Construction began last month under a PPP agreement which will see the State paying €301m for the construction and management of 534 homes.
The State will pay €1m a month for 25 years, which is an average monthly payment of €1,900 per unit. At the end of the contract the homes are handed over to the relevant local authority. He contends that while the PPP's operational costs will be €13,500 per unit, per year, an agreement with an AHB is €2,400.
Unlike previous PPP housing models, where ownership of the land was transferred to the developer, these sites will stay in State ownership and a developer will be given a licence to build. Construction company, Sisk will build this first tranche of the PPP bundle while non-profit organisation Choice Housing will provide facilities management services, and its Oaklee Housing subsidiary will act as tenancy management provider.
In a statement, Comhar Housing said its tender was lower than the Public Sector Benchmark and added that management and maintenance, which is one part of the operational fee, is being done by a non-profit organisation, Choice Housing.
So, over half a million per social house, amazing how the other half live.