Written answers

Tuesday, 20 October 2009

Department of Environment, Heritage and Local Government

Social and Affordable Housing

9:00 pm

Photo of Noel AhernNoel Ahern (Dublin North West, Fianna Fail)
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Question 487: To ask the Minister for the Environment, Heritage and Local Government the policy and developments in relation to empty units in private housing estates; the number of affordable units which are lying empty in the case of each local authority; the flexibility the local authorities have to reduce prices to sell; the reason such units have not maintained their percentage lower price [i]vis-À-vis[/i] private units in some estates; the guidelines which have been given to use empty affordable units for social housing; if there is control being exercised in relation to local authorities buying and allocating units for affordable private units, the rental accommodation scheme, homeless, leased, social and so on; if there is a maximum percentage under all these headings with private rental allowed; his policies regarding building sustainable communities; his views on the policy of seeking to have all units occupied; and if he will make a statement on the matter. [36762/09]

Photo of Michael FinneranMichael Finneran (Roscommon-South Leitrim, Fianna Fail)
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Estimates obtained from local authorities and the Affordable Homes Partnership during the first quarter of 2009 indicated that the number of affordable units on hands nationally was in the region of 3,700. At that time, many of these units were already in process of sale or have since been sold.

Local authority Housing Action Plans, which ensure a more holistic and integrated approach to social and affordable housing provision, are reviewed in conjunction with my Department on a regular basis. The Autumn round of review meetings is currently taking place. The data being supplied by local authorities at those meetings will provide an up to date position regarding affordable units on hands.

The provision of affordable housing, including setting of the sale price, is primarily a matter for individual housing authorities. The sale price of an affordable home is determined largely by its cost. Where 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 any affordable house by further subsidisation utilising Part V monies, clawback or other internal capital receipts on hands. Local authorities are best positioned to make judgments in this regard, based on local circumstances.

Local authorities have been advised by my Department on options for bringing unsold affordable homes into use, including the options of the temporary transfer of affordable homes for use under the Rental Accommodation Scheme or under the new social leasing arrangements, or in certain limited cases, for transfer to the permanent social housing stock. Where unsold affordable homes are now being brought into use under the social leasing or Rental Accommodation Schemes, they will be considered again for sale as affordable homes once the lease period expires.

It is essential that all State investment in housing support, including through leasing arrangements, complies fully with the "sustainable communities" philosophy at the heart of the Government's housing policy, as outlined in Delivering Homes, Sustaining Communities. In this context, while my Department has not specified a limit on the number of housing units that can be leased for social housing purposes, a circular and guidance note issued by my Department to housing authorities states that authorities must have regard to the concentration of social housing in a particular development or in the general area where leased properties are proposed. This would include taking account of how much housing has been acquired for social purposes under Part V of the Planning and Development Act.

In seeking approval for proposals, authorities must provide details of the overall development concerned and the breakdown of the types of occupancy i.e. market/private housing, affordable housing and social housing. This is necessary to demonstrate compliance with the mixed income, mixed tenure objectives of the overall "sustainable communities" policy and these details are considered by my Department when assessing proposals. Leased properties, because of their broad geographical distribution will facilitate, rather than impede, the widely endorsed aim of supporting the development of mixed-income and mixed-tenure communities. The unacceptable alternative is a return to previously pursued flawed approaches of developing large mono-tenure estates, with all the attendant issues of social, economic and educational disadvantage.

Even prior to the introduction of leasing arrangements, the quantum of social housing in any particular development could be influenced by a number of factors. In addition to units delivered under the Part V mechanism, units could also be acquired by local authorities as part of their normal acquisitions programme, where this was considered appropriate, or could be secured through the Rental Accommodation Scheme.

My Department will continue to monitor and support local authorities' work to bring unsold affordable homes into use, and will adapt and develop the approaches involved, as necessary, in the evolving housing market and economic climate.

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