Government vacant housing schemes have failed - Eoin Ó Broin TD - Sinn Fein
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Eoin Ó Broin TD SINN FÉIN SPOKESPERSON ON HOUSING Government vacant housing schemes have failed MARCH 2021
Too many vacant homes The 2016 census estimated that there were 183,000 vacant homes, not including holiday homes, across the state. The Geo Directories residential buildings report for Q 4 of 2020 published in January this year stated that the average vacancy rate in Ireland in December 2020 was 4.6%, which equates to 92,251 homes.1 According to this report Leitrim 14.5% continued to have the highest vacancy w Residential Q4 2020 rate, with Dublin having the lowest vacancy rate at 1.6% but was the only county position of Housing to recordStock an increase in the average vacancy rate compared to December 2019. cy rates Figure 6: Vacancy Rate (%) by County, December 2020 DUBLIN erage vacancy rate* 1.6% KILDARE the State was 4.6% in 2.0% WICKLOW 2.5% 4.6% mber 2020, representing STATE WATERFORD 2.9% ginal decline of 0.2 ppts AVERAGE VACANCY RATE LOUTH 3.1% is the corresponding rate KILKENNY 3.2% ago. WEXFORD 3.3% e being the only county in MEATH 3.3% the vacancy rate increased CARLOW 3.3% ppts), Dublin continued to LAOIS 3.7% he lowest vacancy rate at CORK 4.0% followed by Kildare (2.0%) and OFFALY 4.4% ow (2.5%). All three counties WESTMEATH 4.9% thin the Greater Dublin Area. LIMERICK 4.9% m recorded the highest vacancy MONAGHAN 5.9% 14.5%, albeit this represented TIPPERARY 6.1% decrease of 0.8 ppts. GALWAY 6.2% Leitrim, Roscommon (12.6%) CLARE 6.4% ayo (12.2%) registered the CAVAN 8.4% ghest vacancy rates. All three LONGFORD 8.8% es are in Connacht, the province KERRY 9.1% had the highest vacancy SLIGO 9.6% 10.8%) in December 2020. DONEGAL 10.1% er continues to have the MAYO 12.2% average vacancy rate at ROSCOMMON 12.6% 10 of the 12 counties to LEITRIM 14.5% vacancy rates below the 0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% al average were in Leinster. Source: GeoDirectory Database ddresses as a proportion of residential stock, excluding Figure 7: Composition of Housing Stock by County, Percentage Shares, December 2020 s under construction Recognising that returning vacant homes to use could help to address the STATE 93.5% 1.9% 4.6% down of housing stock housing crisis the Report DUBLIN 98.4% of the cross party Dáil Housing and Homelessness 0.0% 1.6% KILDARE 98.0% 0.0% 2.0% 7 provides a split of Committee published in June 2016 included in its recommendations that:3.1% LOUTH 96.6% 0.4% using stock between KILKENNY 96.4% 0.4% 3.2% ed dwellings, holiday CARLOW 96.3% 0.4% “As recommended by the Housing Agency, the Government should develop 3.3% an and vacant units by WICKLOW 96.1% 1.3% 2.5% y.* overarchingLAOIS national 96.1% two-year strategy to reduce vacancies in the general 0.2% housing 3.7% MEATH 96.1% 0.6% 3.3% stock. Based erage occupancy rate across the on the national strategy, each local authority should perform OFFALY 95.5% 0.1% an 4.4% audit was 93.5% in December 2020, and produce an empty WATERFORD 94.9% homes strategy with objectives, aims and actions 2.3% needed 2.9% to ppts relative to December 2019. LIMERICK 94.8% 0.3% 4.9% tackle the issue, with a view to acquiring significant numbers of vacant l, 12 of the 26 counties registered WESTMEATH 94.8% 0.4% houses 4.9% for local ancy rates below the national authority use to 94.5% CORK clear the housing waiting lists.”2 1.5% 4.0% e. MONAGHAN 93.8% 0.3% 5.9% TIPPERARY 93.2% 0.7% 6.1% (98.4%), Kildare (98.0% and GALWAY 92.1% 1.7% 6.2% (96.6%) recorded1 thehttps://www.geodirectory.ie/getattachment/News/ highest LONGFORD 90.6% 0.6% 8.8% ancy rates. 2 https://data.oireachtas.ie/ie/oireachtas/committee/dail/32/committee_on_housing_and_homelessness/ CAVAN 90.0% 1.6% 8.4% reports/2016/2016-06-16_final-report-june-2016_en.pdf nly county to record an occupancy WEXFORD 89.2% 7.6% 3.3% elow 80% was Donegal at 78.7%. 3 SLIGO 87.1% 3.3% 9.6% al (24.3% of total holiday CLARE 86.9% 6.6% 6.4%
Rebuilding Ireland Pillar 5 - Utilise Existing Housing When Rebuilding Ireland was launched by the previous government in 2016, pillar five of the plan was titled, “Utilise Existing Housing.” It stated that the government would: “…remove existing barriers to the quick conversion and re-use of vacant or under-utilised city and town centre commercial premises for residential purposes and support wider urban regeneration, with new measures to be brought forward by the end of 2016.”3 Three government schemes were established to incentivise the return of vacant homes back into use. Repair and Lease scheme: Provide grants to prospective landlords to bring properties up to standard, when they enter leases for the provision of social and affordable housing. Housing Agency Fund: A €70m fund provided to the Housing Agency to acquire vacant properties from portfolios for sale from financial institutions and investors for social housing purposes. Buy and Renew: The scheme funds local authorities and AHBs to purchase and renew housing units in need of remediation and make them available for social housing use. The targets for each scheme are laid out in the Table 1 below. TABLE 1 SCHEME TARGET REPAIR AND 3,500 BY 2021 LEASE BETWEEN BUY AND RENEW 400-500 EXPECTED HOUSING AGENCY 1,600 FUND TOTAL 5,600 3 https://rebuildingireland.ie/utilise-existing-housing/ 4
Sinn Féin Plan In June 2017 Sinn Féin Housing spokesperson Eoin Ó Broin published an ambitious vacant homes strategy. The plan outlines how vacant units can be brought into use through a range of measures including a statutory vacant homes register, a vacant homes tax, greater use of compulsory purchase orders, and the appointment of vacant homes officers. It was also critical of the delivery of three key government schemes that were in place to return homes back into use. The Housing Agency Fund, Buy & Renew, Repair & Lease are chronically underfunded and combined, they are targeting between 5,600 vacant homes over six years – just 3% of the total vacant stock in the state.4 4 https://www.sinnfein.ie/files/2017/EOB_Vacant_Homes_Strategy.pdf 5
National Vacant National Vacant HousingHousing Reuse Strategy 2018 – 2021 Re-Use Strategy The government also launched the National Vacant Housing Re-Use Strategy in September 2017. This plan contained five objectives which are outlined in wing as its 1 over mplish the To accoimage all Strategic Objective, this Strategy has the follo below. five key objectives:-: THE FIVE KEY OBJECTIVES st, accurate, consistent and up-to-date data sets on Objective 1 Establish robu vacancy. National Vacant Housing Reuse Strategy measures to ensure, to the greatest degr ee possible, that Objective 2 Bring forward 2018-2021 s are brought back to vacant and underused privately owned propertie use measures to minimise vacancy arising in Social Housing Objective 3 Bring forward Stock. gement with and provision of support to key stakeholders Objective 4 Continued enga s, financial institutions to ensure suitable vacant properties held by bank and investors are acquired for social housing use. Prepared by the Department of Housing, Planning and Local Govern ment housing.gov.ie lop cross-sector relationships, collabora ting in Objective 5 Foster and deve partnership to tackle vacant housing matters. TheAfollow set out aon ing sectionsreport e of actio rangthe ns to be taken under these five key objectives. progress National Vacant Housing Re-Use Strategy, published in May 2020 can be viewed on the Department of Housing, Heritage and Local Government website. 5 For the purposes of this document we are going to focus on the delivery from the three key schemes as referenced above, Repair and Lease, Buy and Renew and the Housing Agency Fund. According to the update, as of February 2020, 161 homes were delivered back into use under Repair & Lease. Buy & Renew has seen Local Authorities acquire and renovate 545 homes for social housing and the Housing Agency Fund has delivered 784 properties to Approved Housing Bodies with a further 93 properties in the process of being secured. 5 https://www.gov.ie/en/publication/2f2d8-national-vacant-housing-reuse-strategy-2018-2021-progress-report- may-2020/ 6 13
Delivery According to the latest information available, obtained via a parliamentary question, only 1,672 homes have been delivered to date via the three government schemes. This is just 30% of the target set. A breakdown of delivery is provided in Table 2 below TABLE 2 Scheme Delivered Target Repair and Lease 198 3,500 Between Buy and Renew 670 400-500 expected Housing Agency Fund 804 1,600 Total 1,672 5,600 The information above shows that just 198 homes had been brought back into use under the Repair and Lease scheme by the end of August 2020. This is a very poor return considering the former Minister for Housing Simon Coveney set a target to deliver 3,500 homes by 2021. 670 new social homes have been delivered via Buy and Renew up to the end of 2020. Only 804 homes have been purchased out of the €70m rolling Housing Agency fund, despite 1,600 homes targeted for delivery by 2020 in Rebuilding Ireland and 1,800 homes being offered. Housing delivery from the Repair and Leasing scheme can only be described as a huge failure. Despite the 3,500-target set by Minister Coveney, four years in and despite tweaks to the scheme in 2018, the government has only reached 5.7% of its target. 7
What next It is clear that despite producing plan and setting targets that neither this government nor the last has put sufficient funding or support in place to ensure that these three schemes delivered on their targets. With 90,000 + vacant homes across the state we need to be more ambitious in terms of how we target these properties in order to reach 35,000 home completions annually. Returning more vacant homes to use is quicker, cheaper and better for the climate than building new homes from scratch. The schemes should have demonstrated greater flexibility and more support should have been given to smaller, more rural local authorities in order to bring homes back into use. We need a new and more ambitious strategy, that should include; • A dedicated vacant homes officer in each local authority • Increase funding and support for Repair and Lease, Buy and Renew and the Housing Agency fund so that they can reach their potential • Increased use of CPO powers by the Councils • The roll out a specific scheme, ran in conjunction with the Department of Health and the Department of Housing to bring some homes in the Fair Deal schemes back into use • Specific year on year targets for returning vacant homes to use must be set in each local authority • Government should introduce a vacant homes tax applicable to properties vacant more than 6 months within DED’s or LEA’s determined by the Local Authorities as having a high level of housing need and a high level of vacancy* To view Sinn Féin’s comprehensive Vacant Homes Strategy please view the policy document on our website available at the following link – https://www.sinnfein.ie/files/2017/EOB_Vacant_Homes_Strategy.pdf Housing, plAnning, community And locAl government EoinÓ Eoin ÓBroin Broin TD TD Spokesperson on Housing, Spokesperson on Housing, Planning, Community and Local Government Planning, Community and Local Government Policy PolicyBriefing BriefingPaper PaperNo. 5 2 no. VACANT REFORMING HOMES THE PRIVATE STRATEGY RENTED SECTOR Reforming the Private Rental Sector.indd 1 17/11/2016 15:59 *Any such proposal would have exemptions for homes in probate or in the Fair Deal scheme. 8
Appendix For Written Answer on : 25/02/2021 Question Number(s): 132 Question Reference(s): 10792/21 Department: Housing, Local Government and Heritage Asked by: Eoin Ó Broin T.D. ______________________________________________ QUESTION To ask the Minister for Housing; Local Government and Heritage the number of social houses delivered through the buy and renew scheme, the repair and leasing scheme and the Housing Agency €70 million rolling fund since these schemes were introduced to the most recent date for which data is available; the breakdown by year and by local authority; and the cost to the of each scheme to date and in each year these schemes were in operation. REPLY My Department publishes comprehensive programme level statistics on a quarterly basis on social housing delivery activity. Delivery statistics to the end of Quarter 3 2020 are published on my Department’s website, at the following link: https://www.gov.ie/en/collection/6060e-overall-social- housing-provision/. Statistics for Quarter 4 are being collated and will be published in the coming weeks. The Buys and Renew Scheme facilitates local authorities in acquiring and remediating vacant properties that may be suitable for social housing. The delivery and total capital drawn down by each local authority to the end of 2020 is set out in the table attached. The Repair and Leasing Scheme (RLS) was developed to assist private property owners and local authorities or approved housing bodies to harness the accommodation potential that exists in vacant dwellings. Data to the end of Q3 2020 in relation to dwellings delivered by each local authority under RLS is available on my Department’s website at the link above. Total capital funding drawn down by each local authority under RLS for the period 2017-2020 is set out on the table attached. The Housing Agency Acquisition Fund has enabled the Housing Agency to actively engage with banks and investment companies in relation to the acquisitions of properties and the delivery and funding drawn down by each local authority is set out in the table attached. 9
For Written Answer on : 27/01/2021 Question Number(s): 355 Question Reference(s): 4410/21 Department: Housing, Local Government and Heritage Asked by: Eoin Ó Broin T.D. ______________________________________________ QUESTION To ask the Minister for Housing; Local Government and Heritage if he has engaged with the Minister for Health to determine a scheme to encourage families with vacant properties tied into the fair deal scheme to rent those properties into the private rental or social rental sector; and if not, if he will give a commitment to do so in view of the thousands of vacant fair deal homes across the State. REPLY Commitments were included in the former Government's Strategy for the Rental Sector and National Vacant Housing Reuse Strategy, to examine the treatment under the Nursing Home Support Scheme’s (or Fair Deal Scheme's) financial assessment of income from a person’s principal private residence (PPR), where they move into long-term residential care. The Programme for Government – Our Shared Future contains a commitment to reform the Fair Deal Scheme to incentivise renting out vacant properties. These commitments reflected an intent to explore the potential to encourage vacant accommodation to be brought into active use. My Department is currently engaging with the Department of Health in relation to these actions. Both Departments are exploring proposals to enable vacant properties owned by patients in long-term nursing home care to be brought back into early use, through adjustments to the treatment of rental income and house sale proceeds derived from a PPR in the financial assessment of income for the purposes of the Fair Deal Scheme. Legislative amendments to the Nursing Homes Support Scheme Act 2009, which comes within the remit of my colleague, the Minister for Health, would be required to address this matter. Discussions are ongoing between the Departments in this regard in the context of progressing any appropriate amendments through the Nursing Homes Support Scheme (Amendment) Bill, being developed by the Department of Health. I have engaged directly with Minister Donnelly on this issue and arrangements for further discussions at Ministerial level will be made, if necessary, to ensure that satisfactory progress is achieved. It will remain a personal choice for any individual as to whether or not they wish to sell or rent out their home, in the private or social rental sector, upon taking up residence in a nursing home. 10
Thursday, 23 March 2017 Asked by: Eoin Ó Broin T.D. ______________________________________________ QUESTION 103. Deputy Eoin Ó Broin asked the Minister for Housing, Planning, Community and Local Government the number of homes delivered and tenanted through initiatives set out in Rebuilding Ireland to bring vacant stock back into use; and if he will make a statement on the matter. [14607/17] REPLY Minister for Housing, Planning, Community and Local Government Pillar 5 of the Government's Rebuilding Ireland Action Plan for Housing and Homelessness is specifically focused on utilising Existing Housing Stock, with a key objective of ensuring that the existing vacant housing stock throughout the country and across all forms of tenure, in both the public and private sectors, is used to the optimum degree possible. To this end, the Housing Agency, which has lead responsibility for coordinating the development of the Strategy, established a working group in September 2016 comprising of senior representatives from my Department, local authorities and from the Housing Agency itself to inform the Strategy. The Group is due to report in the coming weeks. The Rebuilding Ireland commitments are set out in line with best asset management practices, which will see all local authorities operating to a national re-letting performance standard and greater use of a preventative maintenance approach to social housing stock management. In 2016, over 2,300 vacant social housing units were returned to productive use. This figure does not include units returned to use by local authorities through funding from their own resources. Allocations for 2017 are due to be announced shortly and it is expected that in excess of 1,500 vacant social housing units will be brought back to use under the Voids Programme. The Repair and Leasing Scheme (RLS) has been developed under Pillar 5 of Rebuilding Ireland to assist private property owners and local authorities or Approved Housing Bodies (AHBs) to harness the accommodation potential that exists in certain vacant properties across Ireland. The scheme is targeted at owners of vacant properties who cannot afford or access the funding needed to bring their properties up to the required standard for rental property. Subject to the suitability of the property for social housing, and the agreement of the property owner, the cost of the necessary repairs will be met upfront by the local authority or an Approved Housing Body (AHB). This allows for the property owner to sign-up to a lease arrangement for a length that is linked to the value of the repairs, subject to a minimum of 10 years. The value of the repairs will then be offset incrementally against the agreed rental payment over a defined period within the lease. Following on from the success of the initial pilot in Waterford and Carlow local authorities, the Repair and Leasing Scheme (RLS) is being rolled out on a national basis from 23 February 2017. I am making an additional €26m available to fund the scheme in 2017, which brings the total amount available this year to €32m. This additional investment in 2017 means that delivery under the scheme can be accelerated and up to 800 vacant properties can be brought back into use as new homes for families on local authority waiting lists this year. This funding represents a frontloading of the €140m being made available for the scheme over the next 5 years. Over the period 2016 to 2021, it is anticipated that up to 3,500 units will be secured for social housing under this scheme. Other initiatives include the Buy and Renew Scheme. The full details of this scheme are being finalised and will be communicated to local authorities shortly. I have made an initial €25 million available for this initiative this year and propose to increase this to as much as €50 million in 2018, depending on the uptake. I expect this investment to deliver between 400 and 500 renewed houses for social housing use. This initiative may present opportunities for local authorities and approved housing bodies to tackle dereliction in towns and urban areas, but prospective housing units will always need to be suitable for social housing use, in an area of need and to represent reasonable value for money. In addition, the Housing Agency is being provided with €70m in capital funding from the Exchequer, with the specific focus of engaging with banks and other entities to acquire properties for social housing nationally. Overall, some 1,600 units are targeted for acquisition under this initiative. 11
REPAIR AND LEASE Repair and Leasing Scheme (RLS) - Delivery to End Q3 2020 LA DWELLINGS DWELLINGS DWELLINGS DWELLINGS DELIVERED - 2017 DELIVERED - 2018 DELIVERED - 2019 DELIVERED - 2020 Carlow - 2 2 - Cork City - - 1 - Cork County - - 1 2 DLR 1 - - - Dublin City - 1 - 1 Fingal - 7 20 - Galway County - - - 1 Kerry - - - 3 Kildare - - 1 - Kilkenny - 1 - - Laois - - 1 - Limerick - 8 4 5 Longford - 6 - - Louth - - 1 - Mayo - - 2 8 Meath - 1 - - Monaghan - 4 1 - Roscommon - 2 1 - Tipperary - 1 - - Waterford 6 35 41 5 Westmeath - 1 - - Wexford 2 11 - 8 9 80 76 33 12
BUY AND RENEW AND HOUSING AGENCY FUND Repair and Leasing Scheme (RLS) - Capital Spend 2017 - 2020 LOCAL AUTHORITY SPEND 2017 SPEND 2018 SPEND 2019 SPEND 2020 Carlow - €67,983 €68,267 €1,433 Cavan - - - - Clare - - - - Cork City - - - - Cork County - - €40,000 €80,000 DLR €4,987 - - - Donegal - - - - Dublin City - €39,044 - - Fingal - - €40,000 €146,315 Galway City - - - - Galway County - - - - Kerry - - - €120,000 Kildare - - €36,008 - Kilkenny - €24,000 - - Laois - - - €7,753 Leitrim - - - - Limerick - €207,174 €80,000 €221,800 Longford - - €28,768 - Louth - - - €40,000 Mayo - - €62,076 €280,000 Meath - €8,698 - - Monaghan - €25,000 €20,000 €54,414 Offaly - - - - Roscommon - €27,222 - €40,000 Sligo - - - - South Dublin - - - - Tipperary - €33,789 - - Waterford €191,398 €1,106,739 €1,183,054 €1,199,054 Westmeath - €35,000 - - Wexford - €38,458 €278,948 €234,513 Wicklow - - - - Total €196,385 €1,613,107 €1,837,121 €2,245,282 13
HOUSING AGENCY ACQUISITIONS FUND 2017 2018 2019 2020 Total Number of Annual Number of Annual Number of Annual Number of Annual Annual Local Total Properties Acquisition Properties Acquisition Properties Acquisition Properties Acquisition Acquisition Authority Cost Delivered Cost Delivered Cost Delivered Cost Delivered Cost Carlow 1 €135,000 6 €935,600 7 €1,070,600 Cavan 4 €427,250 1 €125,000 5 €552,250 Clare 4 €450,000 2 €345,000 1 €200,000 7 €995,000 Cork City 7 €1,301,800 1 €210,000 8 €1,511,800 Cork County 32 €5,626,100 35 €5,635,600 3 €495,000 70 €11,756,700 Donegal 1 €85,000 7 €574,000 3 €235,000 11 €894,000 Dublin City 5 €1,263,000 97 €24,954,133 17 €4,891,011 21 €5,465,000 140 €36,573,144 Dun Laoghaire 8 €2,183,500 6 €1,574,000 1 €310,000 15 €4,067,500 Fingal 1 €165,000 79 €15,788,050 7 €1,760,255 6 €1,335,000 93 €19,048,305 Galway City 1 €131,000 4 €970,000 4 €763,582 8 €1,655,500 17 €3,520,082 Galway County 1 €120,000 17 €2,767,500 4 €487,000 22 €3,374,500 Kerry 9 €1,710,000 4 €423,000 4 €475,000 2 €255,000 19 €2,863,000 Kildare 7 €1,907,500 36 €7,370,250 14 €2,555,600 16 €3,500,500 73 €15,333,850 Kilkenny 5 €603,500 4 €560,733 2 €315,000 11 €1,479,233 Laois 1 €165,000 19 €2,842,000 4 €595,000 24 €3,602,000 Leitrim 3 €260,000 1 €94,500 1 €110,000 5 €464,500 Limerick 9 €1,296,000 8 €1,235,000 5 €750,000 22 €3,281,000 Longford 3 €357,000 3 €304,000 1 €90,000 7 €751,000 Louth 7 €1,116,000 3 €510,000 1 €115,000 11 €1,741,000 Mayo 2 €250,000 3 €321,963 1 €90,000 6 €661,963 Meath 3 €505,000 14 €2,507,000 14 €2,723,000 2 €310,000 33 €6,045,000 Monaghan 3 €400,000 3 €400,000 Offaly 8 €1,020,000 4 €502,000 12 €1,522,000 Roscommon 1 €115,000 1 €65,000 1 €82,000 3 €262,000 Sligo 1 €110,000 3 €385,000 4 €495,000 South Dublin 5 €950,000 36 €7,275,000 19 €4,254,600 9 €1,789,000 69 €14,268,600 Tipperary 29 €3,105,375 9 €995,000 1 €180,000 39 €4,280,375 Waterford 14 €1,774,000 5 €612,684 4 €418,000 23 €2,804,684 Westmeath 1 €95,000 7 €1,053,050 3 €428,000 2 €238,000 13 €1,814,050 Wexford 1 €60,000 11 €1,286,000 2 €252,000 2 €253,000 16 €1,851,000 Wicklow 9 €2,403,170 3 €673,200 4 €1,988,000 16 €5,064,370 Total 36 €7,156,500 481 €90,743,678 192 €34,294,328 95 €20,154,000 804 €152,348,506 14
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Government vacant housing schemes have failed www.sinnfein.ie Eoin Ó Broin TD : eoin.obroin@oir.ie : 01 621 8653 : Office 4, 1st Floor, Griffeen View, The Square, Main St., Lucan, Co. Dublin.
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