COMHAIRLE CONTAE ÁTHA CLIATH THEAS
SOUTH DUBLIN COUNTY COUNCIL

MEETING OF SOUTH DUBLIN COUNTY COUNCIL

Monday, March 11, 2013

QUESTION NO. 3

QUESTION: Councillor T. Gilligan

To ask the Manager to outline how much is owed in outstanding levies from developers in housing estates?  How much does this work out as per household and does the Manager intend to pursue the individuals for this cost?

REPORT:

Approximately €15million of the outstanding Development Contributions balance relates to residential invoices, with approximately €14million pertaining to various housing estates/apartment developments and the balance to residential extensions or privately built houses. Of the €14million pertaining to residential developments in estates/apartment complexes, i.e. by development companies as opposed to individuals, the book balance relates to the categories below;

Under Construction	€840,000
Stopped (Part Built but permission live or part built but permission expired/expiring)	€5,470,000
Not commenced (despite submission on commencement notice and issue of invoice)	€365,000
Completed Vacant	€6,250,000
Completed Occupied	€1,250,000

It should be noted that over €5million of the residential contributions are subject of instalment plans which, at a minimum require payment prior to disposal of the property. Where consulted by solicitors involved in the conveyance process, the Council withholds certificates of compliance which has the effect of requiring the vendor, (who in the case of houses constructed in estates, is the developer) to pay the contribution prior to sale. This operates as a necessary safeguard for the purchaser.

In the case of the €1.25million in the completed and occupied category, in the majority of cases this relates to apartment developments where, based on available information, units have been rented but an agreement requiring at the latest payment prior to sale exists. In cases where such units are occupied and no such agreement exists the Council pursue receivers/developers who are acting as landlords in such scenarios.

In respect of the question as to what contribution may be owed down to the level of individual household, the contribution is dependent on when the permission was granted, when the house was built and what the size/floor area of same is. Therefore as the amounts would vary significantly from house to house, based on these three factors, a single figure cannot be provided.

Where the elected members have adopted a development contributions scheme in accordance with the provisions of the planning acts (as is the case in South Dublin County Council, as recently as January 14th 2013), the payment of a development contribution where applicable, becomes a statutory planning requirement in the form of a condition attached to planning permission. The planning permission together with associated conditions is not transferable and does not move with an individual i.e. it is attached to the property. The local authority has a duty under planning legislation to ensure compliance with the conditions of planning permission, through enforcement measures as appropriate. It must also be noted that Development Contributions are a vital source of income for future infrastructural development in the County.

These twin safeguards whereby the Council ensures that development contributions must be paid by the developer prior to close of sale and the practice whereby a solicitor acting on behalf of a purchaser seeks confirmation of payment of development contributions, have operated effectively to date.

For further information in respect of the collection of development contributions please see link to recent report to the Economic Development SPC