Written answers
Tuesday, 18 April 2023
Department of Housing, Planning, and Local Government
Local Authorities
Éamon Ó Cuív (Galway West, Fianna Fail)
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856. To ask the Minister for Housing, Planning, and Local Government when it is expected the baseline Funding Allocation Review of local authority funding will be completed; whether it is intended to make decisions on it in 2023 for implementation in full in 2024; whether from 2024 on, Department funding of local authorities will be based totally on open, transparent and published criteria; and if he will make a statement on the matter. [18130/23]
Kieran O'Donnell (Limerick City, Fine Gael)
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Under the current baseline funding allocation model, every local authority has a minimum level of non-programme funding available to it, known as its baseline. Baseline funding comes from Local Property Tax income (LPT) and is supplemented by the exchequer where a local authority’s LPT income is less than their baseline level.
There was a previous review of the baseline funding model in 2018, and a draft allocation model was agreed by a working group comprised of my Department and the local government sector. As the then Minister for Finance subsequently decided to defer the valuation date for LPT liabilities to November 2021, the finalisation of the baseline review process was also deferred until the impact of the revaluation process could be determined.
The revaluation of Local Property Tax has now taken place and data from the Census 2022 is now available. In light of these developments, the review of the baselines has resumed, and a working group comprising my Department, the local government sector, including Elected Members, and the Department of Public Expenditure, NDP Delivery and Reform has been established for this purpose. The objective of this Review is to recommend a set of key indicators which may be used to allocate available funding to local authorities in a fair, equitable and transparent manner.
It is intended to conclude the work of this group by the end of May 2023, and that recommendations of the group will be brought to me shortly thereafter. While I expect that there will be a new baseline allocation model in place in time for the Local Property Tax allocations for 2024, it should also be noted that any proposed changes to the baselines will need to be considered within the parameters of the national fiscal and budgetary situation at this time.
Seán Haughey (Dublin Bay North, Fianna Fail)
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858. To ask the Minister for Housing, Planning, and Local Government if he is satisfied with the preparations to date by local authorities to implement the residential zoned land tax in 2024; if his Department is being briefed on applications to date for exemptions; if he will continue to monitor the implementation of this proposal; and if he will make a statement on the matter. [18221/23]
Kieran O'Donnell (Limerick City, Fine Gael)
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As required under legislation, every local authority published a draft map identifying land liable to the tax on 1 November 2022. Submissions could be made by interested parties, up to 1 January 2023 challenging whether land met the criteria for the tax, identifying additional land which may meet the criteria for the tax or where made by a landowner, a rezoning request to remove the land from liability. According to the figures provided to my Department by local authorities, 1,687 submissions, including approximately 210 requests to amend zoning, were made to local authorities by the end of the public display period for the draft maps on 1 January 2023.
The level of submissions is reflective of the significant degree of effort put into communicating the publication and public display period for the maps, by my Department, the Department of Finance, each of the 31 Local Authorities and by other key stakeholders in the process.
Each local authority will have issued determinations on submissions made by landowners by 1 April and landowners may appeal the decision to An Bord Pleanála where dissatisfied with the local authority determination by 1 May 2023.
Relevant local authorities will be publishing a supplemental map of additional land which is considered liable to the tax on 1 May. This will reflect land which has been subject to recent zoning changes through adoption of new development plans or local area plans, through recent servicing improvements or where the land has become known to local authorities since the publication of the draft map, for example land identified in submissions.
My Department is continuing to liaise with local authorities and other stakeholders to ensure each stage of the process of identifying land considered to be liable for the tax is progressed in accordance with the legislation, including appeal of determination decisions to An Bord Pleanála, the publication of supplemental maps on 1 May 2023, as well as publication of a final map by Local Authorities on 1 December 2023 reflecting any additions or removals of land from the maps as a consequence of submissions, determinations, appeals and rezoning. Local authorities will be requested to provide details of lands removed from the draft and supplemental maps as a consequence of submissions.
Paul Kehoe (Wexford, Fine Gael)
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859. To ask the Minister for Housing, Planning, and Local Government whether a person may appeal or seek an exception to the policy of a clear financial record for a minimum duration of two years under the Fresh Start principle with regard to a local authority home loan application where the person has exited bankruptcy in June 2021; and if he will make a statement on the matter. [18247/23]
Darragh O'Brien (Dublin Fingal, Fianna Fail)
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The Local Authority Home Loan is a Government backed mortgage scheme for those who cannot get sufficient funding from commercial banks to purchase or build a home. The loan can be used both for new and second-hand properties, or to self-build. A ‘Fresh Start’ principle applies for applications to the Local Authority Home Loan.
Applicant(s) that previously purchased a residential property, but have been divested of this through insolvency or bankruptcy proceedings, are eligible to apply for the Local Authority Home Loan under the "Fresh Start" principle. The applicant must have exited insolvency/bankruptcy proceedings to be eligible to apply.
A requirement for applicants under the "Fresh Start" principle post-bankruptcy is that they need to have had 2 years of no negative credit events before their application for the Local Authority Home Loan to establish their creditworthiness. Any payment issue in this period would be considered as demonstrating a lack of creditworthiness. While an applicant does need to have exited bankruptcy to be eligible to apply, this 2 year period may include the final period of their bankruptcy. It should be noted that a return to solvency should not be interpreted as a return to creditworthiness, which is a separate assessment.
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