One deal worth €10.7m was concluded without any legal agreement
A new report from Clúid Housing shows there is a clear lack of oversight of housing deals entered into between local authorities and developers, according to Social Democrats Housing Spokesperson Cian O’Callaghan.
“The report published today by Clúid Housing – ‘Planning Gain and Obligation: Promise and Performance of Part V’ – shows there is a lack of transparency and oversight of Part V deals between local authorities and developers.
“The report exposes inadequate financial systems, including a lack of records. In one instance a Part V deal worth €10.7 million was concluded between a local authority and a developer without any legal agreement being put in place.
“Part V is the mechanism by which local authorities could obtain up to 10pc of homes in certain developments for social housing. This proportion was recently increased by the Housing Minister to 20pc, to include social and affordable homes. Given the importance of Part V in meeting the Government’s social and affordable housing targets, these fundamental problems with the process are hugely concerning.
“There is a clear need to achieve value for money for the taxpayer when these deals are done. There must be strong oversight and standardised construction costs should be used to ensure value for money. There is a lack of consistency in how these costs are calculated resulting in some developers receiving higher prices than others.
“Housing Minister Darragh O’Brien must introduce a standardised approach to calculating construction costs for Part V deals together with proper oversight and auditing of these deals. If we are going to maximise the number of social, affordable and cost rental homes that are delivered, then we must ensure value for money is achieved on every Part V deal.”
30 September, 2021