Home Building Finance Ireland (HBFI), the new State lender for small and medium sized builders/developers, has opened for business today with an initial €750 million to fund the delivery of up to 7,500 new homes over the next 5 years.
Commenting at the launch, Paschal Donohoe TD, Minister for Finance and Public Expenditure & Reform, said:
“HBFI is a smart, efficient and targeted measure that is just one aspect of the multi-faceted approach the Government is taking to resolve the housing crisis. It will facilitate the construction of up to 7,500 new homes throughout the country by optimising the use of resources already available within the State and with minimum risk to the taxpayer. With these strong foundations in place I am confident of HBFI’s future success and I wish the new team all the best in their endeavours".
Eoghan Murphy TD, Minister for Housing, Planning and Local Government, said:
“There are no easy solutions to the housing crisis but this targeted measure in the creation of HBFI will have a real and tangible impact in addressing one of the underlying problems in the market today. It will build on the progress already made in boosting supply. It is a very significant step and restores another once broken part of our housing sector in a sustainable way”.
Michael Broderick, HBFI Project Lead, said:
“We are ready with an experienced team of specialist residential lending managers to lend to quality projects that can help address Ireland’s housing shortage. We are actively targeting the existing gap in the market that has made it hard for small and medium sized builders/developers and we plan to facilitate this market segment in growing substantially over the next 5 years and beyond".
HBFI will have €750 million available from the Ireland Strategic Investment Fund (ISIF) but has the ability to raise further funds on the market if needed.
Key features of HBFI loans:
HBFI is not a developer/builder but is a funder and enabler of new homes.
HBFI may fund (subject to its terms and conditions):
Expressions of Interest can be submitted here.