To:
Chief Executives, and Directors of Planning Services
Dublin and Cork City and County Councils
CC:
Senior Planners, Dublin and Cork City and County Councils
An Bord Pleanála
Circular letter PL 13 / 2015
22 December 2015
Re: Development Contribution Rebate Scheme
I am directed by Mr Alan Kelly TD, Minister for the Environment, Community and Local
Government, to advise of the launching of a new development contribution rebate scheme
which has been approved by Government as part of the recently announced housing
package “Stabilising Rents, Boosting Supply” which will apply in the Dublin and Cork local
authority areas for housing developments of 50 or more units which meet certain eligibility
criteria.
Background
A major contributing factor to the housing problems currently faced, particularly in Dublin
and Cork, is the insufficiency of housing supply and low levels of construction activity.
Action is required to increase the number of new homes under construction in both regions,
particularly in relation to affordable starter-type houses which are required below the price
levels of €300,000 (Dublin) and €250,000 (Cork) where the housing supply shortage is most
acute with demand well-outstripping supply with consequential knock-on effects for house
prices and rents.
The Government notes the analysis undertaken by the Dublin Housing Supply and
Coordination Task Force and other local authorities, which confirm the existence of a
significant number of granted permissions for residential units in Dublin and Cork, but on
which construction activity is not taking place.
Latest figures show that Dublin house completions are down 14% on 2014, and that much
of the new housing supply that is being put on the market is costing in excess of €300,000, a
price level beyond the reach of many first-time house purchasers.
Development Contribution Rebate Scheme
As indicated, the Government has decided to bring forward supply-related measures
designed to enhance the viability of construction and sale of residential housing units (for
occupation, lease or rent) in the locations of greatest need, and at affordable prices. One of
the measures in this regard is the introduction of a targeted contribution rebate scheme
which will run for 2016 and 2017 in Dublin and in Cork. This will be funded through an
Infrastructure Fund administered by the Department to meet the cost of the rebates resulting
in a cost-neutral impact for the four Dublin and two Cork planning authorities.
The scheme will be administered in the following manner:
Scheme requirements
Defined area of application
The Development Contribution Rebate Scheme applies to the metropolitan areas of Cork
City and County Councils (a map of the area covered by the scheme in Cork is attached at
Appendix A) and all of Fingal, Dun Laoghaire-Rathdown, South Dublin County Councils
and Dublin City Council. The relevant planning authorities shall be responsible for
publicising details of the Scheme in their respective functional areas.
Rebate limits
With a view to incentivising the supply of housing units at affordable prices, this rebate will
be paid in full for dwellings in the Dublin area with a confirmed sale price of up to
€275,000, with 80% payable for units with a sale price of €275,000 - €300,000. In the Cork
area, a 100% rebate will apply for dwellings with a sale price of up to €225,000, with an
80% rebate for sale prices of €225,000 - €250,000.
50+ Housing Units
The rebate will apply to developers / builders who have paid the development contributions
due under Section 48 of the Planning and Development Act 2001, as amended, and shall
relate to the submitted project plan for a site with a valid permission for at least 50 units that
meet the sale price thresholds set out above. There shall be no aggregation of unrelated
permissions to make up the 50 unit threshold, e.g. physically separate sites shall not be
aggregated for eligibility purposes.
Rebate Payment
- The rebate shall be payable in 2 tranches at the beginning of 2017 and 2018 subject to a
minimum of 50 units being sold. No interest shall be payable in relation to
contributions paid to the planning authority upon recoupment.
- The rebate will be paid solely in respect of development contributions paid to the
relevant local authority for local authority services and shall exclude contributions paid
or due to Irish Water.
Scheme Registration
- The Planning Authority shall seek expressions of interest as per the conditions/criteria
of this circular letter.
- Developer’s expression of interest, as per Appendix B, shall include a project plan for
the construction and sale of at least 50 dwelling units by 31 December 2017. Evidence
of a valid planning permission must be submitted for the site applied for. The rebate will
be paid only for those units in respect of which purchase contracts have been entered
into after 1 January 2016 and which are completed and sold after that date and before 31
December 2017 that meet the conditions below.
- The relevant Planning Authority shall draw up a register of developers intending to
complete and sell at least 50 dwelling units by 31 December 2017. For the purposes of
clarity, these developers will have a site(s) and planning permission(s), and will build at
least 50 units per permitted site which will include the Part V social housing
requirement. The rebate will apply only to the contributions paid, for example on 45
units in the case of a 50 unit scheme taking account of the Part V requirement, if the
terms and conditions of this Circular are met. The register can be added to during the
operation of the scheme, although all relevant dwelling units must be completed by end
2017. The register should include the project timescale for the delivery of at least 50
dwelling units on one site, noting the type and location of each development, a valid
permission (either commenced or un-commenced), and recording the number of
dwellings intended to be built and sold by end 2017.
Recoupment of contributions by developer and by planning authority
The developer shall provide the following information to the planning authority in relation
to all developments for which the rebate is sought:
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Details of housing units completed and sold, including evidence of completion
certificates.
The date of sale contract entered into (as evidenced by a certified copy of same),
the date of sale and the sale price of the housing units as certified by the
developer’s solicitor.
Up-to-date tax compliance of the beneficiary of the contribution rebate and / or
any intermediary acting on behalf of the beneficiary (for example Solicitors or
other legal representatives).
For clarity, there must be a confirmed sale by the developer to another entity in order to
qualify under the scheme. Following receipt of the foregoing information, the planning
authority shall satisfy itself that the sale contracts were entered into after 1 January 2016,
the dwelling units have been built and sold, and that the appropriate contributions have been
paid. The Director of Planning shall authorise the recoupment of relevant contributions to
the developer or his/her agent, as appropriate, and shall the submit a claim to the
Department. The Department shall pay to the Planning Authority those development
contributions rebates authorised as being eligible. Following receipt of the rebate, the
planning authority will reimburse the claimant developer or his/ her agent.
The Housing Inspectorate of the Department will randomly inspect individual schemes
which have been completed, ensuring that they comply with this scheme and were eligible
for the contribution rebate.
In order to monitor progress under the rebate scheme, planning authorities are requested to
submit details of the scheme uptake on a quarterly basis, commencing with effect from end
Q1 2016.
Any queries in relation to the contents of this Circular letter or the operation of this Scheme
should be addressed to Colin Ryan at [email protected] or to Colm Downey at
[email protected].
Terry Sheridan
Principal
Planning Policy
Appendix A – Map of the area covered by the scheme in Cork
Appendix B – Expressions of Interest
Notice to Builders / Developers
Expressions of interest are sought from builders / developers for the building
and sale of eligible housing units as per the conditions and criteria set out in
Circular PL 13/ 2015, Department of the Environment, Community and Local
Government.
Company Name;
Company Address;
Company Tax / VAT number
Tax Clearance Certificate
Location of Project / Scheme
Planning Permission Reference Number
Project Plan
Total number of housing units permitted under planning permission
Total number already completed
Total number already sold
Number of Eligible Units proposed to be built & sold in the period 1
January 2016 to 31 December 2017
Timescale for the commencement, completion and sale of eligible units
under the scheme