Frequently Asked Questions

HBFI has been established to provide funding (senior debt) on a commercial basis to small and medium size residential development projects (circa €2m to €35m) throughout the Irish State. Funding will only be provided for residential projects that are commercially viable and meet the criteria as set out by HBFI.

HBFI is not a bank, however HBFI operates in a similar way to a bank, charging a commercial rate of interest for lending provided and taking security to support sums loaned. In the event of a borrower defaulting, HBFI will take all reasonable and legal courses available to it, to recover any outstanding amounts.

Any individual in control of a site can apply to HBFI for development funding. However, if a decision is made to approve funding, it will be made to corporate entities only.

The project must be residential, be commercially viable and must be capable of returning an appropriate profit margin on development costs.

HBFI will require a first ranking full fixed and floating charge over the assets of the SPV/entity, including the project.

A site must have planning permission in order to qualify for funding. However, if a planning application has been submitted to a Local Authority or An Board Pleanála, contact can be made with HBFI to discuss timing around the submission of a funding application.

A development must have a minimum of 10 units (houses/apartments or a mix) in order to qualify for HBFI funding.

HBFI may provide funding for the purchase of a site, subject to certain minimum criteria:

  • The site must have planning permission for a minimum of 10 units.
  • Construction must commence within an agreed timeframe after purchase.
  • Certain other terms and conditions will apply.

The lending rate will depend on the risk profile of each project, the quality of collateral, the creditworthiness of the borrower and the track record of the borrower in delivery of residential development projects. HBFI will lend on commercial, market-equivalent terms and conditions.

A borrowing entity must provide a minimum of 20% equity. HBFI will fund up to 80% of the LTC (Loan to Cost) of a project.

HBFI may apply an entry and exit fee on any facility provided. In addition, any professional fees accrued in providing a facility will be for the account of the borrower.

HBFI may provide funding for a maximum term of 5 years.

The maximum amount of funding that HBFI will provide to any single corporate entity is capped at €35 million.

The borrowing entity must provide HBFI with satisfactory evidence of tax compliance as part of the application process and be able to demonstrate at all times that the tax affairs of the entity are in order and up to date.

You can contact HBFI directly to discuss any further queries at CONTACT US.