Dáil Éireann Debate, Thursday - 26 January 2023
117. Deputy Richard Bruton asked the Minister for Housing, Local Government and Heritage if he will provide an update on the initiatives being developed to activate some of the many outstanding planning permissions for apartment developments which have not yet been commenced; and if he will make a statement on the matter. [2837/23]
Amharc ar fhreagra162. Deputy Colm Burke asked the Minister for Housing, Local Government and Heritage the supports the Governments intend putting in place to assist the development of residential apartment blocks in view of the fact that the cost of erecting same far exceeds the sale value once completed; and if he will make a statement on the matter. [3672/23]
Amharc ar fhreagraI propose to take Questions Nos. 117 and 162 together.
Housing for All commits to increasing the supply of housing to an average of 33,000 new homes per year. It introduced a number of viability measures to unlock stalled housing developments and increase the supply of new housing and in particular for apartments.
The Croí Cónaithe (Cities) Scheme supports the building of apartments for sale to owner-occupiers. The Scheme aims to bridge the current “viability gap” between the cost of building apartments and the market sale price (where the cost of building is greater). The scheme is targeted principally at activating planning permissions already in place for such homes.
The scheme launched on the 10 May 2022 with an Expressions of Interest process which is being managed and administered by The Housing Agency on behalf of my Department. The closing date for receipt of proposals was 21 June 2022.
On receipt of applications in June, The Housing Agency has been actively undertaking the various appraisal stages (3) which deal with the following:
1. Eligibility of proposals
2. Ranking of suitable proposals and
3. A detailed due diligence process leading to designation (the current stage of progress).
Alongside this, the Croí Cónaithe (Cities) scheme is currently subject of an application in respect of State Aid to the EU’s Directorate-General for Competition (DG COMP) with a decision due shortly.
A second call for expressions of interest is expected in Q2 2023.
Furthermore, and as part of the review of Housing for All last year, my Department has also committed to submitting proposals to Government for a new viability measure to help bring forward Cost Rental homes at scale. Work to examine how such a proposal could be structured is underway.
The Land Development Agency is also tasked with unlocking stalled private, planning-consented developments in the shorter-term through its market engagement initiative - Project Tosaigh. An expressions of interest process was launched at the end of 2021, and the LDA now has a pipeline of projects anticipated to deliver affordable for sale and cost rental homes.
The LDA recently launched a renewed expressions of interest process under Project Tosaigh seeking proposals from the homebuilding sector for the forward purchase of unbuilt residential units with a particular focus on activating apartment developments in Dublin and Cork that have not yet commenced.
Work is underway in assessing proposals submitted.
