mr O'Brien added the scheme will be "placed on a statutory footing" through the Affordable Housing Bill 2020.
Commenting on the news, the AHB Respond has said they were "very pleased to be selected for participation" adding the announcement represents a "new departure in the delivery of housing in Ireland".
Spokesperson for Respond, Niamh Randall said: "For some time, Respond have been advocating to have this gap addressed to provide housing for those who don’t qualify for social housing, won’t be able to afford a mortgage and yet cannot afford market rents.
"We have called for a sustainable and replicable model, and we very much welcome Minister Darragh O’Brien’s announcement today."
