Additional 10m added to Galway's 'fundamentally flawed' affordable housing scheme fund

Galway City Council received approval for a €35 million loan to deliver almost 400 affordable homes across Galway. Councillors were asked to approve an additional €10 million on top of an existing non-mortgage loan to cover inflation and provide flexibility for projected costs. The original €25 million loan was approved in November 2024. While members welcomed increased funding for multiple projects, concerns were raised about how affordable, social, and cost-rental housing are balanced. Criticism focused on the gap between rising house prices and stagnant wages, with calls for government review of the scheme structure and subsidy levels. The average home price under the scheme is in the mid-€300,000 range, while average earners can afford about €176,000 based on loan-to-income limits. Some areas, including Ballinasloe, were not included in the funded project list.

"Elected members were asked at the May plenary meeting to approve an additional €10 million on top of an existing non-mortgage loan, to account for inflation and provide "wiggle room" for projected costs, according to Director of Services Damien Mitchell. The original €25 million loan was approved in November 2024."

""What do you call affordable housing? There is no such thing," said Councillor Declan Geraghty. Councillor Karey McHugh Farag described the scheme as "fundamentally flawed", arguing that rising house prices and stagnant wages are making affordability increasingly unattainable. Some members also called for the Government to review the structure of the scheme and update subsidy levels to reflect current economic conditions."

"The average home under the Affordable Housing scheme in Galway is currently priced in the mid-€300,000 range. However, based on salary averages from 2024 CSO data and loan-to-income limits, the average earner can afford a €176,000 home. Despite the criticism, a number of projects remain on the priority list, including 70 homes at Station Road in Oughterard and a three-phase development at Cosmona in Loughrea, which will deliver 112 units."

"Not represented in the project list availing of this funding was Ballinasloe as Councillor Dermot Connolly told the chamber that his area is "bringing up the rear" once again. Repeat issues that have been left unaddressed has caused Ballinasloe councillo"

Read at Irish Independent