John Curran (Dublin Mid West, Fianna Fail)
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174. To ask the Minister for Finance following the publication of the action plan for housing and homelessness four months ago the status of the progress made to date on action 5.10 to review the living city initiative with a view to further enhancing the attractiveness and effectiveness of the scheme; and if he will make a statement on the matter. [35109/16]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy may be aware, the Living City Initiative was initially provided for in Finance Act 2013 and commenced on 5th May 2015. The Initiative was extended beyond the original planned pilot cities of Limerick and Waterford, to include the cities of Dublin, Cork, Galway and Kilkenny. In line with my Department's commitment to evidence based policy-making, the inclusion of these additional four cities followed the completion of a comprehensive, independent ex-ante cost benefit analysis.

Following the commitment referred to by the Deputy, my officials have undertaken a further review of the Living City Initiative this year, and this was published in the Report on Tax Expenditures (October 2016) that was released on Budget Day. This document is available at .

In light of this report, and in consultation with the relevant councils and the Department of Arts, Heritage, Regional, Rural and Gaeltacht Affairs, I announced a number of changes to the scheme in the Budget which aim to make the scheme more attractive and effective.

The principal change is to extend the residential element of the scheme to landlords, who will now be able to claim the relief by way of accelerated capital allowances for the conversion and refurbishment of property which was built prior to 1915, to be used for residential purposes. Eligible expenditure must be incurred during the relevant qualifying period which will begin on 1 January 2017 and terminate on 4 May 2020, which is the pre-existing end-date for the scheme. The allowances are at the rate of 15% per annum for 6 years with 10% in year 7.

In addition, I have decided to remove the requirement for a pre-1915 building to have been originally constructed for use as a dwelling in order to qualify for the residential element of the Initiative. The floor area restriction for owner-occupiers has also been removed and in its place, relief claimed by owner-occupiers under the Initiative will be subject to the high earners restriction. The minimum amount of capital expenditure required for eligibility for relief under all elements of the scheme is also being amended and must from 2017 exceed €5,000.

Subject to Oireachtas approval of the Finance Bill 2016, these changes will come into operation from 1 January 2017. My Department will continue to monitor the Initiative in consultation with the other stakeholders, particularly in light of these alterations.