It will take up to a decade to repair all of the homes impacted by mica, according to the Housing Minister.
Darragh O’Brien this afternoon announced details of the new €2.2bn Mica Redress Scheme
He said the scheme would offer 100% redress – offering grants of up to €420,000 for people to demolish and rebuild their homes.
Homeowners are entitled to redress of €145 per square foot of their home; however, that will drop to €110 for every square foot after the first 1,000 for larger homes.
The scheme will adjust to account for fluctuating construction costs.
Under the scheme, homeowners can access up to €20,000 towards the cost of rent and storage while their homes are being rebuilt.
Mental health supports will also be made available.
Speaking post-Cabinet, Minister Darragh O'Brien said the construction industry will make a small contribution to the cost of the scheme.
“It is the State making an intervention because no one else is going to step in,” he said.
“But we have agreed the principal of a contribution by the sector. I think that is significantly important. That will raise in the region of €80m a year when that levy comes in.”
The levy will be introduced in 2023.
He said the redress scheme is an “extraordinary intervention” by the State.
Minister O’Brien also said a new application process will ensure homeowners are not faced with prohibitive up-front costs to access the scheme.
“That will only require the home-owner to submit an initial building control assessment and building condition assessment at minimal cost recoupable on entry to the scheme,” he said.
“Importantly this removes any prohibitive up-front costs for entry to the scheme.
“Homeowners are no longer expected to pay approximately €6,000 to actually enter the scheme. That has been a barrier for many and that has been removed.”
However, campaigners have voiced concern the scheme doesn't go far enough due to rising construction costs.
It's estimated over 6,500 thousand homes will need to either be repaired or rebuilt.
Reporting from Kacey O'Riordan at Dublin Castle