Minister Murphy publishes Quarter 4 2017 Social Housing Construction Status Report and Social Housing Delivery Targets for Local Authorities 2018-2021
From Department of Housing, Local Government and Heritage
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From Department of Housing, Local Government and Heritage
Published on
Last updated on
Minister Eoghan Murphy, T.D., Minister for Housing, Planning and Local Government today published the Quarter 4 2017 Social Housing Construction Projects Status Report, which sets out the significant progress made to date in advancing the construction pipeline, as well as social housing delivery targets for local authorities for 2018-2021.
The significant expansion of the social housing build programme is evident in the Q4 2017 Construction Status report which the Minister published today. At end-2017, 2,512 homes were completed, 3,650 were under construction and 1,912 further homes were about to go on site, with the remainder progressing through the various stages of planning, design and procurement. The programme includes 850 schemes (or phases) at the end of last year, delivering over 13,400 homes – a very substantial increase on the 8,430 homes in the programme a year earlier.
Minister Murphy stated:
“The building of new social housing homes by local authorities and approved housing bodies is ramping up dramatically as we can see in this construction report. These numbers don’t include new builds under Part V, voids, acquisitions or long term leases so the actual stock of new social housing coming on stream is even greater than this”.
A summary of the Q4 2017 Construction Status report is attached at Appendix 1.
In the latter part of 2017, Minister Murphy secured significant additional funding to increase the overall level of ambition under Rebuilding Ireland in the period to 2021, and also signalled a rebalancing of the strands of delivery towards construction projects. Overall, the Government has now committed €6 billion to support the accelerated delivery of 50,000 additional social housing homes by end 2021, through build (33,500), acquisition (6,500) and leasing (10,000) programmes.
One of the key outcomes of the second Housing Summit with local authority Chief Executives held earlier this year was a commitment to drive greater transparency and accountability at individual local authority level on the delivery of the targets under Rebuilding Ireland. On foot of a detailed process of engagement since then between the Minister’s Department and individual local authorities, the Minister has now advised all local authorities of their minimum Social Housing Targets both for 2018 and also for the multi-annual period to 2021 (see Appendix 2). “Under the targets I have announced today, a minimum of 40,700 homes will be delivered during the 4 year period to end-2021, including over 7,800 this year alone. Taking account of the progress already made in 2016 and 2017, this will ensure that the 50,000 target will be met, signalling this Government’s unwavering commitment to a significantly expanded social housing programme”, the Minister commented. In addition, the Housing Assistance Payment and Rental Accommodation Schemes will continue to play an important part in meeting social housing needs; some 18,000 households targeted for support under these schemes in 2018.
TABLE 1 | Q4 of 2016 | Q1 of 2017 | Q2 of 2017 | Q3 of 2017 | Q4 of 2017 |
Approval Status |Schemes* |Homes |Schemes* |Homes |Schemes* |Homes |Schemes* |Homes |Schemes* |Homes |
Stage 1 - Capital Appraisal | 165 | 2,687 | 155 | 2,555 | 180 | 2,804 | 165 | 2,847 | 156 | 2,946 |
Stage 2 - Pre-Planning | 93 | 1,279 | 104 | 1,675 | 104 | 1,512 | 119 | 1,658 | 124 | 1,715 |
Stage 3 - Pre-Tender design | 32 | 490 | 52 | 539 | 49 | 649 | 58 | 729 | 60 | 613 |
Stage 4 - Tender Report or Final Turnkey/CALF approval | 63 | 1,493 | 82 | 2,069 | 92 | 2,267 | 92 | 1,939 | 93 | 1,912 |
Site Start | 90 | 1,829 | 130 | 2,378 | 162 | 2,711 | 191 | 3,660 | 190 | 3,646 |
Site Finish | 61 | 652 | 84 | 856 | 110 | 1,106 | 147 | 1,460 | 223 | 2,592 |
Totals | 504 | 8,430 | 607 | 10,072 | 697 | 11,049 | 772 | 12,293 | 846 | 13,424 |
*Some schemes are being delivered in phases and this is reflected in the numbers in the table
Oifig an Aire
Office of the Minister
The first quarter of 2018 is now behind us and I know that you and your teams are working very hard to accelerate and drive social housing provision in your local authority areas. It is critical that this work continues and indeed intensifies over the coming months and you can be assured that I and my Department will continue to be here to support you deliver much needed homes in your local area, in whatever way we can.
One of the key outcomes of the second Housing Summit, held earlier this year, was a commitment to drive greater transparency and accountability at individual local authority level on the delivery of the targets under Rebuilding Ireland. I called upon each local authority to provide a detailed delivery report, which would be used to assess prospective delivery in 2018 and also across the period out to 2021. This also represented an important opportunity to demonstrate the strong delivery to date and enhanced capacity building in each local authority and so, in publishing delivery and targets for the years ahead, we will be able to highlight ambition, commitment and progress.
I wish to thank you for the detailed report provided, which has now been fully assessed by my Department and account has also been taken of the work of the Housing Delivery Office, led by Minister Damien English who have been actively visiting and working intensively with each of you over the past 3 months. On foot of this extensive work, today I am publishing detailed minimum social housing targets for each local authority and the details in respect of your local authority area are reflected in Appendix A.
Later this month, I intend to commence key provisions of the Housing (Miscellaneous Provisions) Act 2009 relating to the establishment of the terms of a new affordable housing scheme, including the scheme of priorities and assessment criteria for eligible applicants, and will also be setting out targets for the delivery of affordable homes for purchase or cost rental to be delivered primarily on local authority lands under the new scheme.
National Targets under Rebuilding Ireland
As you are aware, across the period 2016-2021, the published national delivery target under Rebuilding Ireland is 50,000 additional social housing homes. Of the 50,000, 33,500 (67%) will be built, 6,500 (13%) will be acquired and 10,000 (20%) will be leased properties.
In 2018, the published national delivery target under Rebuilding Ireland is 7,869 additional social homes. This, of course, is in addition to the housing solutions that will be delivered under the Housing Assistance Payment Scheme and Rental Accommodation Scheme. The 7,869 includes 4,969 homes that will be built, 900 acquired and 2,000 leased properties. Of the build target of 4,969, some 3,819 homes are profiled to come from local authority and approved housing body build programmes, with the balance to come from Part V and Voids.
Local Authority Targets under Rebuilding Ireland
In January, I wrote to you outlining targets across the period 2018-2021 and also an indicative target for 2018. With 2016 & 2017 now behind us, targets for 2018-2021 have become the primary focus and I am now providing each local authority with a 2018-2021 target, that is reflective of the annualised national target for those delivery years under Rebuilding Ireland.
Following analysis and assessment of the information provided by local authorities, it is recognised that the delivery trajectory for individual local authorities may arise in a different blend than the national targeted blend year-on-year and some re-calibration of targets will be required on an ongoing basis to reflect and accommodate this. However, over the period of Rebuilding Ireland it is expected that local authorities will focus their delivery streams, in line with the ratios indicated. This is particularly important in relation to build activity and we need to see all channels of potential delivery under this category harnessed and accelerated. After the September 2017 Housing Summit, I indicated a very clear shift from acquisitions to build, recognising the absolute need to generate additional “new build” housing stock.
The reports provided by each local authority have informed calibration of the national delivery target of 7,869 homes into individual local authority targets, separated into build, acquisition and leasing. The results of this calibration against existing pipelines, will result in a revised 2018 target for some local authorities than the indicative target already provided.
This does not affect the overall local authority target across the period 2018-2021, which is based on the portion of the national Summary of Social Housing Assessments (SSHA) appropriate to your local authority. A further annual target setting process will take place early each year, assessing delivery to date, with pipeline activity and national targets.
Splitting of the Targets into delivery streams
Rebuilding Ireland is modelled and costed on a blend of delivery across various delivery streams. It is critical that the targets set reflect the need to deliver using all of these streams.
Build
The build target reflects the existing delivery pipeline indicated by local authorities, validated against Departmental records and Housing Delivery Office feedback and balanced against the national ambition for accelerated build. Build targets include delivery under the various local authority and approved housing body build schemes, in addition to Part V and Voids. New build programmes are now coming through in much greater numbers, in addition to a substantial increase Part V properties arising from increased activity in the private construction market. Given the progress made over the last few years, the number of Voids to be delivered each year is reducing and my Department will continue to work with local authorities in respect of transitioning to a planned maintenance programme.
Leasing
A range of housing options are necessary to ensure a supply of accommodation to meet different types of social housing need. Harnessing the off-balance sheet potential of private investment in social housing is an important objective of the Government. While it is acknowledged that pipeline visibility is restricted by the shorter lead in times for leased units, the templates included a section for prospective leasing opportunities. Leasing output across local authorities has exceeded annual targets for the last number of years. This is a strong indication of the potential that exists but having regard to the significant increase in the leasing targets for 2018, I am asking all local authorities to carefully re-assess their delivery ambition under this very important delivery stream.
Leased properties can be sourced from a range of different sources, using varying delivery streams, and have the potential to provide faster and more flexible delivery than traditional delivery methods. In order to further support local authorities in delivering on this potential the Department, together with the Housing Agency, recently completed the first Call for Proposals under the new Enhanced Leasing Scheme which will deliver leased properties at scale, on a long term basis. In addition, local authorities will be aware of further opportunities to engage with investors who are in a position to deliver multiple properties under standard long term lease arrangements and the Housing Agency is available to co-ordinate and assist local authorities in developing these opportunities. Leasing targets have been set in line with national targets and both my Department and the Housing Agency will support local authorities to maximise this delivery stream.
Acquisition
As indicated above, the shift in focus from acquisition to build delivery is intended to accelerate in 2018. Accordingly, acquisition targets reflect this national position. This target also includes the pipeline of Housing Agency acquisitions, which will be delivered under the CALF scheme in 2018. While lower in comparison to acquisition outputs in previous years, the acquisition target is not to be seen as a limit. The ultimate objective is to deliver the maximum number of appropriate units for social housing. Where is it more feasible from a value, or market availability perspective, to deliver a higher number of acquisitions than targeted, and where other delivery streams are not available in 2018, local authorities should engage with the Department as early as possible.
In addition, harnessing the capacity of vacant properties for social housing remains a key priority. Where acquisition is the most suitable delivery mechanism, the Department will support local authorities in this regard;, however, the possibilities under long-term leasing, the Repair and Leasing Scheme and the Buy & Renew Scheme should also be considered by local authorities when reviewing options for vacant properties in their areas.
Approved Housing Bodies
Over the lifetime of Rebuilding Ireland, approximately one third of delivery is to be secured through AHBs. Partnerships between AHBs and local authorities have been delivering well over the first 2 years of Rebuilding Ireland.
Local authorities should continue to engage with AHBs to harness their expertise, capacity and the availability of private finance arrangements to support them in delivering, on a part of each local authority’s targets. In particular, local authorities must consider AHB collaboration on local authority sites, Part V acquisitions and the potential for long-term leasing of newly built units from developers.
Keeping projects on track
As the programmes across all delivery streams intensify, I am requesting that as Chief Executive, you ensure that your local authority has appropriate oversight and project management systems in place to keep projects on track. It is absolutely critical that the delivery pipeline that is in place for 2018, is delivered in 2018. Delivery teams in my Department, including the Housing Delivery Office, will work in partnership with local authorities to assist with accelerated delivery, and to source and drive additional opportunities where appropriate. The new timelines recently agreed with the CCMA on construction project advancement are critical. They set out the time for each stage of the project and thereby, are a key project management tool and I ask that your local authority works to these timelines on each individual project. Equally my Department is obliged to work within those timelines in relation to stage approvals and I will monitor this aspect.
Publication of progress against targets
I have committed to greater levels of transparency in terms of delivery across each local authority area. The targets for each local authority are now being published on the Rebuilding Ireland website. Delivery against the targets will be mapped on a quarterly and annual basis and published in tandem with the Construction Status Report.
As I indicated previously, there can be no impediments or barriers to delivery, whether it be social or affordable homes. With our streamlined approval processes, the range of new schemes introduced to support delivery, the additional staffing and enhanced professional fee structure and with capital and current funding of over €6 billion ring-fenced under Rebuilding Ireland, I know we can accelerate the delivery of quality homes speedily for citizens. Indeed, with renewed commitment and urgency on all our parts, I am confident that 2018 will be a year of great progress and delivery.
Finally, I would be grateful if you could provide a copy of this letter to elected members. If you have any queries, please contact Marguerite Ryan at my Department at 053-9117480 or alternatively by email at marguerite.ryan@housing.gov.ie
Yours sincerely,
Eoghan Murphy, TD,
Minister for Housing, Planning and Local Government
18 April 2018