Dáil debates
Thursday, 25 May 2017
Ceisteanna - Questions - Priority Questions
Social and Affordable Housing Data
4:20 pm
Eoin Ó Broin (Dublin Mid West, Sinn Fein)
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2. To ask the Minister for Housing, Planning, Community and Local Government the number of affordable housing units that will be built on a site (details supplied) in view of the fact that a number of housing development sites, including a site and other sites around the State, received a substantial amount of funding from the local infrastructure housing activation fund, which contained a requirement for affordable housing; the percentage of the units built which will be affordable; and the amount these homes will cost. [25050/17]
Eoin Ó Broin (Dublin Mid West, Sinn Fein)
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I would like first to correct the Minister on a point he made earlier. Sinn Féin councillors did support the final Poolbeg proposal partly because they managed, along with councillors from other parties, to get an additional 350 social houses to the 620 originally proposed. A good job was done by the councillors in Dublin City Council.
On Question No. 2, when the local infrastructure housing activation fund, LIHAF, was announced, Sinn Féin did not oppose it but what we did want to know then and what I am asking the Minister again today is how can he guarantee the affordability of the units such that developers will benefit and people will be able to buy the houses?
Simon Coveney (Cork South Central, Fine Gael)
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The aim of the local infrastructure housing activation fund is to relieve critical infrastructural blockages to enable the accelerated delivery of housing on key development sites in urban areas with high demand for housing.
Dún Laoghaire-Rathdown County Council received approval for funding of €15.19 million for Cherrywood for the provision of public infrastructure that will support the delivery of 2,000 housing units by 2021 and the potential for a further 6,000 homes in the longer term. LIHAF will facilitate additional social housing of 200 housing units in Cherrywood in the short term through the 10% Part V social housing dividend, with a further potential for 600 housing units in the longer term. Moreover, the overall significant increase of private housing from this strategically located and well-serviced site will help ease the pressure on the housing market generally and on rental accommodation.
In addition to the increased supply of housing generally, the Government is also seeking an increased affordability dividend for the eventual purchasers of private housing. My Department has asked Dún Laoghaire-Rathdown County Council to secure commitments from the developers in this regard. The council is currently engaging with the housing developers to conclude specific agreements relating to finalising the timelines for delivery of the housing and the required affordability commitments. My Department expects that final agreements will be in place by the end of June to facilitate the signing of a formal grant agreement with the local authority in respect of LIHAF funding.
In other words, we will not sign off until we see the detail of the affordability commitment developers will have to make. We are putting in €15 million and we want a dividend from that, in the context of affordability as well as getting houses built quickly.
4:30 pm
Eoin Ó Broin (Dublin Mid West, Sinn Fein)
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To summarise, the Minister's answer to my question is that he does not know, despite the fact that he has been working on the scheme for a year. A circular issued by the Department in August stated that a minimum of 40% of the homes to be delivered would be available at 10% less than the average market cost, though in Dún Laoghaire that would be no guarantee of affordability. In October the Department issued another circular rowing back on this, stating that following discussions with officials and others, the commitment would not be possible. One has to ask why a company as profitable as the company providing the houses in Cherrywood needs any LIHAF funding at all. Even if it does, the Minister designed the programme so it should not just be up to the local authority to negotiate affordability. What is the Department's threshold in terms of numbers of units and price? If, as in the August circular, it is 10% of market value in Dún Laoghaire, it comes nowhere close to being affordable and this would also be the case in many other parts of Dublin. I am concerned that the Minister does not know how he will guarantee affordability and that he has now rowed back on commitments made in the August circular.
Simon Coveney (Cork South Central, Fine Gael)
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We have not rowed back on anything. As usual, the Deputy is trying to create an impression of something that does not exist. We do not have an agreement yet but the Deputy is drawing conclusions as to what the agreement might look like.
Eoin Ó Broin (Dublin Mid West, Sinn Fein)
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I have read the circulars.
Simon Coveney (Cork South Central, Fine Gael)
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It is typical of the Deputy that he is trying to put a negative spin on something that does not even exist. We are not going to sign off on any financing deal until we see the detail. It is up to the local authority to finalise the detail in negotiations with the various developers on site, as is the case with many of the other aspects of the Cherrywood development. We have assisted that process through the housing delivery unit, which has been very helpful and has ensured that the negotiations received the necessary urgency. The project is moving forward and we will get detail on the affordability dividend before formally signing off on LIHAF funding. The Deputy will just have to wait for that, I am afraid.
Eoin Ó Broin (Dublin Mid West, Sinn Fein)
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The Minister should read his own departmental circulars. In the August circular, it stated that affordable homes would be delivered and that a minimum of 40% would be available at prices 10% below the average cost in the market. That suggests it was a target but the October circular states that it may not always be possible to deliver 40% of new homes under the LIHAF bids at prices 10% below the average market cost. The Minister was looking for a certain number of properties at a certain percentage less than the market in August but rowed back in October and is now saying that his Department is just providing the funding, with local authorities having to negotiate it. I am not making stuff up - it looks like the Department and the Minister is making this up on the hoof. Public money is being spent but unfortunately, people will not get access to greater affordability.
If there is not an adequate level of affordability, will the Minister pull funding from these projects? A "Yes" or "No" answer would be great.
Simon Coveney (Cork South Central, Fine Gael)
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I am not here to indulge the Deputy. I am here to answer questions.
Eoin Ó Broin (Dublin Mid West, Sinn Fein)
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An answer would be nice. It would make a change.
Simon Coveney (Cork South Central, Fine Gael)
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We will know what the affordability agreement looks like when it is in place.
Eoin Ó Broin (Dublin Mid West, Sinn Fein)
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Will the Minister pull funding if he does not like it?
Simon Coveney (Cork South Central, Fine Gael)
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If we are not happy, we will not sign off on any agreement. Otherwise we would have approved the money by now. It is up to Dún Laoghaire-Rathdown to negotiate with the developers, of whom there are a number, and to put in place an adequate affordability agreement. We have deliberately said we will not sign off formally on funding until we see the detail. The Deputy can read anything he wants into it.
Eoin Ó Broin (Dublin Mid West, Sinn Fein)
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They are the Minister's circulars.
Simon Coveney (Cork South Central, Fine Gael)
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We are holding back on the formal sign-off of the money until we get full details. When we get full details we will have the opportunity to debate them.