Arthur Morgan (Louth, Sinn Fein)
Link to this: Individually | In context

Question 54: To ask the Minister for the Environment, Heritage and Local Government the steps he will take to help local authorities who have purchased homes from developers under the affordable section of Part V, which are now dearer or near the same asking price as the private homes in the same scheme; and if he will make a statement on the matter. [10095/09]

Jack Wall (Kildare South, Labour)
Link to this: Individually | In context

Question 86: To ask the Minister for the Environment, Heritage and Local Government if the estimated 2,500 to 3,000 affordable housing units which local authorities have on hand have already been paid for; if an attempt will be made to claw back the excess when the price paid was in excess of the current market value; and if he will make a statement on the matter. [10157/09]

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 54 and 86 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 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 on those costs, as agreed between both parties.

Where housing authorities consider it appropriate, in the context of reduced open market prices and the continuing need to ensure value for money outcomes, they have the option to further reduce the sale price of an affordable unit by providing subsidy, including through the use of any Part V funds on hands. Local authorities are best positioned to make judgments in this regard based on local circumstances.

The majority of affordable units on hands were acquired on foot of Part V agreements between developers and local authorities. It would be a matter for individual local authorities to consider the scope to re-negotiate prices, having regard to the nature of contracts entered into by them with developers. In the case of units provided under the 1999 Affordable Housing Scheme and the Affordable Housing Initiative, prices were largely determined by the cost of constructing the dwellings on local authority or State land and, in most instances, were significantly below prevailing market price.

The Affordable Homes Partnership, working closely with my Department, has examined the position regarding unsold affordable housing with a view to identifying actions that might assist in the sale of such units. The Partnership recently held a seminar providing advice and guidance to local authorities on the marketing and sale of affordable homes in the current market. The Partnership has also issued a sales guide, available on their website, to complement their meetings with individual authorities.

My Department is currently drawing up further guidance on this matter in light of the examination carried out by the Affordable Homes Partnership and a circular will be issued to local authorities very shortly.