
In an email seen by Kfm, the Department of Housing insists that it remains fully committed to building the homes, calling them a government priority.
A major social housing project in Athy has been paused after the Department of Housing announced it will not move forward with awarding a contract for a large-scale housing bundle known as PPP Bundle 3.
The plan included 73 social housing units and a community building at Ardrew, Athy, as part of a broader project to deliver 486 homes across the country.
However, the department says it made the decision after a detailed review of the costs involved.
In an email seen by Kfm, the Department of Housing insists that it remains fully committed to building the homes, calling them a government priority.
Kfm understands that a contractor was already on standby and ready to work on the project.
Instead of using the current Public Private Partnership (PPP) model for Bundle 3, the department will now pursue a new approach to get the homes built.
Cathaoirleach of the Athy Municipal District Labour Cllr Aoife Breslin said the news is very concerning.
She said it is deeply worrying as we are "in the middle of a housing crisis".
She said there was going to be four bedroom homes in the initial plans which are in "drastically" short supply.
She questioned how it can be halted when a contractor has been assigned, housing plans designed and planning permission granted.
In addition to stopping Bundle 3, the department will now review future PPP housing projects - Bundles 4 to 7 - with the National Development Finance Agency.
Kildare County Council has several sites involved in these housing bundles:
Bundle 3 (now paused): Ardrew, Athy – 73 social homes + community building
Bundle 4:
Oldtown Mill, Celbridge – 60 social homes
Coolaghknock Glebe, Kildare Town – 99 social homes, 32 affordable homes
Bundle 6:
Rathasker, Naas – 104 social homes
Rickardstown, Newbridge – 98 social homes, 40 affordable homes
The future of these other projects will depend on the outcome of the Department’s review.