COMHAIRLE CHONTAE ÁTHA CLIATH THEAS
SOUTH DUBLIN COUNTY COUNCIL

MEETING OF COUNTY COUNCIL

Monday, May 08, 2006

QUESTION No. 25

QUESTION: Cllr. Eamonn Tuffy

To ask the Manager if he will outline the measures taken by the Council to ensure that the housing needs of approved applicants were taken into account by the developer and the selling agent in the sale of housing units under the Affordable Housing Initiative (Sustaining Progress) in April 2006, including measures to ensure that, as far as possible, the units offered to approved applicants were appropriate, in terms of number of bedrooms, to the number of family members, including children, of the approved applicants?

REPLY

As part of the Sustaining Progress Partnership Agreement the Government announced the provision of affordable homes using a variety of different mechanisms to deliver on the programme.  One of these was the Affordable Housing Initiative where state lands would be swapped for turnkey units.  This initiative would be delivered through the state providing lands, developers providing and selling units and private institutions providing finance to purchasers.  It was different to any other mechanism in that there was greater involvement of the private sector. The first of these to actually be delivered was the exchange of units for the lands at Harcourt Terrace.  Bids were invited from developers and the successful tenderer was Durkan New Homes who offered 193 units in Tallaght and Clondalkin in exchange for the lands. A report on the Affordable Housing Initiative was presented to the Council Meeting on the 13/02/06.

 

The role of the Local Authority was the approval of applicants as being eligible for the initiative under the income limits agreed. The target group for these new homes were those who would previously have been able to afford their own home on the open market.  There has often been a perception that affordable homes were not actually private purchasers but in this instance the involvement of the private sector was breaking that perception in that, apart from the eligibility requirement, the purchasers would deal entirely in the open market, almost as though they were purchasing in a fully private sale.  The Council advertised for purchasers under the terms of the scheme and approved 193 applicants as there were 193 properties available.  The 193 approved applicants were notified by post on 13th April and from that moment the direct sales mechanism and the private sale was now the responsibility of the developer.  Purchasers were dealt with in the same way that they would with any new development that was in high demand and they decided to queue in order to secure the property of their choice (within the terms of the mortgage they could secure from the Bank). Everyone who was notified was of course in a position to buy a property. There were 63 three-bed  and 130 two bed units available. 78 properties have been sold in the Belfry, Citywest,76 properties have been sold in Rossecourt, Lucan, and 4 properties sold in RathGael, Clondalkin.

Of the 193 units available, deposits have been placed on 158 and arrangements are in hand for the sale of the remaining 35.It should be noted that feedback from applicants on this initiative has been very positive. When all elements of the transaction have been completed , the Council, with all of the parties involved, will evaluate the process and if there are any changes to be made in future processes it will be agreed, collectively, at that point.