Agenda item

"That our CEO be asked to set up a major enquiry into the entire Housing Estates Development, in Co Leitrim, that happened within the past 20 years or so. In general, such development has proved to be a disaster, with many unfinished estates, many abandoned estates and with still a large number waiting to be taken-in-charge, developers going bankrupt and bonds proving totally inadequate to help finish off the necessary work on estates. It should seek information about how dealing with this catastrophe has impinged upon Council finances to the detriment of other development works. If the Council is unable to hold such an enquiry, then it should seek assistance from the government."

Report by Director of Services for Economic Development, Planning, Environment and Transportation.

"Whilst it is correct that the County has experienced an issue with unfinished housing estates over recent years, particularly following the economic crises arising due to the crash of both the global and national economies in 2008 to 2011, the situation, though initially slow to recover, has vastly improved as the economy has recovered. It is not considered that any enquiry is warranted in respect of the commercial housing development sector within the county.

The multi-unit housing development growth in Leitrim was predominantly driven by the introduction of the Rural Renewal Tax Incentive with a steady growth in applications from 2000 to 2004, with the number of applicable planning applications increasing in each successive year. The various developments permitted subsequently commenced site activity from, generally, 2003 with the bulk commencing from late 2004 and into early 2006. The onset of the financial crises in 2008 effectively decimated the construction sector in Ireland with the resultant, practically overnight, cessation of construction activities. This was applicable to both the one-off housing and the multi-unit housing estate sectors. It also caused the practical cessation of the commercial and industrial construction sectors.

Therefore, the problematic multi-unit housing developments issue arose not only in Leitrim but across the country due to the greater global and national financial crises rather than due to the planning policy of this Council. This is borne out by the fact that housing units within these developments have since realised significant sales as they are completed on foot of an improving economic situation. As a consequence of this improved situation, the county now finds itself with almost no new houses available to the market in certain towns and a limited number that is below the market requirements in others.

The Council is incurring costs associated with the taking in charge of some estates due to having to undertake works where there are insufficient monies available through either the bond or cash deposit. However, the scope and purpose of a cash deposit or bond must be borne in mind as it is not to fund the Council to step in and take over the role of the Developer and finish an estate but essentially to assist a Council in tidying up an estate that has been completed. As such a bond is calculated at a fixed amount per housing unit. In the case of the historic developments this unit cost was €3,804. The current, national cost is €7,000 per unit.

While there are a number of estates not taken in charge at this time, the taking in charge process is, in and of itself, nothing to do with whether or not an estate is completed: it simply means to transfer the responsibility for the maintenance, not ownership, of the services within an estate to the relevant maintenance body. In this regard the Council is responsible for the maintenance of roads, road drainage and street lighting with Irish Water being responsible for water mains and sewers. The maintenance of open spaces and boundaries does not fall to the Council or Irish Water and it remains a matter for the home owners in an estate to do so either through a Residents Association or the hiring of some management agency or contractor.

Similarly, taking in charge is not obligatory. In order for the Council to consider taking an estate in charge it must first be asked to do so. The Council has no legal authority to itself decide to take an estate in charge in the absence of being asked to do so. The Developer, as owner, can request that the Council take an estate in charge but such a request requires that the estate be satisfactorily completed. The Planning and Development Act, 2000 (as amended) also provides the means where the majority of homeowners within an estate, after a set period of time (currently 4 years after the expiration date of a permission), may request the Council take an estate in charge.

Arising from the economic downturn the Council established a dedicated unit to undertake the task of securing possible workouts for the unfinished estates.  This work involved negotiations with financial institutions primarily along with appointed receivers and liquidators, and local resident associations within some estates. In recognition of the national issue facing the Country a number of financial backed initiatives were established by government. The Council maximised the potential of these national government supports namely the Public Safety Initiative, the Taking in Charge Initiative and Special Resolution Funds. Through this work funding in the region of €1.2m was secured which aided in addressing many of the more problematic locations.

Finally, whilst there are a number of estates that have not been taken in charge by the Council, it is incorrect to state that there remains a large number to be taken in charge and the Council has made significant inroads in taking on charge those estates that qualify.

The situation can be summarised as follows;

Total number of estates (2 or more units / includes apartments):                            227

Total number not qualifying for Taking in Charge:                                                      66

Active sites:                                                                                                                  3

National Unfinished Housing Developments register: (remaining problematic)        9

Total number currently to be considered for Taking in Charge:                                 149

Total number In Charge:                                                                                             102

Balance for Taking in Charge:                                                                                                47

Application received:                                                                                                  23

No application received:                                                                                             24"

Cllr Des Guckian advised in his opinion there is a need for a major enquiry. He added that Council officials failed to control the situation when developers from all over Ireland were undertaking developments in Leitrim. He added the Council failed to apply due diligence and should have insisted these developers had proper bonds or insurance to finish the projects. Cllr Guckian queried who is paying for the roads being taken in charge by the Council and is there a cover-up going on.

Cathaoirleach Cllr Mary Bohan stated the  language used by Cllr Guckian regarding Council officials  was inappropriate. Cllr Paddy O’Rourke advised that if Cllr Guckian worked in partnership with the Local Authority instead of looking for a scandal where there is none, he could achieve more satisfactory outcomes.

Mr Joseph Gilhooly, Director of Service advised a detailed response was provided to the motion and following the economic crisis there was an issue in relation to unfinished housing development throughout Ireland. This was not specific to Co. Leitrim. He added that an enquiry is not  considered warranted.

Mr Lar Power, Chief Executive outlined that he shared the concerns of the members regarding Cllr Guckians comments which he described as scurrilous, defamatory, unfounded and he categorically stated that Leitrim County Council would not be holding an investigation into the matter and a detailed response has been supplied to the motion.

Cathaoirleach, Cllr Mary Bohan sought a seconder to Councillor Guckian’s motion.  There was no seconder to the motion.