Dáil Éireann Debate, Thursday - 24 June 2021
31. Deputy Richard Bruton asked the Minister for Housing, Local Government and Heritage if the Land Development Agency has the capacity to build a significant land bank in all the key growth areas across Ireland. [33515/21]
View answerThe Land Development Agency (LDA) was established on an interim basis in September 2018, by way of an Establishment Order made under the Local Government Services (Corporate Bodies) Act 1971, pending the enactment of primary legislation when it will be established as a commercial State agency.
The LDA Bill 2021 focusses on the establishment of the corporate form and financial structure of the Agency and recently concluded Committee Stage in Dáil Éireann. It provides for the capitalisation of €1.25 billion for the LDA from Ireland Strategic Investment Fund (ISIF), along with its borrowing ceiling of €1.25 billion. This capital will be utilised by the LDA to support the delivery of its projects, including the acquisition of land, on an economic basis in line with the provisions of the Bill.
The LDA has been progressing significant preparatory work on its existing sites made available to them with potential for 4,000 homes and is also developing a pipeline of additional sites.
Part 7 of the LDA Bill details how sites will be acquired by the LDA. With respect to public lands, on disposal of any land by a relevant public body, the land must first be offered for sale to the LDA. The LDA shall also furnish a report to Government every 2 years detailing how public lands are being utilised and identifying any lands which may be appropriate for the LDAs objectives. On receipt of such a report, the Government can direct a relevant public body to dispose of its land to the LDA. The LDA will also be empowered to purchase lands on the open market.
It should be noted that while the LDA is required to pay market value for the purchase of public land, there will a minimum 50% affordable housing delivery requirement for relevant public lands under Part 9 of the LDA Bill, which will be 80% for such public lands in Dublin and Cork City. This will be in addition to the increased 20% Part V social and affordable housing obligation being introduced under the Affordable Housing Bill. As such from an LDA financing perspective, the market value of such public lands will likely be significantly reduced to a nominal level in terms of the purchase price that the LDA will pay.
