Written answers

Tuesday, 10 February 2009

Department of Environment, Heritage and Local Government

Social and Affordable Housing

9:00 pm

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Question 449: To ask the Minister for the Environment, Heritage and Local Government the number of affordable homes acquired by local authorities under Part V of the Planning and Development Act 2000 for each of the years 2006 and 2007; the average cost price of an affordable home acquired by the local authority; the number of affordable homes sold by local authorities during 2006 and 2007; the number of affordable homes that remained unsold at the end of the years 2006 and 2007; and if he will make a statement on the matter. [4380/09]

Photo of Michael FinneranMichael Finneran (Roscommon-South Leitrim, Fianna Fail)
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Information on affordable housing activity, up to the end of June 2008, is available on my Department's website at www.environ.ie. Information is also published in my Department's Housing Statistics Bulletins, copies of which are available in the Oireachtas Library. Data for the third quarter of 2008 will be published shortly.

Comprehensive information on the average cost price of affordable homes acquired by local authorities and the number of units sold was not collected by my Department in 2006-2007.

At the end of 2007, information supplied by local authorities indicated that the number of units on hands at that time was of the order of 2,200. Such data were not collected in 2006. It is a feature of the operation of the affordable housing schemes that individual authorities ordinarily have a certain quantum of completed affordable homes on hands at any given time, principally comprising units either being prepared for, or in the course of, sale. However, the information available from local authorities would suggest that the strong level of affordable housing delivery in 2008 and wider housing and mortgage market considerations are combining to increase the stock of homes on hands. The indications to date are that the number of affordable units on hands nationally is in the region of 2,500 to 3,000 units.

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Question 450: To ask the Minister for the Environment, Heritage and Local Government his views on local authorities acquiring fewer affordable housing units than they are entitled to under Part V of the Planning and Development Act 2000 and then having to sell the units acquired at below cost price due to inability to sell them at a higher price charged to them by the developer; and if he will make a statement on the matter. [4381/09]

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Question 451: To ask the Minister for the Environment, Heritage and Local Government if his attention has been drawn to the fact that Waterford City Council is acquiring fewer affordable housing units than they are entitled to under Part V of the Planning and Development Act 2000 due to the high costs of the units; and if he will make a statement on the matter. [4382/09]

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Question 452: To ask the Minister for the Environment, Heritage and Local Government if his attention has been that Waterford City Council has acquired fewer affordable housing units than they are entitled to in an estate (details supplied) as a result of prohibitively high prices charged by the developer; if he will examine the contract between Waterford City Council and the developer; and if he will make a statement on the matter. [4383/09]

Photo of John GormleyJohn Gormley (Dublin South East, Green Party)
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I propose to take Questions Nos. 450 to 452, inclusive, together.

Statutory responsibility for the making of agreements under Part V of the Planning and Development Acts 2000-2007 rests with the relevant planning authority.

An agreement under Part V may provide for, inter alia, the developer building and transferring completed houses to the planning authority. The number and description of the houses will be specified in the agreement and the homes will be transferred at a price determined on the basis of the site cost of the units, calculated at existing use value together with the building and development costs, including profits, as agreed between both parties.

It is open to a planning authority to accept fewer units at a lower cost price — in effect, cost subsidisation — so long as it achieves the equivalent monetary value which would have accrued had the agreement provided solely for the transfer of land. The housing yield under each Part V agreement is a matter for individual authorities to negotiate, having regard to the various considerations set out in legislation.

In the case referred to, the local authority has advised that the required equivalent monetary value due to it under Part V was secured. It is open to local authorities to further reduce the purchase price of affordable homes, where appropriate, from a value for money perspective, where this is necessary to continue to meet the needs of the target group concerned.

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