Home Building Finance Ireland will support small builders and home building in Kildare – Senator Anthony Lawlor
Senator Anthony Lawlor has welcomed the opening of applications for the €750 million Home Building Finance Scheme having spoken in support of the scheme in the Seanad during the legislative process.
It is intended that Home Building Finance Ireland (HBFI) will supplement rather than compete with existing residential development lenders. Builders who have been unable to secure loans from banks or other lenders will have access to five-year loans of up to €35 million for developments ranging in size from 10 to about 200 homes from the new agency.
The minimum number of units (houses/apartments or a mix) for which funding will be provided is 10. A borrowing entity must provide a minimum of 20% equity, which can include the site value. HBFI may fund up to 80% of the LTC (Loan to Cost) of a project.
The organisation is targeting developers who are building for first-time buyers, and building costs would be in the region of €200,000.
Senator Lawlor said “supply of smaller housing developments outside of the greater Dublin area has been hampered by the unwillingness of traditional lenders to provide finance. Smaller builders are an important part of the housing supply chain and the Home Building Finance Ireland scheme is part of the solution.”
“Smaller less lucrative developments particularly outside Dublin have been ignored by the larger developers. This is why I support this initiative which will hopefully provide more affordable homes for people in the localities they have roots and family in. Interested parties can get more information at www.hbfi.ie.”