Seanad debates

Friday, 18 June 2021

Affordable Housing Bill 2021: Report and Final Stages

 

9:30 am

Photo of Alice-Mary HigginsAlice-Mary Higgins (Independent) | Oireachtas source

I will be withdrawing amendment No. 1. It is one of my previous drafts from Committee Stage. My preference is to focus on amendments Nos. 10 and 11. This relates to a key concern I have. It was one of the last points we discussed before the Bill was guillotined on Committee Stage. My concern is that the Bill, as drafted, could be construed as suggesting, in respect of Part 5 affordable housing, that the affordable housing contribution could be financial. I know that is not the policy intent.

We had a discussion on this on Committee Stage and it is clear the policy intent across the House is the same. The goal would be that, in calculating the affordable housing equity share of local authorities, the amount of the affordable housing contribution in that sense would be used in the calculation of the equity share. My concern is that the Bill conflates a number of different kinds of affordable housing provision with the same definition of affordable housing contribution and, therefore, creates something of a tension and contradiction.

Affordable housing equity and affordable housing contribution have separate definitions. The definition of affordable housing contribution does not mention its function in respect of affordable housing equity and, crucially, the only thing it says in terms of the definitions of affordable dwelling contribution in the Bill is a reference to section 12(2) of the Bill. Section 12(2) states the affordable housing contribution shall be, "in the case of an affordable dwelling referred to in paragraph (a) or (b) of section 5, the difference between the market value of the affordable dwelling on the date on which an enforceable agreement is made for its purchase by the eligible applicant and the price paid by the eligible applicant".

The core question is on that difference between the market price and the price paid. Paragraphs (a) and (b) of section 5 are different forms of affordable housing provision. Paragraph (a) of section 5 refers to dwellings made available under section 6, which may include public private partnerships and arrangements with co-operatives and approved housing bodies. They may include circumstances, especially under the public private partnership arrangements, in which a housing authority may be making a financial contribution to bridge the gap or trying to take something in the market space and make it affordably priced by bridging that gap. Paragraph (b) of section 5 refers to "a dwelling to which a Part V agreement applies that is being made available for sale".In the case of Part V, it seemed to be the agreement and understanding of the House that if providing affordable housing is a condition of receiving planning permission, there should be no construction or sense that one will have to top that up in any sense to market. This is probably not the intention but because the same definition of "contribution" applies to a situation in which there might be a financial contribution and situations whereby it is effectively an amount for the purposes of calculation. I am concerned that the lines might be blurred. I raised this on Committee Stage. It is important that we have no ambiguity. This is not about the Minister's intent; this is about how the Bill might be construed. He will see that my amendments deal with, for example, "for the avoidance of doubt". That is what I am trying to address.

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