Catherine Murphy (Kildare North, Independent)
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Question 502: To ask the Minister for the Environment, Heritage and Local Government if it is standard practice for local authorities to engage in negotiations with developers in order for developers to reacquire new properties designated for the purposes of social and affordable housing; and if he will make a statement on the matter. [17347/06]

Noel Ahern (Dublin North West, Fianna Fail)
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I assume that the Question refers to Part V agreements reached between developers and local authorities following negotiations under the Planning and Development Act 2000-2004 which requires, inter alia, that up to 20% of land zoned for residential developments or for a mix of residential and other uses, is to be reserved to meet social and affordable housing needs.

Instead of the transfer of land there are other options available to satisfy the Part V requirement. These include the provision of new units or other lands within the functional area of the local authority; the transfer of fully or partially serviced sites to the local authority or to an approved housing association, the payment of money in lieu or a combination of the above. Land that has been transferred following agreement can only be used to construct social and affordable housing while any monies received are ring-fenced for housing capital purposes and cannot be used for any other purpose.

In their negotiations with developers under Part V, local authorities are obliged to ensure that each agreement delivers the best possible result in terms of overall housing supply and social integration for their area. It is a matter for the local authority to accept or reject an offer made by a developer during negotiations, having regard to its housing strategy and whether it constitutes the best use of the resources available to it.

My Department is not aware of any instance whereby a developer may reacquire units that have been initially acquired by a local authority on foot of an agreement reached under Part V.