Dáil Éireann Debate, Wednesday - 3 May 2023
200. Deputy Michael Healy-Rae asked the Minister for Housing, Local Government and Heritage the subsidies for local authorities that will be put in place to replace their income from development levies which are now being cut by him (details supplied); and if he will make a statement on the matter. [20217/23]
View answer201. Deputy Neasa Hourigan asked the Minister for Housing, Local Government and Heritage if he will outline the funding framework to reimburse local authorities for the proposed reduction in development fees; the percentage amount of reimbursement; the timeline for implementation, as it aligns with the implementation of the reduction of development fees; the budget line under which this will be included in the local government Vote; and if he will make a statement on the matter. [20229/23]
View answerI propose to take Questions Nos. 200 and 201 together.
On 25 April 2023 the Government approved additional measures under Housing for All to incentivise the activation of increased housing supply and help reduce housing construction costs, including the introduction of temporary time-limited arrangements for the waiving of local authority “section 48” development contributions and the refunding of Uisce Éireann water and waste water connection charges.
The Temporary Development Contribution Waiver Scheme will apply for one year to all permitted residential development that commences on site between 25 April 2023 and 24 April 2024, and is completed not later than 31 December 2025. The waiver will cover the full cost of the levy due from the developer/ project promoter under the development contribution scheme operated by the relevant local authority. My Department issued a circular letter to all local authorities on 28 April, setting out details of the scheme, a copy of which can be accessed on my Department’s website at the following link: www.gov.ie/en/circular/10e02-circular-pl-042023-temporary-time-limited-waiver-in-respect-of-development-contributions/
I am cognisant that the development contribution waiver scheme does not impact on local authorities ability to fund the ongoing provision of necessary infrastructure to support development in their functional areas or require the taking out of interim borrowing by local authorities to prevent delays to development works. Therefore it will be necessary for efficient administrative arrangements to be put in place to ensure that local authorities are promptly compensated by my Department for development contributions that would normally be paid at commencement stage by developers. To facilitate this, local authorities will be required to invoice my Department on a monthly in arrears basis in respect of development contributions payable further to the receipt of commencement notices from developers.
The funding for these arrangements will come from my Department's Vote (Vote 34, Housing, Local Government and Heritage). My Department is currently working on the detailed arrangements in relation to the operation and administration of the measure, including the setting up of appropriate financial monitoring and the budget line. These arrangements will be communicated to local authorities as soon as possible.
