Dáil Éireann Debate, Tuesday - 17 December 2013
392. Deputy Catherine Murphy asked the Minister for the Environment, Community and Local Government in view of the extent of unfinished housing estates nationally, some of which commenced construction more than a decade ago, if he will review the guidance to planning authorities on calling in bonds; and if he will make a statement on the matter. [53858/13]
View answerConditions attached to planning permissions for residential development must require the giving of sufficient security prior to commencement of development. The form of the bond, the amount and the terms attached are matters for the planning authority concerned and the arrangement entered into must enable the planning authority, without cost to itself, to complete the necessary services (including roads, footpaths, water mains, sewers, lighting and open space) to a satisfactory standard in the event of default by the developer.
My Department provided updated guidance to local authorities earlier in 2013 in relation to bonds. This included, inter alia, guidance on:
- Purpose of securities;
- Types of securities;
- Requirements for securities;
- Default events;
- Securities in phased developments;
- Assessment of security mechanisms;
- Computation of bonds; and,
- Release of bonds.
This guidance is available on my Department’s website at www.environ.ie.
In respect of existing development bond-related issues, l ocal authorities are continuing to pursue developers and others to comply with their obligations under planning regulations. Predominantly developer/funder/receiver-funded site resolution processes will remain the main vehicle to tackle unfinished developments. According to the 2013 Progress Report on Resolving Unfinished Housing Developments, which I published in November, some 553 developments have been brought to a resolution point in this way over the past 12 months alone. I expect that such processes will continue to make significant inroads into the remaining 992 inhabited unfinished developments.
Additionally, my Department has available a Special Resolution Fund of €10million, provided in Budget 2014, to address the completion of infrastructure on developments which could not be resolved because of absences of, or inadequacies in, planning securities and other unforeseen cost and risk issues. The fund will be operated by the local authorities and will be carefully targeted mainly to address difficulties in public infrastructure that have arisen on certain developments included in my Department’s 2013 Survey.
