Written Answers Nos. 65-90
65. Deputy Darragh O'Brien asked the Minister for Housing, Planning and Local Government his plans to review and expand the rent pressure zone system; and if he will make a statement on the matter. [19847/18]
Amharc ar fhreagraFor an area to be designated a Rent Pressure Zone, it must satisfy the following criteria set out in section 24A(4) of the Residential Tenancies Act 2004 (as inserted by section 36 of the Planning and Development (Housing) and Residential Tenancies Act 2016):
(i) The annual rate of rent inflation in the area must have been 7% or more in four of the last six quarters; and
(ii) The average rent for tenancies registered in the area with the RTB in the last quarter must be above the average national rent (the National Standardised Rent in the RTB’s Rent Index Report) in the last quarter (€1,054 per month in Q4 2017).
My Department has conducted a review of the Rent Predictability Measure on the basis of the Residential Tenancies Board (RTB) rent data and a public consultation on the operation of the Rent Pressure Zones. In September 2017, arising from the review findings, I announced a number of measures to further strengthen the effectiveness of the rent setting and rent review laws, including the implementation of a change plan to develop and strengthen the role of the RTB, particularly with regard to enforcement.
These measures include the intention to make it an offence to increase rents in contravention of the legislation and to provide the RTB with the necessary powers and resources to protect tenants from illegal rent increases. These changes will strengthen the impact of the Rent Predictability Measure and should contribute to a further slowing in the growth in rents, in tandem with increasing supply.
The Government has given priority to the drafting and early publication of a Residential Tenancies (Amendment) Bill to address these and other urgent reforms in the residential rental sector.
The Residential Tenancies Board’s latest quarterly Rent Index Report for Q4 2017, which was published in March, shows reductions in the rate of rental inflation across both national and Dublin rents. The slowdown in the quarterly growth rate in Dublin rents to 1.1% in Q4 2017 is particularly noteworthy, bringing the annualised growth rate over 2017 to 5.2%, a drop from 8% in the year to Q3 2017. Significantly, this 5.2% increase for Dublin is the lowest annual growth rate since 2013. This latest quarterly index provides evidence that the introduction of the RPZs, in December 2016, is having a positive effect on rent inflation, particularly in Dublin.
The RTB Rent Index Report also includes a summary of the data used as the criteria for designating Rent Pressure Zones in relation to all Local Electoral Areas in the country. This allows everyone to see exactly where their area stands in relation to average rent levels and increases and possible designation.
The Housing Agency continues to monitor the rental market and may recommend further areas for designation. Where, following the procedures set out in the Act, it is found at a future date that additional areas meet the criteria, they will be designated as Rent Pressure Zones. However, at present, I have no plans to expand these measures further.
66. Deputy Mary Butler asked the Minister for Housing, Planning and Local Government his views on whether local authorities are suitably resourced with the relevant personnel, for example, architects, planners, engineers and so on, to deliver sufficient social housing as a matter of urgency; and if he will make a statement on the matter. [19696/18]
Amharc ar fhreagraUnder section 159 of the Local Government Act 2001, it is the Chief Executive of each local authority who is responsible for the staffing and organisational arrangements necessary for carrying out the functions of the authority.
My Department works closely with all local authorities and staffing sanction requests are dealt with on a case-by-case basis with priority given to housing-related posts, as well as those relating to health and safety and economic development. In that context, since 1 January 2015, my Department has received 820 housing-related staff sanction requests from local authorities, 793 of which have been approved, with 27 pending. Additional supports are also being made available to local authorities to meet staffing costs associated with the delivery of their social housing build programmes.
67. Deputy Martin Heydon asked the Minister for Housing, Planning and Local Government when additional projects in County Kildare can be considered for local infrastructure housing activation fund, LIHAF, funding; and if he will make a statement on the matter. [19734/18]
Amharc ar fhreagraThe first call for proposals under the Local Infrastructure Housing Activation Fund (LIHAF) was issued to all local authorities in August 2016 and I have fully approved 30 projects for funding in the order of €195 million with an associated expected activation of delivery of 20,000 housing units by 2021.
Kildare County Council submitted seven projects for consideration under LIHAF. Funding was approved for three of these proposals, at Maynooth, Naas and Sallins, with funding totalling €21.43 million. Four other projects were also submitted but it was not possible to approve those projects at that time.
As part of Budget 2018, I announced that an additional €50 million Exchequer funding will be available for a second LIHAF call. As was the case in the original LIHAF call, this will be subject to matching funding by local authorities. My Department will provide 75% Exchequer funding, with the local authorities themselves providing 25% matching funding. This will bring overall LIHAF funding under both calls to over €260 million.
A further call for proposals under phase 2 of LIHAF will be issued shortly to local authorities and it will be open to all local authorities to submit new projects or re-submit previous projects for consideration.
72. Deputy Catherine Murphy asked the Minister for Housing, Planning and Local Government if his attention has been drawn to the cost of mortgage protection insurance associated with the Rebuilding Ireland home loans and the way in which this impacts on the size of loan a person can borrow; the way in which the cost is determined; the way in which the provider was selected; the way in which he plans to reduce the cost associated with the insurance; and his further plans to address the lack of clear information on the Rebuilding Ireland home loan website regarding the implications for the size of loan a person may be eligible for when the cost of mortgage protection insurance is included. [19842/18]
Amharc ar fhreagra465. Deputy Róisín Shortall asked the Minister for Housing, Planning and Local Government the reason for the high cost of the compulsory mortgage protection insurance for Rebuilding Ireland home loan applicants; the reason applicants are debarred from sourcing their own more competitively priced mortgage protection insurance; and if he will make a statement on the matter. [19643/18]
Amharc ar fhreagraI propose to take Questions Nos. 72 and 465 together.
It is a statutory requirement that mortgage protection insurance (MPI) is taken out in respect of all local authority housing loans.
The Local Authority Mortgage Protection Insurance scheme is a group scheme, overseen by the Mortgage Protection Insurance Committee. This is a sub-committee of the County and City Management Association (CCMA) with representatives from the CCMA, local authorities, the Housing Finance Agency, as well as my Department.
The scheme has applied to all house purchase loans approved by local authorities after 1 July 1986. One of the conditions of the scheme, which is a group policy, is that it is obligatory for all borrowers who meet the eligibility criteria to join the scheme. Altering this condition would have a negative impact on the scheme and increase the cost for all existing borrowers.
The insurance scheme is subject to periodic review and competitive tendering in accordance with the terms of EU Directives relating to the award of public service contracts. This is to ensure that the most appropriate cover at the best value for money is secured for local authority borrowers over the entire life of their mortgages.
The most recent public procurement competition for the provision and administration of this MPI scheme was conducted by the Office of Government Procurement. The new contract resulting from this open tender competition came into effect from 1 January 2017 for a period of 3 years.
The local authority MPI is a group scheme and is designed to provide an appropriate level of insurance cover to those who wish to avail of the Rebuilding Ireland Home Loan. It offers a number of additional features over and above the standard MPI products available on the market. Standard MPI products are individually priced, based on a member’s age, amongst other factors, whereas the local authority MPI scheme is a group arrangement, offering a single group rate per €1,000 sum assured to all participants in the scheme.
The scheme also provides other benefits over standard MPI products. These include the payment of mortgage repayments if there is a valid claim as a result of disability; an additional payment of €3,000 in the event of a member’s death, separate to life cover; and members are also covered for death up to age 75 rather than 65 as is the case under standard MPI cover.
Regarding the information available to prospective applicants on the Rebuilding Ireland Home Loan website, I am aware of issues concerning the inclusion of the cost of MPI in the on-line calculator. I have recently met with the Chief Executives of the two main agencies involved in its implementation, the Housing Agency and the Housing Finance Agency, and I have directed that they address a number of issues to improve the operation of the scheme. One of these involves amending the on-line calculator in order to take the cost of mortgage protection insurance into account. This will therefore give potential applicants a clearer indication of the amount that they could be eligible to borrow under the scheme.
73. Deputy Darragh O'Brien asked the Minister for Housing, Planning and Local Government when the working group report on short-term lettings will be published; and if he will make a statement on the matter. [19851/18]
Amharc ar fhreagraUnder Action 18 of the Strategy for the Rental Sector, my Department established a Working Group, involving representatives of all major public stakeholders with a policy interest in short-term lettings, to develop guidance in relation to planning applications, changes of use relating to short-term lettings and to examine the need for new regulatory arrangements.
The proposals under consideration by the Working Group, which has met on six occasions to date, have been aimed at facilitating short-term letting of accommodation within permanent residences, known as home-sharing, while protecting existing stock of residential property in areas of high demand, safeguarding neighbourhood amenity and consumer protection, and generating revenue to address any negative externalities of short-term letting.
The Working Group completed guidance for local authorities on planning applications relating to short-term lettings and my Department issued a circular on the matter last October.
The Group has since been focused on developing proposals for an appropriate comprehensive regulatory approach for short-term tourism-related lettings as well as identifying amendments to relevant legislation that may be necessary to give effect to such a regulatory regime.
The report of the Working Group has now been submitted to my Department and I will complete my consideration of it, including the need for a targeted public consultation, without delay.
74. Deputy Niamh Smyth asked the Minister for Housing, Planning and Local Government if the inadequacies regarding the new housing assistance payment scheme will be addressed; and if he will make a statement on the matter. [19607/18]
Amharc ar fhreagraThe Housing Assistance Payment (HAP) provides fast, flexible housing support to households in an area of their choice. Individuals with a housing need, who in the past were reluctant to avail of full time work as they would lose their Rent Supplement support, can now move to HAP and avail of full-time work and retain their housing support, with an adjustment in their differential rent.
HAP has been rolled out on a statutory phased basis since September 2014 and became a national scheme on 1st March 2017 when the nationwide rollout was completed. The phased nature of the HAP rollout has allowed for significant learning with new HAP authorities benefiting from the experience of those authorities where the scheme has been previously operational.
At the end of 2017, over 31,200 tenancies were being supported by the HAP scheme, including 17,916 additional households in 2017. There are now 20,000 separate landlords and agents currently in receipt of monthly HAP payments.
As HAP is a social housing support and consequently households are not eligible to remain on the main housing waiting list, Ministerial directions have issued to ensure that, should they so choose, HAP recipients can avail of a move to other forms of social housing support through a transfer list.
In addition, guidelines on Inter-authority movement were introduced in 2017, to allow for local authorities to facilitate movement of HAP households in cases where a tenant, currently on a local authority waiting list, wishes to access rented accommodation with HAP support in another local authority area, subject to conditions.
In relation to specific HAP supports available to homeless households, the Homeless HAP Place Finder Service operating in the Dublin local authorities, and in Cork City Council, is a targeted support for homeless households who are finding it difficult to secure HAP tenancies. The Place Finder Service has been successfully utilised by the Dublin Regional Homeless Executive (DRHE) across the Dublin local authorities since February 2015, with more than 2,000 households currently being supported by the Homeless HAP scheme. A similar service began operating in Cork City in 2017. In order to further assist homeless households in exiting emergency accommodation the Homeless HAP Place Finder Service, is now available to each of the 31 local authorities, with the options to pay deposits and advance rental payments for any households in emergency homeless accommodation, in order to secure accommodation via the HAP Scheme.
I continue to keep the operation of HAP under review but I am currently satisfied with how the scheme is operating and I consider it to be a key vehicle for meeting current housing need and fulfilling the ambitious programme set out in Rebuilding Ireland.
75. Deputy Charlie McConalogue asked the Minister for Housing, Planning and Local Government the status of the report regarding the establishment of a redress scheme for those homeowners whose homes were built using defective blocks; when such a scheme might be operational; and if he will make a statement on the matter. [19792/18]
Amharc ar fhreagraThe Expert Panel on concrete blocks was established by my Department in 2016, to investigate problems that have emerged in the concrete blockwork of certain dwellings in Counties Donegal and Mayo.
The panel had the following terms of reference:
(i) To identify, insofar as it is possible, the numbers of private dwellings which appear to be affected by defects in the blockwork in the Counties of Donegal and Mayo;
(ii) To carry out a desktop study, which would include a consultation process with affected homeowners, public representatives, local authorities, product manufacturers, building professionals, testing laboratories, industry stakeholders and other relevant parties, to establish the nature of the problem in the affected dwellings;
(iii) To outline a range of technical options for remediation and the means by which those technical options could be applied; and
(iv) To submit a report within six months.
On 13 June 2017, the report of the Expert Panel was published and included eight recommendations which my Department are actively progressing with the relevant stakeholders.
My Department is prioritising the implementation of Recommendations 1 and 2.
With regard to Recommendation 1, the National Standards Authority of Ireland (NSAI) Technical Committee, established to scope and fast track the development of a standardised protocol, held its inaugural meeting on 11 September 2017 and has held several further meetings since. The standardised protocol will inform the course of action in relation to remedial works for all affected householders. My Department understands from the NSAI that the Technical Committee is in the process of finalising the standardised protocol, which will be available for public consultation shortly. The public consultation will run for a period of six weeks.
With regard to Recommendation 2, my Department has been in contact with Engineers Ireland in relation to the establishment of a register of competent engineers for homeowners/affected parties’ reference. Engineers Ireland have provided assurance that they will collaborate with the Department, the NSAI and others on measures to establish such a register once the standardised protocol is in place.
Last year I visited Donegal and Mayo and met with key stakeholders, including affected homeowners, elected members and officials of the local authorities and other interested parties. On 18 December 2017, I again visited Donegal and met with key stakeholders to provide an update on the progress to date. I made a similar visit to Mayo on 26 January 2018.
In addition, and in light of the information contained in the report, I am currently considering what further actions may be required to assist the parties directly involved in reaching a satisfactory resolution to the problems that have emerged in the two counties.
76. Deputy Catherine Murphy asked the Minister for Housing, Planning and Local Government his strategy to address the problem of excessive rent increases in areas outside rent pressure zones. [19844/18]
Amharc ar fhreagraSection 24A of the Residential Tenancies Acts 2004-2016 provides that the Housing Agency, in consultation with housing authorities, may make a proposal to the Minister that an area should be considered as a Rent Pressure Zone. Following receipt of such a proposal, the Minister requests the Director of the Residential Tenancies Board (RTB) to conduct an assessment of the area to establish whether or not it meets the criteria for designation and to report to the Minister on whether the area should be designated as a Rent Pressure Zone. For the purpose of the Act, ‘area’ is defined as either the administrative area of a housing authority or a local electoral area within the meaning of section 2 of the Local Government Act 2001. There is no provision for any other type of area to be designated as a Rent Pressure Zone.
For an area to be designated a Rent Pressure Zone, it must satisfy the following criteria set out in section 24A(4) of the Residential Tenancies Act 2004 (as inserted by section 36 of the Planning and Development (Housing) and Residential Tenancies Act 2016):
(i) The annual rate of rent inflation in the area must have been 7% or more in four of the last six quarters; and
(ii) The average rent for tenancies registered in the area with the RTB in the last quarter must be above the average national rent (the National Standardised Rent in the RTB’s Rent Index Report) in the last quarter (i.e. €1,054 per month in Q4 2017).
On 21 March 2018, the RTB published its Rent Index Report in relation to Quarter 4 2017, which includes a summary of the data used as the criteria for designating Rent Pressure Zones in relation to all Local Electoral Areas in the country. This allows everyone to see exactly where their area stands in relation to average rent levels and increases and possible designation.
Rent reviews outside of Rent Pressure Zones are restricted so that a landlord can only review the rent once in any two-year period. However, similar to within Rent Pressure Zones, where there is a substantial change in the nature of the accommodation provided, for example through a major refurbishment of the property, a landlord may review the rent before the two-year period has ended and therefore many of the principles in determining what is classified as substantial change are the same. The existing requirement that the rent set is not above the market rents for similar properties still applies in designated Rent Pressure Zones and in non-designated areas.
The Housing Agency continues to monitor the rental market and may recommend further areas for designation. Where, following the procedures set out in the Act, it is found at a future date that additional areas meet the criteria, they will be designated as Rent Pressure Zones.
77. Deputy Eoin Ó Broin asked the Minister for Housing, Planning and Local Government the status of work to reverse the EUROSTAT decision to redesignate approved housing bodies as part of the Government sector. [19784/18]
Amharc ar fhreagraAs the Deputy will be aware, the Minister for Finance has recently published the Draft Stability Programme Update for 2018. This included an analysis of the financial impact of the Eurostat decision to reclassify the majority of Tier 3 Approved Housing Bodies (AHBs) as part of the local government sector. This was an important first step in the Government's assessment as to the impact of the Eurostat decision.
Following the completion of this analysis, which has defined the scope of the financial implications of this decision for the Exchequer, my Department will be engaging closely with the Department of Finance and Public Expenditure and Reform to ensure that AHBs can continue to fulfil their full potential in the delivery of the targets set out in the Rebuilding Ireland Action Plan. In that context, arrangements are being made for further discussions on the next stage of this process, which will take place in the coming weeks.
I am also aware that the AHB sector have engaged their own research into this important issue and my Department is evaluating the work undertaken in this regard.
The Government continues to see a central role for the voluntary housing sector in contributing to delivery of social housing under Rebuilding Ireland, and is committed to using all mechanisms and schemes, including through the AHB sector, to ensure that we maintain the momentum towards meeting the ambitious 50,000 social housing target under the Action Plan.
79. Deputy Aindrias Moynihan asked the Minister for Housing, Planning and Local Government if projects which were part of local infrastructure housing activation fund, LIHAF, 1 but which have not progressed will have to compete with other projects for funding as part of LIHAF 2; if they will be prioritised; and if he will make a statement on the matter. [19846/18]
Amharc ar fhreagraMy Department issued the first call for proposals under the Local Infrastructure Housing Activation Fund (LIHAF) to all local authorities in August 2016 and I have fully approved funding for 30 infrastructure projects at a cost of approximately €195 million.
As part of Budget 2018, I announced that an additional €50 million Exchequer funding will be available for a second LIHAF call. As was the case in the original LIHAF call, this will be subject to matching funding by local authorities. My Department will provide 75% Exchequer funding, with the Local Authorities themselves providing 25% matching funding. This will bring overall LIHAF funding under both calls to over €260 million.
My Department will shortly issue a call for proposals for the second round of funding under LIHAF. It will be open to all local authorities to submit new projects or resubmit previous projects that did not receive funding under LIHAF1 for consideration.
Projects will be evaluated on criteria, based on clear policy objectives as set out in the LIHAF2 call for proposals, and no particular priority will be given to previously submitted projects that did not receive funding under the first call. If such previously submitted projects have made progress in the interim, local authorities can highlight this within their updated proposal and it may factor into the assessment process in terms of project readiness.
80. Deputy Mick Wallace asked the Minister for Housing, Planning and Local Government the role his Department will play with regard to the new Government agency that will buy private land adjoining existing prime sites held by State and semi-State organisations in order to assemble land holdings that will then be developed for housing; and if he will make a statement on the matter. [19861/18]
Amharc ar fhreagraProject Ireland 2040 signals a significant policy shift towards securing more compact and sustainable urban and rural development, which requires significantly more effective land management in key development areas. Against that background, it is proposed to establish a National Regeneration and Development Agency to assist in ensuring a more effective approach to strategic land management, particularly in terms of publicly owned land.
To maximise its effectiveness, the Agency will focus on activating the development potential of strategic pieces of underutilised public lands in key urban areas to stimulate regeneration and wider investment. This will involve working primarily with the relevant local authorities and wider public bodies and the private sector, with the scope to assemble and rationalise land holdings, whether they are publicly or privately owned, in order to enable the re-purposing of lands that may not be currently used optimally, with regard to wider and long-term public policy and planning objectives.
Detailed arrangements in relation to the functions, powers and mechanisms for the establishment of the Agency are currently being developed by my Department, in conjunction with the Department of Public Expenditure and Reform, with a view to their finalisation and implementation at the earliest available opportunity.
81. Deputy Aindrias Moynihan asked the Minister for Housing, Planning and Local Government the reason the local infrastructure housing activation fund, LIHAF, project at Ballincollig, County Cork has not advanced; and if he will make a statement on the matter. [19845/18]
Amharc ar fhreagraMy Department will shortly issue the first call for proposals under the Local Infrastructure Housing Activation Fund (LIHAF) to all local authorities in August 2016. 34 projects received preliminary approval in March 2017. The project referred to was one of four projects that did not subsequently proceed from preliminary approval to final approval.
Projects were given a specific period of time in which to secure requisite local agreements with developers and landowners in respect of housing delivery. Some additional time was also given to the Ballincollig project at the request of the local authority but, unfortunately, sufficient progress on a particular local issue could not be made prior to the expiry of the final deadline for signing of a grant agreement under the first LIHAF call. This was despite the best efforts of Cork County Council who put a great deal of time into the project.
As part of Budget 2018, I announced that an additional €50 million Exchequer funding will be available for a second LIHAF call. This will again be subject to matching funding by local authorities bringing total funding for the second call to €66.5 million.
My Department will shortly issue a call for proposals for this second round of funding under LIHAF and it will be open to all local authorities to submit new projects or resubmit previous projects for consideration, including the Ballincollig project, if the local authority chooses to do so.
82. Deputy Shane Cassells asked the Minister for Housing, Planning and Local Government the way in which he plans to address the anticipated shortfall of income of €260 million to the Local Government Fund over the next six years due to a reduction in motor taxation receipts by this amount as outlined in the special report compiled by the Comptroller and Auditor General; and the impact of this reduction in income to the provision of local authority services. [19834/18]
Amharc ar fhreagraFrom the 1st of January 2018 motor tax receipts accrue directly to the Exchequer rather than to the Local Government Fund (LGF). Accordingly, there will be no shortfall in income to the Local Government Fund as a result of any decline in motor tax receipts.
As set out in the Revised Estimates for Public Services 2018, income to the LGF will amount to an estimated €595m, comprising a payment from the Exchequer of €125m and Local Property Tax receipts of €470m.
Expenditure from the LGF in 2018 will be an estimated €621m, including Local Property Tax allocations to local authorities of €504m.
83. Deputy Eoin Ó Broin asked the Minister for Housing, Planning and Local Government the way in which he plans to spend the €25 million fund for affordable housing announced in budget 2018. [19783/18]
Amharc ar fhreagraThe development of residential lands owned by local authorities and the Housing Agency for social housing and, where appropriate, for mixed-tenure developments is a major priority under the Rebuilding Ireland Action Plan for Housing and Homelessness. Details of some 1,700 hectares of land in local authority and Housing Agency ownership have been published on the Rebuilding Ireland Housing Land Map, with the potential to accommodate some 42,500 homes nationally. All of the mapped sites can be viewed at the following link: http://rebuildingireland.ie/news/rebuilding-ireland-land-map/.
In order to aid local authorities further in delivering affordable housing from their sites, I am providing funding of €25 million, over 2018 and 2019, to unlock local authority-owned lands in our major urban areas specifically for affordable homes to buy or rent. I intend to issue the call for proposals very shortly. The funding will support local authorities to provide infrastructure on sites which they own, in urban areas facing the greatest affordability challenge in order to facilitate affordable housing provision. The funding will also include a contribution from local authorities in a 75/25 split, bringing the total fund to some €33 million, €22 million of which is earmarked for spending in 2018, with the remainder for use in 2019.
In addition, in order to relieve critical infrastructure blockages and enable housing developments to be built on key local authority and private sites at scale, total funding of over €260 million is being allocated under the Local Infrastructure Housing Activation Fund (LIHAF). To date, I have given final approval for 30 projects under LIHAF1, at a cost of some €195 million, which will activate supply of almost 20,000 homes. Grant agreements in respect of those projects have been signed. A second call for proposals for projects to be funded under LIHAF2, will be issued shortly.
84. Deputy Catherine Connolly asked the Minister for Housing, Planning and Local Government further to Parliamentary Question No. 130 of 19 January 2017, the status of the plan to build 73 new units in Ballyburke, Galway city; the number of units that have been completed; the number of units due to be completed in 2018; when the development projected will be fully completed; and if he will make a statement on the matter. [19830/18]
Amharc ar fhreagraThe Social Housing Public Private Partnership (PPP) Programme involves an investment with a capital value of €300 million, with the aim of delivering 1,500 social housing units in total, via three bundles.
The Ballyburke site is part of the second bundle, comprising eight PPP sites in total, which will provide over 450 units. Three of the sites are located in the Cork County Council area, with one each in the Galway City Council, Waterford City & County Council, and Clare, Kildare and Roscommon County Council areas.
There are currently 74 housing units planned for the Ballyburke site. These are made up of 33 two-beds units, 39 three-bed units and 2 four-bed units. Detailed design work has been completed for these units and a Part 8 planning decision on the site is expected to be made at a meeting of Galway City Council next month.
In line with the scheduled programme for this bundle of PPP sites, it is expected that shortlisting of prospective tenderers will be undertaken in July, which will allow the project to move to the next phase. I expect that construction of the housing units on this site will commence in 2019, with completion in 2020.
85. Deputy John Curran asked the Minister for Housing, Planning and Local Government the reason only €1.6 million in funding has been drawn down to date through the local infrastructure housing activation fund, LIHAF, which was allocated a total of €266 million (details supplied); and if he will make a statement on the matter. [19673/18]
Amharc ar fhreagraMy Department issued the first call for proposals under the Local Infrastructure Housing Activation Fund (LIHAF) to all local authorities in August 2016. Preliminary approval was given to 34 projects in March 2017 and I have since fully approved funding for 30 of the 34 projects, including roads, bridges and parks, at a cost of approximately €195 million, with an associated housing delivery of 20,000 housing units by 2021.
As part of Budget 2018, I announced that an additional €50 million Exchequer funding will be available for a second LIHAF call. As was the case in the original LIHAF call, this will be subject to matching funding by local authorities. My Department will provide 75% Exchequer funding, with the Local Authorities themselves providing 25% matching funding. This will bring funding for the second call to €66.5 million and overall LIHAF funding under both calls to over €260 million. The call for proposals under LIHAF2 will be issued to local authorities shortly.
Projects approved for funding under LIHAF will typically have design, planning, tendering and construction phases for the public infrastructure concerned. All projects that received preliminary approval in March 2017 were allowed to proceed to design phase immediately after that and most are going through the planning and tendering phases at the moment.
Local authorities can draw down the funding allocated to their projects at any stage, once the project cost has been incurred. My Department invited the 14 local authorities to submit their first tranche of certified expenditure at the end of 2017 and the total submitted by local authorities for draw down was €1.6 million. My Department is currently processing draw-down requests for Q1 2018.
While there was an underspend by local authorities in 2017, funding for LIHAF is ring-fenced within the overall housing budget and through proactive management of the broader housing programme, any LIHAF underspend was diverted to other housing activities, ensuring that the funding available in 2017 was fully applied to housing priorities.
The low level of the draw down to date by local authorities reflects the stages which these infrastructure projects are currently at. The expenditure incurred during the design, planning and tendering stages is significantly lower than that at the construction stage so a major increase in draw-down will arise as projects progress through construction.
While I am anxious for the infrastructure and the housing to be delivered as fast as possible, I recognise that local authorities must observe proper design, planning and tendering procedures. My Department will continue to monitor progress on these sites and ensure that every effort is made to secure the timely delivery of the infrastructure involved.
87. Deputy Catherine Murphy asked the Minister for Housing, Planning and Local Government the way in which he plans to improve the supply of newly built local authority social and affordable housing; the reason for the low output from this sector in recent years; the targets he is now working to for this sector; and the way in which such homes will be delivered. [19840/18]
Amharc ar fhreagraRebuilding Ireland, together with initiatives announced on foot of the targeted review of progress which was undertaken last year, as well as additional measures announced under Budget 2018, provides a robust framework for addressing the housing and homelessness challenges we face.
One of the key outcomes of the second Housing Summit with local authority Chief Executives held earlier this year was a commitment to drive greater transparency and accountability at individual local authority level on the delivery of the targets under Rebuilding Ireland. On foot of a detailed process of engagement since then between my Department and individual local authorities, I have now advised local authorities of the social housing targets for 2018 and also for the multi-annual period to 2021.
Under the targets announced, a minimum of 40,700 homes will be delivered during the 4 year period to end-2021, including over 7,800 this year alone. Taking account of the progress already made in 2016 and 2017, this will ensure that the 50,000 social housing home target under Rebuilding Ireland will be met. In addition, the Housing Assistance Payment and Rental Accommodation Schemes will continue to play an important part in meeting social housing needs, with approximately 18,000 households targeted for support under these schemes in 2018.
My Department's focus, and that of all delivery agents, will remain on implementation and delivery to ensure that the range of objectives and targets set are achieved. A wide range of delivery mechanisms and a funding commitment of €6 billion over the lifetime of Rebuilding Ireland have been put in place to support the achievement of these targets.
While it is recognised that the pace of delivery, particularly under build activity, may vary from local authority to local authority, the range of delivery options available provide the necessary resources for local authorities and I expect all stakeholders to be fully mobilised towards meeting the target for 2018, and subsequent years.
Notwithstanding the genuine challenges that arise with construction projects of all types, we need to ensure that progress is made to ensure delivery as quickly as possible and we are also keen to harness appropriate opportunities to deliver on additional build units in 2018, including through turnkey schemes.
In direct response to the housing challenge and in order to support housing authorities deliver on their responsibilities and obligations, a number of dedicated structures have been put in place to support Approved Housing Bodies (AHBs) and Local Authorities to maximise their delivery potential and to harness the best that is available in their functional areas, including for example:
- A dedicated Housing Delivery Office established within my Department to support local authorities, AHBs and all stakeholders involved in the delivery of key elements of the ambitious private and social housing targets in Rebuilding Ireland; and
- The AHB Services Unit, established in the Housing Agency, to support and facilitate AHBs by co-ordinating on a number of key areas.
In addition, my Department has worked with local authorities to review the processes and procedures for the approval of social housing construction projects and has agreed an overall target programme of 59 weeks for progressing typical social housing construction projects from initial project conception through design, planning and procurement up to contractors going on site.
More detailed guidelines have been prepared in relation to submissions to be made to my Department. The single-stage approval process for projects under €2 million has been revised and my Department is working with local authorities to increase take-up. Rapid build approaches are also increasingly being used, which can save time in relation to design, procurement and construction of new social housing.
My Department also has continuous contact with local authorities around all forms of housing delivery, including regular technical meetings to review progress in respect of social housing projects and to clear any blockages, as swiftly as possible.
The delivery of more affordable homes, to buy or rent, is a major priority for Government, focusing in particular on the cities of Dublin, Galway and Cork, where people are facing the greatest affordability challenge. New measures announced in January 2018 are specifically targeted at delivering more affordable homes and have the potential to deliver more than 3,000 new affordable homes to buy or rent initially, with a target delivery of at least 10,000 new affordable homes in the medium to longer term. The emphasis initially will be on delivering affordable homes from the public land bank in urban areas where affordability issues are greatest. Recognising that there are enabling infrastructure requirements on some sites, I am also providing Exchequer funding of €25 million, over 2018 and 2019, as a key contribution towards the delivery of more affordable housing from local authority land.
In terms of affordable purchase, the new Scheme will be based on the relevant provisions of the Housing (Miscellaneous Provisions) Act 2009, which will be commenced shortly, and enabling regulations which are in preparation. At that point, the elected members of each local authority will be responsible for determining the order of priority to be accorded to eligible households, in line with the national scheme's framework. In the meantime, Dublin City Council has a number of major ready-to-go sites being advanced through procurement. The elected members of the City Council have determined that 20% of the homes on sites at Infirmary Road and Oscar Traynor Road will be made available to eligible households for affordable purchase. Proposals are also advancing for the redevelopment of the St. Michael's Estate site in Inchicore.
In addition, against the background of the affordability pressures which currently exist in the rental market, the Government is determined to make cost rental a major part of the Irish housing system, similar to the role it plays in many other European countries. Under this approach, rents are set at levels to recover the construction costs and to facilitate the management and administration of developments, but with only a minimal profit margin included. A pilot project is currently being progressed by Dún Laoghaire-Rathdown County Council, at Enniskerry Road in Dundrum, in conjunction with the Housing Agency and Approved Housing Bodies, using land owned by the Agency.
Learning from the initial experiences in the pilot scheme, my Department is working with the European Investment Bank and other key stakeholders with a view to developing the first major cost rental project in Dublin city. Initial feasibility analysis is underway with a view to identifying a major project for immediate progression, with a broader programme of cost rental projects across Dublin and other cities to follow.
While the development of any residential land in housing authority ownership is in the first instance a matter for the local authority concerned, including its elected members, I want to see local authorities realise new social and affordable homes from their lands without delay, with particular emphasis on prioritising those sites with the greatest potential to deliver housing at scale, in the short to medium term.
88. Deputy Thomas P. Broughan asked the Minister for Housing, Planning and Local Government the number of families with children being accommodated in hotels each month since July 2017 to date in 2018; and if he will make a statement on the matter. [19606/18]
Amharc ar fhreagraMonthly homelessness data reports are produced by housing authorities using the Pathway Accommodation & Support System (PASS), the single integrated national data information system on State-funded emergency accommodation arrangements overseen by housing authorities. My Department collates this information into monthly national homeless reports, which are available on my Department’s website at the following link:
http://www.housing.gov.ie/housing/homelessness/other/homelessness-data.
These monthly reports include a breakdown of the numbers in families and associated dependents in different categories of emergency accommodation. Commercial hotels are included within the private emergency accommodation category. Details on the number of families and children in hotels specifically is not available in my Department, but certain data in relation to the use of hotels for emergency accommodation in Dublin are available on the Dublin Region Homeless Executive website, www.homelessdublin.ie/info.
89. Deputy Darragh O'Brien asked the Minister for Housing, Planning and Local Government if his Department is collating a central database of Rebuilding Ireland home loan scheme applications from each local authority; and if he will make a statement on the matter. [19848/18]
Amharc ar fhreagraAs with the previous local authority home loan offerings, loan applications under the Rebuilding Ireland Home Loan are made directly to the local authority in whose area the property proposed for purchase is situated. My Department therefore does not directly collect information on the number of enquiries to local authorities regarding the loan or the number of loan applications received by local authorities.
As is currently the case, my Department will continue to publish information on the overall number and value of (i) local authority loan approvals and (ii) local authority loan drawdowns. Information up to Q3 2017 is available on the Department's website at the following link: http://www.housing.gov.ie/housing/statistics/house-prices-loans-and-profile-borrowers/local-authority-loan-activity, and this information will be updated on a quarterly basis as additional data is compiled.
As the Deputy will be aware, the Housing Agency provides a central support service which assesses completed applications that are made to the local authorities and makes recommendations to the authorities as to whether loans should be made to applicants. I have asked the Agency to centrally compile figures of the numbers of applications that it has assessed. To date, it has received a total of 660 valid applications for assessment from local authorities. Of these, 479 have been assessed and 46% of the applications which have been assessed by the Agency have been recommended for approval. It is then a matter for the relevant local authority credit committee to ultimately determine whether a loan application is approved, having regard to the Agency's recommendation and other relevant factors.
90. Deputy Catherine Murphy asked the Minister for Housing, Planning and Local Government when he plans to update legislation to address anomalies in the vacant site levy and to deal with land hoarding. [19841/18]
Amharc ar fhreagraThe Urban Regeneration and Housing Act 2015 introduced a new measure, the vacant site levy, which is aimed at incentivising the development of vacant, under-utilised sites in urban areas, for residential or regeneration purposes. Under the Act, planning authorities are required to establish a register of vacant sites in their areas, beginning on 1 January 2017. Planning authorities will be issuing notices to owners of vacant sites by 1 June 2018 in respect of vacant sites on the register on 1 January 2018, indicating that the levy will apply to those sites on 1 January 2019.
Planning authorities are empowered to apply an annual vacant site levy of 3% of the market value of vacant sites, exceeding 0.05 hectares in area, which, in the planning authority’s opinion, were vacant or idle in the preceding year, in areas identified by the planning authority in its development plan or local area plan for residential or regeneration development.
As announced in the Budget 2018, it is proposed to increase the rate of levy from 3% to 7% of the market valuation of relevant sites with effect from January 2020 in respect of sites included on the local vacant site registers in 2019. Legislative provision for this increase along with amendments to other relevant provisions will be tabled by way of Seanad Report Stage amendments to the Planning and Development (Amendment) Bill 2016, which has recently completed Seanad Committee Stage.
To ensure consistent application of the levy provisions across all city and county areas and to facilitate the sharing of best practice, my Department has provided guidance and advice and also organised a workshop last week which was attended by every local authority.
