The Local Infrastructure Housing Activation Fund (LIHAF) is part of the Rebuilding Ireland Programme. Announced last July and approved on the 28th March 2017. The fund totals €226 million and will be used to improve Ireland’s strategic infrastructure and increase the number of houses. It is hoped the fund will lead to the development of 23,000 new homes by 2021. Purpose of the Fund The objective of the fund is to provide the public with modern infrastructure to relieve current critical infrastructure blockages, thereby accelerating the delivery of houses in key urban areas currently experiencing housing shortages. Local public infrastructure such as access roads and public services had been previously being paid for by local authorities from revenues received from local development projects. These costs were in turn passed on to the purchase price of the property. The serious decline in housing development since 2008 meant that local authorities no longer have the resources to fund the provision of local public infrastructure. Leading to a serious deterioration in local public infrastructure. How Many Proposals Have Been Approved and what is the Cost Over 34 proposals have been granted across 15 local authorities. The total cost of the project is €226.46 million of which €169.65 million is to be funded by the exchequer, and the remaining balance of €56.81 million will be funded by local authorities. Half of the funding will be provided to Dublin, a total of €113 million and its 4 local authorities. Cherrywood alone is expected to receive €15.9 million in funding for 8,000 planned new homes. Cork city and county councils will be receiving €46 million, with the remaining €67million to be divided among the rest of the country How Many Additional Housing Units will be Provided The fund has the potential to deliver 23,000 houses across the country by 2021. These houses are to be apportioned nationwide as follows:

1. Dublin Area – 14,000 additional units will hope to be provided by 2021.
2. Cork Area – 3,000 additional units will hope to be provided by 2021.
3. Rest of the Country – 6,000 additional units will hope to be provided by 2021.

For more information please visit http://rebuildingireland.ie/news/local-infrastructure-housing-activation-fund-announced/

What questions do you have?

We are happy to help. Please post your comment below or call Jack Gahan from Corporate Finance Team on 01 677 9000. Alternatively, send him an email: jgahan@cooneycarey.ie

To keep in touch, connect with our friendly team on LinkedIn.

If you found this article interesting, please share it with other businesses.