Department of Environment, Heritage and Local Government have announced allocations for the county totalling e34.775 for the current year. This includes e26.525 million for Donegal County Council, e5 million for Letterkenny Town Council, e2 million for Buncrana Town Council and e1.25 million for Bundoran Town Council. The allocation to Donegal County Council includes a sum of e2.3 million in respect of Voluntary CLSS. The County Council’s allocation also includes e350,000 for Traveller Accommodation and e125,000 for Central Heating.

In January 2008 the Department of Environment, Heritage and Local Government indicated a new approach to capital allocations for housing under the 5 Year Action Plan for Social and Affordable Housing. Specifically an indicative allocation of e115 million to e125 million was notified in respect of Donegal County Council and each of the three town councils with the allocation to include, for the first time, the cost of voluntary housing under the CLSS (Capital Loan Subsidy Scheme).

In 2007 the allocation to Donegal County Council was e30 million in respect of Social and Affordable housing. The allocation to Voluntary CLSS in 2007 was external to this allocation. A total of e31.5 million was expended by Donegal County Council in 2007 on Social and Affordable housing – this expenditure included a contribution from the council’s internal capital receipts for housing as well as a transfer of a credit for affordable housing as approved by the department.

The allocation of e23.75 million to Donegal County Council for 2008 will cover all existing contractual obligations. The question of new starts in 2008 will require further discussions with the department on the possibility of a further allocation later in the year in line with the indicative capital envelope previously advised.