Dáil Éireann Debate, Tuesday - 17 December 2013
393. Deputy Catherine Murphy asked the Minister for the Environment, Community and Local Government if he will conduct a review on the extent of development bonds that have lapsed in advance of housing developments being completed, to include the level of exposure to planning authorities; his plans to introduce new legislation or regulation; and if he will make a statement on the matter. [53860/13]
View answerWhile my Department does not gather regular statistical information on the management of development bonds by local authorities, the Unfinished Housing Development Survey 2013 Progress Report, which I published in November, provides an analysis of bonds and securities associated with housing developments. This report can be found on my Department’s website, www.environ.ie. In order to ensure the appropriateness and security of development bonds on new developments, my Department also provided updated guidance in relation to development bonds to local authorities earlier in 2013. 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 can also be found on my Department’s website.
In addressing the wide variety of challenges posed by unfinished housing developments, my Department has also played a coordinating role for local authorities, developers and receivers, and the banking sector. The National Coordination Committee on Unfinished Housing Developments, which I chair, was established as a response to the report of the advisory group on unfinished housing developments and has harnessed the expertise and goodwill of the construction and banking sectors, local authorities, residents’ representatives and NAMA. As the 2013 Unfinished Housing Developments Progress Report shows, this coordinated response is producing results, and I am satisfied that no further legislative responses are required at this time.
