Kieran O'Donnell (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

6. To ask the Minister for Housing, Planning, and Local Government the status of the delivery of affordable housing under the Part V requirement since 3 September 2021 (details supplied). [47267/22]

Kieran O'Donnell (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I will raise the issue of Part V affordable housing. I have raised this previously with the Minister, his Department and his colleague, the Minister of State, Deputy Peter Burke. My question is very straightforward. I will put on record that I welcome the 25 affordable houses in Castletroy, which are very beneficial, but on the Part V model, why does the 10% affordable housing requirement not apply to planning permissions granted for the period between 3 September and 31 July 2026 on lands purchased after 1 September 2015 and before 31 July 2021?

Malcolm Noonan (Carlow-Kilkenny, Green Party)
Link to this: Individually | In context | Oireachtas source

I thank the Deputy for welcoming the delivery of 25 affordable homes in Castletroy.

Between 2000 and 2015, Part V obligations under the Planning and Development Act allowed local authorities to avail of up to 20% of the planning gain on relevant land for social and affordable purposes. This was subsequently reduced, as the Deputy is aware, to 10% in 2015 for social housing. In line with the commitments in the programme for Government, changes to Part V were introduced under Part 6 of the Affordable Housing Act 2021, which was enacted on 3 September 2021. The provisions increased the contribution required for social and affordable housing, including cost rental housing, up to a mandatory 20% for planning permissions granted in respect of land purchased before September 2015 and since 1 August 2021.

Transitional provisions were included that defer the application of the increased 20% requirement to August 2026 in the case of land purchased when the obligation was 10% between September 2015 and August 2021. These transitional arrangements aim to ensure that near-term delivery will continue and will also encourage developers to bring land forward for development now. This is consistent with the overall approach to supply in Housing for All, which is to stimulate development across all tenures.

In addition to the affordable homes that will be yielded by Part V as the provisions are rolled out, delivery of affordable purchase and cost rental homes will be achieved in the immediate term through local authorities supported by the affordable housing fund, through approved housing bodies, AHBs, supported by the cost rental equity loan, and via the LDA. The Deputy may also be aware that the first home affordable purchase scheme is available to first-time buyers unable to afford new homes and I understand there have already been applications in Limerick. I understand that funding was also recently approved for an affordable purchase scheme in Limerick, which will see delivery of homes in 2023.

Kieran O'Donnell (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

My point is very simple; I believe every new estate that is being built should have 10% social housing and 10% affordable housing. At present, every new estate being built will have 10% social housing.

However, if planning permission is secured to develop land that was purchased between 1 September 2015 and 31 July 2021 before 31 July 2026, which is four years away, there is no requirement for the increased Part V provision in that estate. That is a serious issue. I want an integrated model. We are providing funding to developers to build affordable houses under the affordable housing fund. We need to look at this again. Can we now legally ensure a 10% affordable housing element in any new estate going for planning permission where land was purchased after September 2015?

Malcolm Noonan (Carlow-Kilkenny, Green Party)
Link to this: Individually | In context | Oireachtas source

The Deputy has raised this issue on a number of occasions. The sunset clause in respect of the pre-existing 10% social requirement for land purchased from September 2015 to August 2021 arose from a recommendation of the Housing Agency's review of Part V. The reason provided was that it would maintain near-term supply of all types of housing. The review was mindful of the delay that would attach if development plans had to be reviewed. In addition, increasing the percentage could make developments unviable where the original financial appraisal was based on the 10% contribution. Our Department is open to looking at advance purchase arrangements for new developments. The 10% threshold was already there. There is flexibility through the advance purchase arrangements but we had to provide certainty. The critical thing was that we had to ensure delivery of housing in the near term.

Kieran O'Donnell (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

This is very straightforward. It is about the cost of building houses in an estate. My worry is that, when developers or builders buy lands, it will normally be a couple of years before they apply for planning permission or build houses. Most of the land that will be built on in the coming years is land purchased prior to 31 July 2021. I ask the Minister of State to commit to looking at establishing a legal basis and funding model to compensate any builders or developers seeking permission from a local authority to build a private estate on lands purchased before 31 July 2021 for any costs involved in building affordable houses. I want every new estate built to incorporate 10% social housing and 10% affordable housing. I ask that the Minister of State engage with the Attorney General to seek further legal advice to see if this can be overcome. It is a matter of funding. The Government can provide assurance for developers on these costs.

Malcolm Noonan (Carlow-Kilkenny, Green Party)
Link to this: Individually | In context | Oireachtas source

The decision by Government to return the Part V obligation to 20% was the right decision. It ensures that we will have a good mix of tenure in our housing stock, which is absolutely critical. The second critical thing is the near-term delivery of housing supply. In that regard, we have done the right thing. On affordable housing delivery in Limerick, funding of €1.875 million was recently approved for 25 affordable purchase homes at Brú Na Gruadán, Castletroy, with Limerick City and County Council advising that it aims to deliver these in 2023. The council has been assigned baseline affordable housing fund support for delivery of 264 units to 2026 so there is significant delivery of affordable housing. We take on board the Deputy's point but the decision the Government made was the correct one.