Catherine Murphy (Kildare North, Independent)
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392. To ask the Minister for Environment, Community and Local Government in view of the extent of unfinished housing estates nationally, some of which commenced construction more than a decade ago, if he will review the guidance to planning authorities on calling in bonds; and if he will make a statement on the matter. [53858/13]

Jan O'Sullivan (Limerick City, Labour)
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Conditions attached to planning permissions for residential development must require the giving of sufficient security prior to commencement of development. The form of the bond, the amount and the terms attached are matters for the planning authority concerned and the arrangement entered into must enable the planning authority, without cost to itself, to complete the necessary services (including roads, footpaths, water mains, sewers, lighting and open space) to a satisfactory standard in the event of default by the developer.

My Department provided updated guidance to local authorities earlier in 2013 in relation to bonds. This included, inter alia, guidance on:

- Purpose of securities;

- Types of securities;

- Requirements for securities;

- Default events;

- Securities in phased developments;

- Assessment of security mechanisms;

- Computation of bonds; and,

- Release of bonds.

This guidance is available on my Department’s website at

In respect of existing development bond-related issues, l ocal authorities are continuing to pursue developers and others to comply with their obligations under planning regulations. Predominantly developer/funder/receiver-funded site resolution processes will remain the main vehicle to tackle unfinished developments. According to the 2013 Progress Report on Resolving Unfinished Housing Developments, which I published in November, some 553 developments have been brought to a resolution point in this way over the past 12 months alone. I expect that such processes will continue to make significant inroads into the remaining 992 inhabited unfinished developments.

Additionally, my Department has available a Special Resolution Fund of €10million, provided in Budget 2014, to address the completion of infrastructure on developments which could not be resolved because of absences of, or inadequacies in, planning securities and other unforeseen cost and risk issues. The fund will be operated by the local authorities and will be carefully targeted mainly to address difficulties in public infrastructure that have arisen on certain developments included in my Department’s 2013 Survey.

Catherine Murphy (Kildare North, Independent)
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393. To ask the Minister for Environment, Community and Local Government if he will conduct a review on the extent of development bonds that have lapsed in advance of housing developments being completed, to include the level of exposure to planning authorities; his plans to introduce new legislation/regulation; and if he will make a statement on the matter. [53860/13]

Jan O'Sullivan (Limerick City, Labour)
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While my Department does not gather regular statistical information on the management of development bonds by local authorities, the Unfinished Housing Development Survey 2013 Progress Report, which I published in November, provides an analysis of bonds and securities associated with housing developments. This report can be found on my Department’s website, . In order to ensure the appropriateness and security of development bonds on new developments, my Department also provided updated guidance in relation to development bonds to local authorities earlier in 2013. This included, inter alia, guidance on:

- Purpose of securities;

- Types of securities;

- Requirements for securities;

- Default events;

- Securities in phased developments;

- Assessment of security mechanisms;

- Computation of bonds; and,

- Release of bonds.

This guidance can also be found on my Department’s website.

In addressing the wide variety of challenges posed by unfinished housing developments, my Department has also played a coordinating role for local authorities, developers and receivers, and the banking sector. The National Coordination Committee on Unfinished Housing Developments, which I chair, was established as a response to the report of the advisory group on unfinished housing developments and has harnessed the expertise and goodwill of the construction and banking sectors, local authorities, residents’ representatives and NAMA. As the 2013 Unfinished Housing Developments Progress Report shows, this coordinated response is producing results, and I am satisfied that no further legislative responses are required at this time.