Resolving Unfinished
Housing Developments
Response to the Advisory Group Report on
Unfinished Housing Developments
June 2011
Resolving Unfinished Housing Developments
As we are all aware, the incidence and impacts of unfinished housing developments are
affecting communities all around the country – in our cities, towns and in rural areas. Our
collective actions must be focused on improving the living conditions and quality of life for
those living in these estates, and for all stakeholders – residents, developers, funding
institutions and the local authorities – to work together to secure unsafe sites and to
consider the best use for vacant and unfinished properties.
Therefore, in consultation with Minister Hogan and his Government colleagues, Mr. Willie
Penrose, T.D., Minister for Housing and Planning, has announced a range of measures
which are being taken by Government to address issues that have arisen with unfinished
housing developments.
These measures are intended to represent a comprehensive response to the analysis and
recommendations contained in the Final Report of the Advisory Group on Unfinished
Housing Developments.
At an overall level, this response aims to deliver real progress on the following four strategic
aims over the next 12 months, at which point a progress report will be published:
1. Bringing together the key actors at national, regional and local levels to resolve
unfinished housing developments, driving a more co-ordinated and partnership
approach;
2. Tackling public safety issues that have arisen on some unfinished housing
developments through an initial €5 million provision to meet local authority funding
needs for urgent public safety works on abandoned developments (on the basis of
full recoupment from the developer/ funder in due course);
3. Putting in place a stronger legislative and policy framework to incentivise real
engagement by developers, site owners and funders in working with local authorities
and residents in resolving unfinished housing developments;
4. Building confidence in the housing sector by (i) developing best practice models
for bringing vacant housing into beneficial use and (ii) ensuring a phased approach
to development, concentrating first on utilising the stock of vacant and partcompleted housing within unfinished developments.
The Government recognises that there must be an initial focus on measures to resolve
problems on potentially unsafe sites, helping to improve the living conditions for residents in
the most problematic developments over the summer period.
At the same time, Government action will be focused on bringing vacant housing into
beneficial uses; this will involve local authorities working with developers, owners and
funders of sites in developing a best practice model for the use of vacant housing on
1
unfinished housing developments in city and county council areas. This process will be
integrated with the development of site resolution plans for at least 300 developments by the
end of this year.
The Government considers that these actions and measures represent an important
response to tackling the very real difficulties presented by unfinished housing developments,
especially for residents and local communities.
Resolving unfinished housing development – what it means in practice
The Government’s plan for resolving unfinished housing recognises that, while it will take
time to progressively deal with developments with significant completion issues affecting
some residents, co-ordination of the efforts of key stakeholders – developers, funders, State
Agencies and local authorities, and local residents – will start to yield tangible results
immediately.
The Government is particularly focused on around 1,650 housing developments that
have significant building works outstanding (i.e. those developments identified as Category
2, 3 and 4 below). About 230 of these require early action to address urgent public safety
works. This figure will be progressively driven down under the Government’s co-ordinated
action plan.
A key pillar of the Government's proposals is the putting in place of Site Resolution Plans.
The framework for the development of these plans is currently evolving and the following
key steps outline how they will work.
(1)
Local authorities have already identified all unfinished housing developments in their
areas, feeding into the National Unfinished Housing Developments Database.
(2)
These developments have been graded according to whether:
(i)
the development is still being actively completed by the developer (Category 1);
(ii) a receiver has been appointed (Category 2);
(iii) a receiver has not been appointed and the developer is still in place but
effectively inactive (Category 3); and
(iv) the development has been effectively abandoned and is posing serious
problems for residents (Category 4).
This national database is being updated by the Department of the Environment,
Community and Local Government through regular local authority input and updates,
in consultation with local communities and other stakeholders.
(3)
The Department will shortly publish a best practice Guidance Manual on Managing
and Resolving Unfinished Housing Developments, including approaches to site
resolution planning.
(4)
The relevant City or County Council will request developers and/or site owners (and
financial institutions/receivers, where appropriate) of Category 2, 3 and 4
developments to produce Site Resolution Plans (SRPs), in accordance with the
2
Department’s manual, focusing in the first instance on the most problematic sites and
working through less difficult sites in due course. While this process will take time,
particularly in areas where there are a number of unfinished developments, as more
SRPs are drawn up and best practice embedded, the process should become more
streamlined.
(5)
To highlight best practice and lead the way over the next six to nine months, NAMA
will work with local authorities, developers and/or receivers and the Department in
ensuring effective site resolution planning is carried out, where feasible and
appropriate, in respect of those developments that come with the remit of the NAMA
process.
(6)
The Department, taking account of the recommendations in the Advisory Group’s
Report and with the assistance and input of the key stakeholders, will examine how
existing legislative powers and mechanisms can be adapted and improved (e.g.
Derelict Sites legislation) so that suitable legislation can be prepared and enacted, if
needed, to give proper effect to the SRP process.
(7)
For sites that have effectively become abandoned and where site owners are not
complying with their statutory obligations to keep their sites in a safe condition, the
Minister for Housing and Planning has established a funding mechanism to support the
city and county councils to deal with key safety concerns (this funding will have to be
repaid in due course by the relevant developers and owners). The first funding
allocations will be announced in early June with the remaining allocations following
over the summer months. Local communities will begin to witness the benefits of
these works very soon thereafter.
(8)
The financial institutions that have loans on these unfinished housing developments,
together with the relevant developers or receivers, will be encouraged to work proactively with local authorities and residents in finding long-term solutions for each
unfinished housing development through dedicated teams and contact points in a spirit
of flexibility and co-operation with a shared focus on solutions and actions.
(9)
Residents must have a central role in the overall resolution process, through
information dissemination on their rights and roles (being prepared by the Housing and
Sustainable Communities Agency) and through participation in developing Site
Resolution Plans, to making their own contribution to the resolution process.
Building upon all of the efforts above, a National Co-ordination Team will oversee the work,
meeting regularly and publishing a progress report in 12 months’ time and regularly
thereafter.
3
Measures to Tackle Unfinished Housing Developments
Summary of Actions and Timeframes
1. Co-ordination and Partnership
Action
1.
A National Co-ordination Team on Unfinished Housing Developments, under the
chair of Minister Willie Penrose T.D., Minister for Housing and Planning, will drive
the implementation process and the recommendations of the report of the Advisory
Group, with a particular focus on resolving sites.
2.
City and County Councils will each establish Unfinished Housing Development
Teams to co-ordinate actions at a local level and to provide regular reports to the
National Co-ordination Team.
3.
A Code of Practice on issues such as public safety, the site resolution plan
process, information exchange and identification of development solutions will be
finalised by the National Co-ordination Team to ensure buy-in by developers, site
owners, funders, local authorities and residents.
4.
In cases where the relevant loans / securities fall within their remit, NAMA will work
with local authorities, developers and/or receivers and the Department in facilitating
early resolution of public safety issues and in co-operating with the other
stakeholders in agreeing and implementing Site Resolution Plans, where feasible
and appropriate.
5.
The Minister will engage with other financial institutions (both domestic and nondomestic banks) to ensure a full understanding of their statutory responsibilities
and to secure their co-operation and engagement with local authorities and
developers in addressing public safety issues and in agreeing and implementing
Site Resolution Plans.
6.
An Information Pack for local residents in unfinished housing developments will be
prepared and published by the Housing and Sustainable Communities Agency.
7.
With the support of the National Co-ordination Team, the Department of
Environment, Community and Local Government will issue guidance to City and
County Development Boards on encouraging and facilitating community
involvement in resolving unfinished housing developments.
8.
A best practice Guidance Manual on Managing and Resolving Unfinished Housing
Developments on unfinished housing developments, which is being published in
June, will provide practical guidance for local authorities and other stakeholders on
how to manage the unfinished housing development issue generally and focusing
on steps to bring about the resolution of sites. The Manual has taken account of
over 50 submissions from the public and stakeholders to a previous consultation
draft.
4
2. Public Safety
Action
9.
Building on the baseline survey work carried out by the Department in Autumn
2010, local authorities will complete their own initial categorisation of unfinished
housing sites in line with the four categories identified in the Advisory Group’s
Report and will monitor the developments in their areas, updating regularly and
reporting annually to the National Co-ordination Team on the categorisation and
status of housing developments in their areas.
10.
The Department will expedite the approval of applications for funding support from
the €5 million public safety initiative funding with the first allocations to be made in
June 2011.
11.
Local authorities and the Health and Safety Authority will continue to liaise and
engage in monitoring incomplete sites and any resolution activities being
undertaken either by the developer or local authority.
12.
The Department will provide ongoing technical assistance to local authorities on
the categorisation of developments, on the formulation of an initial site response
using the funding at 10) above, on the preparation of Site Resolution Plans, as well
as planning and building control queries.
3. Site Resolution Plans
Action
13.
City and County Unfinished Housing Development Teams will identify priority sites
that should be the subject of Site Resolution Plans and will work with site owners,
developers, funders and residents in their efforts to develop such plans, reporting
to the National Co-ordination Team, with a view to ensuring that 300 Site
Resolution Plans are in place by end 2011.
14.
City and County Unfinished Housing Development Teams will develop best
practice approaches to the re-use of vacant housing in each of their areas by the
end of 2011.
5
4. Legislative and Policy Framework
Action
15.
The Department, with the support of the National Co-ordination Team, will
immediately review existing legislation as identified by the Advisory Group and
develop any necessary amendments to the legislation to ensure that there are
adequate powers available to address the efficient resolution of unfinished housing
developments, with a particular focus on:

the need to establish the site resolution plan process on a statutory footing;

the applicability and effectiveness of the Derelict Sites Act 1990 in dealing
with such developments, through, for example, the introduction of a statutory
definition of abandoned housing development, and revised timeframes for
action; and

amending Water Services legislation to ensure that water services authorities
can enter housing developments that have not been taken in charge to effect
emergency repairs to water and wastewater systems without the requirement
to take in charge such infrastructures, to effect repairs to water mains and
distribution systems and/or to take such steps as are necessary to prevent
serious water leakage or water pollution.
16.
The Department will review taking-in-charge standards for public infrastructure
within housing developments such as roads, public lighting and piped services with
a view to making recommendations on how best to develop national standards.
17.
The Report of the Advisory Group will be referred to the Building Standards
Compliance Group for its analysis and response.
5. Housing Market and Planning Supports
Action
18.
The Department will re-state previous planning guidance to planning authorities on
specific policy aspects regarding better phasing of development, the provision of
bonds / securities and other DECLG policies as regards sequential and phased
development to inform the resolution of unfinished housing.
19.
The Department, working alongside local authorities and voluntary housing bodies,
will engage actively with developers and site owners, including NAMA, in seeking
to ensure positive uses for vacant complete and near complete housing and in line
with the achievement of sustainable communities and balanced tenure of housing
developments.
20.
The Housing and Sustainable Communities Agency will undertake an examination
of the potential role for self-build and equity partnership type models to enable
residents and new investors to assist in resolving unfinished components of
housing developments.
6