A fund designed to support housing supply by relieving critical infrastructure blockages that were believed to be preventing housing delivery on sites with development potential is set to breach its budget by more than a third.
When the Local Infrastructure Housing Activation Fund (LIHAF) was announced in July 2016 it was allocated €147m to deliver 30 infrastructure projects over four years.
The Comptroller and Auditor General's Report on the Accounts of the Public Services 2023 says the projects were expected to support the delivery of almost 20,000 housing units.
But six of the projects that had been allocated funding did not proceed, with 4,000 housing units or 20% of the targeted delivery associated with those projects.
The C&AG said between 2017 and 2022, annual spending on LIHAF was significantly less than the estimate provided to the Department of Housing.
The report says the department has stated that the reasons for underspends were outside its control, including planning delays and the impact of the Covid-19 public health restrictions.
The Comptroller says that by the end of last year, total LIHAF spending from was just over €113m.
"The Department projects the total funding to be provided for LIHAF over its lifetime will be at least €197 million," the report says.
"This equates to an increase in cash terms of just over one third compared to the total initial funding awarded to projects, even though six of the original projects are not proceeding."
The report also says that LIHAF projects were approved with a timeline of up to four years and all projects were due to be completed by December 2021.
"As at the end of December 2023, 12 projects were completed, of which eight were completed within the timelines set," the report states.
"The four other projects had varying completion dates post the original timeline set ranging from under one year to 3.5 years."
"The projects currently in progress and not yet started will be delivered at least two years later than planned."
"The majority of these (ten of 12) will be delivered at least four years later than planned, with two estimating completion dates between eight and ten years post the original expected completion date."
By the end of last year, the report says, over 6,400 units or 40% of the revised housing unit target had been delivered.
"The Department is confident, based on its engagement with local authorities, that the target of 16,000 units associated with LIHAF projects will be achieved, although it may take several more years," it says.
