BUILDERS and developers are being asked to consider offering residential developments that haven’t reached construction stage to Limerick City and County Council under an advance purchase turnkey arrangement.
The Council is particularly interested in residential developments of between ten and 150 dwellings in Limerick City, Newcastle West, Abbeyfeale, Kilmallock, and Castleconnell.
The intention of the call, the Council has said, is to secure affordable homes in these areas where the need is most acute.
Mayor Francis Foley said that the arrangement would result in the construction of discounted affordable homes for first time buyers and those seeking a fresh start who are currently priced out of housing in their area.
“We look forward to hearing from developers and builders and progressing our plans for the provision of affordable housing in Limerick,” he added.
Affordable Housing Administrative Officer Martina Frawley said that under the terms of the arrangement, a developer submits a scheme to the council and, if it meets certain criteria set down by Government, discussions can get under way.
“For example, if the council agrees an all-in cost of €300,000 for a three-bedroom house, the Affordable Housing Team then applies for a €75,000 grant subsidy from the Department of Housing on behalf of the developer.
So, the all-in cost of €300,000 less the grant subsidy of €75,000 leaves a sales price of €225,000, which is a very affordable sales price for many households in Limerick at the moment.
“The household pays the sales price to the developer and the Council administers the subsidy to the developer upon completion of the sale. The register of interest for homes will be advertised by the Council well in advance of house completions and plenty of notice will be given to potential buyers in the newspapers and online,” Ms Frawley explained.
Closing date for expressions of interest from home builders and developers has been extended to February 17.
Full details of the scheme here