Minister of State for Housing Noel Ahern is examining plans for a new category of affordable housing which would be targeted at low-income individuals who are unable to afford a mortgage.
While a number of social and affordable housing schemes are aimed at helping lower income households buy their own homes at below the market value, there is concern that many individuals are still being priced out of the market.
Mr Ahern told The Irish Times he is drawing up plans for new "super affordable" housing aimed at individuals earning about €25,000 a year.
He said funding for such an initiative could come from money handed over to local authorities by developers in lieu of providing social and affordable housing.
Housing developers have given more than €32 million to local authorities since the Government watered down a provision known as part V of the Planning Act, which stipulated that up to 20 per cent of all private developments contain social and affordable housing.
"The €32 million received is ringfenced for re-investment in affordable housing projects, but I would like to see it directed toward individuals who still find it difficult to get on to the housing ladder," Mr Ahern said.
The amount of money handed over by developers in lieu of providing social and affordable housing has been rising each year since 2002, when legislation was amended to allow for this.
Some €830,000 was handed over in 2003, rising to €7.4 million in 2004 and €16.5 million last year.
Mr Ahern insisted that developers were not "escaping" their social and affordable obligations by paying the money.
He said in some cases money or land represented a better deal for the Government and house-buyers as it resulted in more housing units.
He also said that where a developer made a financial contribution, it was a matter for the local authority to accept or reject the offer, depending on the housing need in the area.
Mr Ahern said: "The developer may propose, but it's the local authority who decides. They may offer cash or land elsewhere but the local authority makes the decision as to which option best suits its housing needs."
The number of social and affordable housing units being provided under part V has been modest in the overall context of house building.
Last year, for example, a record 81,000 housing units were completed. Of this, just 1,371 were provided under part V. When other affordable schemes were taken into account, the number of affordable dwellings provided increased to 2,900.
The Government forecasts that some 17,000 affordable units will be delivered between 2007 and 2009 under part V.
Mr Ahern said: "Part V comes in for a lot of unfair criticism. It seems to be forgotten that for the first time ever the community's need for social and affordable housing has been made a material planning consideration which must be taken into account in preparing a housing strategy, formulating development plan policies and deciding on planning applications or appeals.
"Now a statutory obligation is placed on local authorities to ensure that sufficient land is zoned for housing in their development plans to meet the projected housing requirements over the development plan period."
