HBFI was established to provide funding on a commercial basis to residential development projects throughout the Irish State. Funding is available for residential projects that are commercially viable and are in line with criteria for such projects as set out by HBFI (as amended from time to time).
HBFI currently offers a number of different products depending on the type of residential development being undertaken. For a full list of these products and details specific to each one, please see our Products Section for more details.
Any individual in control of a site may submit an enquiry to HBFI for development funding but the applicant must be a corporate entity. Thereby, if a decision is made to approve funding, it will be made to corporate entities only.
Certain criteria should be met in order to qualify for a HBFI funding product. The criteria vary depending on the product. Please read our Products Section for criteria specific to each product type. If you would like to enquire further about any of the HBFI funding products or wish to make an application for funding, then please complete the Submit an Enquiry form on this site. Following the submission of the form, a member of the HBFI lending team will contact you to answer any queries and/or guide you through the application process.
The project must be predominantly residential and be commercially viable with demonstrable demand for the product. In addition, the entity delivering the development must demonstrate adequate experience and an ability to deliver the project.
HBFI will usually require a first ranking full fixed and floating charge over the assets of the Special Purpose Vehicle (SPV)/borrowing entity, including the project.
A site must have planning permission in order for a facility agreement to be signed and put in place between HBFI and the borrowing entity. However, contact can be made with HBFI at any stage to discuss a current or future project. Where a planning application has been submitted, HBFI can assess and approve the application with drawdown of the loan contingent on receipt of planning approval.
HBFI can provide funding for the purchase of a development site as part of an overall development finance facility, however, this may vary and be subject to certain criteria depending on the funding product. Please see our Products Section for more details.
HBFI was established to fund residential developments. Accordingly, HBFI funds developments which are predominantly residential (for example, if a residential development has a planning approval which includes a creche or a neighbourhood retail space, this type of development can be funded 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.
HBFI is not regulated by the Central Bank; however, HBFI is subject to audit by the Controller and Auditor General and is accountable to the Committee of Public Accounts.
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. If you wish to discuss the rates applying to any HBFI funding product, please submit an enquiry using the Submit an Enquiry form.
Generally, HBFI applies an entry and exit fee on facilities provided. In line with standard practice, professional fees accrued in providing a facility will also be for the account of the borrower. Please see our Products Section for more details.
Typically, a borrowing entity provides a minimum of 20% equity. HBFI can fund up to 80%* of the Loan to Cost, of a project for most product types with this increasing to up to 85% for the Social/Affordable product. For product-specific gearing, please see our Products Section for more details.
*Not all product types can be geared up to 80% and the level of gearing provided is always at the discretion of HBFI.
The maximum amount of funding that HBFI will provide varies according to funding product type. Please see our Products Section for more details.
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.
It is important to note that this information serves as a guide only and each application will be assessed on an individual basis by HBFI, further to a detailed application process.