Clúid Housing opens tenancy applications for the first cost rental homes in Cork

Clúid Housing opens tenancy applications for the first cost rental homes in Cork

The 73 new cost rental homes – the first in Co. Cork – are a mix of one-, two-bedroom apartments, located in Lancaster Gate, Cork City. Under the Government’s Cost Rental Scheme, rents are targeted at a minimum of 25% below open market value, with prices for Lancaster Gate homes starting at €990 per month – approx. 45% below local market rates. Residents will also be provided with long-term security of tenure. Applications officially open on www.clúid.ie on Tuesday 19th July 2022, with the first homes available to move into in October 2022. The apartments, developed by O’Callaghan Properties, will form part of the already popular Lancaster Gate development, located on the banks of the River Lee.

Cost Rental – a new form of tenure
Cost rental is a new form of tenure in Ireland, whereby residents pay rents that are solely based on the cost to build, manage, and maintain the homes. €70m was allocated in Budget 2022 for the delivery of 700 Cost Rental homes by Approved Housing Bodies (AHBs), through the Cost Rental Equity Loan (CREL) mechanism. A target to deliver an average of 2,000 cost rental homes per year was included in ‘Housing for All’, Government’s housing plan for Ireland over the next 8 years. Under the Affordable Housing Act 2021, the Cost Rental Scheme will enable Clúid to set rents for this development in Cork City as per the below:

• • 1 bed apartment- €990 per calendar month
• • 2 bed apartment- € 1,100 per calendar month

Today’s announcement follows on from Clúid’s launch of cost rental schemes in Dublin and Kildare – the first in those counties.

Location and amenities
The Lancaster Gate homes are conveniently located in Cork City, they have the benefit of all the amenities offered by the city. The city centre, with its array of shops, bars and restaurants, is only a few minutes’ walk away. The development is also close to a number of schools, University College Cork, and the Mercy University Hospital.

The A-rated, energy efficient properties are semi-furnished, allowing tenants to furnish their homes to their own taste. Each home includes white goods, including a fridge freezer, a dishwasher, an oven and hob, a microwave, and a washer dryer as standard. Roller blinds are supplied including blackout blinds in bedrooms, in addition to laminate flooring throughout, and tiled bathrooms.

Eligibility
Applications open on Tuesday 19th July and close on Tuesday 26th July. To apply for the cost rental homes, applicants are obliged to provide evidence of the following eligibility criteria:

• • Net household income is below €53,000 per annum
• • Not in receipt of any social housing supports (including Rent Supplement or HAP)
• • Do not own a property
• • Household size matches the size of the property advertised (All members of the household must be living in Ireland at time of applying.)
• • Applicants can afford to pay the cost rent for the home
• • Household has only entered one application for a specific cost rental property

Should more applications be received than properties available, completed applications will be selected at random. The random selection system is automated and auditable, to ensure a fair application process for all.

Financing of up to €100
Clúid was one of three AHBs selected (along with Respond and Túath) to deliver the first cost rental homes in Ireland, as part of a competitive assessment process. The Cost Rental Scheme is administered by the Housing Agency, on behalf of the Department of Housing, Local Government and Heritage. The Housing Agency oversee the administration of the loan arrangements, including the drafting of the agreement for the Cost Rental Equity Loan (CREL) to fund the purchase of each property. The Housing Finance Agency (HFA) has also made financing of up to €100m available to support the delivery of cost rental homes. These 73 new homes are being purchased by Clúid Housing from homebuilder O’Callaghan Properties.

Fiona Cormican, Clúid Housing’s Director of New Business, commented
“We are delighted that Cork City’s first cost rental homes are open for application from today. These stunning new apartments will provide residents with high-quality, affordable homes in the heart of the city.

With rents of around 45% below market rates, these new homes here in Lancaster Gate offer excellent quality, long-term, secure rental options for middle income households and those struggling to rent on the open market.

We have worked with a range of partners to deliver this new development in Lancaster Gate, including the Department of Housing, Local Government and Heritage, the Housing Agency, the Housing Finance Agency, Cork City Council and O’Callaghan Properties. We hope these cost rental homes will be the first of many in Cork City and provide greater choice in the housing sector.

We are proud to have been the first AHB to deliver cost rental homes in Ireland and we are ready to assist the Government in achieving their target of 2,000 cost rental homes per year and 18,000 by 2030 as set out in Housing for All.”

For more, visit www.cluid.ie/cost-rental/

ENDS

Notes to the Editor:
Fiona O’Connor – Communications Manager – Clúid Housing
+353 87 113 5411 – foconnor@cluid.ie

About Clúid Housing
Established in 1994, Clúid Housing is an independent, not-for-profit charity. Clúid is one of the largest approved housing bodies (AHBs) in Ireland with over 9,000 social and cost rental properties in management. Clúid leads the way in delivering affordable housing solutions to those on local authority housing lists and to middle income households. Our team of over 280 professional employees are committed to providing quality housing and services that enable people to create homes and thriving communities. For more information visit www.cluid.ie