Dáil Éireann Debate, Tuesday - 27 July 2021
773. Deputy Richard Bruton asked the Minister for Housing, Local Government and Heritage when it is proposed that he will set the affordable price in respect of sites being identified by the LDA for potential designation by Government as sites for early development to fulfil housing needs in areas of housing pressure; and the prices which have been set to date on sites in advanced planning or delivery. [41113/21]
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. The Land Development Agency Act 2021 was recently signed into law and, on enactment, the LDA will be established as a commercial State agency.
Under Part 9 of the LDA Act any affordable housing delivered on relevant public lands, either by the LDA or another developer for purchase or cost rental, will be provided fully in accordance with the provisions of Part 2 (Affordable Dwelling Purchase Arrangements) and Part 3 (Cost Rental Dwellings) of the Affordable Housing Act. This will also ensure that if any provisions in the Affordable Housing Act, including its regulations, change in the future, they will automatically apply to a developer of relevant public lands (including the LDA) under an LDA Act Part 9 affordable housing delivery agreement.
There are 3 options under Part 9 of the LDA Act for a developer, including the LDA, to deliver affordable housing on relevant public lands in accordaance with the Affordable Housing Act: the housing can be designated and leased as cost rental under Part 3 of that Act; the housing can be transferred on completion to a planning authority under Part 2 of that Act; or the housing can be transferred on completion to the ownership of relevant applicants as nominated by the local authority under a direct sales agreement under Part 2 of that Act.
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 Act, with a minimum of 80% affordable housing on relevant public lands in urban areas with a population greater than 150,000, that is Dublin and Cork cities. This will be in addition to the increased 20% Part V social and affordable housing obligation being introduced under the Affordable Housing Act which will ensure that there will be 100% affordable and social housing on such lands in our largest cities. As such, the market value of such public lands will be significantly reduced in terms of the purchase price that the LDA will pay.
The LDA is currently engaging in pre-construction activity on a number of public sites but has not yet taken ownership of any sites. After commencement of the LDA Act, it is intended that the Valuation Office will individually value public sites that the LDA has decided to purchase taking into account the minimum 50% or 80% affordability requirement (as appropriate) under Part 9 of the LDA Act and the increased 20% Part V social and affordable housing obligation.
