Dáil Éireann Debate, Tuesday - 8 February 2022
316. Deputy Thomas Pringle asked the Minister for Housing, Local Government and Heritage if the sliding scale has been dropped from the grant calculation methodology for the enhanced defective concrete block scheme; and if he will make a statement on the matter. [6307/22]
View answer326. Deputy Thomas Pringle asked the Minister for Housing, Local Government and Heritage if homeowners that are currently in the MICA redress scheme have had testing and sampling costs refunded in line with the changes announced to the defective concrete block scheme on 30 November 2021; and if he will make a statement on the matter. [6487/22]
View answer327. Deputy Thomas Pringle asked the Minister for Housing, Local Government and Heritage the number of homeowners that have been approved for emergency works in line with the changes announced to the Defective Concrete Block Scheme on 30 November 2021; the estimated amount that has been paid out for these works; and if he will make a statement on the matter. [6488/22]
View answerI propose to take Questions Nos. 316, 326 and 327 together.
I brought a Memorandum to Government on an enhanced Defective Concrete Blocks Grant Scheme on the 30 November 2021. It included an unprecedented suite of improvements to the current scheme. Government approved the enchanced scheme which it is estimated will cost approximately €2.2Bn. The comprehensive changes include:
- The current 90% maximum grant will be increased to a 100% grant for all remediation options 1-5.
- The maximum grant cap for option 1 (demolition and rebuild) will be increased from €247,500 to €420,000.
- The grant calculation methodology in respect of option 1 remediation will be based on a cost per square foot with grant costings to be set by my Department following receipt of information on up to date construction costs from the Society of Chartered Surveyors Ireland (SCSI). An indicative rate of €145 per square foot for the first 1,000 sq foot with a sliding scale thereafter has been announced by my Department and this will be subject to review as required in line with construction cost changes. In the case of remediation options 2-5 a similar but necessarily different approach will be taken to inform the appropriate grant rate for blockwork removal and replacement following receipt of advice from SCSI. The SCSI will be completely independent in their engagement with my Department on construction costs.
- A revised application process will be introduced which will only require the homeowner to submit an initial ‘Building Condition Assessment’ at minimal cost recoupable on entry to the Scheme. The Housing Agency will take over testing, sampling and categorisation of homes on behalf of homeowners and local authorities and will thereafter recommend the appropriate remediation option and grant amount for each home.
- Alternative accommodation and storage costs are to be included, subject to a maximum of €20,000.
- In relation to works carried out under remediation options 2-5, a second grant option, will be available for such a home in the future if blockwork which was not removed as part of the initial remediation work subsequently proves defective in accordance with the IS;465 standard.
- A new independent appeals process will be introduced.
- €5,000 will be available for esssential immediate repair works recommended by a building professional as part of the Building Condition Assessment process.
- The Scheme will be extended beyond the current scope of Principal Private Residences only, to also cover Residential Tenancies Board registered rental properties, subject to the introduction of a clawback mechanism upon re-sale within a set time period depending on the remediation option used. Opportunities for the State to acquire such rental properties for social housing purposes will also be examined.
Full details in relation to the changes announced are available at the following link;
www.gov.ie/en/press-release/e365e-minister-obrien-announces-enhancements-to-the-defective-concrete-block-scheme/
I aim to bring the required primary legislation to give effect to the enhanced scheme before the Oireachtas as soon as possible with Spring 2022 being the indicative target timeline.
In the immediate term I am making amendments to the Dwellings Damaged by the Use of Defective Concrete Blocks in Construction (Remediation) (Financial Assistance) Regulations 2020 which will allow for the recoupment of Engineer fees to homeowners who have applied for entry into the scheme. Furthermore, as part of these amended regulations, up to €5,000 will be recoupable as an allowable cost under the scheme for essential immediate repair works which are deemed necessary by a homeowners engineer under a Building Condition Assessment report.
As part of the work being carried out to implement the enhanced scheme, SCSI are preparing a report for my Department on up to date construction costs for the remediation options available under the scheme. The SCSI will be the independent and sole author of the report on construction costs and this report will help inform any revised grant amounts approved by Government for the enhanced scheme.
