Written answers

Thursday, 11 June 2009

Department of Environment, Heritage and Local Government

Planning Issues

7:00 pm

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Question 60: To ask the Minister for the Environment, Heritage and Local Government the role he envisages for local authorities in dealing with developers who have failed to complete residential developments, or where serious defects are found which threaten the long-term sustainability of these developments, and their liability; and if he will make a statement on the matter. [23370/09]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Question 63: To ask the Minister for the Environment, Heritage and Local Government his views on whether the system in which a bond is given by a developer to a local authority is sufficient to ensure a local authority will not have to use its financial resources to complete a development, in the event that the developer folds; and if he has developed policy to protect home owners who purchase dwellings which suffer from serious defects; and if he will make a statement on the matter. [23399/09]

Photo of John GormleyJohn Gormley (Dublin South East, Green Party)
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I propose to take Questions Nos. 60 and 63 together.

Developers are required to build residential developments in accordance with the terms of the relevant planning permission and the requirements of the Buildings Regulations. Non-compliance with a planning permission or the Building Regulations is an offence and a developer who is not in compliance may be subject to enforcement action by the relevant local authority. Certification by a competent professional that a property is in compliance with the planning and building codes is required for conveyancing purposes. Also, the solicitor for a prospective purchaser will normally request that a survey be carried out by a competent professional before completing the conveyance of a residential unit.

I understand that most developers of residential estates are members of an insurance scheme which offers a time-limited protection to purchasers in respect of structural defects: it would be a matter for a prospective purchaser to ascertain whether the developer of the estate in question is a member of such a scheme.

In relation to bonds, my Department has advised planning authorities that it is essential that planning permissions for residential development are subject to a condition under which an acceptable security is provided by way of bond, cash deposit or otherwise so as to secure satisfactory completion. The amount of the security, and the terms on which it is required to be given, should enable a planning authority, without cost to itself, to complete the necessary services in a residential estate (including roads, footpaths, water mains, sewers, lighting and open space) to a satisfactory standard in the event of default by the developer.

The purpose of a bond is to ensure that the planning authority has access to sufficient funds to provide or complete requisite services in the event of default. However, it is not envisaged or intended that a local authority would actually engage in the construction or completion of housing units in an unfinished estate. My Department's advice in relation to bonds was most recently stated in the June 2007 Development Management Guidelines for Planning Authorities and in the February 2008 policy guidance in relation to the Taking in Charge of Estates. This guidance emphasised the desirability of imposing planning conditions in relation to phasing of larger residential developments to the effect that a developer must complete the provision of roads, public lighting, open spaces, etc. which are necessary for, or ancillary to, the completed residential units in a particular phase, before commencing the next phase of an overall development.

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