Ó An Roinn Tithíochta, Rialtais Áitúil agus Oidhreachta
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Teanga: Níl leagan Gaeilge den mhír seo ar fáil.
The Minister for Housing, Local Government and Heritage, Darragh O’Brien TD, has today received government approval for the priority drafting of the Apartment and Duplex Defects Remediation Bill 2024.
The Bill will support the remediation of apartments and duplexes with relevant fire safety, structural safety and water ingress defects, constructed between 1991 and 2013. Under the proposed legislation 100% of eligible remediation costs will be covered.
The legislation will provide a statutory basis for the establishment of a more than €2 billion remediation scheme aimed at protecting the safety and welfare of those living in apartments or duplexes with such defects that occurred during construction.
Speaking following the cabinet meeting, Minister O’Brien said:
“I’m delighted to get Cabinet approval which means my Department will now draft the necessary legislation as a matter of priority.
“I am very aware of the stress and concern that many owners of apartments and duplexes are facing as a result of legacy defects. Having engaged with many owners I know the financial and personal strain this is putting on their lives and I am glad we are moving forward with this next step.”
Progressing this legislation is an important milestone. It will complement the interim measures that the Government has already put in place since December last year to fund relevant emergency fire safety defect works, in order to provide an acceptable level of fire safety in buildings, pending completion of the full remedial works under a statutory scheme.
The Housing Agency will play a central role in the administration of the scheme and they will ensure that Owners’ Management Companies (OMCs) are funded to carry out the relevant remediation works, with specific limitations or exemptions on certain commercial owners.
Minister O’Brien added:
“While this legislation is being progressed I want to remind owners that the Interim Remediation Scheme for emergency fire safety works remains open and I want to thank the Housing Agency for their work with this scheme and guiding developments through the process.
“I also want to thank the representative groups, the Apartment Owners Network, the Construction Defects Alliance and the Not Our Fault Campaign for their ongoing engagement.”
Mindful of the need to ensure that measures and systems are improved, aligned and in place so as to ensure that a situation like this does not and cannot occur again the Minister concluded:
"We need to continue strengthening our building control system so that similar issues don’t arise in the future. Legislation to establish a new Building Standards Regulatory Authority is under way and will ensure effective powers of inspection and enforcement and an appropriate suite of sanctions."
ENDS
The scale of defects in apartments and duplexes is significant. The Working Group to Examine Defects in Housing that reported to Minister O’Brien in July 2022, estimated that between 50% and 80% of apartments and duplexes (or associated common areas) constructed between 1991 and 2013, may be affected by one or more fire safety, structural safety or water ingress defects. This equates to between 62,500 and 100,000 apartments/duplexes.
The average cost of remediation is approximately €25,000 per unit, which means the scheme could have a potential cost to the Exchequer of between €1.5 billion and €2.5 billion.
Only defects that are attributable to defective design, defective or faulty workmanship, defective materials (or any combination of these) and were in contravention of the relevant Parts of the Building Regulations applicable at the time of construction will be eligible for inclusion in the scheme. Any defects that originate from inadequate maintenance, poor management etc., will not be included within the scope of the scheme.
The scheme will support the remediation of relevant defects, where practicable, to the standard that applied at the time of their original construction. Where this is not practicable, alternative approaches and options will be considered that provide a reasonable level of life safety protection.
The relevant owner will be required to demonstrate that a procurement process has been undertaken that has resulted in the most economically advantageous tender being selected for all eligible remediation works. Where it is considered that value for money is not being achieved for the proposed remedial works, the relevant owner may be directed to re-engage with the market and/or extend the procurement process.
The interim remediation scheme launched in December 2023. To 31 August 2024, 171 applications have been validated by the Housing Agency, across 27 local authority areas, representing a total of 17,206 residential units. 78% of residential units are located in the Dublin region.
The Government has approved the principle of allowing remediation costs already incurred or levied to be covered under the statutory scheme once such costs fall within the scope and defined parameters of the scheme. The details and mechanics of this will be worked out as the legislation is drafted.