Oireachtas Joint and Select Committees

Thursday, 30 March 2017

Joint Oireachtas Committee on Housing, Planning, Community and Local Government

Quarterly Progress Report Strategy for Rented Sector: Department of Housing, Planning, Community and Local Government (Resumed)

2:00 pm

Mr. David Walsh:

The other key element is that in advance of 10 May we, along with the board and the local government sector, are drafting the regulations that will specify in far more detail the ins and outs of what happens when people come in, how they engage, the timeframe for responding and who sets up the meetings. Those regulations are well advanced and will be signed in advance of 10 May. On 10 May we can expect applications to come in and An Bord Pleanála's strategic team to be fully in place. We have sanctioned ten administrative posts and we have also approved the addition of two new board members to bring the board membership of the strategic division up to four. They are currently being recruited and will be in situon day one to manage the queries on the issues as they come through.

On the issue of the LIHAF, there has been a lot of activity over the last nine months and we are delighted to see the great news and the fact that we can now support and get projects moving across a range of local authorities. Fifteen of the 21 local authorities that applied have received funding to different scales, with the major projects in the Dublin and Cork areas, as one might expect in terms of scale and potential.

Deputy Ó Broin raised the question of affordability. It was a factor in assessing them and was one of the five criteria set out. Part of it is about affordability in the whole of the development of the site. In some cases there would have been local authority-owned land that was part of the site we freed up, those would be regarded as a social mix. If 50% or 60% of the site was private but 40% was going to be owned by the local authority and therefore rolled out, that would meet the affordability piece in some respects. On the two examples of Clonburris and Grange, or Kilcarbery as we will call it now, the issue is what are the pricings that will come through. In the case of Kilcarbery that will be an open tendering process so part of the assessment by the local authority will be on what is the price range. We have spoken extensively with South Dublin County Council and the key element is what will be the tenure mix, what will be the types of houses, will they all have three bedrooms, will they be a mix of one and two-bedroom units and townhouses? That is probably where we will see the affordability scale delivered in a lot of the sites that are there.

It is not the case that the Department will say certain levels must be met, but if people do not meet them they do not get the money. We recognise that each site will have its unique challenges but also opportunities to match the affordability at a local level in the context of assessing what is affordable. What is affordable in south Dublin might be different from what is affordable in Tipperary, Dún Laoghaire Rathdown or Limerick.

A point was made by Senator Boyhan around the numbers. The figure of 23,000 units is what we have calculated and tested with the local authority for the 34 sites being funded now. The estimated delivery for those sites is by 2021. Over the longer term, if we fully build out these sites, we reckon there will be a further 44,000 or 45,000 units. This would bring the total over the longer term to approximately 68,000 or 69,000. These figures are only for those sites. A large number of sites do not have infrastructure bottlenecks and there are other developments as well. It is an important contribution and brings large scale activity, but it is not the only deliverable under the Rebuilding Ireland programme.

Another question was asked about an extension to the local infrastructure housing activation fund and the number of potential projects that we might wish to fund if we had more money. Several did not make the cut-off because of the limited funds available. I have no wish to name them, but in the case of some projects substantially more work and analysis would have been required. We certainly could have spent more money than the money available. At the announcement on Tuesday, the Minister signalled that we were seeking further funds under the capital review. Obviously, that is a matter for the Minister for Public Expenditure and Reform and the Government in balancing wider demands to determine whether there are opportunities in that area.

There was a question on fast-track planning. Deputy Casey asked whether the boat had sailed in Wicklow in respect of whether a developer could apply outside. The answer is "Yes". The legal advice we got was to the effect that this is the process for 100 plus or 200 plus student units. If developers exceed those numbers, they go straight to the board. That is the law as it stands.

Deputy Ellis asked about compulsory purchase orders and whether they were being used by local authorities. As the Secretary General has said, several local authorities, including Louth County Council, are availing of them. Equally, a certain local authority identified a number of properties that were lying vacant. Perhaps not all the sites were derelict, but certainly they were unused for several years. The authority tracked down the people who owned them or who had control over them. The authority wrote to all 21, seeking views and pointing out that if they did not do something with the properties, the authority would proceed with a CPO. All 21 responded. A total of 14 said they would bring them back in under their own to use them, while seven offered to sell them to the local authority. The use of CPOs is an important step. It is complex but usable. However, there are many other ways to do it.

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