Written Answers Nos. 21-41
21. Deputy Richard Boyd Barrett asked the Minister for Housing, Planning and Local Government the criteria he plans to establish regarding affordability in local infrastructure housing activation fund, LIHAF, funded developments and on publicly owned land; and if he will make a statement on the matter. [52267/17]
View answerThe Government acknowledges the affordability pressures faced by households with low to moderate incomes, particularly in parts of the country where the demand-supply imbalance is resulting in increasing house prices and rent inflation. It is precisely for that reason that Rebuilding Ireland has prioritised the supply of new homes to meet current and pent-up demand as well as helping to moderate house prices and rents.
A range of measures has been taken to address this, for example, in relation to planning reforms to provide flexibility and certainty in delivering viable housing schemes and apartment developments in the right locations, the introduction of Rent Pressure Zones, and the establishment of the Local Infrastructure Housing Activation Fund (LIHAF), to deliver new homes that are more viable and more affordable than would otherwise be the case.
The primary objective of LIHAF is to stimulate and accelerate the early release of land for housing in urban areas with large demand, by opening up these lands with key enabling public infrastructure that would otherwise not be provided in the short term. The resulting increase in the supply of new houses on both private and public lands is key to tackling price and affordability, as lack of supply is one of the main factors currently inflating house prices.
As required under the LIHAF scheme's criteria and conditions, local authorities were asked, inter alia, to obtain commitments from housing providers on associated sites in relation to housing delivery timelines and cost reductions. The objective of securing cost reductions is to make the housing more affordable than would otherwise be the case and the level of the reduction is proportionate to the scale of the LIHAF investment in the enabling infrastructure for each project. In many of the projects, local authorities will aggregate LIHAF deductions to provide more affordable housing, under qualifying criteria to be set in line with the forthcoming national policy on affordability. Of course, there will also be a social housing dividend from all of the LIHAF sites, together with additional social and affordable housing to be provided on the State-owned sites.
As part of Budget 2018, I announced an additional €50 million funding which will be available for a second LIHAF call and which will again be subject to matching funding of 25% by local authorities. This will facilitate the provision of more public infrastructure to unlock further sites and activate more housing supply. A further call for proposals under LIHAF is likely early in 2018.
As regards the use of publicly owned land for the delivery of homes, it is crucial that the State's housing land bank is developed as soon as possible. To this end, details of some 1,700 hectares of land in local authority and Housing Agency ownership were published on the Rebuilding Ireland Housing Land Map, with these lands having the potential to deliver some 42,500 homes nationally. The map also includes details of some 300 hectares of land in ownership of other State or semi-State bodies, with the potential to deliver a further 7,500 homes. All of the mapped sites can be viewed at the following link:
http://rebuildingireland.ie/news/rebuilding-ireland-land-map/ .
Two major sites in Dublin at Kilcarberry near Clondalkin and O'Devaney Gardens off Infirmary Road in the city centre, encompassing the construction of some 1,500 new homes, are already well advanced through the procurement process.
Recognising the need for more affordable housing, as an immediate additional measure, I am providing funding of €25 million, over 2018 and 2019, to unlock local authority-owned lands specifically for affordable housing, using delivery models like co-operative housing which have already proven to be successful but are now needed at scale. My Department is currently finalising the arrangements for the use of this funding and I expect to announce details in this regard shortly. It is estimated that over 650 new affordable homes could be facilitated under this Scheme.
In the context of his new role in driving and co-ordinating housing delivery, my colleague Minister of State Damien English will chair the State Land Management Group which will reconvene early in the New Year to, inter alia, oversee delivery of housing from the State land bank. In this regard, my Department will also continue to engage with other Government Departments and State and semi-State bodies to pursue the long-term optimal use of appropriate sites for residential purposes.
22. Deputy Mick Wallace asked the Minister for Housing, Planning and Local Government the number of properties acquired by the 31 local authorities to date in 2017; the number that are vacant at present; the average vacancy time for local authority acquisitions; and if he will make a statement on the matter. [52272/17]
View answerThrough the supports made available under Rebuilding Ireland, funding is available to all local authorities to deliver additional social housing stock through new construction projects and through the acquisition of new and previously owned houses/apartments for social housing use, including through working with approved housing bodies.
Details on the number of properties purchased by all local authority areas, for letting to those on the social housing waiting lists, are available on my Department’s website at the following link:
http://www.housing.gov.ie/housing/social-housing/social-and-affordble/overall-social-housing-provision.
Information on quarter three of 2017 is currently being finalised and will be published shortly. However, current projections are that in addition to the circa. 670 new social homes delivered under the acquisitions programme during quarters one and two, a further 300 approximately have been delivered in quarter three.
The allocation of social housing supports to qualified households is a matter for the local authority concerned, in accordance with the allocation scheme it has made in accordance with Section 22 of the Housing (Miscellaneous Provisions) Act 2009 and associated Regulations. My Department does not hold information on the allocation of acquired houses, but I expect that all such houses would be tenanted immediately when they are available.
23. Deputy Ruth Coppinger asked the Minister for Housing, Planning and Local Government his plans to bring forward changes to the law on ending a tenancy or increasing rent on the grounds of refurbishment; and if he will make a statement on the matter. [52257/17]
View answerI have recently announced a series of measures in relation to the rental sector, including a two-year change plan to develop and strengthen the role of the Residential Tenancies Board (RTB) as a pro-active regulator for the sector.
Following on from this and addressing calls from both landlords and tenants for further clarity in relation to the definition of "substantial refurbishment", the RTB published on 23 November 2017 a comprehensive set of guidelines for landlords and tenants, and those working in the rental sector, on what constitutes substantial refurbishment or renovation for the purposes of a section 34 ground for termination of a tenancy. These guidelines also clarify the situations where a landlord can claim "substantial change" in rented properties for the purposes of exemption from the rent increase restriction of 4% per year that apply in Rent Pressure Zone areas.
The guidelines, which are designed to inform the sector and improve compliance in this area, are available on the RTB website at:
https://onestopshop.rtb.ie/images/uploads/Comms%20and%20Research/RTB_Guidelines_for_good_practice_on_the_substantial_change_exemption_in_Rent_Pressure_Zones.pdf
I am confident that these new RTB guidelines will provide the requisite clarity for the sector but my Department will keep under review whether there is value in placing them on a statutory footing.
24. Deputy Shane Cassells asked the Minister for Housing, Planning and Local Government if plans have been drawn up or considered to reinstate certain former borough and town councils; and if he will make a statement on the matter. [52276/17]
View answerThe Programme for a Partnership Government sets out a number of requirements in relation to local government reform. This involves the submission of a report to Government and the Oireachtas on potential measures to boost local government leadership and accountability, and to ensure that local government funding, structures and responsibilities strengthen local democracy.
The Programme also references some specific issues to be considered such as the concept of directly elected mayors in cities, devolution of new powers to local authorities, reducing the size of local electoral areas, and town council status.
The issue raised in the Question will be addressed in this report which will be submitted to Government shortly.
25. Deputy Jan O'Sullivan asked the Minister for Housing, Planning and Local Government his plans to introduce a pilot scheme using the cost rental model developed by an organisation (details supplied) on one or more of the sites owned by local authorities in consultation with the relevant local authority and local residents groups; and if he will make a statement on the matter. [52067/17]
View answerReports such as the one produced by the organisation concerned are an important addition to the debate on housing in Ireland. I note that there is considerable common ground and consensus between this Report and the Government’s Rebuilding Ireland Action Plan for Housing and Homelessness and the Strategy for the Rental Sector.
As part of the review of Rebuilding Ireland, my Department has examined housing affordability and the optimal use of publicly owned lands for accelerating housing supply. Recognising that delivering cost rental is a key part of the solution to the affordability challenge, work is underway to identify potential local authority sites for cost rental projects, in areas of high housing demand and high accommodation costs.
In this regard, the Housing Agency and Dún Laoghaire-Rathdown County Council, in conjunction with approved housing bodies, are bringing forward a pilot cost-rental project on a Land Aggregation Scheme site on the Enniskerry Road. Full details of the project will be announced in due course.
The Government remains fully committed to tackling the affordability and access gap that many low- to middle-income households are experiencing, particularly in areas of the country with the highest rents and purchase prices. I expect to announce full details of further initiatives in this regard shortly.
26. Deputy Ruth Coppinger asked the Minister for Housing, Planning and Local Government if a policy of using public land to build public housing as opposed to private development on public land will be supported; and if he will make a statement on the matter. [52258/17]
View answerThe Government recognises the serious challenge we face in terms of housing which is why increasing and accelerating housing delivery to meet demand across the full spectrum of housing needs is at the heart of the Rebuilding Ireland Action Plan.
In terms of producing more homes, building more social housing homes on the State’s housing land bank is crucial. That is why, to help meet the needs of households in the lowest income brackets, I am prioritising the social housing build programme, with an investment of over €6bn committed under Rebuilding Ireland, to increase the overall delivery to 50,000 new social homes by 2021. Qualifying households can also avail of other housing supports such as the Housing Assistance Payments and Rental Assistance schemes and other targeted programmes.
More generally, it is crucial that the State's housing land bank is developed as soon as possible. To this end, details of some 1,700 hectares of land in local authority and Housing Agency ownership were published on the Rebuilding Ireland Housing Land Map, with these lands having the potential to deliver some 42,500 homes nationally. The map also includes details of some 300 hectares of land in ownership of other State or semi-State bodies, with the potential to deliver a further 7,500 homes. All of the mapped sites can be viewed at the following link:
http://rebuildingireland.ie/news/rebuilding-ireland-land-map/ .
Two major sites in Dublin at Kilcarberry near Clondalkin and O'Devaney Gardens off Infirmary Road in the city centre, encompassing the construction of some 1,500 new homes, are already well advanced through the procurement process. The final development model, including the tenure mix, was the subject of careful consideration by the local authorities concerned, including by their elected members. Importantly, 30% of the homes built on both these sites will be for social housing purposes, with a further 20% of the yield in O'Devaney Gardens earmarked for affordable housing.
Mixed-tenure developments are an important policy objective in Rebuilding Ireland and uphold the principle of sustainable mixed communities, where housing needs are not subject to rigid segregation based on income levels. They also provide an opportunity to see major sites developed more quickly, and integrated into existing communities and areas.
Recognising the need for more affordable housing, as an immediate additional measure, I am providing funding of €25 million, over 2018 and 2019, to unlock local authority-owned lands specifically for affordable housing. It is estimated that over 650 new affordable homes could be facilitated under this Scheme.
In the context of his new role in driving and co-ordinating housing delivery, my colleague Minister of State Damian English will chair the State Land Management Group which will reconvene early in the New Year to, inter alia, oversee delivery of housing from the State land bank. In this regard, my Department will also continue to engage with other Government Departments and State and semi-State bodies to pursue the long-term optimal use of appropriate sites for residential purposes.
I expect further local authority sites to be brought forward for development, as local authorities finalise their Strategic Development and Management Plans for their housing lands, with particular emphasis on prioritising those sites with the most potential to deliver housing at scale, in the short to medium term, including mixed-tenure projects, where appropriate.
27. Deputy Mick Wallace asked the Minister for Housing, Planning and Local Government his views on whether the local authority in County Wexford will only directly build three social houses in 2017; if he is satisfied with the rate of building of social housing by all 31 local authorities, if his Department will consider releasing extra funding to the local authorities specifically for the direct building of social housing; and if he will make a statement on the matter. [52271/17]
View answerAddressing our housing shortage and homelessness crisis is the number one priority and Rebuilding Ireland is focused on increasing and accelerating housing delivery, across all tenures.
It should be noted that the funding for the social housing element of Rebuilding Ireland was increased from €5.35 billion to over €6 billion in Budget 2018. €1.9 billion of this is allocated for housing in 2018. Beyond 2018, my Department has secured an extra €500 million for capital investment in social housing in the years 2019 to 2021, allowing the Rebuilding Ireland social housing target to be increased from 47,000 to 50,000 homes.
In relation to social housing construction activity, my Department publishes comprehensive status reports on a quarterly basis of all social housing construction schemes for all local authority areas, showing details such as their locations and a range of information relating to their advancement. The most recent of these reports covers the period up to the end of quarter 3 of 2017. It contains information on the delivery of over 12,000 new social housing homes, which are currently approved and progressing through planning, design and construction, as well as homes delivered in 2016 and to the end of quarter 3 of 2017. The report can be accessed at the following link:
http://rebuildingireland.ie/news/housing-construction-report-q3/.
The report shows that Wexford County Council, and the Approved Housing Bodies it is working with, have a social housing construction programme of thirty eight projects at planning, design, tender or construction, which will deliver approximately three hundred and ninety homes when complete. In addition to the three social housing homes scheduled for completion in 2017, nine further homes are due to commence construction in Gorey later this month, while twelve homes are under construction at three sites, which are due for completion in Q2 and Q3 2018. In addition, tenders on two projects comprising twenty homes are due back shortly, while ten further homes are due to go to tender later this month.
Local authorities have also been undertaking targeted acquisitions with a particular focus on vacant properties in order to avoid increasing pressure and competition in local property markets. To date in 2017, €10.9 million has been provided to Wexford County Council to purchase seventy nine houses. A further €428,000 has been provided so far this year to the Council to return thirty four vacant social houses back into full use. To date in 2017, over five hundred households in County Wexford have had their housing need met by the Housing Assistance Payment scheme.
In addition, my Department has put in place new targeted timelines for social housing construction projects that set out the optimum timeframe from initial project concept through to design, planning, procurement and mobilisation of contractor on site. The programme puts an onus on all stakeholders to advance projects through the process in a timely manner.
My Department will continue to engage actively with all local authorities, including Wexford County Council, to deliver social housing through all available avenues, with a particular emphasis on additional construction projects.
28. Deputy Jan O'Sullivan asked the Minister for Housing, Planning and Local Government when he will appoint a director for Housing First; and if he will make a statement on the matter. [52068/17]
View answerAs the Deputy will be aware, Housing First provides direct access to housing and to the intensive health, addiction and personal supports required for people who are homeless and have complex needs. This includes rough sleepers, long-term users of emergency accommodation, young people exiting care, and those exiting institutions, such as prisons and hospitals. Evidence in Ireland and internationally shows the Housing First approach to be an efficient and effective way to address homelessness for these target groups.
Arising from the Housing Summit last September, I indicated that a National Director of Housing First, with specialist expertise, would be appointed and that Housing First would be expanded beyond Dublin, to the other main urban areas. The newly appointed Director of Housing First will be responsible for:
- co-ordinating and driving a national, cross-Government approach to Housing First;
- supporting regional and local delivery of the Housing First programme; and
- overseeing the achievement of the Housing First targets in Rebuilding Ireland.
Over the last number of weeks, my Department has been working with the Dublin Region Homeless Executive to finalise arrangements for the recruitment of the National Director of Housing First and I expect that the position will be advertised publicly this week.
29. Deputy Ruth Coppinger asked the Minister for Housing, Planning and Local Government if he has met with Fingal County Council on the delivery of public housing. [52261/17]
View answerMy Department and I are in regular contact with all local authorities, including Fingal County Council, in order to accelerate and progress the social housing delivery programme.
In relation to social housing construction activity in general, my Department publishes comprehensive status reports on a quarterly basis, of social housing construction schemes for all local authority areas, showing details such as their locations and a range of information relating to their advancement. The most recent of these reports covers the period up to the end of quarter 3 of 2017. It includes information on the delivery of over 12,000 new social housing homes, which are currently approved and progressing through planning, design, and construction, or have been completed in 2016 and to the end of quarter 3 of 2017. The report can be accessed at the following link:
http://rebuildingireland.ie/news/housing-construction-report-q3/.
In the case of Fingal County Council, the report includes details of Fingal County Council's substantial programme of over 35 projects, which are at various stages of advancement and which will yield in the region of 850 units, once completed.
While I have met each of the four Chief Executives of Dublin local authorities in my own Department's offices on a number of occasions this year, I have also met with the Chief Executive of Fingal and his senior management team in relation to accelerating housing delivery, both public and private, in the Council's offices in Swords. More recently, I had the opportunity, along with An Taoiseach, to witness first-hand the progress being made on the ground by the Council at developments such as Hansfield, Clonsilla and Wellview, Mulhuddart. I met with Council management and local representatives on that occasion, and I plan to visit further sites in the very near future.
I can assure the Deputy that my Department will continue to engage actively with all local authorities, including Fingal County Council, to deliver social housing through all available avenues, with a particular emphasis on additional construction projects.
30. Deputy Clare Daly asked the Minister for Housing, Planning and Local Government his plans to resolve the difficulties brought to his attention regrading the manner in which in-fill testing is being conducted by a company (details supplied); and if he will make a statement on the matter. [52265/17]
View answerThe Pyrite Resolution Act 2013 provides the statutory framework for the Pyrite Remediation Scheme. The Pyrite Resolution Board, with the support of the Housing Agency, is responsible for the implementation of the pyrite remediation scheme.
In accordance with the provisions of the Act, the Board is independent in the performance of its functions, and as Minister, I have no role in the operational matters (including sampling and testing) pertaining to the implementation of the scheme. The Board may be contacted by phone at Lo call 1890 252842 or by email to info@pyriteboard.ie or alternatively at oireachtasinfo@pyriteboard.ie.
31. Deputy Eamon Ryan asked the Minister for Housing, Planning and Local Government if he has given direction to Dublin City Council as to which arrangements could be considered optimal in the provision of affordable housing after the finalisation of the commercial agreement for the Poolbeg SDZ. [52263/17]
View answerIn May 2016, the Government designated Poolbeg West as a Strategic Development Zone (SDZ) because of its potential to deliver a large proportion of the extra homes needed in the centre of Dublin.
The next step in realising the potential of the SDZ was the publication for consultation by Dublin City Council of a detailed planning scheme for the area. The Council prepared a draft planning scheme which was considered by their elected members in May 2017. In its role as a statutory consultee for that process, my Department highlighted the importance of the planning scheme in addressing a variety of housing needs, including social housing and those of other households seeking to accommodate themselves through private housing.
On this basis, the Council proposed a material amendment to the Planning Scheme in relation to the social/affordable, mixed-tenure housing, details of which were on display until mid-July. As a statutory consultee, my Department made further observations in this regard. The Planning Scheme was approved by Dublin City Council on 2 October.
On foot of the material amendment, 900 of the 3,500 new homes on the SDZ lands will be delivered as social/affordable units. The arrangements agreed as part of the planning scheme were outlined in response to the specific context of the SDZ and will need further development in the context of wider Government policies to enhance affordability in general. I am committed to working with the Council to deliver these social and affordable units on what is a key site for the sustainable development of Dublin City.
Of the 900 units referred to, 350 (10% of the overall total) will be delivered as social housing in accordance with the provisions of Part V of the Planning and Development Act 2000 (as amended). It is intended that an agreement, with confirmed funding, will be entered into between the City Council, the receiver and my Department, prior to commencement of development, for a further 550 new homes, the majority of which will be housing earmarked for rental in a manner that will assist in enhancing affordability, with the balance provided as social housing with a particular focus on housing for older people.
It should be noted that there is currently an appeal to An Bord Pleanála in relation to the Poolbeg SDZ planning scheme. The decision of the Board is due in February 2018.
32. Deputy Thomas P. Broughan asked the Minister for Housing, Planning and Local Government if he is satisfied that local government is sufficiently monitoring fire safety in buildings around the country to ensure they are compliant with fire safety standards and requirements; and if he will make a statement on the matter. [52166/17]
View answerThe Fire Services Acts, 1981 and 2003, provide the primary statutory basis for fire safety in Ireland. Under Section 18(2) of the Act, the statutory responsibility for fire safety in buildings of all kinds to which the legislation applies is placed on the “person having control” of the premises.
In addition, the design and construction of buildings is regulated under the Building Control Acts 1990 to 2014 and the primary responsibility for compliance with the requirements of the Building Regulations, including fire safety, rests with the designers, builders and owners of buildings.
Both the Fire Services and Building Control Acts provide a range of enabling powers to the local authorities, including a suite of enforcement powers.
Fire safety is achieved through the “Prevent, Protect, Respond” paradigm which is part of an overall fire risk management approach. Local authorities provide a range of services aimed at enhancing fire safety in their communities by preventing fires from happening in the first instance, and ensuring appropriate fire protection measures are in place in buildings, in addition to providing an operational response.
The fire prevention/ protection work falls into two categories known as Community Fire Safety and Technical Fire Safety. Community Fire Safety involves fire authorities working in partnership with relevant agencies and the community sector to provide safety measures such as domestic smoke alarms for those perceived as most vulnerable to fire in the home. It also includes the Primary Schools Program whereby every third class in primary school receives age-appropriate education on fire safety issues. The shift of emphasis to Community Fire Safety is seen as contributing to the overall downward trend in fire fatalities which reached a 40 year record low in 2016. In relation to the Technical fire safety work, local authority fire services review and make recommendations in relation to applications for Fire Safety Certificates under Building Control legislation. They also provide the fire safety input under various licensing systems. They undertake inspection programmes in accordance with their established priorities (such as nursing homes) and they respond to complaints about fire safety in specific premises, using the various enforcement powers as appropriate.
In April 2016, my Department published the report of the first External Validation process undertaken in relation to local authority fire services including fire safety, which was titled "Local Delivery - National Consistency". This report is available on my Department's website at the following link:
http://www.housing.gov.ie/local-government/fire-and-emergency-management/fire-services-ireland-local-delivery-national .
In response to the Grenfell Tower tragedy in June this year and in recognition of fears expressed for fire safety, on 27 June 2017, my Department’s National Directorate for Fire and Emergency Management was tasked with convening and coordinating a high-level Task Force to lead Ireland’s re-appraisal of fire safety. The Task Force is reviewing existing arrangements and systems for fire safety and related issues which impact on fire safety in Ireland. As it carries out its work, the Task Force is taking into account information and developments arising in the aftermath of the Grenfell Tower fire.
In addition to establishing the Task Force, local authorities were requested to undertake a number of initial actions and the Task Force was requested to oversee and report on a review of fire safety in both social housing and fire safety in medium to high rise buildings. This initial work has been carried out and all local authorities have reported back to my Department as requested. The Fire Safety Task Force is analysing the returns received currently and is preparing an initial report which I expect to be submitted by early January 2018.
33. Deputy Brian Stanley asked the Minister for Housing, Planning and Local Government if his Department has proposals to bring forward and accelerate the construction of local authority housing. [52071/17]
View answerRebuilding Ireland targets the delivery of 50,000 social homes by 2021, supported by investment of €6 billion, with almost 33,500 to be delivered via construction activity, both by local authorities and by approved housing bodies.
The target of 50,000 is an increase over the originally targeted 47,000 social homes and under the review of Rebuilding Ireland, I announced in September that the budget will be more heavily weighted to direct build activity rather than acquisitions. I also announced that Minister of State English will lead a new delivery team in the Department to work with local authorities and approved housing bodies. That team is now being established and will focus on accelerating the social housing construction programme.
My Department has also been encouraging the use of Design and Build contracts under the Rapid Build Framework, which includes modular design, set up by the Office of Government Procurement (OGP). An increased uptake on this programme is now evident.
My Department has also worked with local authorities to review the processes and procedures for the approval of construction projects and has agreed an overall target programme of 59 weeks for progressing typical social housing construction projects from stage 1 all the way through to getting on site. We have also produced more detailed guidelines on submissions to be made to my Department and have revised the single-stage approval process for projects under €2m, on foot of feedback from local authorities.
The Deputy can be assured that my Department is committed to the accelerated delivery of all social housing projects and will work with all local authorities and approved housing bodies to ensure that quality and value for money projects are delivered efficiently and effectively.
34. Deputy Brendan Smith asked the Minister for Housing, Planning and Local Government when an affordable housing scheme will be introduced; and if he will make a statement on the matter. [52196/17]
View answerThe Government acknowledges the affordability pressures faced by households with low to moderate incomes in particular parts of the country. It is precisely for that reason that Rebuilding Ireland has prioritised the supply of new homes to meet current and pent-up demand as well as helping to moderate house prices and rents.
For households in the lowest income brackets, I am prioritising the social housing build programme, with an investment of over €6bn committed under Rebuilding Ireland, to increase the overall delivery to 50,000 new social homes by 2021. Qualifying households can also avail of other housing supports such as the Housing Assistance Payments and Rental Assistance schemes and other targeted programmes.
The Government is also committed to ensuring that there is a supply of and access to affordable homes. A range of measures have been taken to address this, for example, in relation to planning reforms to provide flexibility and certainty in delivering viable housing schemes and apartment developments in the right locations, and the provision of funding to service and open up housing lands through the Local Infrastructure Housing Activation Fund (LIHAF), to deliver new homes that are more viable and more affordable than would otherwise be the case. Furthermore, the introduction of Rent Pressure Zones, and mixed-tenure housing projects on publicly owned land, with two major sites in Dublin, encompassing some 1,500 new homes, progressing through procurement, are also beginning to have a positive impact.
In Budget 2018, the Government removed significant obstacles to building more homes, more quickly, and at more affordable prices by:
- Investing more in direct house-building by the State;
- Removing the Capital Gains Tax incentive to hold on to residential land;
- Escalating penalties for land hoarding; and
- Providing a new, more affordable finance vehicle for builders through House Building Finance Ireland (HBFI).
Based on all relevant indicators, it is clear that the supply based measures under Rebuilding Ireland are beginning to work, with recent housing output indicators showing significant upward trends:
- Planning permissions are up 49%, with 19,246 new homes granted planning permission in the 12 months to end-June 2017;
- Commencement Notices are up by 37%, with notices for 17,151 new homes nationwide submitted in the year to end-October 2017;
- As an indicator of multi-unit developments, there were 9,441 housing guarantee registrations recorded nationally in the 12 months to October 2017 (up 86% year on year).
- ESB connections to the national grid are up 26%, at 18,197 homes in the 12 months to end-October, with 8,400 of these in the Greater Dublin Area.
Notwithstanding this, further measures are being developed, including in relation to apartment development viability. I am also considering the wider issue of housing affordability as part of the targeted review of Rebuilding Ireland, including the deployment of the funding of €25 million announced in Budget 2018 to unlock local authority owned lands specifically for affordable housing. I expect to be making further announcements on these issues shortly.
35. Deputy Mick Wallace asked the Minister for Housing, Planning and Local Government if his Department has conducted a cost-benefit analysis of the HAP scheme in its current form; if so, the details of the analysis; if he is satisfied the HAP scheme is helping to solve the housing crisis; and if he will make a statement on the matter. [52270/17]
View answerThe Housing Assistance Payment (HAP) is a flexible and immediate housing support that is now available to all eligible households throughout the State. There are currently more than 30,000 households being supported by the scheme. On average, 350 new households are supported by HAP each week in 2017, and the Rebuilding Ireland 2017 target of supporting 15,000 additional households with the scheme has been exceeded.
The introduction of the HAP scheme was underpinned by an economic assessment, which was submitted to Government in 2013, and informed the Government’s decision to initiate the HAP scheme at that time. Although the HAP scheme was seen initially as being Exchequer neutral, external factors have impacted on this initial conclusion (in particular, the challenging state of the private rental market), and other benefits such as employment activation for HAP recipients, assistance with tax compliance of landlords for Revenue, improvement in private rental standards, better regulation of the private rental market, and reduction in local authority administration due to a central transactional shared service, should also be taken into consideration when looking at value for money.
It is important to recognise that in developing the HAP scheme, every effort has been made to provide similar levels of long-term support to other forms of social housing, while allowing for far greater flexibility of support, including a speed of access to the scheme that is as comparable to Rent Supplement. All parties to the administration of the scheme are committed to providing prospective HAP tenants with the capacity to compete for good quality, appropriate accommodation in the private market in an area they want to live in.
It should also be borne in mind that the HAP scheme was implemented on a statutory phased basis since 2014, and 2018 will be the first full year of operation in all local authority areas. The evidence of the success of the HAP scheme suggests that many households want what HAP offers them, i.e. flexible housing support with access to long-term options, at a rent that is based on their ability to pay, and the security of knowing that they can work full-time without losing their long-term housing support. HAP addresses many long standing issues raised by landlord groups and issues in relation to the operation of Rent Supplement.
As part of Budget 2017, Minister Donohoe announced that a review of day-to-day Government spending would take place in advance of Budget 2018. The 2017 Spending Review is the first in a series of rolling, selective reviews, which will cover the totality of Government spending over a three year period to 2019. As part of the Spending Review 2017, an analysis of the current expenditure on housing supports, including the HAP, was carried out by the Irish Government Evaluation and Economic Service (IGEES). A copy of this analysis can be found at the following link:
www.per.gov.ie/wp-content/uploads/Current-Expenditure-on-Housing-Supports.pdf .
Rebuilding Ireland is fundamentally based on blended delivery of social housing through a range of mechanisms and achieving the best value for money within the financial resources available to Government. A range of delivery mechanisms are operating in parallel and while it is recognised that an increased emphasis is now on building units, there are a considerable number of units available nationally for leasing and renting, both long and short term, which satisfy particular demand.
I continue to keep the operation of the HAP scheme under review but I am currently satisfied with how the scheme is operating and I consider it to be a key vehicle for meeting housing need and fulfilling the ambitious programme committed to under Rebuilding Ireland.
36. Deputy Catherine Martin asked the Minister for Housing, Planning and Local Government if he plans to prepare and publish a plan or nationwide scheme to assist home owners in the carrying out of remedial works to defective housing units; and if he will make a statement on the matter. [52278/17]
View answerI acknowledge the anxiety and upset caused to owners and residents when building defect issues arise.
Under the Building Control Acts 1990 to 2014, primary responsibility for compliance with the requirements of the Building Regulations rests with the designers, builders and owners of buildings. Enforcement of the Building Regulations is a matter for the 31 local building control authorities, who have extensive powers of inspection and investigation under the Acts.
In general, building defects are matters for resolution between the contracting parties involved, that is, the homeowner, the builder, the developer and/or their respective insurers, structural guarantee or warranty scheme. It is important to note that while my Department has overall responsibility for establishing and maintaining an effective regulatory framework for building standards and building control, it has no general statutory role in resolving defects in privately owned buildings, including dwellings, nor does it have a budget for such matters.
In response to the many building failures that have emerged over the past decade, my Department introduced the Building Control (Amendment) Regulations 2014, which require greater accountability in relation to compliance with Building Regulations in the form of statutory certification of design and construction by registered construction professionals and builders, lodgement of compliance documentation, mandatory inspections during construction and validation and registration of certificates. A certificate of compliance is jointly signed by the builder and the assigned certifier on completion of a building. This must be accompanied by plans and documentation to show how the constructed building complies with the building regulations and also the inspection plan, as implemented.
In August 2017, I published a Framework for Enhancing Fire Safety in Dwellings where concerns arise. The Framework is intended to be used as a guide by the owners and occupants of dwellings where fire safety deficiencies have been identified, or are a cause for concern. In addition, the Framework will also be of assistance to professional advisors both in developing strategies to improve fire safety and in developing strategies to enable continued occupation in advance of undertaking the necessary works to ensure compliance with the relevant Building Regulations.
At the end of May 2017, the Government approved the draft heads of a Bill to place the Construction Industry Register Ireland (CIRI) on a statutory footing and this Bill has now been referred to the Joint Oireachtas Committee on Housing, Planning and Local Government for pre-legislative scrutiny.
Once enacted, the Bill will provide consumers who engage a registered builder with the assurance that they are dealing with a competent and compliant operator. This will complement the reforms, which have already been advanced through the Building Control Amendment Regulations, and will contribute to the development of a culture of competence and compliance in the construction sector.
37. Deputy Shane Cassells asked the Minister for Housing, Planning and Local Government his views on expressions of concern by a group (details supplied) at a hearing of the Joint Oireachtas Committee on Housing, Planning and Local Government on the underfunding of local authorities; and if he will make a statement on the matter. [52277/17]
View answerThe funding system that applies to local authorities is a complex one, as authorities derive their income from a variety of sources including commercial rates, charges for goods and services and funding from central Government.
Income from local sources, such as commercial rates and goods and services, accounts for approximately 70% of the revenue (current) funding sources for local authorities. The elected members of local authorities have direct responsibility in law for adopting the annual budget, including these revenue raising measures, in addition to the annual variation decision on the Local Property Tax (LPT). As it is a matter for each local authority to determine its own spending priorities in the context of the annual budgetary process having regard to both locally identified needs and available resources. I acknowledge the very considered decisions elected members make in this context.
Central Government funding of local authorities (such as grants, subsidies and LPT allocations) similarly presents a complex picture, with transfers, both current and capital, coming from a wide range of Departments and Offices, not solely from my Department, for a variety of purposes. Some streams of funding are delivered directly from funding departments to local authorities, while others are routed through departmental agencies.
The Comptroller and Auditor General (C&AG) reports on the Central Government funding of local authorities as part of his Annual Report, which provides an overview of the funds flowing from and through central government sources to local authorities and the purposes for which funds have been provided. The most recent report (for 2016) is available on the website of the C&AG at the link below:
http://www.audgen.gov.ie/viewdoc.asp?fn=/documents/annualreports/2016/Report/En/Chapter8.pdf.
In this context, across all schemes and funding sources, my Department provided a total of €1.26bn to local authorities in 2015, €1.45bn in 2016 and €1.52bn to date in 2017. I should also point out that expenditure on housing services from my Department, much of which is channelled through local authorities, has increased markedly this year.
My Department works closely with local government stakeholders to identify the various funding pressures on a sector wide basis. This work helps inform the decision making process to ensure that a coherent, sector-wide view of the particular funding challenges is presented. Of course, all such issues have to be considered within the parameters of the national and fiscal budgetary situation and the competing priorities presenting themselves at the wider Governmental level.
There is a finite level of funding available from Central Government for distribution to all local authorities. Nonetheless, I am satisfied that the current funding system enables all local authorities to meet an appropriate level of service provision, from the most rural and sparsely populated to the large urban centres, having regard to the democratic accountability of elected members in the local authority budgetary process.
38. Deputy Eoin Ó Broin asked the Minister for Housing, Planning and Local Government the status of his Department's inquiry into allegations of planning corruption in County Donegal. [52161/17]
View answerOn 12 June 2017, my Department received a report from Senior Counsel regarding his Review Into Certain Planning Matters In Respect Of County Donegal.
My Department is currently reviewing and assessing the contents of Senior Counsel’s report and I have requested the advice of the Attorney General in respect of a number of points.
When I have received the Attorney’s advice, my Department will finalise a submission for me and I will be in a position to consider the report in full and to take any appropriate further action.
39. Deputy Joan Burton asked the Minister for Housing, Planning and Local Government his plans for the national planning framework; the way in which towns and regions will be selected for development; and if he will make a statement on the matter. [47233/17]
View answerThe National Planning Framework, Ireland 2040 – Our Plan, is intended to set a new long-term strategic planning and investment context for Ireland over the next 20 years. It will outline a high-level, national vision for Ireland for 2040, and will provide the framework and principles to manage future population and economic growth over the next 20 years (catering for 1 million extra people, 600,000 extra jobs and 500,000 extra homes).
As a national level document, the National Planning Framework (NPF) will set out broad policies and proposals in relation to Ireland's major urban centres, the regions and rural areas that are essential to manage our country's strategic development over the next twenty years rather than selecting individual towns for development. Moreover, the broad policies and proposals set out under the NPF will be further articulated at regional and local levels by the forthcoming Regional Spatial and Economic Strategies (RSESs), the preparation of which has begun in each of the 3 regions (for completion by end-2018) and, ultimately, in City and County Development Plans. The Regional Assemblies were established under the Local Government Act 2014 to co-ordinate the plans, including statutory development plans, and programmes of local authorities in the light of national policy and accordingly the new RSES's will be the vehicles through which policies and opportunities in relation to specific places will be elaborated in more detail.
40. Deputy Jan O'Sullivan asked the Minister for Housing, Planning and Local Government if, a year after it was introduced in Dáil Éireann, he will review the legislative base for rent pressure zones, in particular the tight criteria for qualification which excludes many parts of the country in which rents have increased substantially in the past year; and if he will make a statement on the matter. [52065/17]
View answerSince October 2013, the Residential Tenancies Board (RTB), in conjunction with the Economic and Social Research Institute (ESRI), has produced the RTB Rent Index on a quarterly basis. The RTB Rent Index is the most accurate and authoritative rent report of its kind on the residential rented sector in Ireland. It is generated using the actual rent figures provided when registering with the RTB.
Recent legislation established rent pressure zones in certain areas and laid out the process through which further rent pressure zones can be established.
The criteria used for the designation of Rent Pressure Zones are that annual rent inflation has been 7% or above in four of the last six quarters and that the average rent in the area is above the national average rent. These criteria are used to ensure that areas where rents are both high and rising quickly are designated.
To enable the designation of rent pressure zones at a more granular level, the RTB, working with the ESRI, has developed a methodology to provide rental price information at a more local level, enabling the designation of Local Electoral Areas (LEA) as rent pressure zones as well as improving the Index more generally and providing a more detailed and useful picture of the overall performance of the rental sector. The information collected by the RTB provides a robust basis for implementing the Rent Pressure Zones and for monitoring their impact.
The coverage of the Rent Pressure Zones is substantial. Nearly 57% of all registered rental properties, involving approximately 180,000 tenancies, are currently in designated areas. There are no plans to change the designation criteria to increase the coverage. However, if other areas meet the criteria in future, they will be designated as Rent Pressure Zones.
My Department has recently conducted a review of the Rent Predictability Measure on the basis of the Residential Tenancies Board (RTB) rent data and of the recently conducted consultation on the operation of the Rent Pressure Zones. On 19 September as a result of the review findings, I announced a number of measures to further strengthen the effectiveness of the Rent Predictability Measure in the areas that have been designated as Rent Pressure Zones. These include making it an offence to increase rents in contravention of the legislation, providing the RTB with the powers to investigate and prosecute such cases and more closely defining the basis on which exemptions to the limits on rent increases can be claimed.
I also announced that the RTB will be given the powers and resources to take on greater regulatory responsibility in the rental sector over the next two years. As part of this change, the RTB will move towards annual registration of tenancies, which will permit the building of a national rent dataset, allowing the Board to provide benchmark rents for different property types. This enhanced data will be key to understanding trends and behaviour in the rental market as well as informing future policy decisions.
41. Deputy Alan Kelly asked the Minister for Housing, Planning and Local Government the progress of his Department’s engagement with the EUROSTAT investigation in respect of the credit union investments in social housing and lending to approved housing bodies; and if he will make a statement on the matter. [50875/17]
View answerThe Programme for a Partnership Government recognises the potential role that credit unions can play in housing finance and supports the efforts of the Registrar of Credit Unions at the Central Bank to gradually lift current lending restrictions as appropriate, including for housing development. The Programme further provides for consideration, with all stakeholders, as to how credit unions can support the delivery of social housing.
Credit union bodies have set out proposed means by which funding could be provided by credit unions to Approved Housing Bodies (AHBs) for the development of social housing. My Department and the Department of Finance have met with the credit union representative bodies on a number of occasions to examine how their sector can assist in the area of financing social housing delivery.
Conscious of the independence of the Central Bank in its regulatory role in respect of credit unions, bilateral engagement has taken place between my Department and the Department of Finance to consider the potential regulatory and legislative implications of credit union involvement in the social housing sector. Both Departments have also met with the Central Bank to provide information of a technical nature in relation to social housing funding arrangements. This was with a view to assisting the Central Bank in understanding how these arrangements operate, as it deals with issues arising from proposals put forward for credit union investment in social housing.
I note the publication in May 2017 by the Central Bank of the Consultation on Potential Changes for the Investment Framework for Credit Unions. The potential changes that are provided for would allow for investment by credit unions in the delivery of social housing by the larger Approved Housing Bodies, which are categorised as ‘Tier 3’ under the voluntary regulatory framework for the AHB sector.
The Social Housing Current Expenditure Programme provides a means whereby properties can be built or bought by AHBs with the combined use of State and private funding, and leased by AHBs and local authorities from private providers, for the provision of social housing. This scheme, which is underpinned by a lease and other legal agreements, provides that rental payments are made by the State over an agreed long-term period, typically 20 years. In return, the dwelling is made available for social housing purposes.
Changes are now being proposed to this scheme in order to facilitate larger institutional private investors to become involved in the financing of social housing. Subject to other regulatory requirements being met, this could include credit unions.
The National Development Finance Agency (NDFA) is acting as financial advisor to my Department in this work and has undertaken market engagement in the development of the scheme. The new arrangements arising from this process are being tested to ensure that there is no negative impact arising from how they are viewed and treated in respect of the State’s General Government Balance. As part of this process, the proposed changes have been examined by Eurostat. Work on the scheme is well advanced, with details expected to be announced in the coming weeks.
The Rebuilding Ireland Action Plan for Housing and Homelessness emphasises the need to look at new ways of funding social housing delivery, in particular the need to provide structural, funding and policy supports to increase delivery of social housing by Approved Housing Bodies. In that context, it provides for support to be made available to an Irish Council for Social Housing (ICSH)/sector-led new special purpose vehicle, involving investors which could potentially include the credit union movement.
In May 2017, my Department announced funding of €49,000 for the ICSH to support this initiative, with the aim of establishing a sector-led financial vehicle to allow AHBs to expand and to facilitate the delivery of additional housing units. Ultimately, the funding structure required to facilitate credit union involvement in the financing of social housing will have a neutral impact on General Government Debt, or be “off balance sheet” using the more commonly applied term.
The mechanisms to be used in the deployment of investment funds will have to be agreed by credit unions, with the support of their members and with the agreement of the Central Bank. My Department remains available to provide any necessary technical advice and support.
