May 2011 Resolving Ireland s Unfinished Housing Developments

Transcription

1 May 2011 Resolvig Irelad s Ufiished Housig Developmets Report of the Advisory Group o Ufiished Housig Developmets

2

3 Cotets Foreword 1 1. Cotext The Advisory Group ad its Terms of Referece 3 2. Key Fidigs The Scale of the Problem Categories of Developmet The Case for Dealig with Ufiished Developmets Site Resolutio Plas Workig Capital Securities for Completio Developmet Solutios Market Issues Detailed Recommedatios Co-operatio of Stakeholders Public Safety Residets ad Commuities Prioritisatio Site Resolutio Plas Teams ad Staff Assiged Data ad Iformatio Workig Capital, Fudig & Plaig Securities 19

4 3.9 Housig Demad, Market Cofidece ad New Approaches Legislatio, Regulatio ad Codes Compliace Moitorig Implemetatio Next Steps 24 Appedices 25 Appedix 1: Key Stakeholders 25 Appedix 2: Site Resolutio Plas 26 Appedix 3: Securities for Completio 30 Appedix 4: Developmet Solutios 33 Appedix 5: Case Study: Battery Court, Logford Tow 35 Appedix 6: Membership of the Advisory Group 36 Appedix 7: Glossary 37

5 Foreword Foreword Good quality housig is essetial to our quality of life. The ecoomic eviromet has created sigificat difficulties for may housig developmets across the coutry. Recogisig the impact those difficulties are havig o people ad families, the process of maagig ad resolvig the ufiished housig developmets is a matter of atioal importace. As the Chair of the Advisory Group o Ufiished Housig Developmets, I am pleased to preset this report to the Miister for Housig ad Plaig, Mr. Willie Perose T.D. This report is a culmiatio of five moths of dedicated work by the Advisory Group. I would like to thak members of the Advisory Group most sicerely for givig so geerously of their time ad expert kowledge ad workig together with such a great sese of co-operatio ad good itet. I hope that this report s recommedatios are acted o ad that the cosiderable spirit of partership that facilitated this work cotiues ito the work to be doe o the groud. Joh O Coor Chair of Advisory Group Report of the Advisory Group o Ufiished Housig Developmets 1

6 1. Cotext 1. Cotext The issue of ufiished dwelligs i ew housig developmets is a matter of atioal cocer ad, i some cases, has a serious impact o the residets i these developmets. To establish a proper evidece basis for actio o ufiished housig developmets, the Departmet of the Eviromet, Commuity ad Local Govermet 1 (DECLG) carried out a detailed atioal survey i Autum A total of 2,846 housig developmets were ispected i this survey ad a summary of key results are outlied below. Table 1: Key Results from the Natioal Housig Developmet Survey Summary of Key Results: 121,275 dwelligs commeced 78,195 dwelligs complete ad occupied 23,250 dwelligs complete ad vacat 9,976 dwelligs were ear complete (e.g. watertight, but require fittig out or coectio to services) 9,854 dwelligs were at early stages of costructio activity The survey results 2 foud that the overhag of ew but uoccupied dwelligs was relatively modest i the mai urbaised areas but more proouced i areas such as i the Midlads ad Border Regioal Authority areas. The survey also foud that the majority of developmets were relatively small for example 50% of the surveyed developmets cotaied less tha 30 dwelligs. 1 Previously the Departmet of the Eviromet, Heritage ad Local Govermet 2 The survey ca be foud at 2 Report of the Advisory Group o Ufiished Housig Developmets

7 1. Cotext 1.1 The Advisory Group ad its Terms of Referece Followig the completio of the atioal survey, the the Miisters for Housig ad Local Services; ad Plaig, Sustaiable Trasport ad Horticulture established a Advisory Group o Ufiished Developmets to advise the Miisters o actios to esure the effective maagemet ad resolutio of ufiished housig developmets with a particular focus o: a. idetifyig the key stakeholders 3, their respective roles ad resposibilities i the resolutio of ufiished housig developmets; b. measures to provide for the safety ad security of ufiished developmets; c. good practice approaches i the provisio of securities for the satisfactory provisio of essetial ifrastructure withi housig developmets; d. facilitatig the provisio of adequate workig capital to eable the resolutio of housig developmet sites; e. addressig buildig cotrol certificatio issues that may have arise o part costructed developmets; f. cosiderig the scope for alterative uses ad loger-term developmet solutios for completed, uoccupied developmets ad ufiished developmets; g. assistig i the process of restorig occupier ad market cofidece i the log-term future of idividual developmets ad i the overall market for developmet properties; h. fialisig a cocise Code of Practice o the above matters; ad i. cosiderig whether legislative, regulatory ad/or policy chages are warrated ad if so, what the scope of such chages should ecompass. Sice November 2010, the Group has met o a fortightly basis. A umber of sub-groups were formed to assess specific issues as set out i the terms of referece. A early output was to issue a Draft Maual o Resolvig Ufiished Developmets for public cosultatio o 1 December, This report, together with the forthcomig fialised Guidace Maual o Maagig ad Resolvig Ufiished Housig Developmets as well as a Code of Practice, will set out ways of resolvig challeges faced by these developmets. 3 See Appedix 1 Report of the Advisory Group o Ufiished Housig Developmets 3

8 2. Key Fidigs 2. Key Fidigs 2.1 The Scale of the Problem The Advisory Group s first task was to establish the scale of the problem. The atioal survey foud that there are 23,250 complete ad vacat dwelligs ad a additioal 9,976 ear complete dwelligs which are vacat. A total of 2,846 housig developmets were ispected i the atioal survey ad of these, almost 33% or 932 developmets were substatially complete ad occupied, 150 developmets are more tha 90% complete ad 109 developmets had iitiated site works but o costructio work had commeced. I additio, there is a remaiig cohort of some 1,655 ufiished developmets with more substatial costructio works outstadig. May of these developmets will be resolved through the ormal process of developers completig such developmets albeit i some cases over cosiderably loger timescales ad oversee by local authorities i their various fuctios. However, withi the 1,655 developmets metioed above, there is a further cohort of developmets, that have serious completio issues where residets are sigificatly affected. To be resolved, these developmets may require some level of itervetio by the State. A summary of the overall fidigs is illustrated below. Table 2.1: Some Details of the Natioal Housig Developmet Survey Assessmet of Developmets Ispected Number (%) of Developmets Number of developmets ispected 2,846 (100%) Developmets substatially complete 932 (33%) Developmets 90% complete 150 (5%) Developmets o costructio commeced 109 (4%) Developmets with works outstadig 1,655 (58%) Developmets that are substatially complete or that have ot advaced sigificatly i their costructio stages do ot, i geeral, preset major problems. 4 Report of the Advisory Group o Ufiished Housig Developmets

9 2. Key Fidigs However, problems ca arise with ufiished housig developmet depedig o: Whether or ot the developer is active o the relevat site ad that developer is completig ad maagig that developmet appropriately; Whether or ot a receiver has bee appoited by the fiacial istitutios ivolved for developmets i fiacial difficulties; ad The extet to which the developmet or the relevat phase of developmet has bee completed ad how ucompleted parts of the developmet are beig maaged from a public safety perspective. 2.2 Categories of Developmet The Group cosidered that ufiished housig developmets ca be broadly categorised as follows: Category 1: The developer is active ad the housig developmet is beig completed ad appropriately maaged. Category 2: A receiver has bee appoited ad the developmet is beig appropriately maaged. Category 3: The developer is i place but there is o o-site activity ad there are sigificat plaig, buildig cotrol compliace ad public safety issues to be addressed. Category 4: The developer or site ower is effectively ot cotactable ad o receiver has bee appoited ad similar problems to category 3 exist. Categories 1 ad 2 ca be resolved withi the stadard procedures that exist, by developers, fiacial istitutios ad/or receivers, ad may ivolve iteractio with local authority plaig ad buildig cotrol sectios. Categories 3 ad 4 are the oes that require a high level of itervetio to brig about some resolutio ad are of most cocer to the Advisory Group. Category 4 could be called developer abadoed developmets ad are the developmets that require the most attetio. The focus of this report ad the recommedatios are therefore primarily o the Category 3 ad Category 4 developmets 4. It is importat to ote that as sites either deteriorate or improve, they may move betwee categories. This demads costat moitorig ad effective resposes. 4 Due to their complexity ad the reportig timeframe, issues specific to ufiished apartmet developmets have ot bee addressed i this report but eed to be take ito accout i its implemetatio. Report of the Advisory Group o Ufiished Housig Developmets 5

10 2. Key Fidigs 2.3 The Case for Dealig with Ufiished Developmets The scale of the problem of ufiished developmets is clearly highlighted i the previous sectio. Some of the key issues with ufiished developmets are outlied below ad highlight the case to be made for dealig with such developmets Partership Approach with Residets May ufiished developmets are havig a serious impact o the livig eviromet of residets. These developmets also impact o the wider commuity, society ad the ecoomy. The primary objective of addressig ufiished developmets should be to address the eeds of the residets. The Advisory Group cosiders it imperative that stakeholders work together to co-ordiate their efforts to resolve problems associated with ufiished housig developmets. This ca be assisted through iformatio sharig ad cooperatio coupled with a appropriate level of flexibility. Local authorities, developers/site owers, fiacial istitutios ad approved housig bodies must esure that residets are directly ad cetrally ivolved wherever possible i resolvig these developmets. Progress ca be made where the various stakeholders work together with residets ad use their collective resources. All those ivolved should work i a co-operative ad pragmatic way Role of the Plaig System Withi the cotext of ogoig lower levels of demad for ew housig, the plaig system has a key role to play i focusig attetio o developmets that have commeced ad are i eed of resolutio. Therefore, the scale ad locatio of ufiished housig developmets ad the eed to secure their resolutio must be take ito accout i the preparatio of the relevat strategies withi both developmet plas ad local area plas. They should also be cosidered i the operatio of the developmet maagemet process by plaig authorities, icludig A Bord Pleaála Housig Demad, Market Cofidece ad New Approaches A key factor i resolvig ufiished developmets is the level of housig demad. I geeral, developmets i urba areas ca be more readily resolved while those i rural areas preset greater difficulty. Immediate actio with early examples of good practice ad commuity ivolvemet i the resolutio process is essetial i improvig market cofidece. Where appropriate, optios such as commuity ivolvemet, co-operatives ad self-build should be cosidered. I the cotext of the overall report, a umber of areas stood out as ote worthy ad are dealt with i the followig sectios. 6 Report of the Advisory Group o Ufiished Housig Developmets

11 2. Key Fidigs 2.4 Site Resolutio Plas Overview I order to decide o a appropriate way of dealig with a ufiished developmet, a prelimiary assessmet is required at the outset. From this a pla ca be determied o how to deal with the developmet ad brig about a appropriate level of resolutio. This will ot ecessarily be the full completio of the developmet but a pragmatic ad effective solutio. I particular, it is essetial that a good livig eviromet is achieved for the residets. Site Resolutio Plas (SRPs) have ad are beig prepared by developers ad receivers for may developmets. These SRPs iclude a assessmet of the developmet ad a outlie pla of actio of what eeds to be doe, ad suggested fudig proposals. The work required for developmets varies from those that require a small amout of work to a major level of itervetio ad a major level of fudig. The overall cotext, scope ad detail required i each SRP will be depedet o the categorisatio of the relevat developmet as outlied uder Sectio 2.2. It is importat that detailed SRPs are carried out for category 3 ad category 4 developmets. I the absece or failure of developers ad owers to prepare a SRP, there should be a optio ad resources for local authorities to prepare ad implemet a iitial site respose as a more straightforward ad iterim step to help idetify ad resolve critical issues. This respose will require fudig support. The SRP or iitial site respose process may show that, for relatively small expediture, the worst problems i a give developmet ca be resolved Objectives of Site Resolutio Plas The objective of the SRP is to explore every optio for the ufiished developmet i questio i order to maximise its commercial future ad, therefore, its potetial to be resolved, especially issues that affect local residets. The SRP process is desiged to complemet other processes operated by the Natioal Asset Maagemet Agecy (NAMA) ad fiacial istitutios, such as the Receivers Property Busiess Pla, by securig the possible plaig ad developmet outcomes that will maximise the value of the property, its chaces of beig resolved ad addressig issues affectig residets i the developmet. The SRP process should ideally be completed over a 8-12 week period. Report of the Advisory Group o Ufiished Housig Developmets 7

12 2. Key Fidigs SRP Stakeholders The SRP should be prepared by the developer or a receiver where oe has bee appoited with iputs as appropriate from: Ay established residets of the developmet; The local authority; ad Other iterested bodies such as ew ivestors i the project. Appedix 2 sets out some details o the process of developig SRPs ad also highlights some iterim steps that ca be put i place to address serious shorter term, maily public safety related issues, o sites pedig the preparatio of a site resolutio pla. A detailed template for SRPs is outlied i the Maual o Ufiished Housig Developmets that will be published cocurretly with this report ad is the template that should be used for the purposes of guidace o approach ad cotet Iterim Actio Pedig Preparatio of Site Resolutio Plas It ca take time for a developer or fuder to emerge who is capable of preparig ad implemetig the Site Resolutio Pla process. However, for ay residets i such developmets, problems such as deterioratig fecig aroud part costructed housig, deterioratig part fiished or ear completed housig, ioperative public lightig, rubble/debris o ope spaces ad defective water services ca seriously affect quality of life ad the log-term marketability ad resolutio of the developmet. Where there are public safety ad public health type issues that are seriously affectig residets, there may be a eed for the local authority to develop ad implemet a iitial site respose to address such problems util a developer emerges who ca prepare or implemet the site resolutio process. To that ed, the Departmet has bee closely liaisig with local authorities across the coutry, idetifyig the most problematic sites from a public safety perspective give the powers available to local authorities i relatio to dagerous places ad structures uder the 1964 (Saitary Services) Act, as well as offerig techical ad fudig support. O these most problematic sites, the iitial site respose could be a actio list of critical short term issues that local authorities would prepare ad implemet, preferably with the participatio of local residets. Ay costs icurred by local authorities i preparig ad implemetig a iitial site respose must be recouped from ay future developer or fuder of the developmet. 8 Report of the Advisory Group o Ufiished Housig Developmets

13 2. Key Fidigs 2.5 Workig Capital Overview Fudig is essetial i order to resolve ufiished developmets. The biggest issue is the availability ad provisio of adequate workig capital by fiacial istitutios. A cost beefit aalysis ad the viability of the developmet will determie the availability of workig capital. It is a stadard procedure for developers, uder the terms of plaig permissios, to be required to lodge cash or a isurace bod with plaig authorities. These provide security for the satisfactory completio of certai essetial ifrastructure ad other works such as roads ad footpaths, ameities such as ope space ad lightig ad water services. I may cases bods have bee or are i the course of beig called i by Local Authorities with a view to ecashig their value i order to realise the fudig ecessary to carry out essetial works. Practical experiece i the operatio of bods leads the Group to believe that they are actually problematic ad time cosumig to liquidate. This ca result i residets havig to edure difficult livig coditios while the local authority ad issuer of the bod work out a solutio. I geeral, i assessig the future viability of ufiished housig developmets ad apartmet blocks ad future availability of workig capital, the fiacial sector should assess such developmets o a case by case basis, based o full ecoomic isight icludig but ot limited to projected cash flows based o reasoable assumptios. All assessmets will be critically depedet o the expected commercial viability of the developmet (or part thereof) if it were fiaced to completio. All cost beefit aalysis ad projectios prepared for sites (or phases of sites) eed to clearly demostrate that requested workig capital will add ad/or preserve value, ad/or miimise potetial loss i value. Ay projectios/feasibilities prepared will have regard to existig plaig permissios, ay statutory otices issued, performace bods i place, local authority levies, isuraces, supply & demad issues ad ay other liabilities that are deemed relevat to fully assess the viability of the project/request. Attractig ad beig able to use workig capital may be amog the most challegig aspects of resolvig ufiished housig developmets. For example: How to deal with developmets where fiacial charges are i place but o receiver has bee appoited ad o actio has beig take? I cases where ufiished housig developmets fall withi NAMA s remit (i.e. owed by borrowers whose loas o those sites are acquired by NAMA), NAMA will maage such loa assets i accordace with their ow established debtor mechaism ad their statutory obligatio uder the NAMA Act. Various forms of security will eed to be examied; these would iclude bak bods, isurace bods ad cash. Report of the Advisory Group o Ufiished Housig Developmets 9

14 2. Key Fidigs Iovative solutios, such as appreticeships o-site for people i receipt of jobseekers beefit/allowace while retaiig beefits ad top-ups o their icome without losig associated beefits such as medical cards could be cosidered. This could be explored through Commuity Employmet Schemes or FÁS. A similar scheme could also be viable for people formerly i the buildig trade the optio to retur to work while retaiig beefits ad receivig a top-up o their icome. Alteratively, to facilitate appretices/people i these welfare-to-work schemes to purchase/co-ow or ret the fial product could also be explored i the cotext of addressig local authority housig lists Specific cosideratios o workig capital: The debtor s positio will be served by esurig he remais i ope commuicatio with his leder ad makig full disclosure of all relevat iformatio. A iitial assessmet will be carried out i the first istace. If this assessmet provides some idicatio of viability, the relevat parties should progress to a site resolutio pla. Where a site resolutio pla is warrated, the fiacial istitutios should, subject to ay restrictios aroud customer cofidetiality, egage ad commuicate fully with relevat parties with respect to iput to the pla. Fiacial istitutios will cosider where appropriate, ad havig regard to the cosideratios set out below, the provisio of workig capital to a party other tha the developer (e.g. to a local authority or other iovative parterships which emerge to complete developmets) Requests for workig capital Where requests for the provisio of workig capital are received by Fiacial Istitutios/NAMA, they should: Be assessed o a case by case basis, based o full ecoomic isight icludig but ot limited to projected cash flows based o reasoable assumptios. Be critically depedet o the expected commercial viability of the developmet (or part thereof) if it were fiaced to completio. Deped o the fiacial situatio of the developer ad the level of co-operatio from the developer. Cosider expected repaymet of the additioal cash required as a priority ad also the origial facility. Deped o curret ad expected value of the security ad o whether ay further security is available to secure further fiacial facilities. Be depedet o the period of time for which the credit is sought. Deped o the fiacial istitutio obtaiig pricig for risk, i.e., satisfactory margi compared to the risks ivolved. 10 Report of the Advisory Group o Ufiished Housig Developmets

15 2. Key Fidigs Ay projectios/feasibilities prepared will have regard to all Plaig Acts, all DECLG plaig Guidace documets issued, all existig plaig permissios, ay statutory otices issued, performace bods i place, local authority levies, isuraces, supply & demad issues, potetial for social beefits, ad ay other liabilities that are deemed relevat to fully assess the viability of the project/request. 2.6 Plaig Permissio Securities for Completio I plaig terms, securities for completio refers to either a cash or isurace bod lodged with a local authority. This acts as security for the satisfactory completio of a housig developmet i terms of the takig-i charge remit that may fall to the local authority i due course. Therefore, it pricipally refers to the stadard of roads, footpaths, sewers, water mais, drais, public lightig ad ope spaces. To access these fuds for buildig works would be irregular ad may require legislative alteratios. Experiece by local authorities idicates that i situatios where a receiver has bee appoited ad is ivolved i workig to resolve icomplete developmet issues the ivolvemet has proved to be cooperative ad positive. The experiece of local authorities i relatio to accessig fuds from developmet bod/security guarators appears to suggest a more difficult situatio, at least firstly requirig egagemet with legthy eforcemet processes ad the o occasios ecessitatig legal judgemet. This would imply that there is a eed for greater cooperatio ad pro-activeess by fiacial istitutios ad developers particularly i relatio to the release of workig capital to facilitate the early resolve of critical site safety, compliace obligatios ad Site Resolutio Plas. Cosideratios have bee give to a umber of alterate approaches to addressig some of the shortcomigs curretly beig experieced both i relatio to the raisig of ew ivestor developmet bods/securities, or the extesio of existig bod facilities, the latter beig cosidered a key priority i helpig esure the maiteace of proper securities agaist the developmet. The leveragig of workig capital for the purposes of udertakig appropriate ad ecessary developmet site resolutio works has also bee cosidered i this cotext. Possibilities have icluded a movemet to more cash based bod arragemets with the potetial for icremetal release criteria, as well as the potetial for local authorities to take (temporary) beeficial title or charge over specified parts of a ufiished developmet. Havig regard to the experieces of local authorities, further cosideratio is ecessary i relatio to: the stadardisatio of bod agreemet wordig ad approaches to maitaiig bods active, by extesio where ecessary; Report of the Advisory Group o Ufiished Housig Developmets 11

16 2. Key Fidigs the provisio of advice i respect of the securig of title (temporary or otherwise) over property withi a developmet, ad potetial for future exposures; the provisio of advice i respect of bod adequacy issues, ad a more cosistet charge mechaism across plaig authorities; the appropriateess of usig developmet cotributios for the completio works withi ufiished housig developmets; more timely ad active egagemet of the fiacial istitutios (as fuders or bod providers) i addressig the issues of ufiished developmets. Further details o securities for completio are set out i Appedix Developmet Solutios Alterative solutios for developmets should be cosidered i a broad cotext to iclude: proper ad sustaiable plaig ad developmet i the area existig plaig policy ad objectives existig ad likely future housig eed existig ad likely future market demad Each ufiished residetial developmets has distict characteristics, cotext ad issues. Differet resposes are required depedig o the local situatio. Each developmet will eed to be cosidered withi its ow cotext ad o its ow merits. There are a umber of site-specific coditios to be cosidered for example; the presece of a developer, the availability of fiace ad the existece of a housig eed or market demad. The optios ca be broadly categorised as follows ad are further developed i Appedix 4: Completio with revisios Cosolidatio ad sigificat revisios Cosolidatio of a elemet or phase Abadomet ad/or restoratio Alterative lad use optios Recosiderig alterative developmet types ad uses will require recosideratio of the merit of schemes i the chaged plaig ad developmet cotext. It may be ecessary for statutory plas to respod to this issue by recosideratio of existig policies, zoig ad other developmet maagemet objectives. Where appropriate, optios such as commuity ivolvemet, co-operatives ad selfbuild should be cosidered. The Irish Coucil for Social Housig ad the Natioal Associatio of Buildig Cooperatives believe that opportuities exist for the volutary ad co-operative sector to have a impact o the issue of ufiished housig housig developmets by workig i partership with local authorities to serve local social housig eed. Ay sale or trasfer to the volutary or cooperative sector, or directly to the local 12 Report of the Advisory Group o Ufiished Housig Developmets

17 2. Key Fidigs authority for social housig use, or for affordable housig, must be withi the cotext of sustaiable commuities ad mixed teure ad should be take ito cosideratio existig Part V trasfers. With regard to Part M ad the disability sectoral plas, access officers from local authorities could take the opportuity to esure that a stream of accessible housig is available to people o the social housig waitig lists i their areas, by egagig with ogoig developmet processes. This could be appropriate i terms of the forthcomig Natioal Housig Strategy for People with Disabilities. Eforcemet may be a last resort, but, i some istaces, may be ecessary particularly if it is likely to address health, safety ad basic service ifrastructure. 2.8 Market Issues The level of over-supply i the key metropolita areas is ot as extesive as might be expected as idetified i the Natioal Housig Developmet Survey. As liquidity i the bakig sector recovers ad if cosumer cofidece stabilises ad returs, the prospects for resolvig may ufiished housig developmets i the mai cities ad urba areas will probably improve over the short to medium term. However, for other ufiished developmets i areas with a weaker housig market ad proportioately higher levels of uoccupied housig, the loger term viability of such developmets i their origially approved format may be i doubt. All remedial works should be completed quickly ad trasparetly to esure cosumer cofidece is restored. Reewed ad refreshed advertisig, marketig ad use of social media, iovative projects o site 5 to ivolve ad icorporate a commuity could also assist i revitalisig cosumer iterest. The objective is to esure that cofidece ad stability are brought to bear o the market ad that the issue of oversupply i areas with weaker housig markets, or i areas that would ot be cosidered sustaiable commuity-bases, is addressed ad iovative alteratives are pursued. I this vei, the source of reewed cosumer cofidece i ew developmets may come from curret residets. However, optimism caot be eforced ad may residets may feel that they should poit out the egatives of their housig developmet to protect others from beig i the same situatio. I cosiderig this eed, commuicatio with residets is essetial if residets kow ad/or have iput i the details of plas for their housig developmet eve i the log-term, they will be a lot more positive ad willig to ecourage potetial purchasers. May of these potetial purchasers will come forward from withi the immediate commuity ad a method through which they are assisted to purchase homes i ufiished developmets could be put i place, i lie with existig regulatios ad legislatio. Report of the Advisory Group o Ufiished Housig Developmets 13

18 3. Detailed Recommedatios 3. Detailed Recommedatios 3.1 Co-operatio of Stakeholders Backgroud The Advisory Group cosiders that, above all else, it is imperative that stakeholders work together to co-ordiate their efforts to resolve problems associated with ufiished housig developmets. This will be achieved through iformatio sharig ad co-operatio, coupled with the adoptio of a problem-solvig approach. Recommedatios It is essetial that all parties work i the spirit of co-operatio to fid solutios to resolvig problems associated with ufiished housig developmets. This will require flexibility as developmets are dealt with o a case-by-case basis. Co-operatio ad ope commuicatio betwee all stakeholders is essetial To avoid delay, a formal protocol for liaiso betwee the various stakeholders developers, fiacial istitutios, residets, local authorities ad the DECLG must be put i place to facilitate the sharig of iformatio. This should be icluded i the proposed Code of Practice o ufiished developmets. 3.2 Public Safety Backgroud The Advisory Group cosiders that dealig with matters of public safety has to be a key priority. The ower/developer is primarily resposible for esurig public safety i ufiished developmets. However, where urget itervetio is required, the fudig of these ecessary public safety works i ufiished developmets requires the fiacial istitutios, local authorities ad the State to work together. Recommedatios: The first priority is to esure that ufiished housig developmets are secured to reduce the safety risks arisig to residets ad members of the public. Securig such developmets must be preceded by idetifyig the duty holder; this may be a developer or the receiver. Methods must be established to secure housig developmets where a developer has effectively abadoed the developmets ad a receiver has ot bee appoited. As a last resort, this iterim resposibility may have to be assumed by the local authority. Iitial fudig of 5 millio has bee made available by the DECLG to local authorities o a cost recovery basis to assist i their fuctios uder the public safety legislatio. 14 Report of the Advisory Group o Ufiished Housig Developmets

19 3. Detailed Recommedatios 3.3 Residets ad Commuities Backgroud Curret residets have bee amog the idividuals most impacted by ufiished housig developmets ad must be prioritised i ay resolutio. Developmets of particular cocer are those with a low level of occupied housig ad those which were ot satisfactorily completed. A level of realism is eeded o all sides ad it is importat to maage expectatios while esurig that residets are provided with a good livig eviromet. Recommedatios Ufiished housig developmets with established residets must be prioritised for actio over ufiished but uoccupied developmets Local authorities, developers ad site owers, icludig fiacial istitutios must esure that residets are directly ad cetrally ivolved, where possible, i resolvig ufiished housig developmets. This should take place withi the site resolutio pla process ad through public participatio measures geerally A iformatio guide to support residets of ufiished housig developmets should be developed. This guide could iclude, for example; iformatio o rights; etitlemets; methods of resolvig issues; workig with maagemet compaies; ad how to access commuity developmet fudig etc Residets should be kept iformed o progress i tacklig the ufiished developmets City ad Couty Developmet Boards should explore with each local authority, potetial roles for the relevat local commuity forum, the evirometal sector ad the local ad commuity developmet compay (L&CDC). This should eable commuity ivolvemet i idetifyig solutios o specific sites ad as part of the site resolutio pla process. Such local ivolvemet i the site resolutio pla process could iclude commuityled physical works, assistace i securig vacat premises for commuity developmet fuctios ad, subject to the availability of fudig, could be delivered through commuity ad employmet schemes. Report of the Advisory Group o Ufiished Housig Developmets 15

20 3. Detailed Recommedatios 3.4 Prioritisatio Backgroud It is the view of the Advisory Group that ufiished developmets will eed to be assessed ad raked for priority attetio. Resources ca be utilised to effect i this way for all the orgaisatios ivolved. Recommedatios Each Couty ad City Coucil should prepare a graded ad prioritised list of ufiished housig developmets i its area. This list should particularly focus o the more problematic developmets. I settig priorities particular attetio should be paid to developmets with established residets where there are part-built uits, outstadig draiage or sewage issues or other issues of immediate cocer As well as prioritisatio of developmets there also eeds to be a prioritisatio of critical issues that eed to be resolved withi developmets. These iclude serious deficiecies i relatio to public safety, public lightig, water supply, ad foul draiage Actios eed to be take to esure the completio ad occupatio of developmets over a reasoable time frame to prevet them from fallig ito disrepair ad eglect. 3.5 Site Resolutio Plas Backgroud The Advisory Group emphasise the importace of takig a plaed approach to addressig the issues. Where actios are required, these should be idetified ad prioritised i a site resolutio pla. The level of respose will deped largely o the availability of fudig, but priority actios should be udertake where possible. Recommedatios A assessmet, suggested actios ad fudig proposals for each ufiished developmet should be prepared. Plas for the more problematic developmets should be agreed by December Site Resolutios Plas should ideally be prepared by developers or receivers. Where the ecessary expertise is required, professioal support may be egaged i the preparatio of the SRPs For may developmets, i particular where a developmet is ot active ad has serious issues, the local authority may have to udertake a iitial site respose icludig assessmet of the developmet ad cosideratio of optios for resolutio. The costs associated with implemetig this respose would eed to be itemised ad assiged betwee the relevat parties. 16 Report of the Advisory Group o Ufiished Housig Developmets

21 3. Detailed Recommedatios I decidig o a pla of actio, it is essetial that the various stakeholders work together ad take a pragmatic ad flexible approach to arrivig at solutios A stadardised SRP template should be draw up. The key elemets of SRPs are summarised i Appedix 2. A detailed approach to SRPs will be set out i the Guidace Maual. (a) (b) (c) The first duty is to establish owership, security ad isurace ad from there, what has bee doe ad what eeds to be doe. This process should take ito accout available fiace, local housig demad, fuder ad commuity aims. Commuicatio ad trasparecy aroud SRPs may act to ecourage cosumer cofidece Similarly, a template for the local authorities iitial site respose should be prepared ad made available to local authorities I cases where ufiished housig developmets fall withi NAMA s remit (i.e. owed by borrowers whose loas o those sites are acquired by NAMA), NAMA will maage such loa assets i accordace with its debtor mechaism ad statutory obligatios uder the NAMA Act. Note: The cofidetiality of commercially sesitive iformatio o the bak/borrower relatioship, ad data protectio, must be respected i the Site Resolutio Pla ad i all relevat commuicatios ad documets. 3.6 Teams ad Staff Assiged Backgroud The Advisory Group cosiders it essetial that the orgaisatios ivolved desigate specific staff to deal with ufiished developmets. Desigated staff (ad teams where appropriate) should be assiged by local authorities, approved housig bodies, fiacial istitutios, NAMA ad the Costructio Idustry Federatio / developer i order to facilitate co-operatio, decisio-makig ad iformatio sharig. A appropriate level of co-operatio is achievable while adherig to matters of cofidetiality. Report of the Advisory Group o Ufiished Housig Developmets 17

22 3. Detailed Recommedatios Recommedatios Resolutio of ufiished housig developmet issues requires atioal ad local co-ordiatio Local authorities should establish dedicated ufiished housig developmet teams, staffed by approximately 3 people, well-iformed i this area, for a 2-3 year period. However, the umber of staff ad time required is depedet o the size of the local authority ad o the umber of ufiished developmets i their area. (a) (b) The duty of these teams is to, as required; idetify developmets i eed of attetio i their area ad prepare a register, facilitate dialogue, carry out ispectios ad be a oe-stop iformatio team for all iterested stakeholders. Ideally, a shared services arragemet to streamlie ispectios should be implemeted, where feasible. The local authority team should be led by a seior official experieced i dealig with the relevat issues ad who would be resposible for reportig o progress made to the DECLG. The official should be able to call o techical support from the DECLG regioal housig ispectorate to assist i its work as regards profilig ad tacklig ufiished housig developmets The Costructio Idustry Federatio ad/or idividual developers as appropriate, should desigate staff to provide a level of co-ordiatio betwee developers ad liaise with local authorities ad fiacial istitutios Each fiacial istitutio should establish a cetral cotact poit ad teams as appropriate that would co-ordiate ad liaise with stakeholders, i particular, the local authorities ad their correspodig teams. NAMA should also omiate a represetative to liaise with the stakeholders Fiacial istitutios should operate o the basis of disclosure of all relevat iformatio to the local authorities regardig the viability or otherwise of ufiished housig developmets, subject to the provisios of the relevat data protectio legislatio. 18 Report of the Advisory Group o Ufiished Housig Developmets

23 3. Detailed Recommedatios 3.7 Data ad Iformatio Backgroud The Natioal Housig Developmet Survey has provided a excellet baselie from which the atioal, regioal ad local authorities ca move forward workig with private sector parters ad commuities. Recommedatios It is essetial that accurate data is collected ad updated regularly so decisios ca be made o a evidece-base. This evidece base is a valuable tool for strategic plaig ad egagemet ad must be maitaied ad updated to esure that reliable iformatio is available. 3.8 Workig Capital, Fudig & Plaig Securities Backgroud Fudig is essetial i order to resolve ufiished developmets. The biggest issue is the availability ad provisio of adequate workig capital by fiacial istitutios. A cost beefit aalysis ad the viability of the developmet will determie the availability of workig capital. Whilst the use of fiacial securities/bods may give some fiacial assistace to local authorities i resolvig issues i certai developmets, it is cosidered by the Group to be iadequate i most cases. Both a partership approach ad a mechaism to provide fiacial assistace to local authorities are critical if they are to play their full part i the resolutio process. Recommedatios Resources from fiacial istitutios ad the cetral exchequer will have to play a sigificat role i the process of resolutio. I some istaces local authorities may be able to utilise developmet completio bods ad securities provided o foot of coditios o plaig permissios Adequate support ad fudig for local authorities is recommeded i order for them to itervee effectively, where this becomes ecessary. It is specifically recommeded that rig-feced State fudig ad resources (o a recoupable basis) are ecessary to support local authorities i carryig out assessmets ad iterveig where those with the primary resposibility for developmets have failed to act The assigmet of costs betwee the various parties, developers, fiacial istitutios, receivers ad local authorities eeds to be addressed. Compesatio of local authorities by those with primary resposibility for the cost of ay site remediatio measures that they icur as part of their statutory fuctios must be addressed i particular The sequesterig of developmet completio bods ad securities should be examied. Report of the Advisory Group o Ufiished Housig Developmets 19

24 3. Detailed Recommedatios The DECLG together with local authorities, developers, fiacial istitutios ad isurace compaies should coduct a review of the performace of plaig securities ad develop improved ad more stadardised approaches to plaig securities ad their applicatio i lie with the fidigs outlied i this report. 3.9 Housig Demad, Market Cofidece ad New Approaches Backgroud A key factor i resolvig ufiished developmets is the level of housig demad. Developmets i urba areas where there is a uderlyig eed ad demad for housig ca be more readily resolved. The greatest difficulty will be addressig ad resolvig developmets i rural, low demad areas. Immediate ad prioritised actio to deal with the most problematic developmets coupled with the emergece of may good practice examples ad proper commuity ivolvemet i the resolutio process is essetial i improvig market cofidece. The Advisory Group cosiders that iovative approaches are required to resolve problems associated with a umber of the ufiished housig developmets. I the first istace a developmet has to be assessed ad the optios for its resolutio cosidered. This may be the completio ad fiishig off of the curret phase of the developmet. Aother optio may be to complete ad cosolidate the developmet. For developmets where owership has bee reliquished ad there is housig to be completed, optios such as equity parterships, self-build ad cooperatives should be cosidered. Recommedatios Whe owership has bee established ad where there is agreemet betwee the parties, there are a rage of optios available to both the private ad public sector. It is recommeded that optios such as utilisig housig stock for low-cost sale, social housig ad co-operative housig i lie with existig local coditios should be cosidered DECLG should facilitate local authorities, actig i their housig, plaig ad commuity developmet capacities i idetifyig alterative housig models for uoccupied housig. The optios iclude leasig ad/or purchase of housig, or supportig commuity-led iitiatives to use vacat property for commuity developmet purposes. These optios should be locatiospecific solutios ad ameable to residets of the local commuity. This work ca be assisted by approved housig bodies through their represetative bodies: The Irish Coucil for Social Housig (ICSH) ad The Natioal Associatio of Buildig Co-Operatives (NABCo) The methods for trasferrig housig to local authorities or groups such as approved housig bodies are already well-established. Alterative optios such as Equity Parterships ad self-build should be examied, such as those already idetified i the UK. For example, the self build model could 20 Report of the Advisory Group o Ufiished Housig Developmets

25 3. Detailed Recommedatios be used i developmets where the existig ower wishes to cosider the optio to sell a partially built property to a idividual o a phased basis whereby they would take full owership upo completio to a agreed stadard. The idividual would udertake to complete the uit him/herself, havig purchased for a below market value Legislatio, Regulatio ad Codes Backgroud The Advisory Group cosidered whether legislative chage is ecessary to address the issues with ufiished housig developmets. Due to the urgecy of resolvig developmets, the Group is of the view that co-operatio betwee the parties as set out i a earlier sectio is the most importat issue. However, it is cosidered that some amedmet to existig legislatio is eeded to properly effect completio of some ufiished developmets. Recommedatios The updated Guidace Maual o Maagig ad Resolvig Ufiished Housig Developmets will be published cocurretly with this report The associated volutary Code of Practice should be published by May, Previous plaig guidace from the DECLG should be restated with regard to the measures eeded to esure that housig developmets are developed i a phased ad sequetial maer, govered by the lodgemet of appropriate securities for the satisfactory completio of essetial public ifrastructure ad ameities i each phase of housig developmets Existig legislatio should be reviewed ad ameded where appropriate to esure that there are adequate measures available to address ufiished developmets. This legislatio icludes: Plaig & Developmet Act Derelict Sites Act 1990 ad the Litter Act Local Govermet (Saitary Services) Act 1964 Water Pollutio Acts 1977 ad 1990 Buildig Cotrol Acts Alteratively, oe Act to cosolidate legislatio with regard to ufiished developmets with a pre-determied lifespa of operatio should be cosidered. However, the timig of other actios arisig from this report should ot be cotiget o this beig developed Amedmets to Plaig ad Developmet Acts should be cosidered to facilitate mior works ad chages to ufiished housig developmets without havig to go through the whole plaig process The Derelict Sites Act 1990 should be ameded so that it is applicable ad effective i dealig with ufiished housig developmets. This would be required i a limited umber of cases. Report of the Advisory Group o Ufiished Housig Developmets 21

26 3. Detailed Recommedatios The Water Services Act should be ameded to esure that water services authorities ca eter oto housig developmets that have ot bee take i charge to affect emergecy repairs to water mais ad distributio systems or to take such steps as are ecessary to stem serious water leakage Cosideratio will eed to be give to legislative amedmets to address the chargig of costs that are icurred by local authorities i attedig to emergecy remedial works i ufiished developmets Takig i Charge stadards for ufiished developmets should be reviewed havig due regard to the viability of facilitatig miimum works to improve the stadard of livig withi such developmets Plaig securities for completio of a developmet icludig services i a developmet ca be by meas of a charge over assets withi the developmet. Whether this charge ca be a primary charge over the asset will deped o the coset of the existig primary charge holder ad should ot be ureasoably withheld Compliace Backgroud Compliace with plaig ad buildig stadards is essetial. However, where uits are partially built, questios regardig whether such uits eed to be upgraded to the latest compliace stadards, or whether they ca be completed to the stadards at the time of permissio beig grated should be clarified. The issue above will also require legislative attetio to esure that there is o cotravetio of competitio laws ad that appropriate stadards are achieved. If the above level of flexibility is feasible, it should oly be a optio o the most affected developmets. Compliace esures a certai progressive stadard for cosumers, ad too much flexibility could serve to further damage the housig market i affected developmets. Recommedatios Where housig developmets have bee partly completed ad are likely to be recofigured as part of the Site Resolutio Pla process, plaig authorities ad developers should take accout of the future viability of developmets ad the chaged plaig, housig ad developmet cotext i agreeig ew arragemets to meet Plaig ad Developmet Act/ Part V cosideratios DECLG together with local authorities should prepare ad adopt ew atioal takig i charge stadards to expedite ad streamlie the takig i charge process ad applicatio of cosistet completio stadards. 22 Report of the Advisory Group o Ufiished Housig Developmets

27 3. Detailed Recommedatios Buildig regulatios ad compliace may require revisitig by the atioal co-ordiatio committee i co-operatio with the buildig stadards compliace review group. If a ufiished developmet is part-built ad alteratios to codes ad compliace have occurred i the iterim period, certai decisios will eed to be made aroud this. Flexibility may be recommeded, but ot to the detrimet of the locality or coflict with competitio law DECLG should provide expert assistace as required to local authorities to provide advice regardig solutios to buildig cotrol compliace The curret review of the buildig cotrol system by the DECLG should cosider this report i makig ay recommedatios Moitorig Implemetatio Backgroud The Advisory Group cosider that the moitorig of works carried out to resolve developmets is essetial. A umber of pilot projects should be idetified ad used to lear lessos, which ca help i addressig other developmets that require itervetio. The moitorig of these pilot projects will primarily be about evaluatio ad to esure that resolutio plas are beig put ito actio o the groud i a timely maer. Recommedatios I lie with recommedatio 3.6.1, a Natioal Co-ordiatio Committee should be established by the DECLG, to oversee that appropriate levels of stakeholder egagemet, moitorig, ispectio ad evaluatio are beig carried out ad esurig that ufiished developmets are beig addressed ad resolved. Report of the Advisory Group o Ufiished Housig Developmets 23