Detail on New Homes Funded, Lower Rates, and New Products.
107 New Homes Funded
On Friday 16 September the HFA Credit Committee approved three new loan applications for Clúid and Túath Housing Associations and Co-operative Housing Ireland, totalling €18.7 million, to finance the development and acquisition of 107 new homes. This brings the total year to date approvals to €180 million to fund over 1,200 new homes, an increase of over 40% on the full year 2015.
Lower Rates and New Products
The HFA Board reduced the interest rates charged on existing offerings and approved a range of new fixed rate lending products to support the funding of new social housing and infrastructure projects by AHBs and local authorities. The new range of products provides extremely competitive fixed interest rates ranging from 5 to 30 years. Local authorities will be able to borrow fixed rate funding for 25 years at 1.5% or lower.
In addition the current variable rate charged to local authorities for nonmortgage business was reduced by 0.25%, saving the sector c.€6 million in interest costs per annum.
Third drawdown under €150 million EIB Finance Contract
The HFA is pleased to announce that the third drawdown, of €15 million 25 year fixed rate funding, under the €150 million European Investment Bank facility, was completed on 15 September to fund the development of new homes by Co-operative Housing Ireland, The Iveagh Trust and Túath Housing Association in Dublin and Wexford.
The EIB Finance Contract, together with the €150 million Council of Europe Development Bank Framework Agreement, which was signed on 7 June and first drawn down on 7 July, will strongly support the HFA’s drive to reduce the cost of long term finance for approved housing bodies and local authorities.
Housing Finance Agency
19 September 2016
