Mary Fitzpatrick (Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I thank the Minister of State for coming to the House. In a world where we are surrounded and bombarded daily with bad news housing stories, I want to talk about one positive housing story. The croí cónaithe vacant property grants were introduced by the previous Government in 2022. I had the privilege of working with the previous Minister, his Department and our local authority members to introduce those grants, because we all know the fastest and most sustainable way to increase our housing supply is to use the vacant properties that are already built and connected to fresh water, wastewater, public lighting, and roads and are close to our communities, schools and all the other community services. Those grants have been successful. The previous Government did not just provide the funding for the grant but also ensured that the grants would be delivered locally by each of our 31 local authorities. It gave the local authorities the funding for the grants and also gave the local authorities funding to establish vacant housing offices and dedicated vacant housing officers. The response has been tremendous. There have been more than 11,000 applications for those grants and they have been very successful.

There is an opportunity, as I am sure the Minister of State will agree, to go further with those grants.I believe that if those grants were extended, as Fianna Fáil promised in its manifesto, to include an increased grant of €100,000 for over-the-shop developments, those grants would enable property owners in towns, villages and cities and elsewhere throughout the country to turn those vacant properties into liveable homes. They would not just be providing essential homes for people but would also be providing new life into the towns and villages. It would be a significant stimulus of regeneration in urban and rural communities. My Commencement matter seeks an update from the Department on where it is at in amending the grants to extend them to the over-the-shop grant of €100,000.

I am also hoping the Minister of State, Deputy Buttimer, will have been sent here today with an update on the question of amending the payment schedule for the grants to staged payments. I advise everyone I speak to to engage early with the vacant housing officer because every vacant property has its own unique circumstances and its own unique challenges and opportunities. The way the grant is set up at the moment, once the grant is approved following application, the applicant has up to 13 months to draw it down. That is a reasonable amount of time because it can take time to secure contractors, for the contractors to be available, and for the works to be complete, but there is an ask that the payment would be made in stages and that there may be a facility for either a first or second stage payment.

I appreciate the Minister of State is taking this Commencement matter at short notice and his presence is very valued, but I hope the Department has sent the Minister of State with an update on my two queries. There is a huge opportunity for us to do more with those grants and for those grants to play an even greater part in increasing housing supply in areas in towns and villages where there is a huge need, where there is already a community that would welcome additional residents, and, most important, where the utilities connections are already in place for fresh water, wastewater and electricity. All that is needed is the human activity brought back again to bring life into the towns and villages and these vacant properties. I look forward to the Minister of State's response.

Jerry Buttimer (Cork South-Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I will take this Commencement matter on behalf of the Minster of State, Deputy O'Sullivan, who apologises that he cannot be here. I thank the Senator for being a champion and advocate of housing policy and for being one of the key drivers in revitalisation of many vacant properties. To be fair to the Senator, she has been ahead of the curve in many ways. I commend her on that, during our time together in this House and now in different roles. Addressing the vacancy and dereliction issue and bringing existing properties back into use as homes form a key priority for this Government and the Minister. I completely agree with the Senator that this grant is about new life, reimagining and revitalisation. The Senator and I could walk many parts of this city and of Cork, or wherever, and it is something we need to see more of. I agree with the Senator completely.

Since the vacant property refurbishment grant was announced in 2022, it has provided support of up to €50,000 for the refurbishment of vacant properties and a further €20,000 for derelict properties. I concur with the Senator completely that there is a need to go further and I hope we can do that. Feedback on the grant has been very positive and the grant is making a real difference in urban and rural areas. Last month the Department of Housing, Local Government and Heritage published grant statistics that show more than 11,300 grant applications were received, in excess of 7,700 were approved and 1,449 grants were paid to 31 December of last year. Currently, the grant is paid on completion of the approved works to ensure the applicant has carried out the works applied for. This is also the approach in other grants such as the SEAI and housing adaptation grants. It is important to note also that staged payments would result in additional inspections by local authorities with a resulting impact on timeframes for grant payments.

Under the new local authority purchase and renovation loan launched last July, a first-time buyer or fresh start applicant who wishes to purchase or renovate a home eligible for the vacant property refurbishment grant but who cannot get sufficient funding from commercial lenders can apply to their local authority for a loan under the scheme. The loan has the potential to help eligible applicants by providing the necessary finance to make their project viable.

Recognising the need to bring as many vacant properties into use as homes, particularly in our towns and cities, the programme for Government includes a commitment to expand the vacant property refurbishment grant to include an above-the-shop top-up grant. The grant is currently available to support the refurbishment of vacant upper floors of commercial premises. So too is the repair and leasing scheme, providing up to €80,000 per unit, with no limit on the number of units in one property, for use as social housing. The Department of Housing, Local Government and Heritage is working to progress the commitment to introduce a top-up grant for such properties, how it will operate and who it will be available to. The Minister, Deputy Browne, will update Senators in the coming weeks and months on this matter.

I will be happy to bring back to the Minister the issues raised by the Senator. I share her views. I have a similar view regarding the payment in stages. I understand the knock-on effects of that. The Senator is right that we need to make it easier for and to incentivise more people who want to convert vacant properties, in particular those two or three floors over a shop. I am not sure if the Senator is familiar with the situation in Cork, but when I look up St. Patrick's Street and see some of the vacant properties, I ask why people cannot be incentivised more.

I again commend the Senator on what she has been doing and for the role she played. At a time when some people are critical of Government policy the Senator, has been the opposite. She has been a breath of fresh air in coming up with ideas and in pushing and cajoling members of both political parties in the area housing. I will bring back the Senator's views on croí cónaithe. I am sure the Minister, Deputy Browne, the Minister of State, Deputy O'Sullivan, and the other Ministers of State in the Department, including the Minister of State, Deputy Cummins, will work with the Senator on this matter. The Senator is right. It is about breathing new life into and creating a new imagined space in our towns and cities. I will bring back the Senator's remarks and I share her views on this scheme. I apologise if the reply is not what she needs or got but I will certainly take her views back.

Mary Fitzpatrick (Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I thank the Minister of State for his kind words. Solving the housing crisis is our number one priority. The work the Government and the Minister of State do, and which all of us can do to support the Government to achieve that outcome, is a privilege for us.

I acknowledge in the Minister of State's reply the fact that the croí cónaithe grant can be used in combination with the SEAI grants. In providing both grants combined, this can provide up to and in excess of €100,000 to convert vacant properties into liveable homes. That is really welcome and this is why it has been successful.

I acknowledge the response from the Department on the staged payments. It would represent an additional burden on local authorities' vacant housing officers and housing officers if there were to be staged payments. I accept that as a legitimate explanation for staying with the one-stage payment.

I also acknowledge the amendment that was made to the local authority home loan. In essence this meets the need of people on low incomes who are unable to secure a mortgage from a commercial bank for a mortgage to combine it with the vacant property grant. The combination of both is very powerful in enabling low-income people to buy vacant properties, combine it with the vacant property grant as an extension of their mortgage and turn it into a liveable home. That is all very welcome.

I must acknowledge the repair and lease scheme as well. The Minister of State is correct that it is an interest-free €80,000 loan and there is no limit on the number of properties as there is in the case of the vacant property grant. On top of that, companies can apply for the repair and lease whereas it is an individual in the case of the vacant and derelict property grants and they are limited to two properties.

I acknowledge all of that. It is all powerful and positive interventions by the Government to turn vacant properties into liveable homes. I urge the Minister of State to go back to the Department and to work with the Department to fulfil on the commitment we made to introduce the over-the-shop grant. I believe the €100,000 grant will go a long way to accelerating the conversion of over-the-shop spaces into liveable homes. There is an additional cost for compliance with building regulations and fire safety when doing an over-the-shop conversion. This merits the additional increase in the grant to €100,000.

Jerry Buttimer (Cork South-Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I thank the Senator. I will commit to taking her views back to the Department. The Senator is right about the whole concept of liveable homes. I thank her again for her contribution. I reassure the Senator that the Government is committed to addressing the issue of vacancy.The vacant property refurbishment grant has been successful. An above-shop top-up grant is being developed and other changes are being considered to improve the effectiveness of the scheme. We will continue to support bringing as many existing properties as possible back into use as homes. I will convey the views of the Senator to the Minister.

I repeat that I am as committed to this matter as the Senator. It is a scheme that will revitalise areas. I am thinking of Cork city but I know the Senator is thinking of parts of Dublin. Other urban towns will also benefit from the scheme. It is, as the Senator has said, about tackling the number one issue for all of us. Despite what some people would think, it is the Government's number one priority. I again thank the Senator for raising the matter this morning.