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Some councils are taking developer’s money instead of building social housing

Under the law, a developer can pay a levy in lieu of building social housing.

SOME COUNCILS HAVE made the decision to take financial contributions for developments in lieu of providing social housing.

A mechanism under planning legislation called ‘Part V’ allows a developer to pay a levy in lieu of building social housing and councils have agreed to this in the majority of developments in the last 12 months.

Fingal County Council’s Housing and Planning Department confirms that planning permission was granted to a total of 16 planning applications for residential development in the 12-month period to 31 October where the development proposal was for more than four homes. 

All of these planning permissions included conditions that required compliance with Part V of the Planning Acts.

It stated:

Once planning permission is granted with Part V conditions attached, the Council begins a process to reach agreement with the developer to set out how they will comply with Part V.

To date, four agreements have been concluded where financial contributions totalling €1.575 million in lieu of homes will fall due to the Council as the development is completed.

One agreement has been concluded which will see three homes conveyed to the Council.

“Agreement negotiations are yet to take place on the remaining permissions granted.”

Housing developments 

South Dublin County Council said that in the 12-month period ending 31 October it entered into binding legal agreements in respect of three housing developments throughout the county where the council said it accepted a financial contribution in compliance with Part V requirement.

The financial contributions yielded a cumulative amount of €1.4 million for the council.

Some politicians have questioned where the income is being spent, stating that the money should be ploughed back into social housing by the councils.

New proposals announced by Minister Alan Kelly will require developers to provide up to 10% of their housing units for social housing and the legislation will remove the ability of developers to account for their social housing commitments through cash payments to local authorities. His department said this bill will be progressed as a priority in the coming Dáil term.

Dublin City Council were contacted multiple times for their figures, but did not reply by the time of publication. 

Read: Council decides to take developer’s money instead of social housing>

Read: Enda Kenny vows to crack down on cowboy developers>

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39 Comments
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    Mute Martin Hayes
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    Nov 17th 2014, 8:16 AM

    Developers pay the levy so they can demand higher prices for the houses. Most people and this is understandable if not PC, do not want social housing built amid the houses they have struggled to provide for their families and no matter what people might say, local authorities do not keep their end of the bargain when it comes to problem tenants and anti social behaviour.

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    Mute ITS Student
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    Nov 17th 2014, 8:53 AM

    social housing is necessary and it should be done via NAMA’s portfolio of housing/apartments since it would reduce the cost of having to build new homes.

    43
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    Mute SarsfieldsAlive
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    Nov 17th 2014, 10:14 AM

    martin,
    spot on, I live in a working class estate and there are a few families here who are renting off landlords who i know will be moved to social housing soon. on the one hand we want to get rid of them, on the other hand i genuinely wouldn’t wish them on my worse enemy.

    BTW, these quad bikes should be banned from all urban areas, don’t get me started on the horses.

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    Mute Tony Tee
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    Nov 17th 2014, 11:27 AM

    What portfolio is that then ITS? Nama owns a small number of homes in ghost estates outside of the capital, there role is not to provide socila housing it is to recover as much money as possible for the tax payer. This perception that Nama have hundreds of empty houses and apartments around Dublin and other population centers is mistaken.

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    Mute Patlyndo
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    Nov 17th 2014, 1:10 PM

    And this is why there should be no distinction between housing.

    It is a money transfer from the taxpayer to Vested Interests.

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    Mute Patlyndo
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    Nov 17th 2014, 1:17 PM

    Nama does not own property.

    6
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    Mute JibberIrish
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    Nov 17th 2014, 7:38 AM

    How difficult would it be to allow developers a tax free incentive to build only social housing. We tax cigarettes and alcohol to try prevent people from smoking and drinking, yet we tax every sod and brick it takes to creat a home.
    We need a complete change from inside and out within Ireland Inc
    “We learn from history that we do not learn from history”

    107
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    Mute Jonathan Bambury
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    Nov 17th 2014, 7:45 AM

    It’s really embarrassing how little people seem to learn from mistakes

    71
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    Mute Seamus Mc Nulty
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    Nov 17th 2014, 7:53 AM

    Because that would be common sense JibberIrish!

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    Mute Emachine
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    Nov 17th 2014, 7:53 AM

    Building only social housing in areas is creating future social problems. The whole idea of part 5 is to create a mix of social and private. It’s ridiculous that this can be bought out and must stop. Where are all the social units this part 5 money should have paid for.

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    Mute Jonathan Bambury
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    Nov 17th 2014, 7:58 AM

    I’d say if you looked at the council’s involved you may find V stitched to inside jacket pockets …

    22
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    Mute Peter Gavin
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    Nov 17th 2014, 8:16 AM

    People don’t want to pay full price for a house and take on a mortgage for 30 years only to see a pack of welfare junkies be given the house next door for free to make their lives hell and devalue the whole area. That’s why the developers did it so they could actually sell the houses to working people and the council were happy to take the money. Not a politically correct view but it’s the truth.

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    Mute Jonathan Bambury
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    Nov 17th 2014, 8:37 AM

    That won’t save you from shitty neighbours …. health boards have put people in private rentals in all sorts of estates, some of them neighbours from hell.

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    Mute Sean O'Reilly
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    Nov 17th 2014, 8:53 AM

    Is it right to target little people?!

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    Mute Jonathan Bambury
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    Nov 17th 2014, 9:54 AM

    As long as you use a little gun your all good lol

    11
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    Mute Jonathan Bambury
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    Nov 17th 2014, 7:24 AM

    Part v = brown envelope reinvented

    75
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    Mute SarsfieldsAlive
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    Nov 17th 2014, 7:34 AM

    a legalised brown envelope indeed

    45
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    Mute Jonathan Bambury
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    Nov 17th 2014, 7:44 AM

    Not only legalised but also directions given so no bribe would get lost on it way to a poor councilors pocket !!

    22
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    Mute Jonathan Bambury
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    Nov 17th 2014, 7:23 AM

    Absolute brainiacs running the country….

    62
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    Mute Lashes
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    Nov 17th 2014, 9:54 AM

    Well is it not better than you having to pay back a mortgage of 250 thousand at approximately 1200 a month and the person next door living rent free!!!

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    Mute family guy
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    Nov 17th 2014, 9:56 AM

    This has always been the case. Nothing new here.

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    Mute Ruth
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    Nov 17th 2014, 8:30 AM

    The whole social housing needes total reformation. Many people do not even consider putting their names on a waiting list for a myriad of reasons; I.e. not fitting the profile or not an inherent part of their upbringing, afraid of antisocial behaviour etc. This should be addressed.
    Why too is the practice of selling on council homes still continuing?
    Why are some family members let continue occupy 3,4 bedroom houses long after the family have grown up and left?
    Drive through any council estate and you are guaranteed to
    see some homes extremely unkempt in total squalor?
    How or why is this tolerated? It is in total breach of the tenancy agreement.
    Why are the rents so low? Some if the band new fully kitted out apartments onDun Laoghaires old golf club are paying a mere €14.00 per week.

    46
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    Mute ITS Student
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    Nov 17th 2014, 10:43 AM

    you’re talking shite. People on social welfare didn’t create this crisis.

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    Mute PicassoRepublic
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    Nov 17th 2014, 2:54 PM

    ITS what is being discussed is fundamental to the debate on social housing.

    The ability of some social housing tenants to break all the rules in terms of anti-social behaviour and upkeep of their property is a major reason why social housing is not dotted throughout all property developments.

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    Mute John Mc Kenna
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    Nov 17th 2014, 8:19 AM

    Or the government could start to issue Compulsory Purchase Orders on non developed land and build themselves. Strangely that only seems to happen when someone already lives on the land.

    39
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    Mute ITS Student
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    Nov 17th 2014, 10:39 AM

    NAMA’s portfolio should be handed over to councils.

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    Mute David Fox
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    Nov 17th 2014, 9:04 AM

    30 years ago the could build social housing off their own back now the want developers who are in the business of making a profit to supply them with housing units in their own building developments.. Get up off your ass County Councils and stop always looking to hinder development and put extra cost on to the people who end up paying for everything.

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    Mute ITS Student
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    Nov 17th 2014, 10:45 AM

    There will always be social housing. It’s here to stay.

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    Mute Joe Simpson
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    Nov 17th 2014, 1:58 PM

    They can pay developers to build houses but in some cases it’s cheaper to buy one, In Donegal houses where being built for 200k by the council yet similar could be bought for 100k. Giving the contracts to build to companies linked to councilors(who were apparently the best tender)

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    Mute PicassoRepublic
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    Nov 17th 2014, 2:55 PM

    Same for landscape and grounds maintenance contracts in South Kerry where one specific political family seems to have most of the council contracts.

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    Mute Uncle Mort
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    Nov 17th 2014, 9:52 AM

    Imagine if every town in the land had it’s very own Jobstown and it’s lovely people.

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    Mute iBob101
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    Nov 17th 2014, 8:15 AM

    This article is inaccurate. Part V agreements are agreements to give either money or housing. Part V is the part of the planning laws that obliges developers to either deliver housing or make payment instead. A planning permission that requires a developer to enter an agreement with the council in compliance with Part V is just that. It does not mean the council has agreed to take cash instead of housing.

    17
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    Mute Rory J Leonard
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    Nov 17th 2014, 8:27 AM

    In actual fact those Part V contributions are paid directly to the Council in question by the property developer exercising the option of a payment in lieu of handing over 20% of the units for social housing. The funds never end up in pockets of councillors, as you claim.

    Key follow-up questions though: (i) have those funds been ring-fenced for purpose within the council (ii) can spend be independently confirmed as intended.

    15
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    Mute Andrea Rock Massey
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    Nov 17th 2014, 8:23 AM

    Developers could always opt to pay the council instead of allocating a percentage of a new development. Or they could offer 50% of one development instead of 10% of each etc. During the boom, some estates had zero social housing (in very upmarket estates) and huge amounts of social housing in less well off areas.

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    Mute My Asset Colum
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    Nov 17th 2014, 12:04 PM

    50% in each??

    No thanks i don’t want to be living next to dole ridden bloodsuckers who pay nothing while the decent people of my area pay their way

    17
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    Mute phil
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    Nov 17th 2014, 9:51 AM

    Could the council not say to the developers. ” We not not taking your money but you have to build 20 Social houses. We have a council estate up the road. Send the lads up we have 20 sites ready for you. This way the developer does not have to put social housing in his estate and the council gets the the houses built.

    13
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    Mute SarsfieldsAlive
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    Nov 17th 2014, 10:16 AM

    phil,

    i think the whole idea of SH is to break down class barriers.

    4
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    Mute My Asset Colum
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    Nov 17th 2014, 12:01 PM

    This is the best idea for social housing

    Build an estate in the middle of nowhere away from normal people and let the animals live there

    6
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