AIB social housing fund worth €500m to help provide 3,000 homes

Last December, AIB launched a new €500 million social housing fund which will help provide 3,000 homes over the next three years. The fund is open to approved housing bodies (AHBs) and experienced developers across the State, with more than 500 homes already in the bank’s application pipeline.

The launch of this latest fund follows the full allocation of the bank’s previous €300 million social housing fund, which was announced in September 2021. That fund is helping to deliver more than 2,000 social housing units.

"Addressing the housing supply deficit is one of the country's most urgent social and economic imperatives," says Cathy Bryce, managing director of AIB Capital Markets. "AIB is committed to playing a crucial role in funding the construction and acquisition of sustainable social, affordable and private homes and we are currently the primary lender to schemes with the potential to deliver 10,000 new units."

AIB is a significant lender to the AHB sector and provides both long- and short-term acquisition funding solutions for borrowers, she adds. “AIB wants and needs to do more in the AHB sector with available funding to fund both development and investment opportunities for AHBs.

“We have dedicated sectoral teams with specific AHB transactions experience to provide a full relationship banking service to our clients.”

The bank has partnered the likes of Tuath Housing and Circle Voluntary Housing Association in the delivery of a number of developments throughout the State, including a scheme of 83 houses and apartments in Cloverhill, Clondalkin, west Dublin; 40 houses in Dunlavin, Co Wicklow; and 57 homes in Waterford.

‘Safe and secure’

One person who has already benefited from AIB funding in this area is Amy Collins, a tenant of Tuath Housing Association, whose home in Cooleven, Clondalkin, was funded by AIB Capital Markets.

“I can’t say enough how much it means to have a warm, new home that has plenty of space for me and the kids,” she says. “I feel safe and secure and it’s a pleasant community here in Cooleven. I work as a healthcare assistant in a hospital so it really offers me peace of mind knowing that I can come back to an area that is nice and quiet after a long shift.”

Interestingly, she wasn’t aware of either Tuath or AHBs before this.

“When I first got the call from Tuath, I had been waiting on the local housing list for some years. I was absolutely over the moon when they told me that a new development in Clondalkin was under construction and a home would be available for me in a year’s time.

“I was still a bit anxious, of course, as I had never heard of Tuath or approved housing bodies before but, after I spoke to the housing officer and had a look at their website, I knew I was going to be in good hands.”

And her new home has lived up to expectations. “The houses here in Cooleven are such good quality but anytime I do have an issue or query, it is swiftly handled, whether it be reporting a repair or getting information on decorating the house,” she says. “Moving into my new home was such a smooth process and I am thrilled to start a new beginning, making memories.”

Funding

According to Bryce, AIB funds the acquisition of both new-build schemes and second-hand homes for social housing for AHBs. The bank is involved in funding developers who provide turn-key homes both for AHBs and for local authorities, together with funding developers to supply part-five social housing under the terms of the planning permission.

AIB is also in talks with AHBs with a view to directly providing the full range of facilities required for the development and long-term hold of social housing homes, seeking to more efficiently deliver funding solutions for this key sector.

“AIB is determined to play its part through our partnerships with AHBs who ensure that thousands of people on the social housing waiting list are given the keys to their own homes,” Bryce adds. “These AHBs bring the security and peace of mind of having a home to their tenants across the country every year, including Amy.”

The environmental dimension is also important. “Any new-build social housing units that we fund are all A-rated, which aligns with the fulfilment of our social and environmental commitments,” she points out. “All funding provided for the development or long-term investment of social housing is also eligible for inclusion in AIB’s Green Bond or Social Bond.”