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Joint Committee on Environment, Culture and the Gaeltacht debate -
Tuesday, 24 Nov 2015

Planning and Development (Urgent Social Housing Supply) Policy Directive: Motion

I call on the Minister of State at the Department of the Environment, Community and Local Government to speak on the motion before us.

I move:

That the Joint Committee on Environment, Culture and the Gaeltacht approves the following Policy Directive (in draft) entitled:

Planning and Development (Urgent Social Housing Supply) Policy Directive 2015

Chairman and members, on behalf of the Minister, Deputy Alan Kelly, I welcome the opportunity this afternoon to discuss the motion that the committee approve this draft policy directive on urgent social housing supply.

As members will see from its title, this draft policy directive relates to the housing situation that we currently face. Specifically, it relates to the unprecedented and increasing number of homeless families who are presenting - particularly in the Dublin area - with consequential disruptive effects on family life and on the health and well-being of the children in particular.

To put this in context, of the 637 families currently homeless in the Dublin region, 401, consisting of 534 adults and 843 children, are being accommodated in unsuitable arrangements in hotels.

The Minister, Deputy Kelly, is extremely concerned about this increasing phenomenon; the situation that the new capacity being created by various housing solutions currently being implemented is not sufficient to accommodate the numbers now presenting; and, the consequential urgent need to accelerate the provision of housing to address the accommodations needs of homeless households, and especially homeless families, in the region.

To help address this issue, the Government has approved a comprehensive programme of measures including the initial delivery of 500 modular housing units for the Dublin region. The purpose of this programme of measures is to help reduce the number of homeless families in hotels by providing more appropriate accommodation. These units will provide emergency accommodation in the first instance. While the placement of households in these units will be on a temporary basis, they will offer a greater level of stability than the alternative of hotel accommodation while options for long-term living are being secured.

It is intended to have the first 150 of the units delivered in the Dublin City Council area, with the city council expecting the delivery of an initial 22 units by December, a further 128 units to follow in the first quarter of 2016 through a fast–tracked procurement process and 350 units across the Dublin region by mid-2016. This compares with a timeframe of up to two years to provide conventional social housing units.

In light of this and to support the use of the fastest planning process in order for the modular units to be in place as quickly as possible, the Minister, Deputy Kelly indicated his intention to issue a policy directive under section 29 of the Planning and Development Act 2000, as amended, addressed to the four Dublin planning authorities. A draft policy directive has been prepared in this regard and, as required, has been laid before both Houses of the Oireachtas. The purpose of the draft policy directive is to remind those planning authorities of the statutory provisions of section 179 of the Planning and Development Act 2000, as amended, and the related Part VIII provisions in the Planning and Development Regulations 2001, as amended. These provisions set out the procedure for local authority own development, such as the provision of new housing developments.

In the context of discharging these functions, and in particular the need to provide urgent social housing to meet the needs of homeless families, the draft policy directive directs these planning authorities to utilise all powers available to them under section 179, as appropriate, for the purpose of finding solutions to the social housing situation currently faced and accelerating the delivery of social housing developments to address the urgent and increasing need for social housing accommodation in the Dublin region. Subject to Oireachtas approval, this policy directive will issue to the Dublin planning authorities under section 29 of the Planning and Development Act 2000, as amended, and the four planning authorities will be bound to comply with the directive.

The legislative basis for a policy directive underpins and strengthens any policy direction the Minister may wish to issue. The issuing of a policy directive in the context of the delivery of social housing will underscore the importance of the expeditious delivery of this programme of modular housing, as approved by the Government. It is essential that this programme is expeditiously implemented. From a planning perspective, this draft policy directive is aimed at doing just that – supporting the programme and the relevant planning authorities that are delivering it.

Addressing the current problems in the Irish housing market is a key Government priority, as can be seen from the recently announced package of measures entitled “Stabilising Rents, Boosting Supply” aimed at improving stability in the private rental sector and supporting increased housing supply. The programme for delivery of modular housing supported by the policy directive, implementation of the Construction 2020 strategy and the social housing strategy together with the new housing package, collectively provide a comprehensive framework for ensuring that homes are provided for those who need them.

I thank the committee for the opportunity to discuss this important policy directive and trust it will be approved in order that it can be issued to the relevant planning authorities.

I thank the Minister of State. Does Deputy Catherine Murphy want to say something?

It is a pity the other part of the meeting went on so long as this merits some consideration in its own right. I doubt there is anything in this the local authorities are not already familiar with. We are all aware of Part VIII and the other Part. The Minister of State might tell us what additional powers are in this of which the local authorities might not already be aware. If they had known they had to plan for this a year ago, we would not be talking about reminding them of their powers. The inadequacy of the funding that has been available has led to this crisis in delivering social housing.

I note this just relates to Dublin. There is a housing crisis in a number of other centres of population. This week's daft.ie analysis of the increase in rents shows a stabilisation in the city centre and an acceleration of rents in other areas. The problem is not confined to Dublin, although I accept it has been the epicentre. The tenancy protection unit that was put in place last year was also exclusive to Dublin. The pattern of what is happening outside Dublin is that whole families are being broken up with their belongings stored in a variety of locations, with family members perhaps being separated as well. It is manifesting itself in a very different way.

I have great concerns about the modular housing. It is not cheap. It costs somewhere in the region of €190,000 per unit if I am right. It has a life span of 60 years and is not a temporary solution. We are putting something very permanent in place. Planning should involve considering a variety of things, including the provision of housing, how that housing relates to other services that should be available and the cohesiveness of the community that is to be developed. We are in an emergency situation, which sometimes forces a less than optimum response. If we go back to the 1960s and the high-rise development that was Ballymun, in retrospect that was not a great idea. We are back in a crisis situation now and it is important the Department outlines the sense in which it perceives these houses will be a short-term measure rather than just saying they are short term. What length of time does it foresee people being in them?

Modular or system-built housing is used in other parts of the world and is perfectly good when it is in the right location and of a good standard. It is the other issues that go with it that cause me some concern. The housing might have a dual function. We have 25,000 students accommodated around the country. Housing that doubled as student accommodation for the second part of its function might be useful. The housing might then be placed in a different location and produce a different type of accommodation. It is really important we do not end up with identifiable ghettos.

It is also important to outline exactly what the response is going to be in places outside Dublin.

In terms of the tenancy protection service, one must consider people not being taken off social welfare because they have no address. Tomorrow is the closing date for the electoral register. A person needs an address to get on the electoral register. A homeless, man who has been sleeping rough since August 2014, told me he wants to vote. The response I got to a parliamentary question was that the local authority should be a bit flexible about that. Legislation does not allow flexibility and a person needs an address to vote. With tomorrow's closing date, the people most impacted by this crisis are those who will not be able to have a say on who will represent them. Many people are very mobile because of this and there is a great deal of instability - much more than is measured by the number of people who are living in hotel accommodation. Outside the Dublin region, it manifests itself very differently because some counties do not have hostels.

It was said that the tenancy protection service would be extended to other places but it was not. There is a need to take a wider approach. In my area, people trying to source accommodation in the Kildare, Meath and Wicklow areas are finding they are being pushed out, which is increasing the pressure in areas under pressure already. We need a wider response than we have had to date. I welcome what the Minister had to say about the longevity of the modular units.

Deputy Boyd Barrett do you wish to say something? The Minister of State spoke and was followed by Deputy Catherine Murphy.

Has Deputy Murphy received a response yet?

Could we hear the responses and then I can come in?

I will respond to the last issue first. The tenancy protection service only operates in Dublin and Cork but consideration is being given to extending that. It is being delivered by Threshold and the Department of Social Protection. I remind members that rent supplement can be topped up with the services of the community welfare officer to stall people who are under threat of homelessness, so there is that flexibility.

The difficulty with this is that we have to respond to the homeless situation. We have to remind planning authorities of the statutory provisions of section 179 of the Planning and Development Act 2000. Part VIII of the planning and development regulations 2001 to 2015 relate to local authorities' own development and direct those planning authorities to utilise all powers available to them under those provisions as appropriate for the purpose of finding solutions to the housing situation and accelerating the delivery of social housing developments to address the increasing social housing need in the region.

These are the modular homes that can be delivered quickly and are suitable for families. I understand the Deputy's concerns but this is an immediate response to try to do something about the situation. The Deputies should welcome this directive. The Government is trying to do something to alleviate a really bad situation, particularly in the Dublin area. If we consider our own lives, I do not think any of us would particularly like to house ourselves and our families in hotels. Some modular housing is of an extremely high standard, as Deputy Murphy has said.

It is used extensively, even for elderly people, particularly in Britain. Nobody is suggesting this is the long-term solution for these families. It is a short-term solution. Modular housing has a lifespan of 50 to 60 years. It is not that anybody is saying that these are permanent houses for these people. This is the Government responding to the situation that will arise again at Christmas when we will have those awful stories of people who are homeless and on our streets. This is the Government responding in a very quick way. In Ballymun, 22 units that will house 22 families will be delivered very soon. Dublin City Council awarded the contract last Friday. The units are to be ready by 21 December, which is to be welcomed.

I wish to come back on some of those points briefly. I have been told all year, having asked about the matter on numerous occasions, that the tenancy protection unit would be expanded. The Minister of State did not outline the additional powers in this that are not already available to the local authorities.

There is an element of the blame game going on in the context of local authorities not delivering. The Department is appearing to crack the whip. The Minister of State did not tell me how modular housing will have a limited lifespan or that it will not be a permanent solution for those tenants who avail of it.

I have spent the whole year dealing with families, negotiating increases in rent caps up to about €1,300 and more on some occasions. The problem is the HAP scheme is to be introduced in my local authority area and will make the situation worse because the amount we can negotiate will reduce. One can increase by 20% above the HAP rate, which is below market rents. So we will see a flood of additional homeless people because the HAP amounts are below market rents.

As I mentioned to the Minister of State and the Minister, Deputy Kelly, when leaving the earlier session, I would like an instruction to be given to all local authorities to the effect that the eligibility criteria for any of the schemes designed to keep people in homes or get them into homes if they are on the housing list or homeless should be relaxed and there should be flexibility. Too often, in the context of a series of issues - including HAP, RAS and other schemes - officials are operating to the letter of the law which is what they understand they have to do. They would be worried if they did anything other than respect the letter of the law because they might get rapped over the knuckles by the Department for doing so. This leads to a bureaucratic stupidity which is no individual's fault. There is a need for an instruction from the top to the effect that people should be flexible. Obviously, if they are going outside particular eligibility criteria, they should note that and if that is subsequently perceived to be a problem, it could be addressed. However, we need more flexibility and, in the first instance, people need to be encouraged to be flexible and not say, "You don't quite tick all the boxes here, therefore you can't go for this scheme."

We are dealing with a case at the moment of a couple who are working whose landlord proposes to increase the rent from €1,000 to €1,200. They cannot afford that and will become homeless. However, their landlord says he would be interested in doing RAS but because they are working, they are not eligible for RAS so they will be put out of their home. HAPS is not operational in Dún Laoghaire for some odd reason, because it is a pilot. It should be bloody well brought in everywhere - I do not like it but we should at least have a level playing field. There must be flexibility. The official in that situation needs to say: "We can stop these people becoming homeless here by making a dispensation to keep them in their home." I will give another example of where flexibility is needed of a situation where a landlord is selling the property, even though he is very happy with the tenants who have always paid their rent. He does not want to put these people out on the street, this message is passed via the tenants to me and to the council. He tells the council he would like to sell the house back to keep these people in their home rather than allow the property to go on the free market. That is very nice of the landlord, a lot of people would not do that, but he is told it cannot be done because authorisation is needed.

The policy must be to get people into houses or prevent them from being evicted, whatever that takes. The mortgage to rent scheme - where people are in arrears and the banks are supposed to offer them a suite of options to keep them in their homes - would have been helpful to many people on low income. There has been a spectacular failure in the delivery of this scheme for reasons I do not fully understand. A policy should be introduced where people are automatically put on the mortgage to rent scheme rather than evicted. Resources should be provided to local authorities to buy those houses to prevent evictions and the properties rented back to people. That would take the pressure off the thousands of people currently afraid they will lose their homes and be placed on council lists or in homelessness services anyway.

On modular housing, what guarantees can the Minister provide that short term will not become long term? I am very sceptical about this move. I do not want to be obstructive to any measure that would solve an emergency but I am deeply worried, as I think many people are, that this will become a long-term solution. The Minister initially referred to a figure of six months but what happens to a tenant after six months? Will tenants and families have key workers assigned to them during that period to assist them to get housed, one way or another, through local authority schemes, HAP or whatever?

On NAMA hotels, a suggestion has been made that these would be reconfigured and redesigned to provide emergency accommodation. Has the Minister examined whether this could be a better, faster, more appropriate option than modular housing?

These hotels are currently unsuitable but if work on them could be done within a six month period - we are talking about a lead-in time of six months or longer for the modular housing - would it not be more appropriate to reconfigure them to provide the emergency short-term accommodation we need to alleviate the crisis?

Families will be moved from modular housing to normal social housing within as short a timeframe as possible and there will be an on-site family placement service to deal with this. Building sustainable communities is a key aim in planning and development considerations. No one wants to see the development of ghettos, as referred to by Deputy Murphy. This is an emergency response to the emergency situation of homeless people.

On the eligibility criteria, these are drawn up to ensure fairness and those deemed to be most in need are prioritised. Having been a local authority member myself, local authorities in the main try to be fair and if people present in extremely difficult circumstances, they will be prioritised. That is the flexibility Deputy Boyd Barrett seeks.

It is not happening.

A local solution to a local problem is always the best approach.

That is what I am advocating.

There is flexibility in the system. I do not want to see councils being tied down by rules and regulations because that takes away the flexibility they have. There are rules and criteria but ultimately human beings deal with other human beings. Council officials are aware of people's circumstances and if someone's circumstances are particularly difficult, I cannot say councils are so horrendous they will not try to do something about it. Individual cases should be dealt with on an individual basis.

A new phenomenon of working homeless has appeared. If people are working, they often do not qualify for many of the housing supports available. We need to change policy to ensure that where people's working income is insufficient to meet their accommodation requirements as a result of which they become homeless, there is flexibility in terms of family income supplement, FIS, for example, for people who do not have kids or rent allowance, if people do not satisfy the exact criteria. We need to make changes. People who have kids qualify for FIS and if they are working, this helps them to manage their rent but single people are banjaxed.

The new affordable rental scheme announced in budget 2016 is aimed at working people. The issue is being worked on.

When will it come into operation?

In 2016. We can send the Deputy some detail on that. I take on board his points.

On NAMA properties, local authorities and the housing agency have engaged with NAMA. Some 65 units of Tallaght Cross apartments have already been equipped by South Dublin County Council. NAMA residential acquisitions have happened and we have considered the hotels issue. The difficulty is in trying to get solutions before Christmas because we have to have them in place by 21 December. That is why modular housing is so important.

It provides solutions for families who have to stay in hotels. I do not think families would prefer to stay in hotels, even if they were refurbished. I think they would prefer to be in these modular houses that are of a very high standard. They want a home not a hotel room, with all the difficulties that presents.

An affordable rental pilot scheme was announced as part of budget 2016 and is currently being developed within the Department. A sum of €10 million has been made available for the scheme from the proceeds of the sale of Bord Gáis Éireann. This is an ongoing annual commitment to secure a long-term increase in the supply of housing for affordable rental. The scheme is expected to work on the basis of tenants paying the majority of the rental costs from their own resources with the State helping to meet the shortfall. It is intended that the scheme would be made available to households on low to moderate incomes as well as being a possible support option for some households which qualify for social housing support. A State policy intervention such as a subsidy will be applied to bridge the gap between what people can afford and what the housing market charges. Such a scheme would also facilitate and incentivise private investment in this sector. I want to see work completed on the scheme as soon as possible, so that it is ready by December. Affordable rental will be a separate scheme from the housing assistance payment, HAP. The Deputy can consider the detail to see if it addresses his concerns.

New measures will ensure rents can only be increased every two years. The Minister made an announcement in that regard a short time ago. Landlords will be required to give 90 days notice of a rent increase. The Government is also addressing the issue of rent certainty which will give people a breathing space while we are waiting for built units to come on stream to supplement the supply issue.

Deputy Murphy asked about the extra powers being given to local authorities. The measures we are talking about actually go beyond Part VIII. There are powers under section 179(6)(b) of the Act under which a local authority chief executive can dispense with the normal Part VIII planning process for the local authority's own development where a proposed development is necessary to deal urgently with any situation which the chief executive considers to be an emergency situation calling for immediate action.

That concludes our discussion on the motion. I thank the Minister of State and her officials for their attendance. The clerk will send a message to the Dáil and Seanad informing them that we have completed our consideration of the motion, which is deemed to be the report of the committee.

Could we ask for more time to debate this in the Dáil on Thursday?

The Deputy should raise the matter with the party Whips.

Question put and agreed to.
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