Department Underspend and Reduced Delivery of Affordable Housing: Motion (Resumed) [Private Members]

The following motion was moved by Deputy Eoin Ó Broin on Tuesday, 18 April 2023:

That Dáil Éireann:

notes that:

— the Department of Housing, Local Government and Heritage had a capital budget underspend of €1 billion between 2020 and 2022;

— the primary cause of this underspend is the excessive bureaucracy and red tape imposed by the Department of Housing, Local Government and Heritage on local authorities and Approved Housing Bodies;

— zero affordable purchase or Cost Rental homes were delivered by this Government in 2020;

— zero affordable purchase homes and just 65 Cost Rental homes were delivered in 2021;

— the target for affordable purchase and Cost Rental homes for 2022 was too low, and will not be met;

— the cost of much of the affordable rental and purchase homes delivered to date is beyond the reach of many working people;

— the Government failed to put in place the Cost Rental Tenant In-Situ Scheme before the ending of the ban on no fault evictions;

— the controversial 'First Home' Affordable Purchase Shared Equity Scheme does not deliver affordable homes – it pushes up house prices and saddles working people with increased debt;

— the so-called Help to Buy scheme pushes up house prices, and 40 per cent of the fund has gone to buyers who did not need any State support to buy their own home;

— the lack of affordable homes is impacting on the economy and causing recruitment shortages in crucial areas of public and private sector employment; and

— the Government's failure to deliver genuinely affordable homes for working people is driving up rents, house prices and levels of homelessness; and

agrees that:

— the Government must dramatically increase its investment in the delivery of genuinely affordable homes for working people;

— investment should deliver at least 8,000 affordable homes to rent and buy per year;

— the funding streams and approval processes for the delivery of affordable homes must be streamlined to accelerate the delivery of these homes;

— the financing and delivery of these homes must be reformed to ensure that house prices and rents are genuinely affordable;

— greater action on the use of vacant and derelict homes and new building technologies must be taken to accelerate the delivery of affordable housing;

— the ending of the ban on no-fault evictions will lead to an increase in homelessness; and

— the controversial 'First Home' Affordable Purchase Shared Equity Scheme and the so-called Help to Buy scheme should be scrapped and the funding diverted into the delivery of genuinely affordable homes for working people.

Debate resumed on amendment No. 1:

To delete all words after "That Dáil Éireann" and substitute the following:

"notes that:

— the Government recognises there is a housing crisis in Ireland affecting ordinary working people who aspire to affordable, stable tenancies or the security of home ownership, and this demands a response from the Government on an unprecedented scale;

— Ireland is experiencing an acute gap between housing supply and demand, exacerbated by the economic effects of the Covid-19 pandemic, global supply-chain disruption, Russian aggression in Ukraine, which further exacerbated significant supply chain issues, as well as higher costs for construction materials; these challenges required both short and longer-term State interventions to address;

— increasing social, affordable and private housing supply, for renters and those looking to purchase a home, is key to improving our housing system and eradicating homelessness, with almost 30,000 homes built last year, an increase of 45.2 per cent from 2021 (20,560) and 41.3 per cent from 2019 (21,134), and 5,250 or 21 per cent higher than the Housing for All: A New Housing Plan for Ireland target of 24,600 for 2022;

— the Government will continue to expand the provision of social, affordable and Cost Rental accommodation to ensure that all sectors of our society have accommodation that meets their needs available to them;

— 10,263 social homes were delivered in 2022, including 7,433 new-build social homes - the highest level of new-build social housing since 1975 - with a strong pipeline of over 19,000 social homes either onsite or at design and tender stage; and

— 1,757 affordable homes were delivered in 2022; 5,500 affordable homes will be delivered in 2023; 2,800 affordable homes have already been approved in respect of 42 specific projects across 15 local authority areas;

further notes with regard to unprecedented levels of spending:

— despite significant challenges including war in Europe, the lasting effects of the global pandemic and of Brexit, 2022 saw the highest capital spend ever for the Vote of the Department of Housing, Local Government and Heritage, an overall increase of 28 per cent in 2022 versus 2021;

— Section 91 of the Finance Act 2004, provides for the carryover of up to 10 per cent of the Real Estate Valuation allocation (capital) from one year to the next, and in the case of significant capital projects and in accordance with effective management of a multi-annual housing programme, it is important to note that the capital carryover ensures that where delivery arises beyond the calendar year in which initially anticipated, the capital can transfer to meet the commitment up to a maximum of 10 per cent; and the capital carryover amount is the first call on the Vote following the signing of the deferred surrender order in the following year and is spent in full and does not therefore represent a cumulative underspend;

— 2022 also saw the highest level of housing expenditure ever in a single year, with almost €3.5 billion expended on housing, representing an increase of 21 per cent on 2021;

— 2023 will see further record investment in housing, with total Exchequer funding of €4 billion to deliver housing programmes, including €2.6 billion in capital funding and €1.4 billion in current funding; and

— overall, there will be €4.5 billion available for capital investment in housing, comprising €2.6 billion in Exchequer funding and €1.9 billion in Land Development Agency (LDA) investment and Housing Finance Agency lending; and

agrees that:

— in relation to improving processes and delivery for efficiency:

— this Government has a clear vision to achieve both value for money and more efficient processes in our housing programmes, which includes both affordable and Cost Rental provision, and is delivering on this vision to support our ambitious public housing programme;

— the Government has advanced key initiatives to improve the quality, cost-effectiveness and, in particular the pace of delivery of social homes, involving fundamental change and improvement in social housing delivery processes;

— this Government is also working with local authorities on a programme of over 1,500 new social homes via Modern Methods of Construction (MMC), with accelerated processes for the councils to advance their proposals including early funding approvals and utilising the new Planning Regulations (Section 179A), so that those projects will be on site in 2023 or 2024; and

— these actions, alongside continuous improvements and streamlining of work processes and the sanctioning of 250 additional local authority housing staff for social housing delivery and similarly up to 70 staff for affordable delivery on an initial basis, is what the Government is delivering in order to support our ambitious public housing programme;

— with regard to addressing immediate need:

— this Government considered a number of courses of action in advance of the ending of the 'winter emergency period' and agreed on 7th March that a focus on additional new supply is the best way forward in dealing with the end of the winter eviction ban in a manner which best protects tenants;

— this included the development of a bespoke Cost Rental Tenant In-Situ Scheme as a support to households who face the termination of a tenancy due to the intended sale of a property and consequently are not able to purchase it from the landlord and are at risk of homelessness;

— while the process to establish this scheme on a legislative basis is being advanced, the Government have provided a temporary administrative scheme which was in place from 1st April in order to support tenants who are at risk of homelessness due to notification of termination; and

— there will also be a significant increase in the number of social housing acquisitions, with a minimum of 1,500 social homes to be acquired during 2023; and the majority of these acquisitions will be properties where a Housing Assistance Payment or Rental Accommodation Scheme tenant has received a Notice of Termination due to the landlord's intention to sell the property;

— the Help to Buy scheme that the Government launched in 2017 has subsequently supported over 38,000 First-time Buyer households secure a new home, with over 900 of these supports delivered in January and February this year; and this scheme has been extended to 2024;

— in relation to the 'First Home' Affordable Purchase Shared Equity Scheme:

— this Government is supporting people and families to achieve the security and stability of home ownership via the 'First Home' scheme to bridge the clear viability/affordability mismatch in a sustainable way;

— a total of 3,556 potential buyers have registered their interest in the scheme, with over 1,000 new expressions of interest received in the period January to March; and

— as of Q1 2023, 1,336 buyers in 24 counties have been approved under the scheme and have received eligibility certificates allowing them to buy their chosen home;

— in relation to establishing and stepping up pace of affordable delivery:

— this Government introduced the Affordable Housing Act 2021, the first ever piece of standalone affordable housing legislation establishing four new affordable housing measures to deliver on the Programme for Government: Our Shared Future commitment to put affordability at the heart of the housing system and prioritise the increased supply of affordable homes;

— 2022 was the first full year of affordable housing delivery in a generation, increasing the scale of affordable purchases will be achieved through a mix of new or extended initiatives, including the 'First Home' Affordable Purchase Shared Equity Scheme, Local Authority-provided Affordable Purchase Schemes, the Help to Buy initiative and the expanded Local Authority Home Loan;

— Cost Rental housing - a new form of State-backed secure, long-term rental tenure with rents targeted at a minimum of 25 per cent below open market rates - is being delivered in increasing numbers, with hundreds of Cost Rental homes tenanted;

— given the viability challenges resulting from cost increases, and to provide further necessary support to Affordable Housing Bodies (AHBs), and local authorities in bringing forward a short-term pipeline of Cost Rental developments, the Government has approved changes to the funding ceilings available which involved increasing the ceiling of Cost Rental Equity Loan (CREL) beyond its current rate of 30 per cent of costs up to 45 per cent;

— in addition, as part of the drive to facilitate greater direct delivery of Cost Rental homes by local authorities, the amount of Affordable Housing Fund grant funding currently available to local authorities has been increased from the current €100,000 per Cost Rental unit up to a maximum of €150,000;

— to ensure that the CREL scheme continues to meet the needs of both AHBs and tenants in facilitating the delivery of Cost Rental homes, a Working Group has been set up to consider the parameters of the scheme more broadly; this includes examining the CREL funding model in delivering Cost Rental homes in strategic locations at affordable rents, and considering any new, sustainable funding structures and/or interventions that could be implemented to improve the viability of delivery and the development of a longer term Cost Rental pipeline;

— development of the Cost Rental sector will have an impact on the wider rental market, reducing rents over the longer term, as households have more affordable options available to them;

— the past 12 months have represented the first year of a very ambitious programme of delivery of affordable housing; this momentum will continue with delivery stepping up in 2023, and significant investment is in place to support affordability measures and deliver more affordable purchase and Cost Rental homes in 2023;

— additional supports have been put in place for local authorities, AHBs and the LDA to further develop their growing pipeline, and enhanced regional price ceilings will also ensure continued high levels of activity under the 'First Home' Affordable Purchase Shared Equity Scheme; and

— in support the Government is also taking steps to address viability in the provision of apartments, including activating uncommenced planning permission through the expansion of the LDA Project Tosaigh and the Housing Agency's Croí Cónaithe (Cities) Scheme which will help to deliver increased supply over the next few years;

— with regards to addressing vacancy:

— the Government has published the Vacant Homes Action Plan, which outlines progress and details new actions that will be implemented to continue to return as many vacant properties back to use as possible, increasing the supply of housing available, and revitalising local communities;

— measures already taken by the Government include expanding the Vacant Property Refurbishment Grant, funding full-time vacant homes officers in every local authority, exemptions to planning permissions to convert vacant commercial premises to residential use and enhancing the Fair Deal scheme to incentivise the selling or renting of used homes;

— measures in the Action Plan include a €150 million Urban Regeneration Development Fund for local authorities to acquire vacant or derelict properties and sites for re-use or sale, and the fund will then be replenished from the proceeds received from the sale or reuse of a site, allowing a local authority to establish a rolling programme to tackle vacancy and dereliction;

— a new Compulsory Purchase Order Activation Programme was launched recently, with targets identified for each local authority for bringing properties back into use; this programme includes guidance and supports for local authorities to actively use their legislative powers to acquire vacant and derelict properties, where engagement with owners has been unsuccessful;

— the Government is building on the initial success of the Vacant Property Refurbishment Grant; it is now being further expanded to increase the number of vacant and derelict properties being brought back into use, this includes:

(i) changing the eligibility date for properties from 1993 to include properties built prior to 2007;

(ii) expanding the grant to include properties which are to be made available for rent and not solely for owner occupation; and

(iii) reviewing of the existing grant rates with a view to increase the financial support available to refurbish vacant and derelict properties; and

these amendments are currently being worked on, with a view to implementation in May;

— in regards to deploying new building technologies funding of €94 million has been allocated to pay down local authority loans on legacy indebted sites, which can deliver social housing projects through the use of accelerated delivery models, principally off-site/MMC; and by paying down the outstanding loans the fund will free up these sites for immediate development;

— in relation to improving local authority delivery efficiency to help expedite the provision of housing by local authorities, new provisions came into effect from 8th March, 2023 and, subject to certain criteria, will provide a temporary exemption from the 'Part 8' planning approval process by elected members for local authority own developments for social and affordable (including Cost Rental) housing which commence construction before the end of 2024; and

— having regard to evidence based target setting:

— Housing for All: A New Housing Plan for Ireland targets were set, for the first time, using a Housing Need and Demand Assessment, developed in co-operation with the Economic and Social Research Institute to support the identification of the level of housing need across and between all tenures;

— affordable housing delivery targets were set for local authorities, the AHB sector and the LDA and the 'First Home' Affordable Purchase Shared Equity Scheme; and

— the Housing for All: Action Plan Update commits the Government to reviewing the national housing targets and projections when the full Census 2022 is published later this year; this will include refreshed targets with subsets for social, affordable and market delivery that reflect need and demand, and a scaling-up to ensure optimal levels of sustainable supply over the lifetime of the plan in line with increased capacity in the construction sector."

-(Minister for Housing, Local Government and Heritage)

An Leas-Cheann Comhairle

I must now deal with a deferred division relating to amendment No. 1 in the name of the Minister for Housing, Local Government and Heritage to the motion regarding Department of Housing, Local Government and Heritage Underspend and Reduced Delivery of Affordable Housing. On Tuesday, 18 April 2023, on the question, "That the amendment to the motion be agreed to", a division was claimed and in accordance with Standing Order 80(2), that division must be taken now.

Amendment put:

The Dáil divided: Tá, 68; Níl, 55; Staon, 0.

Tá

Brophy, Colm.
Browne, James.
Bruton, Richard.
Burke, Colm.
Butler, Mary.
Byrne, Thomas.
Cahill, Jackie.
Calleary, Dara.
Canney, Seán.
Cannon, Ciarán.
Carroll MacNeill, Jennifer.
Collins, Niall.
Costello, Patrick.
Coveney, Simon.
Cowen, Barry.
Crowe, Cathal.
Devlin, Cormac.
Dillon, Alan.
Donnelly, Stephen.
Duffy, Francis Noel.
Durkan, Bernard J.
English, Damien.
Farrell, Alan.
Feighan, Frankie.
Flaherty, Joe.
Flanagan, Charles.
Fleming, Sean.
Foley, Norma.
Griffin, Brendan.
Haughey, Seán.
Heydon, Martin.
Higgins, Emer.
Humphreys, Heather.
Kehoe, Paul.
Lahart, John.
Leddin, Brian.
Lowry, Michael.
Madigan, Josepha.
Martin, Micheál.
Matthews, Steven.
McAuliffe, Paul.
McConalogue, Charlie.
McGrath, Michael.
McHugh, Joe.
Moynihan, Aindrias.
Moynihan, Michael.
Murnane O'Connor, Jennifer.
Naughton, Hildegarde.
Noonan, Malcolm.
O'Brien, Darragh.
O'Brien, Joe.
O'Callaghan, Jim.
O'Connor, James.
O'Donnell, Kieran.
O'Dowd, Fergus.
O'Gorman, Roderic.
O'Sullivan, Christopher.
O'Sullivan, Pádraig.
Ó Cathasaigh, Marc.
Ó Cuív, Éamon.
Rabbitte, Anne.
Richmond, Neale.
Ring, Michael.
Ryan, Eamon.
Shanahan, Matt.
Smith, Brendan.
Smyth, Ossian.
Stanton, David.

Níl

Andrews, Chris.
Barry, Mick.
Boyd Barrett, Richard.
Brady, John.
Browne, Martin.
Buckley, Pat.
Cairns, Holly.
Carthy, Matt.
Clarke, Sorca.
Collins, Joan.
Collins, Michael.
Connolly, Catherine.
Conway-Walsh, Rose.
Cronin, Réada.
Crowe, Seán.
Daly, Pa.
Doherty, Pearse.
Donnelly, Paul.
Ellis, Dessie.
Farrell, Mairéad.
Fitzmaurice, Michael.
Funchion, Kathleen.
Gannon, Gary.
Gould, Thomas.
Guirke, Johnny.
Healy-Rae, Michael.
Howlin, Brendan.
Kenny, Gino.
Kenny, Martin.
Kerrane, Claire.
Mac Lochlainn, Pádraig.
McGrath, Mattie.
McNamara, Michael.
Mitchell, Denise.
Murphy, Catherine.
Murphy, Paul.
Nash, Ged.
Nolan, Carol.
O'Callaghan, Cian.
O'Donoghue, Richard.
O'Reilly, Louise.
O'Rourke, Darren.
Ó Broin, Eoin.
Ó Murchú, Ruairí.
Ó Ríordáin, Aodhán.
Ó Snodaigh, Aengus.
Quinlivan, Maurice.
Ryan, Patricia.
Shortall, Róisín.
Smith, Bríd.
Smith, Duncan.
Stanley, Brian.
Tully, Pauline.
Ward, Mark.
Whitmore, Jennifer.

Staon

Tellers: Tá, Deputies Hildegarde Naughton and Cormac Devlin; Níl, Deputies Pádraig Mac Lochlainn and Denise Mitchell.

Amendment declared carried.

Question put: "That the motion, as amended, be agreed to."

The Dáil divided: Tá, 68; Níl, 56; Staon, 0.

Tá

Brophy, Colm.
Browne, James.
Bruton, Richard.
Burke, Colm.
Butler, Mary.
Byrne, Thomas.
Cahill, Jackie.
Calleary, Dara.
Canney, Seán.
Cannon, Ciarán.
Carroll MacNeill, Jennifer.
Collins, Niall.
Costello, Patrick.
Coveney, Simon.
Cowen, Barry.
Crowe, Cathal.
Devlin, Cormac.
Dillon, Alan.
Donnelly, Stephen.
Duffy, Francis Noel.
Durkan, Bernard J.
English, Damien.
Farrell, Alan.
Feighan, Frankie.
Flaherty, Joe.
Flanagan, Charles.
Fleming, Sean.
Foley, Norma.
Griffin, Brendan.
Haughey, Seán.
Heydon, Martin.
Higgins, Emer.
Humphreys, Heather.
Kehoe, Paul.
Lahart, John.
Leddin, Brian.
Lowry, Michael.
Madigan, Josepha.
Martin, Micheál.
Matthews, Steven.
McAuliffe, Paul.
McConalogue, Charlie.
McGrath, Michael.
McHugh, Joe.
Moynihan, Aindrias.
Moynihan, Michael.
Murnane O'Connor, Jennifer.
Naughton, Hildegarde.
Noonan, Malcolm.
O'Brien, Darragh.
O'Brien, Joe.
O'Callaghan, Jim.
O'Connor, James.
O'Donnell, Kieran.
O'Dowd, Fergus.
O'Gorman, Roderic.
O'Sullivan, Christopher.
O'Sullivan, Pádraig.
Ó Cathasaigh, Marc.
Ó Cuív, Éamon.
Rabbitte, Anne.
Richmond, Neale.
Ring, Michael.
Ryan, Eamon.
Shanahan, Matt.
Smith, Brendan.
Smyth, Ossian.
Stanton, David.

Níl

Andrews, Chris.
Barry, Mick.
Boyd Barrett, Richard.
Brady, John.
Browne, Martin.
Buckley, Pat.
Cairns, Holly.
Carthy, Matt.
Clarke, Sorca.
Collins, Joan.
Collins, Michael.
Connolly, Catherine.
Conway-Walsh, Rose.
Cronin, Réada.
Crowe, Seán.
Daly, Pa.
Doherty, Pearse.
Donnelly, Paul.
Ellis, Dessie.
Farrell, Mairéad.
Fitzmaurice, Michael.
Funchion, Kathleen.
Gannon, Gary.
Gould, Thomas.
Guirke, Johnny.
Healy-Rae, Danny.
Healy-Rae, Michael.
Howlin, Brendan.
Kenny, Gino.
Kenny, Martin.
Kerrane, Claire.
Mac Lochlainn, Pádraig.
McGrath, Mattie.
McNamara, Michael.
Mitchell, Denise.
Murphy, Catherine.
Murphy, Paul.
Nash, Ged.
Nolan, Carol.
O'Callaghan, Cian.
O'Donoghue, Richard.
O'Reilly, Louise.
O'Rourke, Darren.
Ó Broin, Eoin.
Ó Murchú, Ruairí.
Ó Ríordáin, Aodhán.
Ó Snodaigh, Aengus.
Quinlivan, Maurice.
Ryan, Patricia.
Shortall, Róisín.
Smith, Bríd.
Smith, Duncan.
Stanley, Brian.
Tully, Pauline.
Ward, Mark.
Whitmore, Jennifer.

Staon

Tellers: Tá, Deputies Hildegarde Naughton and Cormac Devlin; Níl, Deputies Pádraig Mac Lochlainn and Denise Mitchell.

Question declared carried.

An Ceann Comhairle

I have an unscheduled announcement for the attention of the House. Members will be aware that Deputy Christopher O'Sullivan is interested in all matters maritime, but it has just come to my attention that when he takes the plunge this weekend, he will not be doing so alone. He will be joined by his fiancée, Ms Sarah Redmond. I am sure we would all join in wishing him and Sarah every happiness together.

Dáil Éireann debate - Wednesday, 26 Apr 2023