Deal for 140 Dublin social homes falls through as €4,500 rental ads appear online
A total of 140 social homes slated for Dublin 9 are instead appearing online for rent privately for up to €4,500 a month.
The 140 apartments make up the vast majority of the 168-unit Daneswell Place development in Glasnevin, which is nearing completion and being developed by the Eastwise Group.
This portion consist of 58 one-bedroom units, 59 two-bedroom units, 11 three-beds and 12 studios.
These homes had long been in line to be acquired for social housing by approved housing body (AHB) Co-operative Housing Ireland (CHI), but the housing body said talks fell apart on a final deal.
“Co-operative Housing Ireland had been in discussions to deliver social-rental homes; however, an agreement could not be reached,” said a spokesperson.
Now, those homes are appearing on property website Daft.ie for private rental, with one-beds listed for €2,400 a month, two-beds at €2,900 and three-beds coming in at a €4,500.
The properties are now appearing on Daft.ie, with a starting rent of €2,400 a month
The CHI spokesperson said the body was “not involved” with the homes being advertised on the private market.
The Part V element of the scheme, under which DCC is acquiring an additional 20 units for social housing, will proceed as planned. This transaction is expected to complete in quarter three of this year.
In response to queries from local Green Party councillor Feljin Jose, a DCC housing official said CHI “couldn’t get funding” to acquire the 140 homes.
AHB acquisition of social homes is largely funded through several State-backed financing schemes such as the Capital Assistance Scheme and the Capital Asset Leasing Facility, along with loans from the Housing Finance Agency.
It is unclear at this stage the details of the scheme’s funding challenges, but the Department of Housing was contacted for comment.
Speaking to the Irish Independent, Mr Jose said the social housing element falling through shows how “dysfunctional” the funding model for AHBs is.
“From the beginning I would have preferred the state backing the project, and getting a mix of social housing, cost rental, and affordable purchase. A mix of different tenures and tenancies,” he said.
“But we’ve got this bizarre model where an AHB said they might buy it, and then it didn’t go through and now we’re stuck with people paying extortionate rents for them.”
He said the project was listed on DCC’s housing delivery reports for close to two years, but had vanished without explanation in March this year.
“Now I’m wondering how many of the other projects on the social housing report are also in a precarious situation where it’s not actually funded and it may not actually exist,” said Mr Jose.
“Now I have to look through every single one and see what else is at risk, or what else may have been dropped off the report and I didn’t see it. Like I told people who were asking me about upcoming social housing, especially three-beds, and I told them about this.
“Now I’ll have to go back and tell them this isn’t happening.”
DCC did not respond to a request for comment.