Social and Affordable Housing Provision

Dáil Éireann Debate, Thursday - 27 September 2018

Thursday, 27 September 2018

Questions (2)

Eoin Ó Broin

Question:

2. Deputy Eoin Ó Broin asked the Minister for Housing, Planning and Local Government if he will work with South Dublin County Council to ensure that the residential development at Kilcarbery-Grange includes cost rental and affordable purchase homes in addition to social housing; and if a similar funding model to that approved for St. Michael's Estate in Dublin city will be explored to ensure that the development of the Kilcarbery-Grange meets the need for social and affordable housing. [39282/18]

Oral answers (6 contributions)

Deputy Eoin Ó Broin

The Minister is aware that the Kilcarbery-Grange proposal from South Dublin County Council is a significant development and one that could do much to ease housing need, not just in Clondalkin and Lucan in my constituency, but across the county. The difficulty that many elected members on South Dublin County Council have is that, while there is be a proposed 30% social housing component in the development, which is welcome, 70% is proposed to be sold at open market prices. In that part of the city, those prices would be between €320,000 and €500,000. Will the Minister work with South Dublin County Council to try to ensure a level of affordability in the development?

Minister for Housing, Planning and Local Government (Deputy Eoghan Murphy)

I thank the Deputy for his question. The early development of major local authority residential sites in Dublin is a top priority for the Government. To that end, we are working with all Dublin local authorities, including South Dublin County Council, to see these sites brought forward as quickly as possible with the optimal tenure mix and the greatest value for money for the taxpayer.

In the first instance, it is a matter for the local authority and its elected members to agree the optimal approach to development and financing. Kilcarbery near Grange Castle is an excellent site close to amenities and transport links, and my Department has supported enabling infrastructure for the site through almost €4.5 million in local infrastructure housing activation fund, LIHAF, funding. Plans for the development of the site have been advanced over the past two years, with a comprehensive procurement process now almost completed that will result in almost 1,000 new homes on the site. These will include 30% social housing homes, with the balance to be provided for sale at affordable prices.

Any significant change in approach to the development of this site would require a new appraisal and approval process, incurring significant project delays and risk. In addition, it would necessitate a new procurement process that could incur further delays of 18 months or more, and delay the delivery of much-needed social and affordable housing.

Under the existing proposal, I understand that the council would receive a substantial financial contribution for the land that it owns that it intends to reinvest in other housing projects, which can in turn deliver more homes, with scope for some of these to be provided under the affordable purchase or cost rental schemes.

Taking account of all of these factors, I would encourage South Dublin County Council to conclude urgently the original process for the development of the site, for which it is to be commended. My Department stands ready to work with the council in identifying, prioritising and progressing other major sites in the area for affordable homes to buy and rent, which will complement the delivery of social housing and competitively priced homes for purchase at Kilcarbery.

Deputy Eoin Ó Broin

I thank the Minister for his reply, but there is a difficulty. The majority of elected members have expressed a concern that the 70% of houses to be sold on the open market will not be at affordable prices. In fact, there is no contractual obligation in the draft agreement between the council and the preferred developer to provide any price for those. Given the sale prices being attained in the immediate area, standard family homes begin at €320,000 or €340,000 and increase to €500,000. As such, it is incorrect of the Minister to say that the 70% will be sold at affordable prices. That cannot and will not be guaranteed.

When the Tánaiste was Minister and O'Devaney Gardens and Oscar Traynor Road were being discussed, his intervention at the request of the majority of the elected members secured affordability on those sites. When issues with St. Michael's Estate emerged, the Minister of State, Deputy English, worked closely with Opposition Members and councillors to ensure affordability was delivered on that site. I do not accept that the Minister and the Department sitting down with the council and Deputies from the area to ensure a level of affordability on this site would cause a significant delay in the project. Given that it is the last major piece of development land owned by the council in that part of the county, I urge the Minister to work with us on ensuring affordability alongside the much-needed social housing.

Deputy Eoghan Murphy

I thank the Deputy for his supplementary contribution. Of the homes, 30% will be social housing. In addition, a site adjacent to the site will provide for the completion of more than 100 social housing homes. Of the 70% that will be sold at competitive prices, a cost reduction equivalent to the amount we have invested through LIHAF will be applied.

Similar prices in the area indicate that starter homes can be provided and are being sold for less than €300,000. Given the data that I have seen, I am not sure where the Deputy is getting the figure of €500,000 from.

This is not similar to the other projects that the Deputy referenced. We are 18 months down a detailed procurement process. Were we to delay it any further by trying to make a material change to the proposal before the councillors, it would contravene EU directives and Irish regulations and invalidate the procurement process. It could set us back a further 18 months. From the point of view of the Government and people who badly need new homes to be delivered, this is a significant development of almost 1,000 new homes, and I urge the councillors on the local authority not to delay it further and to proceed with giving approval for it at the council's October meeting. The council can then move forward with this and the adjacent sites and get all the funding that has been promised to it in respect of the land it owns, which it can then reinvest into other social and affordable housing schemes in its area. This is not to mention the large crèche and even larger community centre that will be provided on the site.

Deputy Eoin Ó Broin

We have seen indicative prices from the lead agency. They show that none of the 70% would be affordable to single-income households and only the smallest of the one-bedroom and two-bedroom units may be affordable to couples without children under the Government's affordable lending criteria.

I have written to the Minister on behalf of five Deputies from five political parties representing the constituency asking him to meet us to see whether a resolution can be found. The 70% will not be affordable. The Adamstown development is also receiving LIHAF funding, and its homes range from €320,000 to €450,000. Shackleton Park, the nearest residential housing development, is being built beside Kilcarbery. Homes there range from €320,000 to €500,000. There is no new development anywhere close to this area where decently sized family homes are being sold for less than €300,000. Small apartments may be priced at €280,000 or €290,000. In the agreement that has been proposed for elected members to approve, no price has been agreed. Therefore, if this housing development proceeds as proposed, these houses will be beyond the reach of many within one, two or three years thanks to house price inflation. That is not a sensible use of public land. We are asking the Minister to work constructively with us, the elected members and council officials to ensure that not only do we get the much-needed social housing, but also homes that working families can afford.

Deputy Eoghan Murphy

If we do not build more homes and approve the massive projects that we have before local authorities, such as the one for almost 1,000 homes, then talking about affordability and prices is a complete waste of time. We need new homes to be built. The Deputy's comparisons on price do not stand up from the data I have seen from the local authority area.

I am a very reasonable Deputy. I have met colleagues across the House a number of times to try to come to agreements or solutions when we can on other issues that have been before us. However, I have no role in this and neither does Deputy Ó Broin. This is a matter for the executive and the councillors on which to come to an agreement. If the Deputy has some influence with the Sinn Féin councillors on the local authority, I urge him to urge them to support this proposal and not to block or delay the delivery of a significant number of houses in his own area, as well as a new community centre, new crèche facilities, more social housing on the adjacent site and a huge amount of money that can then be invested in other affordable and social housing schemes in that local authority area. We need to make progress here. We need to build houses. If the Sinn Féin council members and other councillors do not support this proposal next month, my great fear is that another 18 months will be lost and we will lose almost 1,000 homes that are ready to go on-site early next year.