Kieran O'Donnell (Limerick City, Fine Gael) | Oireachtas source

I thank Senator Boyhan very much for raising this matter. The urban regeneration and development fund, URDF, is a flagship element of Project Ireland 2040 and was established to support more compact and sustainable development through the regeneration and rejuvenation of Ireland's five cities and other large towns. The Senator noted that is based on populations exceeding 10,000. The fund also caters for towns with fewer than 10,000 people but where there are 2,500 or more jobs. It very much feeds into compact growth. The updated census returns will be looked at to see what additional areas will qualify but I note the points the Senator raises in that regard. This funding will enable a greater proportion of residential and mixed-use development to be delivered within the existing built-up footprints of our cities and towns and ensure that more parts of our urban areas can become attractive and vibrant places that people choose to live and work in and to invest in and visit. Through the URDF, public bodies are receiving targeted support for innovative and holistic solutions to the issues that have hindered the regeneration and rejuvenation of our large towns and cities. To date, there have been two calls for proposals under the URDF, with in excess of €1.6 billion allocated to 132 projects, comprising almost 400 sub-projects, located right across the country.

I have read Circular URDF 01/2023, which was issued yesterday. The Senator draws attention to the level of funding drawn down.I will make the point, however, that many of these projects are now drawing down the funding at different levels. Looking at the level of funding that has been drawn down and the roll-out of projects would not be totally compatible. It is a matter I have taken up with my Department. There are numerous other projects, many of which are now coming to fruition. I expect the Senator will see major drawdowns in the not-too-distant future in that regard.

With URDF-supported projects now active in every local authority area in the country, it is clear that local authorities are eager to embrace the unique opportunity presented by the URDF programme to harness significant Exchequer support to reimagine and optimise the potential of Ireland's urban areas.

To support the Government's new vacant homes action plan that he launched yesterday, the Minister, Deputy Darragh O'Brien, also announced details of a third round of funding support under the URDF. Supporting key objectives of Housing for All and town centre first, this round of supports specifically addresses long-term vacancy and dereliction across URDF eligible cities and towns.

Distinct from previous URDF funding calls, the third funding round will not be a competitive bid process. Instead, specific allocations will be made to each local authority to address the financial barriers and risks faced by local authorities in seeking to tackle vacant and derelict buildings and sites. The Senator will know from the circular that there will be engagement within the Department and the local authorities. They will have to make submissions by Friday, 10 March giving an appraisal of where they are . Previous to that on Wednesday, 15 February, there will be a plenary session with all the local authorities and the Department on the issue. We will seek to have workshops with the local authorities in March and early April. We will then follow up with approved recommendations in terms of the eligibility of projects and reporting requirements for the third round of funding and associated financial allocations by quarter 2 of this year.

The funding will be available to cover the acquisition costs of a property or site and any civil or design works that may be required to de-risk or improve the site or building to make it more attractive for reuse, development by others and onwards. We are looking at brownfield sites, which are very much part of this as well. The intention is that the fund would be replenished from the proceeds received from the end user, thereby allowing the local authority to put in place a rolling programme to tackle long-term vacancy and dereliction without recourse to borrowing. Up to €150 million of URDF support will be made available in individual allocations to local authorities.

It should be noted that while the third round of funding is specifically tailored to help deliver specific objectives of the national planning framework, the national development plan and the Housing for All and Town Centre First plans, the Minister has committed to a fourth round of funding support, which will be made available later in 2023. This further call will revert to the heretofore wider scope of URDF projects which reflect the complex investment proposals required to transform key areas of our cities and towns.