Dáil Éireann Debate, Wednesday - 28 September 2022
6. Deputy Kieran O'Donnell asked the Minister for Housing, Local Government and Heritage the status of the delivery of affordable housing under the Part V requirement since 3 September 2021 (details supplied). [47267/22]
Amharc ar fhreagraI will raise the issue of Part V affordable housing. I have raised this previously with the Minister, his Department and his colleague, the Minister of State, Deputy Peter Burke. My question is very straightforward. I will put on record that I welcome the 25 affordable houses in Castletroy, which are very beneficial, but on the Part V model, why does the 10% affordable housing requirement not apply to planning permissions granted for the period between 3 September 2021 and 31 July 2026 on lands purchased after 1 September 2015 and before 31 July 2021?
I thank the Deputy for welcoming the delivery of 25 affordable homes in Castletroy.
Between 2000 and 2015, Part V obligations under the Planning and Development Act allowed local authorities to avail of up to 20% of the planning gain on relevant land for social and affordable purposes. This was subsequently reduced, as the Deputy is aware, to 10% in 2015 for social housing. In line with the commitments in the programme for Government, changes to Part V were introduced under Part 6 of the Affordable Housing Act 2021, which was enacted on 3 September 2021. The provisions increased the contribution required for social and affordable housing, including cost-rental housing, up to a mandatory 20% for planning permissions granted in respect of land purchased before September 2015 and since 1 August 2021.
My point is very simple; I believe every new estate that is being built should have 10% social housing and 10% affordable housing. At present, every new estate being built will have 10% social housing.
However, if planning permission is secured to develop land that was purchased between 1 September 2015 and 31 July 2021 before 31 July 2026, which is four years away, there is no requirement for the increased Part V provision in that estate. That is a serious issue. I want an integrated model. We are providing funding to developers to build affordable houses under the affordable housing fund. We need to look at this again. Can we now legally ensure a 10% affordable housing element in any new estate going for planning permission where land was purchased after September 2015?
The Deputy has raised this issue on a number of occasions. The sunset clause in respect of the pre-existing 10% social requirement for land purchased from September 2015 to August 2021 arose from a recommendation of the Housing Agency's review of Part V. The reason provided was that it would maintain near-term supply of all types of housing. The review was mindful of the delay that would attach if development plans had to be reviewed. In addition, increasing the percentage could make developments unviable where the original financial appraisal was based on the 10% contribution. Our Department is open to looking at advance purchase arrangements for new developments. The 10% threshold was already there. There is flexibility through the advance purchase arrangements but we had to provide certainty. The critical thing was that we had to ensure delivery of housing in the near term.
This is very straightforward. It is about the cost of building houses in an estate. My worry is that, when developers or builders buy lands, it will normally be a couple of years before they apply for planning permission or build houses. Most of the land that will be built on in the coming years is land purchased prior to 31 July 2021. I ask the Minister of State to commit to looking at establishing a legal basis and funding model to compensate any builders or developers seeking permission from a local authority to build a private estate on lands purchased before 31 July 2021 for any costs involved in building affordable houses. I want every new estate built to incorporate 10% social housing and 10% affordable housing. I ask that the Minister of State engage with the Attorney General to seek further legal advice to see if this can be overcome. It is a matter of funding. The Government can provide assurance for developers on these costs.
The decision by Government to return the Part V obligation to 20% was the right decision. It ensures that we will have a good mix of tenure in our housing stock, which is absolutely critical. The second critical thing is the near-term delivery of housing supply. In that regard, we have done the right thing.
On affordable housing delivery in Limerick, funding of €1.875 million was recently approved for 25 affordable purchase homes at Brú Na Gruadán, Castletroy, with Limerick City and County Council advising that it aims to deliver these in 2023. The council has been assigned baseline affordable housing fund support for delivery of 264 units to 2026 so there is significant delivery of affordable housing. We take on board the Deputy's point but the decision the Government made was the correct one.
