Croí Cónaithe (Cities) Scheme - Expression of Interest Fifth Call

AI-generated analysis of the documents. Check the official notice and any amendments for current submission details.

1. At a glance

2. Scope of Work

This tender seeks expressions of interest for participation in the Croí Cónaithe (Cities) Scheme, a fund designed to address viability challenges in apartment development and increase home ownership. The scheme aims to provide subsidies to developers for build-to-sell apartment developments. The core activity for participating developers will be the construction and sale of these apartments, adhering to specific scheme requirements and contractual obligations with the Housing and Sustainable Communities Agency (HSCA).

The scope of work for a successful developer involves:

• Development of Designated Units: Constructing apartment blocks that meet the scheme's minimum specifications.
• Minimum Unit Count: Developments must comprise a minimum of 20 units, excluding any Part V requirements.
• Minimum Height: Apartment blocks must be a minimum of four stories.
• Minimum Density: Developments must achieve a net density threshold of 35 dwellings per hectare or higher.
• Sale of Designated Units: Selling the completed apartments to eligible purchasers.
• Purchaser Eligibility: Purchasers must not own other subsidised apartments, must intend to occupy the unit as their principal residence, and must complete a Declaration and enter into a Clawback Agreement.
• Open Market Value Sales: Units must be sold at their Open Market Value.
• Sales Process: Developers must utilise the Agency's Special Conditions in sales contracts without material amendment.
• Contractual Adherence: Complying with the terms of the Designation and Development Agreement, Direct Agreement, and Clawback Agreement.
• Reporting: Developers must provide quarterly progress updates and notify the Agency of proposed purchase prices within 15 working days of agreeing a sale.
• Logo Usage: The Croí Cónaithe (Cities) logo must be used on site signage and sales materials.
• Financial Management: Managing development costs and receiving subsidy payments from the Agency.
• Subsidy Calculation: The subsidy is determined based on the difference between the Actual Designated Units Delivery Cost and the Actual Market Sales Units Price.
• Maximum Subsidy: A maximum subsidy of €120,000 per unit applies in regional cities, and €144,000 per unit in the four regional cities.
• Quality and Compliance: Ensuring all construction and sales activities meet legal, regulatory, and scheme standards.
• Building Regulations: Compliance with Building Control Acts and Regulations.
• Safety: Adherence to Safety and Health Legislation.
• Insurance: Maintaining appropriate insurances, including latent defects insurance.
• Completion Requirements: Satisfying all conditions for sale completion, including provision of necessary documentation and certificates.

The overall objective is to facilitate the delivery of new apartment stock for sale to owner-occupiers, addressing market viability issues through financial support.

3. Background & buyer context

The Croí Cónaithe (Cities) Scheme is a government initiative under the Department of Housing, Local Government and Heritage. This Expression of Interest (EOI) represents the fifth call for applications under the scheme. The scheme aims to address viability challenges in apartment development, particularly in urban centres, to increase the supply of new homes for ownership. It aligns with national housing policy objectives to boost construction and facilitate access to home ownership. The Housing and Sustainable Communities Agency (HSCA) is the procuring body, responsible for administering the fund and entering into agreements with developers. The previous calls for expressions of interest indicate an ongoing commitment to this funding mechanism.

4. Eligibility & selection criteria

While this is an Expression of Interest (EOI) phase and not a full tender, the provided documentation outlines key requirements for participation and the nature of the eventual contract. The following criteria are derived from the contract terms and scheme requirements, which would form the basis for selection in a subsequent stage:

• Turnover requirement: Not specified for this tender. The scheme focuses on project viability rather than a general turnover threshold for developers at this EOI stage.
• Insurance:
• Latent Defects Insurance: Must be in place upon completion of the Designated Units.
• General Insurance: All appropriate insurances, in terms of types and levels, must be in place and maintained for a development of this scale and nature. Specific monetary values are not stated at this EOI stage.
• Certifications: Not specified for this tender. Compliance with Building Regulations, Safety and Health Legislation, and Good Industry Practice are mandated.
• Past experience: Not specified for this tender. Developers are expected to demonstrate they have satisfied themselves as to the character, quality, and quantity of labour, materials, equipment, and facilities needed for the development.
• Personnel: Not specified for this tender. Developers are expected to be appropriately qualified professionals.
• Geographic / facility constraints: Developments must be located within the "Cities" as defined by the scheme, and meet minimum density and height requirements. The specific sites will be subject to individual agreement.

5. Award criteria & scoring

As this is an Expression of Interest (EOI) phase, formal award criteria and scoring are not applicable at this stage. The EOI process is designed to identify developers and projects that meet the fundamental eligibility criteria and strategic objectives of the Croí Cónaithe (Cities) Scheme. Subsequent stages will involve detailed project assessment and contract negotiation, where financial viability, project specifics, and adherence to scheme requirements will be evaluated. The primary focus will be on the proposed development's suitability for funding and its alignment with the scheme's goals of increasing home ownership through viable apartment construction.

6. Submission requirements

This section pertains to the requirements for submitting an Expression of Interest (EOI) rather than a full tender response. The provided documents are contract agreements, not an EOI application form. Therefore, specific submission requirements for the EOI phase are not detailed in the provided text. However, based on the nature of the scheme and the contract documents, a developer would typically need to provide:

• Project Proposal: Details of the proposed apartment development, including location, scale (number of units, height, density), and planning status.
• Financial Viability Assessment: Information demonstrating the project's viability and the need for subsidy. This would include anticipated development costs and anticipated market sales prices.
• Developer Information: Details of the developer's experience, capacity, and financial standing.
• Confirmation of Eligibility: Evidence that the proposed development meets the scheme's minimum requirements (e.g., minimum unit count, height, density).
• Legal Documentation: Confirmation of ownership of the site and secured planning permission.

The contract documents themselves (Designation and Development Agreement, Direct Agreement, Clawback Agreement) outline the detailed obligations and terms that would govern a successful applicant.

7. Key dates & process

8. Contract terms that matter

The provided documents are sample contract agreements for the Croí Cónaithe (Cities) Scheme. Key terms include:

• Term: The contract duration is tied to the completion and sale of the Designated Units, with a Final Completion Date that cannot extend beyond a specified point (currently blank in the document).
• Payment Terms: Subsidy payments are made by the Agency to the Developer based on the difference between delivery costs and sales prices, subject to completion requirements.
• Key SLAs/KPIs: The primary performance indicator is the timely completion and sale of Designated Units in accordance with the Agency's Requirements and by the Completion Date.
• Liquidated Damages: Not explicitly detailed as liquidated damages, but termination clauses (Clause 5.1) have financial consequences, where the Developer may not be entitled to subsidy for unsold units if the agreement is terminated.
• Termination Clauses: The Agency can terminate the agreement if units are not completed by the Final Completion Date, if the developer or contractor faces insolvency, or if the developer commits a material breach.
• IP Ownership: Not specified for this tender.
• Sub-contracting Rules: Not specified for this tender.
• Parent-Company Guarantee / Bond: Not specified for this tender.

9. Risks, red flags & unusuals

The primary unusual aspect of this "tender" is that it is an Expression of Interest (EOI) phase, with the provided documents being sample contract agreements rather than a Request for Tender (RFT). This means the detailed contractual obligations are presented upfront.

• High Value, Long Lead Time: The €450 million value indicates a significant government commitment, but the submission deadline of August 2026 suggests a long lead time for project finalisation and potential contract award.
• Subsidy Mechanism: The scheme operates on a subsidy model where the Agency contributes to bridging the gap between development costs and market sales prices. This introduces financial risk for the Agency if costs escalate or sales prices fall below expectations.
• Developer Obligations: The contract places significant obligations on the Developer, including strict adherence to construction standards, sales processes, and purchaser requirements. Failure to comply can lead to termination and loss of subsidy.
• Defined "Cities": The scheme is specifically for "Cities," implying a geographic limitation that may exclude developments in other urban or rural areas.
• Purchaser Declaration: The requirement for purchasers to sign a Declaration and Clawback Agreement is a specific mechanism to ensure the scheme's objective of increasing home ownership for eligible individuals.

10. SME fit assessment

This Expression of Interest (EOI) is structured to attract developers of apartment projects. It is not a traditional procurement for services or goods where SMEs might bid for specific lots. Instead, it is an invitation for developers to propose projects for funding.

• Who can credibly bid: Developers with a track record in constructing apartment developments of significant scale (minimum 20 units, minimum four stories, minimum 35 dwellings/hectare density) are the target participants. This includes established property development companies.
• Consortium/Sub-contracting: The documents do not explicitly permit or prohibit consortium bids or sub-contracting at this EOI stage. However, the Designation and Development Agreement is entered into with a specific "Developer," suggesting a primary entity will be responsible.
• Indicative bid-prep effort: Preparing an EOI for a scheme of this nature would require significant effort, involving project planning, financial modelling, site assessment, and legal review of the extensive contract terms. This could range from several weeks to months, depending on the developer's existing project pipeline and internal resources.
• Pwin signal: The scheme is a direct government funding initiative aimed at addressing market failures. The "win" for a developer is securing subsidy for a viable project. The strength of the incumbent is not relevant here, as it's a funding call. The success of previous calls suggests a competitive but accessible process for well-structured projects.

11. Where to dig deeper

• Source RFT filename(s): Croí Cónaithe (Cities) Contracts.pdf
• eTenders CFT ID: Not specified for this tender.
• Contact email or clarification portal: Not specified for this tender.
• Most important attachments:
• Designation and Development Agreement (Sample)
• Direct Agreement (Sample)
• Clawback Agreement (Sample)