The housing department can then contact the developer, issue an invitation to preliminary discussions regarding Part V (in which the developer is not obliged to participate) and make recommendations for the design phase. If the municipality intends to use an AHB for the delivery of Part V, it is also possible for the developer to express an opinion about a potential AHB partner, but ultimately the choice is up to the local authority. This helps developers understand their obligations when designing developments. Before submitting a construction application, it is recommended that builders meet with planning and housing staff to ensure that the Part V option meets the objectives of the respective housing strategy. The Ministry of Housing, Planning, Municipality and Local Government guidelines state: “Consideration of Part V issues should begin as soon as possible.” Part V of the Planning and Development Act 2000 is a mechanism established by the government that requires local authorities to receive up to 10% of land for residential development at “existing use value” rather than “development value”. It aims to facilitate the provision of social and affordable housing. The decision as to the percentage of a building plot that should be reserved for social housing is at the discretion of the municipality. Before the 2015 law, up to 20% of land divided into zones could be acquired, but was reduced on the one hand to take into account the changing economic situation, and on the other hand to promote more construction activities by reducing costs for developers. Although relatively new to the landscape (and not without controversy), long-term leasing is an initiative that offers local authorities an alternative acquisition option and is becoming increasingly common as a means of meeting Part V commitments. The leasing model can reduce capital requirements, combine public-private risk and return, and keep housing units off the balance sheet of local authorities.
There are two rental models and, more recently, the enhanced long-term Social Housing Leasing Scheme, which works in the same way as a service level agreement, has been promoted by local authorities as a method to attract institutional investors and property managers – to generate higher gross returns on their investments while maintaining a stable restrictive covenant and management structure. Rental documents differ in detail and complexity and require a clear understanding of the model and relationships of social housing. Monitor this area in 2020 for many other enhanced rental transactions, as local authorities outsource management to specialists and investors feel more comfortable with the business model. Some social housing agencies ask developers to group social units into part of a development to avoid paying maintenance costs for an entire development. However, the councils were advised to avoid this practice. Part V of the Act allows local authorities to achieve this strategy by requiring property developers to enter into an agreement with the competent local authority on the provision of fully or partially managed housing, land or land, or an equivalent financial contribution for the purposes of social and affordable housing. It also lays down the terms of these agreements and the manner in which compensation is decided. An agreement that the proponent has entered into with the development authority pursuant to a condition of Part V is not a financial situation, even if the agreement requires the payment of funds. The condition of Part V is met when the developer enters into the agreement with the planning authority. If there is a subsequent non-compliance with the provisions of the Part V Agreement, this is a matter between the planning authority and the developer and does not constitute a violation of the condition of Part V of the building permit.
A Part V agreement is an agreement between a developer and the planning authority that defines the conditions under which the developer fulfils its obligations. Therefore, when submitting an application for construction, developers must indicate how they intend to meet these obligations. • Development of houses under a Part V agreement. The housing department within a local authority has an expanded role. After receiving a pre-planning proposal, planning departments must now notify their colleagues in the housing department to assess the relevance of the proposal to the housing strategy. Since the introduction of the Spatial Planning and Development (Amendment) Act 2002, the obligations of Part V (social/affordable housing) towards local authorities can be fulfilled in whole or in part by the payment of funds in agreement with the local authority in an appropriate case. The question arises whether, in those circumstances, Part V of the building permit must be regarded as a financial condition for the purposes of the transfer. When examining the proposal, the planning authority is required under Article 96(3)(c) to take into account its housing strategy and other matters. This will enable the housing and urban planning departments of the local authorities to conclude a common vision for the Part V units on the site in terms of housing strategy. It is taken into account: If the building permit was issued before the 1. September 2015 without a Part V agreement, the developer must subsequently meet the requirements of the 2015 Act. If a Part V agreement has been reached and no notice of commencement has been submitted, it may be renegotiated with the consent of the developer and the local authority.
www.businesspost.ie/residential/social-homes-separated-from-private-housing-in-new-apartment-developments-d77090a5 The local authority has the discretion to decide what percentage of a development should be reserved for social housing, but this is subject to a ceiling of 10% of development. Fidelma is a partner and leads Beauchamps` housing team. Fidelma has particular expertise in complex investments and is a recognized leader in the acquisition, development and management of social housing. Its activities cover all aspects of ownership transfer and cover the acquisition, structuring, financing, sale and leasing of real estate of all kinds, including residential buildings, distressed and partially completed residential buildings, shopping malls, commercial parks and offices. An agreement will be negotiated between the proponent and the local authority setting out the conditions that must be met to meet the proponent`s obligations under Part V. Negotiations can often be lengthy, and developers are advised to work with local authorities to discuss Part V options before submitting a construction application. Details of prices and units are often the subject of extensive negotiations, and some local authorities are quicker to process transactions than others. We have been involved in negotiations from 2 months to a whole year on projects of similar size. The 2015 Act also allows developers to comply with Part V through housing rental agreements, but this section of the 2015 Act has not yet begun. If a building permit was issued before September 1, 2015 and no Part V agreement (Part V agreement) has been concluded with the local authority, the developer must comply with the requirements of the 2015 Act. If a Part V agreement has already been concluded before 1 September 2015, it may be renegotiated with the agreement of the developer and the local authority (unless notice of initiation).
Construction applications must now include proponents` proposals to comply with Part V, and it is now mandatory that a Part V agreement be entered into between developers and local authorities before issuing a Notice of Commencement. The proposal does not need to be overly detailed, but must include the following: Part V obligations arise when an application for a building permit is submitted for a development of nine or more residential units or when the development is located on more than 0.1 hectares of land. Prior to the coming into force of the 2015 Act, Part V did not apply to the development of four or fewer dwellings. This threshold has been increased to nine with effect from 1 September 2015. Part V was amended by the Urban Renewal and Housing Act 2015 (Act 2015) with the aim of providing more social housing and ensuring transparency in the Part V process. .