Seanad debates

Wednesday, 7 May 2003

Adjournment Matters. - Housing Grants.

 

2:30 pm

Tom Morrissey (Progressive Democrats)
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It is ironic that I raise this issue on the Adjournment, given that, some months ago, the House debated the issue of the first-time buyer's grant, the level of house building taking place and the exorbitant prices involved. As a councillor, I was involved in the rezoning of land for housing ten years ago. These lands have now become an area of high density housing. Residents are now living in the houses built on the site but six months after moving in, they have not received the first-time buyer's grant because a certificate of floor area has not been furnished by the builder to the Department. These people have spoken to the Department and the builder concerned but both are blaming each other.

I learned today that the builder is going to pay the first-time buyer's grant to these people next week and that they will give an undertaking in writing to their solicitors that they will hand over their grants to the builder when they receive them following the inspector's report and the issuing of the certificates of floor area. It is extraordinary that this type of situation should obtain. I do not know if it is happening in other areas of the country, but it is not satisfactory. I understand that in some areas of Dublin, people receive their grant within four or five weeks. These people have been living in their houses for six months.

We all know how stretched are people's finances when they buy their first house and that they have made commitments to financial institutions in respect of household furnishings or as part of a loan for the house. For those reasons, I ask the Minister of State to look into this case to see if there is any irregularity in this instance. Why should it take so long for a certificate of floor area to be handed over to these first-time buyers and why are they facing such stress during their first major purchase? I look forward to the Minister of State's reply.

Photo of Noel AhernNoel Ahern (Dublin North West, Fianna Fail)
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A floor area certificate, which is required for the purpose of stamp duty exemption by the Revenue Commissioners, is issued where the floor area of a newly built house or apartment is not less than 38 sq. m. and not more than 125 sq. m. New house grant approval, where sought, can also issue where the house or apartment meets the conditions and standards specified by my Department and which are set out in explanatory memorandum HA1 of housing grants section. Floor area certificates are usually issued within two months of the receipt of fully documented applications. Provisional approval of a new house grant, where applicable, can also issue on satisfactory compliance with the conditions particular to the first-time purchaser's new house grant scheme.

These standards require compliance with the building regulations, as well as a number of further requirements which relate primarily to design quality. In particular, where unconventional materials, products or methods of construction are used, certification by a competent body as to their suitability and compliance with the building regulations is required as is design life in the order of 60 years subject to normal maintenance for the key elements of construction, including, for example, external walling and roofing.

It is policy to seek to encourage the adoption of innovative approaches to the design and construction of houses. In this context, innovation is to be welcomed subject to the achievement of sufficient standards of quality. The building regulations under the Building Control Act 1990 aim to ensure that dwellings conform to appropriate standards. It is important, in this context, that builders comply with these requirements, ultimately for the benefit of house purchasers.

My Department's inspectors monitor compliance with standards and design quality through assessment of house plans and on-site inspections. Where unconventional materials, products or methods of construction are encountered, the issue of a floor area certificate and approval of a grant is withheld until the necessary appropriate certification is provided. As already stated, we encourage innovation but it must meet certain standards. Some new products have certification for a shorter lifespan than we would like.

In this particular case, applications for floor area certificates were received in respect of 326 dwellings. Floor area certificates have issued in respect of 274 dwellings following examination of the plans, site inspections by inspectors of my Department and extensive consultations with the builder. The time taken to issue floor area certificates in this case arose from the need for the builder to provide the necessary information to demonstrate that the construction meets the required standards.

Issues regarding the certification of innovative construction methods and products remain to be resolved in respect of 52 dwellings. Discussions and correspondence with the builder are ongoing with a view to resolving these outstanding issues and further information has been requested from the builder. The issue of the remainder of the certificates outstanding will be considered on receipt of the information requested.

Prior to the termination of the new house grant scheme on 14 November last, 234 grant applications were received in my Department in respect of this development. Of these, 41 grants have been paid and provisional approval of a new house grant has issued in respect of a further 103 applications. On receipt of claims for payment, arrangements will be made to have the houses inspected and the grants paid, if in order. The grant applications in respect of the remaining 90 applications are currently under consideration.

It is a process which must be undergone with these new, innovative procedures and methods which are encouraged by the Department but which need to be checked to ensure that they reach acceptable standards. In some cases, they have certifications from countries which perhaps do not include the lifespan we expect of different products used in houses here. I am not suggesting that any of the materials or designs used in the estate in question are not up to standard, but it is a process which must be gone through to ensure that the certification meets the standards. Materials can be approved by different international bodies here and abroad. A fair amount of paperwork and processing must be gone through in respect of some of these innovative products. It appears that a number of people in the estate have been paid the first-time buyer's grant and I believe that most of them will work out their difficulties.