Concern over cost of Coolock affordable housing scheme

An independent councillor in Coolock has called for the launch of an affordable housing scheme in the area to be paused after prices circulated for the scheme were significantly higher than expected, with the price of a three-bedroom home up to €475,000.

Councillor John Lyons said he had very serious and significant concerns about the price of units in the Oscar Traynor Woods development, which is in some cases €169,000 higher than indicated when the scheme was given the green light by Dublin City Council in 2021.

Back then, councillors were told that a one-bed unit would cost between €204,000 and €238,000, but this week documents circulated to councillors said the price range would be €264,358 – €308,750.

In 2021, councillors were told a two-bed unit was to cost between €227,000 and €284,000 but they are now being priced at €355,769 to €427,500.

A three-bedroom unit which was expected to be €250,000 to €306,000, will now cost between €399,731 and €475,000.The documents said the affordable price paid by an applicant would be when the council equity share had been deducted from the full market price.

The equity share is calculated on an individual basis and is linked to an applicant’s income, savings and mortgage capacity.

The income limits for the units range from €69,469 to €106,875.

Dublin City Council signed off on the deal for the redevelopment of the land, which is located near the Port Tunnel, in November 2021 following a number of years of difficult negotiations.

It agreed that the developer Glenveagh Properties would build 853 homes, 40% for social housing, 40% for cost rental and 20% for low and middle-income workers qualifying for the affordable purchase scheme.

The first phase of the development, which would make 16 homes available, is due to open for applications on 16 July.

Developer costs fixed

In a statement, Dublin City Council said the houses at Oscar Traynor Woods were being offered at between 18% and 21% below the open market value.

It said this was in excess of the requirement under the Affordable Housing Act that such houses be 15% below open market value and that the market value was determined by Dublin city valuers earlier this month.

Dublin City Council also said that the information on pricing provided to members of Dublin City Council in October 2021 was excluding VAT and reflected costs, market conditions at the time and a reduction from the Affordable Housing Fund and Help to Buy Scheme.

It said the developer’s costs for the construction of these units was fixed.

The council statement also said that prices start at €264,358, that the Help to Buy Scheme provides a further reduction of up to €30,000 and that applicants with incomes from €59,481 can apply for the affordable homes.

They said this first phase of homes will be available early next year and that further phases of Affordable Homes in Oscar Traynor Woods will see an additional 154 homes being brought to the market.