Thursday, 25 May 2017

Written Answers Nos. 1-20

Local Infrastructure Housing Activation Fund

Questions (6)

Róisín Shortall

Question:

6. Deputy Róisín Shortall asked the Minister for Housing, Planning, Community and Local Government further to his comments (details supplied) in April 2017, the local authorities that have received commitments with regard to affordability from housing developers availing of the local infrastructure housing activation fund; the number of affordable units he expects this fund to generate within each of these local authorities; and if he will make a statement on the matter. [25027/17]

Written answers

Minister of State at the Department of Housing, Planning, Community and Local Government

The aim of the Local Infrastructure Housing Activation Fund (LIHAF) is to relieve critical infrastructural blockages in order to enable the accelerated delivery of housing on key development sites in urban areas with high demand for housing.

On 28 March 2017, Minister Coveney announced funding of €226.5 million for 34 projects under the LIHAF to build essential public infrastructure, including roads and bridges. These public infrastructure projects will be key to the early delivery of 23,000 housing units over the next four years. There is further potential for approximately 46,000 additional homes on these 34 sites in the longer term, bringing the projected yield up to 69,000 homes once sites are fully built out.

LIHAF will facilitate additional social housing of 2,300 housing units in the short term through the 10% Part V social housing dividend, with a further potential of 4,600 housing units in the longer term. Furthermore, a number of the projects, such as those which include lands in local authority ownership, will deliver more than the mandatory levels of social housing under Part V. For example, in relation to the 36 hectare site at Kilcarbery which is owned by South Dublin County Council and where LIHAF funding will support essential public roads and a pumping station, the tenure mix is anticipated to be 30% social and affordable housing and 70% private housing.

In addition to the accelerated and increased supply of housing generally and increased levels of social and affordable housing in some cases, the Government is also seeking an increased affordability dividend for the eventual purchaser of private housing. As part of the application process, local authorities were asked to secure commitments from developers in this regard, for example, through identifying the consequent price reduction, arising from the State-funded enabling infrastructure, for the house purchaser, or through selling a proportion of the homes at below market rates. The specific approach in individual cases will vary according to the scale and ownership status of each site.

Local authorities that have secured LIHAF funding for selected sites are currently engaging with relevant landowners and housing developers to conclude specific agreements in relation to finalising timelines for delivery of the housing units and the required affordability commitments. I expect that final agreements will be in place by the end of June to facilitate the signing of formal grant agreements with each Local Authority in respect of LIHAF funding. This will pave the way for work to proceed on procuring the infrastructure involved and, crucially, advancing the delivery of the badly needed associated housing.

Questions Nos. 7 to 12, inclusive, answered orally.

Social and Affordable Housing Provision

Questions (13)

John Curran

Question:

13. Deputy John Curran asked the Minister for Housing, Planning, Community and Local Government the reason for the considerable delays in accelerating and expanding the rapid build housing programme listed in Action 1.1 of Rebuilding Ireland which provided for 200 units in quarter 4 of 2016 and 800 units in 2017, in view of the fact recent replies indicate less than 200 units of accommodation under this scheme will be complete in 2016 and 2017; and if he will make a statement on the matter. [25017/17]

Written answers

Minister of State at the Department of Housing, Planning, Community and Local Government

My Department is committed to the accelerated delivery of social housing and is working closely with all local authorities in relation to increasing and accelerating the delivery of a range of social housing programmes and supports, including rapid build/delivery homes. 

At the end of 2016, a total of 350 rapid build homes were advancing through various stages of delivery, including construction, with 22 such homes being delivered and occupied in 2016. Over 500 rapid build homes are now advancing through the planning design, procurement and construction stages, and work is underway to ensure that a further 500 units are advanced in the coming months, bringing the number  of units in the programme to 1,000 by end year. An additional 500 units are targeted for delivery in 2018. 

The Deputy can be assured that local authorities are working to deliver the maximum number of units possible during 2017.  Of particular note is the establishment of a framework of rapid build contractors by the Office of Government Procurement, which means that local authorities across the country will be able to run quicker procurement competitions and advance rapid build projects to site more efficiently and effectively.

It is important to note that the rapid build programme needs to be viewed in the context of the wider range of social housing build, acquisition and leasing programmes, which are being advanced by local authorities and approved housing bodies (AHBs). In relation to the construction programme more generally, an updated Construction Status report was published last week showing that, at end Q1 2017, the pipeline of projects had expanded to in excess of 600 projects, involving over 10,000 units, an increase of some 1,600 units in the first quarter of the year alone. Projects continue to be added to the pipeline on a weekly basis.

Questions Nos. 14 and 15 answered orally.

Private Rented Accommodation Provision

Questions (16)

Eoin Ó Broin

Question:

16. Deputy Eoin Ó Broin asked the Minister for Housing, Planning, Community and Local Government the position regarding his commitment to develop and roll out an affordable rental model; the model of affordable rental being examined by his Department; and the timeframe for the publication of this scheme. [24808/17]

Written answers

Minister of State at the Department of Housing, Planning, Community and Local Government

As set out in the Strategy for the Rental Sector published in December 2016, the commitment to develop an affordable rental model contained in the Rebuilding Ireland Action Plan is now to be progressed through kick-starting supply in rent pressure zones. Lands held by local authorities in such zones are to be brought to market on a competitive tendering basis, with a view to leveraging the value of the land to deliver the optimum number of units for rent, targeting middle income households, in mixed tenure developments.

In this regard, an important policy intervention in the delivery of new housing supply under Pillar 3 of Rebuilding Ireland is the development of State-owned lands for mixed-tenure housing, particularly in the major urban areas, where demand is greatest. On 27 April 2017, details of some 2,000 hectares of land in public ownership were published, with the potential to deliver up to 50,000 homes nationally.

I have asked all local authorities to be innovative and proactive in developing these sites. The final model for each site, including the affordable rental element, will be the subject of careful consideration by the local authority concerned, the elected members included, who are best placed to know and provide for the housing need in their area. Indeed, the Dublin local authorities are well advanced in bringing large-scale sites forward for mixed tenure housing, with projects advertised that can deliver circa 3,000 mixed-tenure homes in the Dublin City Council and South Dublin County Council areas alone.

Local Authority Housing Mortgages

Questions (17)

Brendan Smith

Question:

17. Deputy Brendan Smith asked the Minister for Housing, Planning, Community and Local Government his plans to increase income limits for local authority housing loans; and if he will make a statement on the matter. [24804/17]

Written answers

Minister of State at the Department of Housing, Planning, Community and Local Government

There are currently two housing loan finance offerings available from local authorities for first time buyers unable to get adequate loan finance from a building society or bank.  In the case of the House Purchase Loan, the gross income (before tax) is €50,000 or less for a single income household or €75,000 or less in the case of a double income household.  To avail of the second option, the Home Choice Loan, applicants need to earn over €35,000 as a single applicant and over €45,000 combined income as joint applicants.  No maximum income limits apply in the case of the Home Choice Loan.

When the loan products were introduced, careful attention was given to the terms and conditions that should be applied. Decisions on all loan applications must be made in accordance with the applicable statutory Credit Policy in order to ensure lending prudence and to assist local authorities across the sector to engage consistently in responsible mortgage lending, in the best interest of borrowers and local authorities as lenders alike.  

Minister Coveney is currently examining the Home Choice Loan scheme and is also considering how local authority mortgages can be better publicised to ensure that creditworthy households who may be unable to source adequate loan finance from commercial lenders but could be eligible for one of the local authority mortgages, are made aware of the opportunity.

Social and Affordable Housing Provision

Questions (18)

Barry Cowen

Question:

18. Deputy Barry Cowen asked the Minister for Housing, Planning, Community and Local Government his views on whether one of the main barriers to the provision of social housing is the inability of local authorities to build construction projects of scale due to an overly rigid application of sustainable communities criteria, in view of the fact that of the 276 social housing projects that have passed pre-planning, just 15 include 50 or more individual houses or apartments. [25038/17]

Written answers

Minister of State at the Department of Housing, Planning, Community and Local Government

Government policy, as set out in the Rebuilding Ireland Action Plan for Housing and Homelessness, is to deliver sustainable communities with an appropriate tenure mix for all our citizens, irrespective of the method of housing provision. An appropriate and balanced mixture of tenures in new developments is necessary in order to avoid the significant effects of social isolation and limiting of opportunities that can occur with large mono-tenure estates, frequently necessitating their regeneration and remediation at a later stage with considerable cost exposure to the State, as well as a well documented negative legacy for the residents involved.

Local authorities are tasked with the provision of social housing for which approval is sought from my Department. The decision in relation to the size of development is made by the local authority on the basis of local need, available lands, permissible densities and what is considered locally appropriate, taking account of the 2007 policy document, "Delivering Homes, Sustaining Communities". In this regard, my Department provides guidance on the scale of social housing which would be suitable in a particular context or area. This guidance is based on the size of the host town or city and the proportionate nature of the development to ensure good social integration and cohesion.

The achievement of scale in the overall social housing construction programme does not require excessively large individual projects. Less than one year since the launch of Rebuilding Ireland, over 10,000 social housing dwellings in more than 600 developments nationwide are now in the social housing construction projects pipeline, showing already that scale of overall delivery and the achievement of sustainable communities are not mutually exclusive.

Local Infrastructure Housing Activation Fund

Questions (19)

Ruth Coppinger

Question:

19. Deputy Ruth Coppinger asked the Minister for Housing, Planning, Community and Local Government the level of social and affordable housing that is required for developers availing of the local infrastructure housing activation fund; and if he will make a statement on the matter. [25030/17]

Written answers

Minister of State at the Department of Housing, Planning, Community and Local Government

The aim of the Local Infrastructure Housing Activation Fund (LIHAF) is to relieve critical infrastructural blockages in order to enable the accelerated delivery of housing on key development sites in urban areas with high demand for housing.  

On 28 March 2017, Minister Coveney announced funding of €226.5 million for 34 projects under the LIHAF to build essential public infrastructure, including roads and bridges. These public infrastructure projects will be key to the early delivery of 23,000 housing units over the next four years.  There is further potential for approximately 46,000 additional homes on these 34 sites in the longer term, bringing the projected yield up to 69,000 homes once sites are fully built out. 

LIHAF will facilitate additional social housing of 2,300 housing units in the short term through the 10% Part V social housing dividend, with a further potential of 4,600 housing units in the longer term.  Furthermore, a number of the projects, such as those which include lands in local authority ownership, will deliver more than the mandatory levels of social housing under Part V.  For example, in relation to the 36 hectare site at Kilcarbery which is owned by South Dublin County Council and where LIHAF funding will support essential public roads and a pumping station, the tenure mix is anticipated to be 30% social and affordable housing and 70% private housing.

In addition to the accelerated and increased supply of housing generally and increased levels of social and affordable housing in some cases, the Government is also seeking an increased affordability dividend for the eventual purchaser of private housing.   As part of the application process, local authorities were asked to secure commitments from developers in this regard, for example, through identifying the consequent price reduction, arising from the State-funded enabling infrastructure, for the house purchaser, or through selling a proportion of the homes at below market rates.  The specific approach in individual cases will vary according to the scale and ownership status of each site.

Local authorities that have secured LIHAF funding for selected sites are currently engaging with relevant landowners and housing developers to conclude specific agreements in relation to finalising timelines for delivery of the housing units and the required affordability commitments. I  expect that final agreements will be in place by the end of June to facilitate the signing of formal grant agreements with each Local Authority in respect of LIHAF funding. This will pave the way for work to proceed on procuring the infrastructure involved and, crucially, advancing the delivery of the badly needed associated housing.

Local Authority Boundaries Review

Questions (20)

Bobby Aylward

Question:

20. Deputy Bobby Aylward asked the Minister for Housing, Planning, Community and Local Government his plans for the administrative boundary between counties Waterford and Kilkenny; and if he will make a statement on the matter. [24975/17]

Written answers

Minister of State at the Department of Housing, Planning, Community and Local Government

The report of the Waterford Local Boundary Review Group is one of four such review processes initiated under the previous Government. The groups were asked to carry out a review of the boundaries between the relevant local authorities and to make recommendations with respect to those boundaries and any consequential matters that they consider necessary in the interests of effective local government. 

Minister Coveney will address all relevant issues arising from this report and from other recent and forthcoming reports on local government arrangements, as part of an overall report on local government matters which he will be submitting to Government and the Oireachtas pursuant to the Programme for Partnership Government. However, the Minister has indicated, without prejudging the submission to Government and the Oireachtas or ongoing reviews, that he will not be proposing the implementation of the recommendation to change the county boundary between Kilkenny and Waterford and that appropriate alternative arrangements will be developed to address the issues identified in the review.

Work on the preparation of the report to Government and the Oireachtas is continuing in my Department with a view to its completion later in the Summer.