I thank Senator Fiona O'Loughlin for raising this matter and for the opportunity to provide an update on behalf of the Department of Housing, Local Government and Heritage.
The Government is committed to helping homeowners affected by defects arising from the original date of construction to get their homes and lives back together. In December 2023, the Minister of State, Deputy Joe O'Brien announced the opening of an interim remediation scheme for fire safety defects in apartments and duplexes. The scheme provides for the funding of eligible emergency fire safety defects works in order to provide an acceptable level of fire safety in buildings pending completion of the full remedial works. Apartments and duplexes built between 1991 and 2013 with eligible defects qualify for this scheme. Applications can be made by the owners' management companies on behalf of their members. Houses are not covered under this scheme.
In a multi-unit development, the head lease obliges the owner's management company to put in place insurance cover for all common areas. The common areas are those parts of the estate not owned by the individual owners and shared by all users, such as car parks, shared gardens, corridors and lifts. The common areas are owned by the owner's management company. In almost all circumstances, the owners of houses in a multi-unit development arrange their own private insurance.
Claims for damages to such property must be made by the policyholder and handled by their own insurer. This is in contrast to apartments and duplexes within these developments, where the insurance is typically covered under a block policy. It is for this reason service charges levied on those type of homeowners, as I understand, are usually much higher than house owners in the same development.
I note the Senator is asking that these homes, which I believe burned down in 2016, were excluded from the current interim apartment defects scheme. However, as I understand from the Housing Agency, they have no record of an application from the owners’ management company of this development on behalf of house or apartment owners. In any event, matters relating to fire safety such as these are a matter for the relevant local authority in the first instance. The Department of housing has put various support measures in place, including provision of considerable financial assistance to remediate their homes. In this regard, the pyrite remediation scheme and the defective concrete blocks grants scheme are both underpinned by legislation. There have also been wider State schemes offering financial support for homeowners for works other than these defects, such as lead pipe replacement, home improvement works and energy efficiency improvement works. These schemes are intended to bring homes to an acceptable standard and ensure they remain viable as part of the housing stock.
The scale of defects in apartments and duplexes is significant. It is estimated that between 62,500 and 100,000 apartments may be affected by one or more fire safety, structural safety or water ingress defects. Full remedial works, which will include all necessary fire safety measures as well as those related to water ingress and structural damage, will be funded under the forthcoming apartment and duplex defects remediation scheme, in respect of which the drafting of legislation is now well advanced. Following circulation of the draft heads of the general scheme and observations received, Government approval was given on 18 September 2024 for the priority drafting of the apartment and duplex defects remediation Bill.
I should have opened my remarks by issuing sympathies and support for the people in the houses that have been mentioned. Fortunately, very few people were there at the time the fire occurred. Nevertheless, as Senator O’Loughlin outlined, the trauma of everything a person ever owned and ever looked forward to sharing in the future being gone in 30 minutes is a destruction that will have long-term effects not just on the building but on the people themselves. It is to be hoped, through some of their own insurance policies, they will be able to get some work completed related to that.