COMHAIRLE CONTAE ÁTHA CLIATH THEAS
SOUTH DUBLIN COUNTY COUNCIL

MEETING OF SOUTH DUBLIN COUNTY COUNCIL

Monday, April 11, 2011

MOTION NO 17.

MOTION: Councillor W. Lavelle

That this council requests the Manager to present a detailed report for discussion on efforts to ensure value-for-money in concluding the acquisition of social and affordable housing subject to pre-2010 Part V agreements; in particular where similar unsold units are on sale in some of the same developments at a current market price significantly less than the agreed Part V cost to the council.

REPORT:

In conducting all negotiations with a developer to reach an agreement for Part V compliance the Council  considers the following permitted options which are available under the terms of  Part V the Planning & Development Act 2000(as amended) ;  

• Transfer of land
• Building and transfer of houses
• Transfer of fully or partially serviced sites
• Transfer of land within the functional area of the planning authority
• Building and transfer of houses on land off site  
• Payment of agreed amount in lieu  of unit provision
• A combination of above options

In considering the foregoing the Council must have regard to

• The  objectives of the Housing Strategy
• Housing demand and need
• Best use of available resources
• The need to counteract undue social segregation and the promotion of socially integrated and inclusive communities  
• Compliance with the Development Plan
• The timeframe for construction and completion of the overall development
• The proper planning and sustainable development of the area
• The views of the applicant on the impact of the agreement  

The method of agreement for Part V compliance  to be delivered in tandem with the phased construction and occupancy of the overall development.

All Part V negotiations were and continue to be underpinned by the overall aim to secure value for money and best use of available resources having full regard to prevailing financial and housing market conditions.

The Council has temporarily taken a number of unsold affordables into social stock as approved by the De[artment of the Environment Heritage and Local Government whereas if the Council were to sell at current market prices would result in financial losses. However it should be noted that the prices negotiated at the time resulted in discounts on the market price at that time in the region of over 30%  in many cases.

While every effort is being made to renegotiate the terms of Part V Agreements concluded and finalised with developers pre 2009 in order to achieve improved value for money to reflect current housing market conditions, the Council is constrained under the legally binding terms of such agreements.

Negotiations are ongoing with a number of developers in an attempt to revise previously agreed Part V arrangements in a manner that will be acceptable to both parties. 

Where such negotiations are ongoing, the Council is precluded  from reporting on the details of these cases.