Colm Burke (Fine Gael)
Link to this: Individually | In context | Oireachtas source

I welcome the Minister of State. I wish to raise the issue of Part V compliance. I know of a number of projects that did not comply with Part V when a company went into liquidation. There is a difference between going into liquidation and entering NAMA. In this case Ulster Bank is involved but is not part of the NAMA process. I was concerned to find that the properties are fully occupied. I have sought clarification from the local authority on whether there was compliance with Part V and if the appropriate moneys were paid. Under Part V lands were to be made available to the local authority but they were mortgaged to another bank and, therefore, Part V could not have been complied with.

What action has the Department taken to ensure that liquidators in this situation comply with Part V, by way of a financial contribution, if a property is not going to be made available?

It is one area on which we appear not to have got full clarification. Local authorities provided the necessary services not only for this development but a number of developments, without any compliance with Part V, yet these properties are now occupied and an attempt is being made to sell them. Will the local authorities get a contribution for providing the services in view of what has occurred?

Jan O'Sullivan (Limerick City, Labour)
Link to this: Individually | In context | Oireachtas source

I thank Senator Burke again for raising this issue, which is complex.

Part V of the Planning and Development Act 2000 specifies that up to 20% of land zoned for residential use must be reserved for the provision of social and affordable housing in each local authority area. This is transferred to local authorities at existing use value by way of land, units or serviced sites.

Following the amendment of the 2000 Act by the Planning and Development (Amendment) Acts of 2002 and 2010, and other guidance issued on implementation issues by my Department in July 2003 and November 2006, developers and house builders can offer a range of alternative ways to meet their Part V requirements. These alternatives include the provision of off-site serviced sites, the transfer of other lands to the planning authority within its administrative area, payment of a financial contribution and entry into rental accommodation availability agreements.

Generally speaking, conditions attached to a planning permission requiring the payment of development contributions will require the developer to pay the specified amount, often in advance of development commencing. It is my understanding that, on appointment, a liquidator becomes responsible for discharging the liabilities of a developer, including the development contributions attached to a planning permission. Without so discharging, the development may be classified as unauthorised development. While I am aware generally of the difficult financial position of local authorities, and have brought forward important changes to the development contribution regime in that regard, I am not aware of specific difficulties in securing development contributions from liquidators.

In recognition of the challenges presented by the current economic environment, my Department issued updated guidance to local authorities early last year on options for ensuring compliance with Part V requirements. In light of market conditions, the financial position of local authorities and the Exchequer, and the difficulties associated with the over-supply of affordable housing, my Department advised local authorities that mechanisms for discharging Part V obligations, which would not place additional funding pressures on local authorities, were to be used. Such options include financial contributions, reduced numbers of units, or lands in lieu.

The Government's housing policy statement, published in June 2011, announced the standing down of all affordable housing schemes, including the shared ownership scheme, in the context of a full review of Part V of the Planning and Development Act 2000. These schemes were introduced to bridge the affordability gap that emerged during the boom years, preventing middle-income households from realising their ownership aspirations. However, affordable housing did nothing to address the underlying problem - market overheating - with an unsustainable gap between prices and incomes. In addition, affordability has eased to such an extent that there is little or no demand for affordable housing. Indeed, in recent years the challenge has been to deploy existing affordable stock productively rather than deliver new affordable housing.

The review of Part V is now almost concluded and I have also asked the Housing and Sustainable Communities Agency to provide me with a stand-alone analysis of the shared ownership scheme, including identification of the main difficulties and recommendations for mitigating measures.

Any future changes to legislation governing affordable housing schemes, including the shared ownership scheme, will be made in the context of both pieces of work and I expect to make announcements in this regard in the near future. As the next step in this process, I intend to publish public consultation documents on both topics in the coming weeks.

Colm Burke (Fine Gael)
Link to this: Individually | In context | Oireachtas source

I thank the Minister of State. If I give her details of the project I am concerned about it could be followed up because I am not satisfied that the local authority has not responded to my query. This is a major development of over 160 units and I am not satisfied that Part V has been complied with. When I see it being offered for sale to outside investors I want to make sure that the liquidator is making a contribution to the local authority in view of the fact that the local authority provided the services, the roads, the sewerage and the water supply. I am very concerned that would happen. If I give the Minister the details on it the Department might come back to me on it.

Jan O'Sullivan (Limerick City, Labour)
Link to this: Individually | In context | Oireachtas source

If there are developers who are trying to avoid their responsibilities, I would be delighted to get the information and come back to the Deputy on the matter.