Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697804772951.pdf (Ireland)
Additional Information Note 3- Cost rental expenditure Background • The Cost Rental Equity Loan (CREL) scheme has been designed as a method for funding the delivery of Cost Rental housing by Approved Housing Bodies (AHBs).

CREL provides funding for up to 30% of the capital costs of providing Cost Rental homes, with simple interest at 1% for 40 years.

The Housing Finance Agency (HFA) provides funding for the remaining 70% of upfront capital costs.
• Legislative provision was made for the CREL scheme under Section 40 of the Affordable Housing Act 2021, which enables the Housing Agency to issue loans to AHBs for Cost Rental delivery.

• Under Housing for All, the target is to deliver an average of 2,000 new Cost Rental homes every year up to 2030, with rents targeted at least 25% below market level.

Only AHBs can benefit from CREL funding but they are important partners in the cost rental sector.
CREL Funding Approvals & Spend to Date • The first Call for Proposals under CREL (CREL1) was issued to AHBs on 14 December 2020, with a closing date of 5 January 2021.

Following the assessment process by the Housing Agency, Ministerial approval was granted to AHBs for 390 homes across 8 projects, with confirmation of funding approvals for €39.2m in CREL funding being communicated to the successful applicants on 8 February 2021.
• €9.25m in CREL funding was allocated to AHBs for three of the eight projects approved in 2021.

This funded the completion of 65 CREL-funded Cost Rental units in 2021, plus advanced payment on one other project which will deliver in 2022.

• The underspend of c. €27.8m for 2021 was largely due to COVID shutdown delays, pushing delivery of projects into 2022.

• A second Call for Proposals was issued to AHBs on 22 October 2021 (CREL2), with a closing date of 30 November.
Ministerial approval in principle has been given to the allocation of €53.6m in CREL funding to deliver 521 Cost Rental homes across 11 sites.

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