Peter Burke (Longford-Westmeath, Fine Gael) | Oireachtas source

I am grateful for the opportunity to bring the Land Development Agency Bill 2021 before the Seanad. This Bill is a key priority for Government and establishes the Land Development Agency, LDA, on a statutory basis. It sets out the core goals of the LDA to undertake strategic land assembly and to effectively utilise public lands to build affordable homes and sustainable communities.

A number of amendments were made to the Bill by the Dáil and I take this opportunity to highlight some of them. Part 9 of the Bill deals with the delivery of affordable housing on relevant public lands by a developer, including the LDA. It requires the developer of the lands to enter into an agreement with the planning authority to deliver an agreed percentage of affordable housing units for cost-rental or affordable sale, known as a Part 9 agreement. Significant amendments have been made to Part 9 to align it more closely with the Affordable Housing Bill 2021 as this Bill was drafted prior to the Affordable Housing Bill 2021 being published. A provision has now been included to ensure that affordable housing delivered on relevant public lands by the LDA or another developer for purchase or cost rental will be provided fully in accordance with the provisions of the Affordable Housing Bill 2021.

In summary, there are three options for a developer to deliver affordable housing on public land under this Bill: the housing can be designated and leased as cost rental under Part 3 of the Affordable Housing Bill 2021; the housing can be transferred on completion to a planning authority under Part 2 of the Affordable Housing Bill 2021; and the housing can be transferred on completion to the ownership of relevant applicants as nominated by the local authority under an affordable purchase direct sales agreement under Part 2 of the Affordable Housing Bill 2021. I consider this to be a more transparent way of delivering affordable housing on relevant public lands.

The rent for the cost-rental units will be designated in accordance with Part 3 of the Affordable Housing Bill 2021. Where the units are to be sold as affordable purchase to a local authority, the basis for calculating the cost of the unit, if bought from the LDA by a local authority, is clearly specified in Part 9 of the Land Development Agency Bill 2021. This approach will also ensure that if any provisions in the Affordable Housing Bill 2021, including its regulations, change in the future they will automatically apply to any developer of relevant public lands, including the LDA, under a Part 9 affordable housing delivery agreement.

Part 9 has been also amended to provide for 80% affordable housing on relevant public lands in urban areas with a population greater than 150,000, that is, the cities of Dublin and Cork. Section 75(4) of the LDA Bill states that there shall be a specified percentage and section 75(11)(a) specifies that this is 80% for population centres over 150,000. This provision, alongside a further 20% social and affordable housing to be provided under the revised Part V arrangements being introduced in the Affordable Housing Bill 2021, will ensure that there will be 100% affordable and social housing on such lands in our largest cities. It is a minimum of 50% on public lands in other locations in addition to the 20% Part V. The Bill, when published, provided that where a local authority is disposing of land to the LDA, the provisions of section 183 of the Local Government Act 2001 would not apply. This provision in section 58 of the LDA Bill has been amended so that section 183 will not apply where the land has been zoned for housing.It is appropriate that section 183 will not apply where the land has been zoned for housing as the local authority has, in effect, designated it as appropriate for housing. In the case of local authority lands, it remains the position that it is up to the local authority how best to determine how best to deliver housing on their own lands. Where a local authority wants to dispose of land to the LDA that has not been zoned for housing, the section will continue to apply and the consent of the elected members will be required. I also want to make it clear that the section remains in place for all other local authority land disposals.

The primary role of local authorities as housing authorities will not be altered in any way by this legislation. The LDA will complement that work by providing services to local authorities, at their request, under section 15 to develop large scale complex sites for housing, including social housing. In such projects, the land will predominantly remain in local authority ownership.

I will now outline the main provisions of the Bill in which there are ten Parts.

Part 1 deals and sets out the purposes of the Bill.

Section 2 outlines the purposes of the Bill which, in summary, are to increase the supply of housing in the State.

Section 4 provides the definition of relevant public lands and relevant public bodies which are key definitions for this legislation. Relevant public land is all land in a town with a population greater than 10,000 that is owned by a relevant public body. A relevant public body is a body listed in either Schedule 1 or 2. This Part also provides that the Minister can issue directions to the LDA regarding the performance of its functions.

Part 2 deals with the establishment of the LDA as a designated activity company, DAC, under the Companies Act. It will also facilitate €1.25 billion in equity investment in the LDA from the National Treasury Management Agency, NTMA’s, Ireland Strategic Investment Fund, ISIF. This Part also deals with the establishment of the board, appointment of the CEO and staff.

Section 14 sets out the functions of the LDA.

Section 15 provides that the LDA will provide services to local authorities, when requested by a local authority to assist them in the development of large-scale, multi-tenure sites for housing and urban development in population centres in excess of 30,000. This will assist with the construction of increased affordable and social housing on local authority-owned sites, including Traveller-specific accommodation and underpins the strong collaborative working which we have seen between the LDA and local authorities to date.

Section 16 provides for the appointment of the board of the LDA. The Public Appointments Service, PAS, Stateboards.ieprocess for the recruitment of the LDA’s chair is currently under way.

Sections 18 and 19 provide that the LDA will be accountable to the Committee of Public Accounts and other committees of the Oireachtas.

Section 21 deals with the staffing of the agency and also provides for the making of a superannuation scheme by the LDA.

Part 3 deals with the funding of the LDA. The National Treasury Management Agency (Amendment) Act 2014 will be amended to provide for the capitalisation of the agency through an equity investment from the ISIF of up to €1.25 billion. The LDA will also be able to engage in borrowing up to a limit of €1.25 billion and ministerial consent will be required for LDA borrowing. The initial shareholding in the LDA will be €100 million, with the Minister of Public Expenditure and Reform holding shares with a value of €99 million and the Minister for Housing, Local Government and Heritage holding shares with a value of €1 million. Part 3 also provides that the LDA will not be able to enter into capital commitments above a certain level without ministerial consent.

Part 4 provides that the LDA will be able to form subsidiary DACs for the purposes of carrying out its functions. These subsidiaries will be subject to the same level of governance and accountability as the LDA parent company and their published accounts will also be audited by the Comptroller and Auditor General. The formation and winding up of such subsidiaries will require the consent of both the Minister and the Minister for Public Expenditure and Reform.

Part 5 deals with the dissolution of the existing LDA and the transfer of its functions to the new entity.

Part 6 deals with financial reporting and public accountability of the LDA. The accounts of the LDA and its subsidiaries will be prepared in accordance with the Companies Act and will be submitted to the Comptroller and Auditor General.

Part 7 deals with the establishment of a public lands register and arrangements for the acquisition of land by bodies to the LDA.

Sections 50 and 51 provide that the LDA will establish a register of relevant public lands to identify land in urban population centres in excess of 10,000 that may be suitable for housing. This register will be publicly available on the agency’s website.

Section 52 provides that the agency will report periodically to Government on land on the register and will include information on such lands assessed by it to be fit for use for the purposes of this Act. Under section 54, the Government having considered such a report can direct that land of a Schedule 1 public body can be acquired by the agency.

Section 53 provides that where a relevant public body is seeking to dispose of land it must offer it for sale to the LDA in the first instance. Section 55 provides that where the LDA is acquiring land from relevant public bodies under this Part 7, it will be acquired at market value, taking into account the fundamental requirement in respect of the development of houses on public lands under Part 9. An amendment was made on Committee Stage in the Dáil to include a definition of "market value", which is an accepted technical definition that is used by persons valuing land including the Valuation Office, which will undertake most valuations of land under this part. In order for any valuation of land or property to take place there must be an accepted understanding of what market value means. This definition of "market value" already appears in the Department of Public Expenditure and Reform's Circulars 11/2015 and 17/2016. In effect, this is an affordable land value which in reality will be a minimal price. I reiterate that when land is being valued under Part 7 it will take into account the proposed use of the land, which will be to deliver significant levels of affordable housing as well as Part V housing. As stated, this will be 100% social and affordable in Dublin and Cork.

Section 57 provides that where the LDA is acquiring land from a local authority under Part &, the provisions of section 183 of the Local Government Act 2001 will not apply. As already mentioned, this provision was amended on Report Stage in the Dáil to provide that where a local authority is disposing of land to the LDA that section 183 will not apply only where the land has been zoned for housing.

Part 8 deals with compulsory purchase order, CPO, powers for the LDA. It is intended that the LDA will primarily purchase private lands for site assembly purposes through agreement with landowners. Part 8 provides that the LDA will have appropriate CPO powers to purchase ransom strips of land, where required, for the purposes of its public functions.

Part 9 deals with the provision of affordable housing. Section 75 provides that where a developer, either the LDA or another developer, is developing relevant public lands that there will be a requirement to enter into an agreement with the planning authority to provide a certain percentage of affordable housing on the lands in line with provisions of the Affordable Housing Bill. Section 77 provides that the Minister may vary the percentage of housing and may also set different percentages for different geographical or administrative areas.

Part 10 deals with amendments to other Acts, including adding the LDA to the list of State bodies empowered to act as development agencies under the Planning Acts. Part 10 also provides that freedom of information, FOI, will fully apply to the LDA from establishment day and also provides that records held by the dissolved LDA body will continue to be subject to freedom of information requirements.

I look forward to our debate on the Bill's provisions. I thank Senators for their attention. I apologise for the delayed start.