Pat Buckley (Cork East, Sinn Fein)
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648. To ask the Minister for Rural and Community Development her priorities for town regeneration; the initiatives she is taking to support town renewal; and if she will make a statement on the matter. [39667/24]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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The National Planning Framework (NPF) is the national plan for strategic planning and sustainable development of our urban and rural areas to 2040, with the core objectives of securing balanced regional development and a sustainable ‘compact growth’ approach to the form and pattern of future development. The NPF envisages significant city-based population and employment growth and National Policy Objective 2(a) sets “A target of half (50%) of future population and employment growth will be focused in the existing five cities and their suburbs” as a means of ensuring cities deliver as ‘accessible centres of scale’. Importantly, the NPF sets ambitious growth targets to enable the four regional cities of Cork, Limerick, Galway and Waterford to each grow by at least 50% to 2040.

In order to underpin city development, the NPF includes significant strategic objectives to improve the quality and livability of city and urban areas with enhanced infrastructural provision in transport, public realm, recreational amenities and the built environment generally, as well as continuing to support diverse employment opportunities. Specific funding streams such as the Urban Regeneration and Development Fund (URDF) and dedicated development agencies like the Land Development Agency (LDA) have been established to deliver a large scale regeneration programme nationally and to realise the holistic social and physical improvement of communities.

Housing for All is the Government’s ten year Housing Plan for Ireland comprising four pillars to deliver increased housing provision nationally. Housing for All includes a particular focus on vacancy and dereliction, with a range of measures developed to support increased housing supply in our settlements, and to bring about associated regeneration benefits. The publication of a Town Centre First policy was an objective of the strategy (Action 19.1) and accordingly ‘Town Centre First – A Policy Approach for Irish Towns’ was formally launched on 4 February 2022 as a joint initiative of my Department and the Department of Rural and Community Development (DRCD). Town Centre First (TCF) supports a more strategic and co-ordinated approach to the regeneration of Ireland’s urban areas. It includes a particular focus on measures to tackle vacancy and dereliction, to create more vibrant and viable places, through greater occupancy for residential purposes and to encourage more business and footfall.

These ambitious targets for urban population growth and regeneration are being supported by my Department through a range of policy measures and funding schemes.

Urban Regeneration and Development Fund (URDF) The URDF is the flagship regeneration funding element of Project Ireland 2040, established to support more compact and sustainable development, through the regeneration and rejuvenation of Ireland’s five cities and other large towns, in line with the objectives of the National Planning Framework (NPF) and National Development Plan (NDP). It is enabling a greater proportion of residential and mixed-use development to be delivered within the existing built-up footprints of our cities and towns and to ensure that more parts of our urban areas can become attractive and vibrant places in which people choose to live and work, as well as to invest and to visit.

As part of the National Development Plan (NDP) with an investment of €2 billion, the URDF is supporting targeted regeneration and rejuvenation of our towns and cities. Currently, the URDF part-funds 132 projects and almost 400 sub-projects across the country. Public realm improvements are also supported though various transport initiatives developed and managed by the National Transport Authority including under the Active Travel Investment Programme. Through the URDF, successful applicants are receiving targeted support for innovative holistic solutions to the issues that have hindered the regeneration and rejuvenation of our large towns and cities.

Vacancy Tackling vacancy is a key priority for the Government. The reuse of vacant and derelict properties in areas of cities can provide much needed housing, while also being a catalyst to transforming areas and revitalising communities and supporting environmental objectives. A range of supports and schemes are now in place which support bringing vacant and derelict buildings back into use. The Vacant Homes Action Plan, Progress Report published in April 2024 sets out the significant progress that has been achieved across government under objectives contained in Pathway 4 of Housing for All in 2023 and the further steps that are being taken to bring more vacant and derelict properties into use as homes.

Among the range of measures introduced to tackle vacancy is Call 3 of the URDF which has made €150 million available for local authorities, to acquire, including through compulsory purchase, vacant or derelict properties and sites for re-use or sale. More than 1,200 vacant and derelict properties have now been identified and approved under Call 3 of the Fund, with an estimated residential yield of over 5,400 homes.

Planning regulations, introduced in 2018, which exempted certain vacant commercial premises, including ‘over the shop’ type spaces, from requiring planning permission to change to residential purposes were extended to the end of 2025. The scope of the exemption was also extended to include ‘public houses’. The exemptions support the reuse of vacant commercial buildings as homes, increasing housing supply and regenerating communities. From 2018 to the end of 2023, 1,100 notifications had been received from developers which could result in over 2,700 new homes being provided, significantly adding to the provision of new homes.

The Vacant Property Refurbishment Grant provides support to refurbish vacant and derelict properties. It is making the transformation of these properties into homes an affordable option for buyers and owners. In addition to residential dwellings the Grant can be used to support refurbishment of the upper floors of commercial buildings, i.e. ‘over the shop’ spaces, which have been vacant for two years or more and built before 2008, regardless of whether the ground floor is currently vacant or derelict.

The Living City Initiative is a tax incentive which supports owners in bringing vacant properties back into use. It is operated by the six urban local authorities on behalf of the Department of Finance. The Living City Initiative is a targeted property incentive aimed at the regeneration of older heritage buildings in historic inner cities. It offers income or corporation tax relief for qualifying expenditure incurred in the refurbishment and conversion of qualifying residential and commercial buildings. The scheme can be availed of alongside the Vacant Property Refurbishment Grant.

Croí Cónaithe (Cities) Scheme The provision of ‘New Build’ homes within cities is being supported by The Croí Cónaithe (Cities) Scheme. This is a fund to support the building of 5,000 apartments for sale to owner-occupiers. The Scheme aims to bridge the current “Viability Gap” between the delivery cost of building apartments and the market sale price (where the cost of building is greater). It is a viability measure targeting the five cities of Dublin, Cork, Limerick, Galway and Waterford and designed to support the building of apartments for sale to owner-occupiers that would otherwise not be built, providing a greater range of tenure in our urban centres. Subject to the actual level of the viability gap, a subvention of up to €120k is available in Dublin and €144k in the rest of the country (inclusive of VAT). The Scheme was in 2022 and is being managed by The Housing Agency on behalf of my Department. There have been three formal calls for Expression of Interest undertaken. Six contracts in respect of five proposals have been finalized to date, for the delivery of 640 units. The Housing Agency is continuing to assess the remaining proposals under Call 1 and Call 2 and a third call for Expressions of Interest closed on 26 September 2024.

Town Centre Heritage Revival (THRIVE) scheme The EU Regional Development Fund (ERDF) has also been operationalised to support implementation of regeneration in cities and urban areas through the new Town Centre Heritage Revival (THRIVE) scheme launched in February 2024. The THRIVE scheme offers 100% grants to local authorities to (i) progress integrated urban strategies and project pipeline development (Strand 1 - €40k and €200k) and (ii) renovate and adapt vacant or derelict heritage buildings in public control or ownership (Strand 2 - €2m and €7m). Announced on 1 August 2024, five urban centres are set to benefit from nearly €32 million in funding for the renovation, restoration and reuse of publicly owned vacant and derelict heritage buildings.

Local authorities will have an opportunity to apply for another tranche of capital funding under THRIVE in a follow-on funding call in Spring 2025.