Eoin Ó Broin
Question:119. Deputy Eoin Ó Broin asked the Minister for Housing, Local Government and Heritage his views on the ongoing delays in the development of social and affordable homes at a location (details supplied). [12046/22]
View answerThursday, 3 March 2022
Questions (119, 120, 168, 173)
Bríd Smith
Question:120. Deputy Bríd Smith asked the Minister for Housing, Local Government and Heritage the reason for the planning application submission delays for the Emmet Road development since the agreement to proceed with the project in July 2018; if his attention has been drawn to the fact that, apart from those engaged with the consultative forum, local persons have not been kept informed of developments since March 2021; when the first large-scale public affordable cost-rental project on the former St. Michael's estate site in Inchicore, Dublin 8, will be delivered; and if he will make a statement on the matter. [11979/22]
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Aengus Ó Snodaigh
Question:168. Deputy Aengus Ó Snodaigh asked the Minister for Housing, Local Government and Heritage the reason that a decision on the St. Michael's estate redevelopment in Inchicore, Dublin 8, has been delayed again recently; and the timeline for the delivery of the first large-scale public affordable cost-rental project on this site. [11836/22]
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Joan Collins
Question:173. Deputy Joan Collins asked the Minister for Housing, Local Government and Heritage the reason for the delay in introducing the pilot scheme for a European cost-rental model of housing (details supplied); and the timeline for the delivery of the first large-scale public affordable cost-rental project at a location. [12055/22]
View answerOral answers (13 contributions)
Questions Nos. 119 and 120 are grouped but I am satisfied that Questions Nos. 168 and 173, in the names of Deputies Ó Snodaigh and Joan Collins, may be grouped with them.
As the Minister knows, his predecessor announced the St. Michael's social and affordable public housing scheme in 2018. We understand from Dublin City Council that it is to go to planning at the latter end of this year and that construction may not commence until 2025, which means that the project, given its size, might not be tenanted until 2027 or 2028. That means it will be ten years from announcement to tenanting. What is the Department doing to speed up the process after planning, particularly regarding changes to the approval, tendering and procurement processes?
I wish to follow up on that. The planning application for St. Michael's estate was agreed by the council in 2016. The project was announced in 2018. At a housing committee presentation in 2020, we were told the planning application would be submitted in the first quarter of 2021. Now it has been postponed again. There is considerable frustration in the community over this. The community hoped contractors would be on site by 2023 but it now looks like it will be 2025.
I propose to take Questions Nos. 119, 120, 168 and 173 together.
I thank both Deputies for their questions. I have an interest in seeing progress on this project also. Emmet Road is a really important project for development, particularly in the cost-rental sector in Ireland. The plan for a local authority-led financing structure is a key element in the long-term delivery of cost rental and one that could be replicated elsewhere. A dedicated Dublin City Council project manager and project team are working on the development and have confirmed it is a key deliverable in the council's housing programme.
I understand the concerns of the local residents who have been constructively engaging regarding the development at the site. I had a very good virtual meeting with them last December. I am aware of how rigorous the design process for such a large and important site can be and appreciate the work done to date, but, just like Deputies Joan Collins and Ó Broin, the Government wants to see this move on.
I am pleased to confirm that the council has advised that the concept design was presented to councillors on Tuesday, the day before yesterday, and to the Inchicore Regeneration Consultative Forum yesterday. Although the designs are not finalised, current plans propose a mixed-tenure development of 548 homes, which represents an increase. I welcome that because we need to maximise the use of the site by providing really good homes. Of the 548 homes, 75% will be cost rental and 25% will be social.
This design will be presented to the public during phase 3 of the consultation process. The Deputies and all other representatives from the area will pay close attention to it. The process will run from 8 March to 31 March. The concept design includes the site layout, approximate unit numbers and mix, the number of stories and standard layout. Therefore, it is a very important process. I want this to be the last one and to move on from here.
The council has advised that, following this consultation, some further refinements, including improved design efficiencies and the consideration of consultation feedback, will be required before the full design stage can be reached. This will enable the design team to complete the environmental impact assessment report, update the cost plan and consequently submit a full planning application. I expect that by the end of 2022. That is what I want to happen, and I am strongly encouraging Dublin City Council to meet the target of proceeding to planning by the end of 2022.
Delivery after planning is outside our remit but there are other things we can do. In this regard, I must refer in particular to Deputy Ó Broin's question. As with the principle of cost rental, rents will depend on the overall cost of delivery. This development already benefits from utilising State land in a prime city-centre location, but funding support from my Department will also help to reduce the ultimate rents paid by tenants.
As Deputy Joan Collins will know, in December 2020 my Department and I approved €18.75 million, in principle, for the cost-rental homes under the scheme. That was under the serviced sites fund. Under Housing for All, we have brought in the affordable housing fund, which provides a lot more flexibility, particularly in areas where there are acute issues with affordability. While we allowed a subvention of up to €50,000 per unit under the serviced sites fund, the Department now allows one of up to €100,000. In one respect, the delay talked about may benefit the overall delivery at the site and have a benefit in respect of the cost.
I have revised the criteria and provided more flexibility and funding support to appropriate affordable housing projects, including high-density developments. The council has indicated it is going to resubmit the application to me. It is working on a new funding application based on the increased numbers for the site. I welcome that and hope all Deputies will welcome the increase in the number of homes. There are to be 548 homes for families in the area, 75% of which will be cost rental and 25% of which will be social.
I cannot imagine anyone will have a difficulty with that. We want to get the design right and I am going to provide increased funding for that. I will come back in if there are additional questions.
As the Minister will know, this is a project that has strong cross-party support. We worked together in opposition to convince the then Minister of State at the Department of Housing, Planning and Local Government, Deputy English, to progress this project. I am hoping that we can continue to do the same in the future. There are two specific problems. The question I have relates to the stage after planning is approved. The Minister's Department recently published the report into a review of the four-stage process, particularly for mixed tenure projects. The difficulty is that there is nothing in that document that suggests, for example, that there will be any acceleration of that approval process for this project. I urge the Minister, particularly in respect of recommendation 8 of that report on the single decision-maker, to use the St. Michael's estate site as a pilot to test run a single point of decision-making to speed it up. We cannot have a two- to four-year approval, tendering and procurement process, which is currently how long it is taking in large projects such as this elsewhere in the country. I also urge the Minister to look at the finances again. I ask him not just to look at the higher level of the affordable housing fund, but to stretch out the term of the loans to bring the rents below €1,000 a month.
A private developer would have to produce its final design and prepare tender documents while a planning application is in process. I cannot see why the same process could not be followed in relation to St. Michael's. I am disappointed that we are still talking about the third quarter of 2022 for the planning application to go in. We do not know how long it will take for the planning application to be approved or not. I urge the Minister to push the council as much as possible to get its act together. Not only is a full-time Dublin City Council project manager working on it, but one of the top and longest established design teams in the country is working on it. It should be delivered much more quickly. I am delighted to hear about the €100,000 but costs are going up all the time. If we are talking about 2024 or 2025 before this project is under construction, more money may be needed for it. It is also important that the term of the loan is extended from 25 years to 40 years.
I would like an explanation on the delay. Deputy Ó Broin made a point about making St. Michael's a pilot project for cost rental. That commitment was made when the former Minister for Housing, Planning and Local Government, Eoghan Murphy, visited the estate back in 2018. The local consultation is an issue of concern. Yesterday, we received a WhatsApp message about events being held in Richmond Barracks during the month of March. Three different webinars are to take place. That is good news. However, like the other Deputies, I think the project needs to be accelerated, with a proper timeline set out for delivery. After all, the community has been waiting for decades for this to happen. They have been fighting in a comprehensive, clear and united way for it, and have worked with the parties in the area on it.
I genuinely thank the Deputies for their contributions on this issue. We worked on it together in opposition and I assure them that we will continue to do so. I want us all to work together on it. St Michael's is a really important site. The Deputies and the rest of us all know that. We want the project to be delivered. I do not want there to be any delays. I wish to make two points on the planning side. In response to Deputy Joan Collins, obviously, the council cannot submit the project for planning permission until the design work is done. There is revised design work but I am encouraging the council to prioritise that and to get the application in this year. I am checking on this project regularly.
Deputy Ó Broin's question on what happens post planning is a very good one. We have already changed the four-stage process to effectively a three-stage process. I am also establishing a mixed tenure unit within my Department. This scheme will go to one unit. Given that it is going to be 75% social housing and 25% cost-rental housing, it will be given absolute priority in the stages. There will not be inordinate delays with this project in the process. We need to focus on getting it into planning. The public consultation is important. It is happening from 8 March. I am quite happy to keep Deputies regularly updated from my side of things. I know they will keep the pressure on Dublin City Council through their own representatives in the area.
I thank the Minister. Can he give us an indication of how long he thinks the process will take when the planning application goes to the unit? Is he talking about January, February or March 2023, or will it take longer? The Minister said that a new unit has been set up.
I will respond in a moment.
I say this with all sincerity, but there is some scepticism as to whether the four-stage process will actually become a three-stage process. We will have to wait and see. The Department's report is very clear. It does not confirm the establishment of a single decision-maker. It states that it would be preferable, but there will be greater co-ordination. I invite the Minister to meet the Deputies involved with this issue and the relevant officials from the Department. Some of us may have helpful suggestions that could be piloted in this project to accelerate it.
On the issue of rents, Dublin City Council is currently saying that the rents could be €1,300 plus, even with the affordable housing fund. The term of the loan is too short. I know that the European Investment Bank, EIB, only provides that term, but with the Enniskerry Road project, the Minister was able to restructure the loan through the Housing Finance Agency, HFA. While it is possible to get the rents at this location down to €700, €800 and €900 for one-, two- and three-bedroom properties, that requires both €100,000 from the serviced sites fund or affordable housing fund and much longer maturities. I urge the Minister to work with us to ensure that the financing is restructured so that the project is delivered quickly and is genuinely affordable.
Deputy Ó Broin's last point is a very important one. We met and worked with many young people in the community who were trained, had been to college or worked in IT, and who were on reasonably decent wages, but could not afford to live in the area and have their own families there. The point about keeping the rents at a level where the community is sustainable, so those who were educated and reared around St. Michael's estate can continue to live there at an affordable rate, is an important one. The other issue that I am very concerned about is the timing. Can we put definite timelines on the project? I know that the Minister is sketching things roughly but we need very definite timelines on when all this is going to happen.
To clarify, for Deputy Joan Collins, the mixed tenure unit is the unit within my Department that will deal with the post-planning stage and the funding and approval of it. The planning stage is separate. That unit is being established. In response to the point made by Deputy Ó Broin, I can state that it will be a three-stage process. I believe that St. Michael's is such a significant site that I am absolutely open to looking at how we can ensure that the project is expedited. I will certainly arrange a meeting with interested Deputies, who are either from the constituency or are spokespersons, such as Deputy Ó Broin and others. Perhaps Deputy Cian O'Callaghan will be interested. I will arrange that meeting at the appropriate time. I think we need to let the public consultation happen. I suggest that we do that. The Deputy's question is very timely, because the consultation is happening between 8 and 31 March. I have no interest in delaying this project. I want to see it done.
In response to Deputy Bríd Smith, I believe in cost rental. That is why one of the first things I did when I took office was to work on the affordable housing legislation with colleagues to get it enacted to ensure that we have a national cost-rental scheme that is underpinned by legislation. We have cost-rental tenants in place in homes in counties Dublin and Kildare. There will be hundreds more this year. We are not just talking about a concept.
To deal with cost, the term of the loan and so on, the HFA may have a role to play. While the EIB has its role, we will explore that with some of the bigger sites without complicating or delaying the project further. There have been no delays to the project from our side. Deputy Bríd Smith mentioned that I am sketching out the timeframe. I do not know what will happen in planning. I do not know whether there will be objections to the project, whether there will be judicial reviews or whether people will go to court over it. I do not know any of that, because it is independent of me. I hope there will not be delays. The way the council is approaching this project on a plan-led basis is correct. People can see the detail of what we will be proposing to build there. It is important to take the feedback from residents now. I want the council to submit the planning application by the end of this year. I can assure Deputy Joan Collins that I am encouraging Dublin City Council in a very positive way to make sure that that timeline is hit. I cannot say who is going to object to or make observations on the application. I hope that it receives a fair wind through the planning process and is granted permission. We already know that in advance of that, the council will be submitting proposals to me and the Department in relation to funding. We can work that through in advance of planning permission being granted. I am expecting a new application from Dublin City Council under the affordable housing fund. I have not received it yet. The council is working through it on the basis of knowing how many units are going to be on the site. I expect and hope that the Deputies here will support the increased number of homes there. We will deliver 578 homes there, 75% of which will be cost rental and 25% of which will be social housing.
I hope they will encourage residents and work with them to make sure it gets through planning quickly.